EARNINGS RELEASE: Q

Transcription

1 EARNINGS RELEASE: Q Mumbai, 16 th January, 2018 Netwrk18 Media & Investments Limited tday annunced its results fr the quarter ended 31 st December, Summary Cnslidated Financials (Rs Crres) Particulars Q3 Q3 Grwth 9m 9m Grwth FY18 FY17 YY% FY18 FY17 YY% Revenue (incl. prprtinate share f JVs) % 2,671 2,573 4% Segment Operating EBITDA (incl. prp. share f JVs) (13) (58) NM (101) (175) NM Revenue (as per Ind AS) (2%) 1,014 1,103 (8%) Operating EBITDA (as per Ind AS) 8 (14) NM (73) (159) NM Netwrk18 psted cnslidated revenues f Rs. 969 crres (including prprtinate share f JVs) in Q3FY18, a 7% YY grwth, as revival in grwth in the bradcasting business was partially ffset by a pullback in the TV shpping business. Prfitability imprved substantially, led by cst cntrl in TV shpping accentuating imprved margins in bradcasting. Highlights fr the quarter Advertising grwth returned, led by recvery in ad-envirnment and a favurable base frm mid-nvember: The advertising envirnment has imprved since Q2, but certain segments are still t see full recvery. Tailwinds f strng financial markets, upcming unin budget, state electins and cntinued revival in cnsumer spending are psitives. TV18 psted 10% revenue grwth (including JVs): Business News cntinued its steady grwth despite its niche nature, and Hindi News perfrmance pushed Natinal News revenue grwth t 14%. Reginal News ffset sme f the gains, led by slwer ad-recvery and lwer gvernment spends this year. Our entertainment buquet s bradcasting revenues grew in line with industry; as appetite fr high-impact advertising is reviving, but with a lag. TV18 s News buquet ended CY17 as #1 in viewership and reach: TV18 s verall share f News viewership averaged 9.2% fr the quarter. Our Hindi News channel gained 4%+ share in a year, in the fastest grwing and mst cmpetitive genre. Cupled with grwing tractin thrugh ur pan-india vernacular ftprint, TV18 ended Q3 as #1 in News viewership. Viacm18 s share f entertainment viewership rse t ~11%: Clrs maintained its #1 rank in Urban HSM, the categry which drives mnetizatin. Viacm18 cntinued its dminant psitin in niches like Kids and English entertainment. VOOT viewership cntinues t grw, and engagement arund Big Bss (Live vting, digital-nly spin-ffs, uncut cntent) has pushed up mnetizatin ff a lw base, despite challenging markets. Clrs Tamil slated t launch in Q4; cnslidating n last year s launches: The ramp-up f all TV channels launched in Q1FY17 is well underway. Rishtey Cineplex has plugged a vital whitespace, and has brken even in the secnd year pst launch. Reginal News channels are well-placed t benefit frm any tailwind in the respective markets.

2 Netwrk18 s digital prperties cntinued t ascend the traffic and mnetizatin charts: MneyCntrl app has 3x the users f its nearest cmpetitr. Netwrk 18 grup was the mst visited and viewed media netwrk n Yutube as per Vidly s News Netwrk Reprt (Sep-Nv 2017). Netwrk18 s digital revenues (mainly MneyCntrl, News18.cm and Firstpst) have grwn 14% YY t Rs 36 Cr. HmeShp18 fcusing n prfitability, cmbinatin with ShpCJ t get scale benefits: While the business remains under pressure, cst reductin has slashed lsses. The prpsed cmbinatin with ShpCJ (Link t press release) will further prvide scale and synergy benefits. Mr. Adil Zainulbhai, Chairman f Netwrk18, said: We have made a lt f prgress in strengthening ur digital prperties, and grwing ur psitin in TV in news and entertainment. We will cntinue t invest acrss bradcasting and digital. Financials fr the quarter Cnslidated Revenue (including prprtinate share f Jint Ventures cnsidered fr segment reprts) fr the quarter ended 31 st December, 2017 std at Rs. 969 crres vs. Rs. 905 crres in the crrespnding quarter last year. Segment Operating EBITDA n a cnslidated basis, including the perfrmance f Jint ventures fr the quarter ended 31 st December, 2017, std at Rs. (13) crres vs Rs. (58) crres in the crrespnding quarter last year. Cnslidated Revenue as per Ind AS (accunting the JVs under Equity methd) fr the quarter ended 31 st December, 2017 std at Rs. 366 crres as cmpared t Rs. 373 crres in the crrespnding quarter last year. Operating EBITDA n a cnslidated basis under Ind AS fr the quarter ended 31 st December, 2017 std at Rs. 8 crres, vs Rs. (14) crres in the crrespnding quarter last year. Other incme includes gain n fair valuatin f financial assets, as per the requirements f Ind-AS reprting. All launches made in FY16-17 are nw part f ur business-as-usual peratins and reprting. Page 2

