News Broadcasting
Network18 reports Q2 FY25 loss amidst amalgamation challenges
Mumbai: Network18 Media & Investments Ltd. unveiled its unaudited financial results for Q2 FY25, ending 30 September 2024, demonstrating the challenges of restructuring amidst an evolving media landscape. Despite achieving revenue growth, the company continues to grapple with profitability issues, exacerbated by higher operational costs and finance expenses.
The media conglomerate, which operates major brands like Viacom18 and Moneycontrol, reported a consolidated loss of Rs 15,231 lakh for the quarter, a slight improvement from a Rs 19,536 lakh loss in the previous quarter. Revenues from operations rose to Rs 1,82,518 lakh, marking an 8.7 per cent year-over-year increase compared to Rs 1,68,050 lakh in Q2 FY24. The improvement in top-line growth was driven by higher sales and services, reflecting sustained efforts in content monetisation and digital engagement.
Network18’s recent amalgamation of subsidiaries, including TV18 Broadcast Ltd. and e-Eighteen.Com Ltd., effective 3 October 2024, added to the quarter’s complexities. The merger was intended to streamline operations and reduce redundancies, but the restructuring costs and integration challenges contributed to the continuing financial strain. As of 30 September 2024, the company’s total equity declined to Rs 14,70,809 lakh from Rs 14,91,281 lakh as of 31 March 2024, reflecting the capital impact of ongoing restructuring efforts.
Group chief financial officer Ramesh Kumar Damani acknowledged the situation, stating, “The amalgamation is a crucial step towards creating a more cohesive media ecosystem, enabling us to optimise our resources and unlock synergies. However, we are navigating through short-term challenges, particularly in cost rationalisation and revenue stabilisation.”
The company saw its operational costs soar to Rs 1,06,718 lakh, a significant rise compared to Rs 96,143 lakh in the same quarter last year, driven by increased content production and distribution expenditures. Additionally, finance costs surged to Rs 17,001 lakh, compared to Rs 6,616 lakh in Q2 FY24, following a rise in borrowing to support expansion and restructuring.
Consequently, Network18’s operating margin contracted to -7.86 per cent, underscoring the challenges in achieving cost efficiency despite revenue growth. The debt-equity ratio climbed to 0.58, indicating elevated leverage compared to 0.49 in the previous quarter.
Despite the quarterly loss, Network18 remains committed to long-term growth. The company is ramping up digital investments, focusing on expanding its streaming services and enhancing content quality across platforms to capitalise on the increasing demand for digital media consumption. The integration of the subsidiaries is also expected to drive future efficiencies and cost savings, although the benefits may take time to materialise.
Damani added, “While the financial results reflect our restructuring phase, we are optimistic about the underlying growth potential. We are enhancing our digital-first strategy and increasing our investments in innovative content to capture the evolving viewer preferences.”
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.
