News Broadcasting
PWC strikes upbeat note on broadband, net advertising
MUMBAI: “Broadband as well as Net advertising has arrived, especially in Asia, and the popularity of paid web searches is growing.” This was the tone adopted by Price Waterhouse Coopers Marcel Fenez this morning at Frames 2004 when he spoke on the emerging trends emerging in the global entertainment space.
The entertainment industry will grow at a compounded rate of just under five per cent in India, Fenez said. For India, he said that advertising would grow at 10 per cent a year. Internet related spending which is very low would also see a push. Global ad spending would reach the $375 billion mark by 2007. One thing that could affect the scenario was the uncertainty that still prevailed, citing the example of the recent train blast in Madrid. In Asia, ad growth will outpace GDP growth in the next 18 months. “That is not the case in the US and Europe.”
For Asia, he predicted that television ad spend would grow faster than print this year. This would occur on account of the Olympics. Digital content would expand and with this, customers would migrate from one platform to the other. “The consumer will drive what happens to a particular delivery method” he added.
In Asia, he said that 169 million homes were broadband enabled. The global broadband universe will grow from a mere 42 million homes to over 400 million homes by the end of this year. The internet was the fastest growing segment at 15 per cent compounded annual growth. Multi channel television is growing at eight per cent. The great new for advertisers on the internet is that broadband shoppers spend more time online than those on dial up. Therefore the volume of internet advertising would grow after being stagnant in 2001-2002. Another important trend is in the video gaming arena where Sony’s Playstation is making rapid strides. In the region this segment is poised for a growth of over nine per cent, he said.
On the flip side, he noted that piracy was happening to the tune of $1.2 billion a year. This activity isgrowing at 11 per cent a year. In China, the figure is as high as 95 per cent while in India it ranges from 25-50 per cent. “However it is heartening to see that the music companies are finally getting their act together. The prices of legitimate products is falling. The authorized file sharing activity will kick off in a big way in 2007.”
Trai chairman Pradip Baijal stressed on the importance of the regulator focusing on growth. He said that the committee would be coming with a tariff regulation report on cable television in three months time. He also said that one of the challenges would be the framing of rules for interconnectivity. These would determine different relationships such as the one between the broadcaster and broadband operator.
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.
