News Broadcasting
MSOs brought under service tax net
NEW DELHI: Multi System Operators have one more issue to add to their “litany of woes”. The government has brought under the expanded tax ambit, MSOs as well.
In the budgetary proposals of finance minister P Chidambaram, which increased service tax from 8 per cent to 10 per cent, it has been specifically explained that cable operator service will include MSOs.
A Delhi-based representative of a MSO said, “We are already under so much financial pressure and now this added taxation, if true, would only add to our burden.”
CONFUSION OVER CABLE OPERATORS : The Budget papers add — in a confusing way, though — that service tax exemption that had been granted earlier has been withdrawn on “broadcasting service provided by cable operators.”
What adds to the whole confusion is the fact that cable operators say they have been paying service tax of eight per cent for the last two years and that the finance ministry has goofed up by mentioning them.
According to Vikky Chowdhry, president of National Cable & Telecom Association and an independent cable operator in Delhi, “The cable ops have been paying service tax since August 2001 and so withdrawing of the exemption does not make any sense.”
More importantly, Chowdhry pointed out, that with the sector regulator-mandated freeze on cable service prices still continuing, it would be very difficult for cable ops to absorb the increased percentage of service tax.
“The consumer would yell if we try to pass on the increase to him, which would be difficult in the first place, and it would be hard for us to absorb the cost. We have been caught between the deep sea and the devil.”
The confusion has arisen as the then FM had put in abeyance inclusion of cable ops in the service tax net in 2001. Subsequently another notification had been issued in this regard to incorporate the cable ops, according to Chowdhry, and the presdent mandarins in the finance ministry goofed after, may be, reading some old government note.
Even if cable operators’ side of the story is taken with a pinch of salt, the government has not made it clear whether the `broadcasting service by cable ops’ means re-transmission of TV channels or the video channels that cable operators show to air movies, news-based programming and, sometimes, even live local events like Ramleelas.
Attempts made by indiantelevision.com to get a clarification on this from finance ministry officials drew a blank.
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
