News Broadcasting
RIL’s M&E biz EBITDA margin rises to 17% in FY21
KOLKATA: Despite all odds, Reliance Industry Limited’s (RIL) media & entertainment business has recorded profitability during the pandemic-hit financial year. According to the company’s latest annual report, Network18’s consolidated operating margins expanded to 17 per cent in FY 21, up from 11.5 per cent in FY 20, RIL’s annual report said.
Consolidated EBITDA of the business rose 29 per cent y-o-y to Rs 796 crore despite the pandemic impact dragging revenue down by 12 per cent y-o-y. The company’s overall profitability was attributed to cost controls and concerted efforts to increase annuity-style revenue streams, including subscription and syndication.
The margins of the news business expanded all through the year, despite pandemic-linked logistics constraints and blackout of BARC ratings in the second half of the financial year, the report added. Overall news segment’s operating margins expanded to 13 per cent. The TV News operating margin expanded to 16 per cent, marking four years of continuous improvement. In addition to that, digital news broke even on a full-year basis, driven by accelerated revenue growth.
Despite the Covid-19 impact, entertainment margins went up to 19 per cent thanks to operating leverages. TV Entertainment grew viewership share by two per cent to 10.9 per cent. One in two Indians watch Network18 television channels that reach more than 95 per cent of TV homes in India annually, as per the report.
The entire M&E industry started on a weak note in FY21 due to the onset of the pandemic, but there was a turnaround during the second half of the year. For Network18, TV News advertising recovered by the second quarter itself growing across the year. Entertainment advertising revived fully by the third quarter, led by a full content roster. Strong viewership trends for Hindi GECs, both pay, and FTA, drove underlying ad growth into high-single digits by the fourth quarter.
Digital media platforms witnessed an increase in content consumption. Digital advertising gained momentum from the platforms’ inherent advantages of being able to target audiences, drive personalisation, and lower costs.
“Digital engagement continued to grow due to the volume of high-quality content and key events. Industry sources indicate a ten per cent y-o-y increase in OTT video consumption. Increased propensity to pay has been witnessed, amidst domestic OTTs increasing prices selectively, while global players create India-specific cheaper offerings. Digital subscription revenue continued to rise sharply, albeit off a low base, both from B2C (direct) and B2B (telco-driven) distribution of OTT platforms,” the company stated on Thursday. The company was also satisfied with domestic subscription revenue in the M&E segment which remained strong, despite the stress in international. Improved distribution tie-ups for TV and Digital have driven the subscription growth.
The leading OTT platform under RIL’s M&E bouquet, Voot, garnered 12 billion minutes of watch time during FY21 and was the number two broadcaster-OTT, it said in its report. According to the company, Voot Select was the fastest to reach one million D2C subscribers, thanks to original content, digital-first TV content, and digital-only spin-offs.
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.