3 Business Perfrmance Netwrk18 - Televisin Operatins Netwrk18 s listed subsidiary TV18 wns and perates the largest netwrk f channels 52 in India spanning news and entertainment. We als cater t the Indian diaspra glbally thrugh 18 internatinal feeds. News Natinal & Reginal CNBC TV18 maintained #1 rank in the English Business News genre with 52% market share in Q3 FY18. During market hurs (Weekdays, 8 AM t 4 PM) CNBC TV18 maintained an even higher share f 57% and was #1 in the genre. CNBC Awaaz cntinues t be dminant in the Hindi Business News genre with 69.5% market share. During Trading Hurs (8 AM t 4 PM n weekdays), CNBC Awaaz maintained 77% market share in the genre. CNN News18 market share inched up t 9.3% in Q3FY18, and the channel maintained its #5 rank in the English News genre. News18 India market share in Hindi speaking markets (HSM) rse t 11.1% in Q3FY18, substantially higher cmpared t 6.9% in Q3 FY17 as well as higher than the 10.3% in the last quarter. The channel remains in the tp 5 but has peridically tuched #3 rank as well. Q3 FY18 saw News18 India establish itself as the channel f chice in Evening Prime Time in bth HSM Urban and HSM Mega Cities markets where it was #1 amngst cmpetitin in the key viewership timeband ( hrs). Our Reginal News cluster has the highest reach in the cuntry, with 439 Mn audiences tuning int the netwrk in Q3 FY18. The reginal news cluster viewership (including News18 Lkmat) as a percentage f ttal news viewership was 4.5%, up frm 2.5% in Q3FY17. ETV Rajasthan cntinues t be the dminant #1 in the genre maintaining 61% market share Entertainment Natinal, Reginal & Digital Flagship pay-gec Clrs was #1 in Urban HSM and #2 within primary- GECs, with 10.5% viewership share. The channel leads in 7 ut f tp 14 weekday Primetime slts. Bigg Bss Seasn-11 was amng the Tp 2 nnfictin shws. Rishtey Cineplex rse t #4 in the genre (#2 in FTA Hindi Mvies) with a 9% viewership share, up frm 8.4% last quarter. The channel was launched in Q1FY17 with a relatively small mvie-library; and has been able t scale up very well riding n tractin fr Bllywd cntent and FTA delivery. Nick cntinued its leadership in the Kids genre, with a 20.3% share f viewership. Between Nick, Snic and Nick Jr, ur Kids prtfli cmmanded a 31.1% market-share; and basts f 4 f the tp-10 shws. Page 3

