TV18 Broadcast has reported a net loss in the second quarter of FY24, but its consolidated revenue has seen a YoY rise of 22%. The company attributes the decline in earnings to investments in growth verticals, such as sports and digital, which are expected to strengthen its consumer proposition and help it become a leader in the competitive media landscape.
In the July-September quarter of FY24, TV18 Broadcast recorded a consolidated revenue of Rs 1,794 crore, up from Rs 1,473 crore in the same period last year. This growth was driven by the performances of its news business, movie studio, and sports verticals. However, the company also reported a net loss of Rs 29 crore, compared to a profit of Rs 5.7 crore in Q2FY23.
The company’s consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) loss widened to Rs 198 crore in Q2FY24, compared to Rs 40.6 crore in the previous year. TV18 Broadcast explained that this increase in EBITDA loss was due to investments made in the sports and digital verticals, which require upfront investments to build a strong consumer proposition.
Despite the net loss, the management of TV18 Broadcast remains optimistic about the company’s future. Adil Zainulbhai, Chairman of TV18, highlighted that the company now has the biggest portfolio of sports properties, making it the default choice for sports fans. He also emphasized the network’s focus on providing quality content across news, entertainment, and sports, which positions it uniquely to serve customers across the country and demographic cohorts.
TV18 Broadcast’s TV network share increased by 50 basis points to 10.5 percent, driven by the performance of its sports and movie channels. The TV18 News segment continued to be the highest-reached television network in the country, reaching around 190 million people in India every week. The network also maintained its leadership position in key markets, with CNBC TV18, News18 India, and CNN News18 being the number one ranking channels in their respective genres.
The entertainment portfolio of TV18 saw a 22 percent YoY rise in operating revenue to Rs 1,438 crore in Q2FY24. This growth was led by the movie, sports, and digital segments. The sports revenue was driven by two cricket series, while the digital revenue was led by advertising on original shows and TV network shows.
In conclusion, while TV18 Broadcast reported a net loss in Q2FY24, its consolidated revenue saw a significant YoY rise. The company’s investments in growth verticals, such as sports and digital, are expected to pay off in the long run and help it become a leader in the media industry. With its strong presence across news, entertainment, and sports, TV18 Broadcast is well-positioned to serve customers across the country and demographic cohorts.