4 In English entertainment, Viacm18 channels have a 55% viewership share. Cmedy Central and VH1 rank #1 (24%) and #2 (16.7%) respectively; while Clrs Infinity has garnered ~14% share t rank #4. MTV cntinued t hld the #1 slt in the Yuth entertainment genre. MTV celebrated 25 years f AR Rahman with the AR Rahman ENCORE Cncert with MTV (17th Nv). MTV Beats launched last year (by replacing MTV Indies) is the fastest grwing Hindi music channel. It has grabbed 12% market-share in its first full year f peratins. VOOT, Viacm18 s Over The Tp (OTT) exclusive digital vide destinatin was cmmercially launched in May 16. VOOT grss dwnlads have risen t ~56mn, and average daily viewership is 40+ minutes. Live Vting feature was launched fr Bigg Bss S11. Brand campaign Why Nt with new lk f Vt was unveiled n 8th December. It was selected amng Tp Trending and Mst Entertaining Apps f 2016 by Ggle Play Stre. VOOT s Prgressive Web App (Mbile website built using web technlgies that acts and feels like an app) launched in Jun 2017 has been recgnized as ne f the tp glbal innvatins f 2017 by Internatinal Bradcasting Cnventin. Clrs Kannada retained its strng #1 psitin in Kannada reginal entertainment with a 32% market share. Clrs Super (2 nd Kannada GEC, launched in July 2016) has grwn its viewership further t 10.4% making it #1 amngst the secnd tier channels in the genre and #5 verall. Clrs Marathi and Bangla were #3 in their respective genres. Viacm18 Mtin Pictures released tw niche mvies Huse Next Dr (Hindi) and Daddy s Hme 2 (English) during the quarter. Inftainment Factual entertainment & Lifestyle In Megacities, Histry TV18 had a market share f 20.6%, clsely trailing the genre leader (Discvery %). In Megacities, FYI TV18 ranked #1 channel in the Lifestyle genre, taking 34% market share. All viewership data is frm BARC, in the respective time-perids and genres. All HD versins f channels have been added t their SD cunterpart viewership. Page 4

5 Netwrk18 - Digital Digital Cntent Netwrk 18 sites slidified its leadership psitin in the News / Infrmatin industry amngst cmpetitin with news cnsumers spending a ttal f 1.76 billin minutes n Netwrk18 prperties in Nv Netwrk 18 grup als secured the tp spt in Vidly s News Netwrk Reprt (Sep-Nv 2017), making it the mst visited and viewed media netwrk n Yutube. Mneycntrl.cm Mneycntrl has cnslidated its psitin as India s leading business & finance destinatin in the digital landscape with a mnthly traffic f 22 millin users and 0.5 billin page views Strng news cverage and buyant markets in Q3 drve 225% YY grwth in average mnthly mbile user cunt. Mneycntrl hit a ttal traffic f 4.5 mn users n the day f Gujarat electin results The Mneycntrl app cntinues t remain best-in-class, clcking the highestever mnthly active users (3.6 mn) in Nv The app cntinues t rank #1 in India with 3x users versus the nearest cmpetitr. News18.cm News18.cm cntinues t maintain its strng grwth with a ttal traffic f 64 millin users in Dec-2017 t kick start the new year n a strng nte. New18 sprts including CricketNext, has emerged as a strng leader in the Sprts categry with a ttal f 6.7 millin users in Oct News18.cm umbrella has been steadily expanding its reginal ftprints fr the digital-first reginal audience by ffering news in 12 different languages, including Kannada, Odiya, Punjabi, Assamese and mre. Firstpst Firstpst with its digital-first rientatin cntinues t shw grwth in traffic, with 33 mn users in December It cntinues t be the website with the highest user engagement metrics well ahead f tp print & TV led digital publishers with 6.1 minutes average time spent per visit n the prtal in Oct It has undertaken several new initiatives like F Studi (creative vide unit), Firstpective (user led "pinin first" app), ShwSha (dedicated entertainment prtal), and Firstculture (culture related lng-frm articles fr weekend reads), in a bid t imprve its brand strength, cnsumer lyalty and differentiated psitining in the industry Page 5

6 Digital Cmmerce BkMyShw During the quarter, ver 4.3 millin BkMyShw apps have been installed. BMS has successfully managed Sprt Events like the India Sri Lanka Cricket Series & India New Zealand Cricket Series, bth held in India. It further als managed the ticketing fr 7 ut f 10 teams fr ISL. BMS als successfully managed the Mughal-e-Azam event held at Delhi. BMS has frayed int Live Events & successfully managed the prestigius Ed Sheeran cncert held in Nv 17 at Mumbai, which was held fr the first time in India. BMS als successfully managed the A R Rahman 4 city India tur held at Mumbai, Ahmedabad, Delhi & Hyderabad. NEW INITIATIVES BMS started its wn ffline Fd & beverage sale My café at select cinemas in Mumbai & Hyderabad, as well as at live events managed by BMS. BMS has entered int a jint venture with Vkaa (PVR) which is an ndemand mvie screening platfrm. BMS had launched its Music Jukebx sectin, and has already registered ver 1 mn plus sng dwnlads. BMS had intrduced its Superstar Prgram t incentivize lyal custmers thrugh value-additins like free parking at venue, paid previews, etc. HmeShp18 The bard f directrs had apprved a cmbinatin f HmeShp18 with anther leading TV shpping platfrm ShpCJ last quarter; t imprve their standing in the cmpetitive digital cmmerce space. Multiple synergies (surcing, marketing, distributin) can be explited as a result f this cmbinatin, which has created the de fact largest TV shpping platfrm in India. While HmeShp18 shall cease t be a subsidiary f Netwrk18 as a result, Netwrk18 shall cntinue as the largest sharehlder in the cmbined entity (Link t press release) Netwrk 18 - Print Under its publishing divisin, Netwrk18 perates 3 leading brands -- Overdrive, Better Phtgraphy and Better Interirs, alng with prestigius magazine Frbes India. Page 6

7 Netwrk18 Media & Investments Limited Reprted Cnslidated Financial Perfrmance fr the Quarter and nine mnths ended 31 st December, 2017 Quarter ended Year ended (Audited) 31 st Dec'17 30 th Sep'17 31 st Dec'16 31 st Dec'17 31 st Dec'16 31 st Mar'17 Value f sales and services ,129 1,103 1,491 GST included in abve Revenue frm peratins ,014 1,103 1,491 Other incme 73 5 (19) Ttal Incme ,107 1,111 1,546 2 Expenses (a) Distributin, advertising and business prmtin (b) Cst f materials cnsumed and traded gds sld (c) Emplyee benefits expense (d) Finance csts (e) Depreciatin and amrtisatin expense (f) Other expenses Ttal Expenses ,216 1,377 1,789 3 Prfit/ (lss) befre nn-cntrlling interests/ share f prfit/ (lss) f assciates and jint ventures (1-2) 37 (72) (77) (109) (266) (243) 4 Share f prfit/ (lss) f assciates and jint ventures (3) 9 (17) 21 5 (18) 5 Prfit/ (lss) befre tax (3 + 4) 34 (63) (94) (88) (261) (261) 6 Tax Expense (a) Current tax (b) Deferred tax 1 (3) - (1) - 2 (c) Shrt/ (excess) prvisin fr tax relating t earlier years - - (25) - (25) (23) Ttal Tax Expense 23 8 (16) 41 (14) 10 7 Prfit/ (lss) fr the perid (5-6) 11 (71) (78) (129) (247) (271) 8 Particulars Other Cmprehensive Incme Nine mnths ended in crres (a) Items that will nt be reclassified t prfit r lss (17) 3 (1) (12) (6) 16 (b) Incme tax relating t items that will nt be reclassified t prfit r lss (1) (c) Items that will be reclassified t prfit r lss (8) 3 7 (5) 10 (5) Ttal Other Cmprehensive Incme (25) 6 6 (17) Ttal Cmprehensive Incme fr the perid (7 + 8) (14) (65) (72) (146) (243) (261) Prfit/ (lss) fr the perid attributable t: (a) Owners f the Cmpany 12 (68) (81) (108) (200) (233) (b) Nn-cntrlling interest (1) (3) 3 (21) (47) (38) Other cmprehensive incme attributable t: (a) Owners f the Cmpany (24) 4 3 (15) 1 14 (b) Nn-cntrlling interest (1) 2 3 (2) 3 (4) Ttal cmprehensive incme attributable t: (a) Owners f the Cmpany (12) (64) (78) (123) (199) (219) (b) Nn-cntrlling interest (2) (1) 6 (23) (44) (42) Page 7

8 Netwrk18 Media & Investments Limited Reprted Cnslidated Segment Infrmatin fr the Quarter and nine mnths ended 31 st December, 2017 in crres Particulars Quarter ended Year ended Nine mnths ended (Audited) 31 st Dec'17 30 th Sep'17 31 st Dec'16 31 st Dec'17 31 st Dec'16 31 st Mar'17 1 Segment Revenue (a) Media peratins ,611 2,534 3,396 (b) Film prductin and distributin Ttal ,677 2,580 3,488 Less: Inter segment revenue Ttal Segment Revenue ,671 2,573 3,471 Less: Revenue related t assciates and jint ,657 1,470 1,980 Revenue frm Operatins ,014 1,103 1,491 2 Segment Results (a) Media peratins (32) (58) (77) (149) (200) (273) (b) Film prductin and distributin 1 6 (1) 1 (7) - Lss befre finance cst and tax (31) (52) (78) (148) (207) (273) (a) Finance csts (30) (29) (30) (87) (84) (112) (b) Un-allcable expenses (19) (21) (19) (60) (60) (73) (c) Interest incme (d) Un-allcable incme 75 7 (10) Lss befre tax (including assciates and jint ventures) (3) (90) (134) (164) (312) (359) Less: Lss f assciates and jint ventures (40) (18) (57) (55) (46) (116) 4 Prfit/ (lss) befre tax (excluding assciates and 37 (72) (77) (109) (266) (243) jint ventures) 5 Share f Prfit/ (lss) f assciates and jint ventures (3) 9 (17) 21 5 (18) 6 Prfit/ (lss) befre tax (4 + 5) 34 (63) (94) (88) (261) (261) 7 Tax expense 23 8 (16) 41 (14) 10 8 Prfit/ (lss) befre nn-cntrlling interest (6-7) 11 (71) (78) (129) (247) (271) 9 Less: Nn-cntrlling interest (1) (3) 3 (21) (47) (38) 10 Prfit/ (lss) after taxes, nn-cntrlling interest and share f prfit/ (lss) f assciates and jint ventures (8-9) 12 (68) (81) (108) (200) (233) 11 Segment Assets (a) Media peratins 4,989 4,750 4,589 4,989 4,589 4,432 (b) Film prductin and distributin (c) Others (d) Unallcated 1,102 1,296 1,678 1,102 1,678 1,568 Ttal Segment Assets 6,407 6,380 6,549 6,407 6,549 6, Segment Liabilities (a) Media peratins 1,327 1,285 1,337 1,327 1,337 1,232 (b) Film prductin and distributin (c) Others (d) Unallcated 1,969 1,929 1,834 1,969 1,834 1,763 Ttal Segment Liabilities 3,343 3,272 3,197 3,343 3,197 3,022 The segment infrmatin has been prepared in line with the review f perating results by the chief perating decisin maker (CODM) including the results f the entities which were hithert cnslidated under the previus GAAP but have nw been accunted fr under equity methd f accunting under Ind AS. The Grup cnsiders these entities as part f Operating Segments as defined under Ind AS 108. Accrdingly, the difference between amunts reprted as segment infrmatin and as per the Cnslidated financial results relate t peratins f these entities. Page 8

9 TV18 Bradcast Limited Reprted Cnslidated Financial Perfrmance fr the Quarter and nine mnths ended 31 st December, 2017 Particulars Quarter ended Nine mnths ended in crres Year ended (Audited) 31 st Dec'17 30 th Sep'17 31 st Dec'16 31 st Dec'17 31 st Dec'16 31 st Mar'17 Value f sales and services GST included in abve Revenue frm peratins Other incme Ttal Incme ,022 2 Expenses (a) Emplyee benefits expense (b) Marketing, distributin and prmtinal expense (c) Finance csts (d) Depreciatin and amrtisatin expense (e) Other expenses Ttal Expenses ,026 3 Prfit/ (lss) befre nn-cntrlling interests/ share 16 (13) 16 (22) (26) (4) f prfit f assciate and jint ventures (1-2) 4 Share f prfit f assciate and jint ventures Prfit befre tax (3 + 4) Tax Expense (a) Current tax (b) Deferred tax 1 (2) 0 (1) (1) 1 Ttal Tax Expense Prfit fr the perid (5-6) Other Cmprehensive Incme (a) Items that will nt be reclassified t prfit r lss 2 2 (0) (1) (4) (2) (b) Incme tax relating t items that will nt be (0) (0) (0) 0 (0) (1) reclassified t prfit r lss (c) Items that will be reclassified t prfit r lss (8) 3 7 (5) 10 (5) Ttal Other Cmprehensive Incme (6) 5 7 (6) 6 (8) 9 Ttal Cmprehensive Incme fr the perid (7 + 8) (2) Prfit fr the perid attributable t: (a) Owners f the Cmpany (b) Nn-cntrlling interest (0) (0) (2) (3) (10) (13) Other cmprehensive incme attributable t: (a) Owners f the Cmpany (6) 5 7 (6) 6 (8) (b) Nn-cntrlling interest - - (0) - (0) Ttal cmprehensive incme attributable t: (a) Owners f the Cmpany (b) Nn-cntrlling interest (0) (0) (2) (3) (10) (13) Page 9

10 TV18 Bradcast Limited Reprted Cnslidated Segment Infrmatin fr the Quarter and nine mnths ended 31 st December, 2017 Quarter ended in crres Year ended (Audited) 31 st Dec'17 30 th Sep'17 31 st Dec'16 31 st Dec'17 31 st Dec'16 31 st Mar'17 1 Segment Revenue (a) Media peratins ,022 1,923 2,602 (b) Film prductin and distributin Ttal ,088 1,969 2,694 Less: Inter segment revenue Ttal Segment Revenue ,082 1,962 2,677 Less: Revenue related t jint ventures ,365 1,261 1,698 Revenue frm Operatins Segment Results Particulars (a) Media peratins (b) Film prductin and distributin 1 6 (1) 1 (7) 0 Ttal Add: Inter segment eliminatins (1) 1 (1) 2 (2) (2) Prfit befre finance cst and tax (a) Finance csts (13) (11) (14) (35) (40) (53) (b) Un-allcable expenses (11) (11) (11) (33) (31) (43) (c) Interest incme (d) Un-allcable Incme 4 3 (0) Prfit/ (lss) befre tax (including JVs) (0) 21 Less: Prfit f jint ventures Prfit/ (lss) befre tax (excluding JVs) 16 (13) 16 (22) (26) (4) 5 Share f prfit f assciate and jint ventures Prfit befre tax (4+5) Tax expense Prfit befre nn-cntrlling interest (6-7) Less: Nn-cntrlling interest (0) (0) (2) (3) (10) (13) 10 Prfit after taxes, nn-cntrlling interest and share f prfit f assciate and JVs (8-9) Nine mnths ended Segment Assets (a) Media peratins 4,099 3,925 3,893 4,099 3,893 3,784 (b) Film prductin and distributin (c) Unallcated Sub-Ttal 5,128 5,066 5,124 5,128 5,124 4,902 Inter segment eliminatin (27) (27) (28) (27) (28) (32) Ttal Segment Assets 5,101 5,039 5,096 5,101 5,096 4, Segment Liabilities (a) Media peratins (b) Film prductin and distributin (c) Unallcated Sub-Ttal 1,723 1,671 1,719 1,723 1,719 1,522 Inter segment eliminatin (2) (2) (3) (2) (3) (3) Ttal Segment Liabilities 1,721 1,669 1,716 1,721 1,716 1,519 The Segment Infrmatin has been prepared in line with the review f perating results by the chief perating decisin maker (CODM) including the results f the jint ventures which were hithert cnslidated using prprtinate cnslidatin methd under the previus GAAP but have nw been accunted fr under equity methd f accunting under Ind AS. The Grup cnsiders these jint ventures as part f Operating Segments as defined under Ind AS 108. Accrdingly, the difference between amunts reprted as segment infrmatin and as per the Cnslidated financial results relate t peratins f jint ventures. Page 10

11 INVESTOR COMMUNICATION: Netwrk18 s nging investr cmmunicatin endeavrs t adpt best internatinal practices and the quarterly investr updates are designed t regularly prvide detailed infrmatin t investrs. Each update cvers infrmatin pertaining t the reprting perid under review. If yu wuld like t get a sequential and cntinued perspective n the cmpany this reprt shuld be read alng with the updates sent ut earlier. The previus updates can be accessed n request frm the cntact persns mentined belw, r frm the cmpany s website This update cvers the cmpany s financial perfrmance fr Q3 FY18. Fr further infrmatin n business and peratins, please cntact: Abhishek Agarwal, Netwrk18 Media & Investments Limited abhishek.agarwal@nw18.cm Further infrmatin n the cmpany is available n its website Page 11

12 Page 12