EARNINGS RELEASE: Q

Transcription

1 EARNINGS RELEASE: Q Mumbai, 24 th April, 2018 Netwrk18 Media & Investments Limited tday annunced its results fr the quarter and financial year ended 31 st March Netwrk18 subsidiary TV18 Bradcast Ltd. tk peratinal cntrl and increased its stake in Viacm18 t 51% by acquiring 1% equity frm JV partner Viacm Inc. (Link t press release). This shall drive value additin and synergies acrss the multi-platfrm grup cmprising bradcast, digital, filmed and experiential entertainment and media businesses. Pursuant t this acquisitin, Viacm18 and the distributin arm Indiacast are being cnslidated int TV18 (and hence, Netwrk18) financials frm 1 st March Summary Cnslidated Financials Viacm18 & Indiacast became subsidiaries f TV18 frm 28 th February 2018 and have nw been cnslidated int TV18/Netwrk18 financials. HmeShp18 has ceased t be a subsidiary f Netwrk18 frm 15 th February 2018 as a result f its acquisitin f ShpCJ thrugh a share-swap (Link t press release). Fr a better understanding f grup perfrmance and cmparability cnsidering these crprate actins, the financials in this release are being restated and represented by cnslidating Viacm18 & Indiacast and excluding HmeShp18 thrughut. (restated fr current structure f wnership) Q4FY18 Q4FY17 Grwth FY18 FY17 Grwth Operating Revenue (Rs Cr) 1,597 1,140 40% 5,027 4,333 16% Operating EBITDA (Rs Cr) % % Netwrk18 psted cnslidated revenues f Rs. 5,027 crres in FY18, a 16% YY grwth (n a cmparable basis). Q4FY18 revenue grew 40% YY driven by film revenue and a bradbased recvery in advertising, ff a lw-base last year. Highlights fr the quarter Revenue grwth was driven by a brad-based recvery in advertisement spending, as well as a favurable base: With the ecnmy n a revival trend and temprary impact f GST implementatin behind us, ur bradcast prtfli benefitted frm the imprved advertising envirnment. TV18 psted 41% revenue grwth n a cmparable basis: Business News maintained its healthy grwth while General News benefitted frm strng perfrmance f Hindi News channel News18 India, as bth rankings and revenue rse, in a fast-grwing genre. Reginal News cntinued t increase its viewership but witness tepid revenues due t lack f gvernment spends. Our entertainment prtfli demnstrated rbust grwth even as high-impact advertising recvers with a lag. General entertainment (bth Hindi and English) and Kids were strng perfrmers. Bx-ffice success f marquee mvie Padmaavat was a psitive as well. Netwrk18 digital cntent prperties reach 25% f ttal news cnsumptin audience: MneyCntrl app has 3x the users f its nearest cmpetitr. Netwrk18 s digital revenues frm prime prperties MneyCntrl, News18 & Firstpst have grwn 34% YY t Rs 45 Cr in Q4. TV18 s News buquet (23 channels) is #1 in reach; News viewership share rse t 9.5%. Arund events like Unin budget, flagship CNBC TV18 s viewership even tps English General News channels which cater t a much larger market. Hindi News channel News18 India is a

2 strng tp-5 channel nw, and has ften wrested the tp viewership in primetime frm the market-leader. Reginal News prtfli cntributes nearly as much viewership as ur natinal channels, making them well-psitined t benefit frm ptential revival in rural ecnmy and upcming electins. Viacm18 buquet s (30 channels) share f entertainment viewership rse t 11.3%: Clrs slidified its psitin as the #1 urban GEC. With leading channels in niches like English, Yuth and Music grwing at a fast clip, and an impetus n reginal and digital, a full-prtfliplay is in effect. Rishtey Cineplex is the #3 mvie channel nw, and als did a live telecast f the Nidahas trphy cricket turnament in partnership with Discvery Sprts/Ji. The film business clcked revenues f Rs 329 Cr in Q4FY18 (vs Rs 72 Cr in Q4FY17) and Rs 450 Cr in FY18 (vs Rs 150 Cr in FY17). Clrs Tamil launched in mid-february: Clrs Tamil fills a vital whitespace in ur reginal entertainment prtfli, in a highly cmpetitive market. Its fresh subjects and cinematic-quality cntent are being well-received. The channel launched with 22 hurs f riginal prgramming per mnth, and will ramp-up in cntent and imprve distributin ver the year. It has garnered 5% viewership share, and made strng inrads in urban markets like Chennai. Investments int funding perating lsses f this new initiative were Rs 45 Cr fr the quarter. Umbrella brand News18 fr all general News channels: With the rebranding f remaining 5 ETV and IBN Lkmat reginal channels, the prcess f having a unified brand News18 fr all 17 f ur general news channels (in 15 languages cvering 26 states) is cmplete. CNBC TV18 s digital destinatin CNBCTV18.cm/CNBCTV18 app launched n 6 th Apr-18. This premium digital platfrm is the landing page fr the flagship news channel. It ffers news and infrmatin n business & ecnmy as well as stck markets. It prvides fresh perspectives n entrepreneurship and leadership, and als ffers vide-feed/clips f the TV channel. Mr. Adil Zainulbhai, Chairman f Netwrk18, said: We are cntinuing ur investments in digital and reginal cntent, and seeing grwth in mst segments f ur business. Financials fr the quarter restated fr current structure f wnership OPERATING REVENUES (Rs Cr) Q4FY18 Q4FY17 Grwth FY18 FY17 Grwth A) Business + General News (TV18 standalne) % % B) Reginal News (ex IBN-Lkmat) + Inftainment % % C) Entertainment (Viacm18+Indiacast) 1, % 3,781 3,160 20% D) TV18 Cnslidated 1,540 1,092 41% 4,813 4,142 16% E) NW18 Digital and Print % % F) Netwrk18 Cnslidated 1,597 1,140 40% 5,027 4,333 16% OPERATING EBITDA (Rs Cr) Q4FY18 Q4FY17 Grwth FY18 FY17 Grwth A) Business + General News (TV18 standalne) % % B) Reginal News (ex IBN-Lkmat) + Inftainment NM NM C) Entertainment (Viacm18+Indiacast) % % D) TV18 Cnslidated % % E) NW18 Digital and Print NM % F) Netwrk18 Cnslidated % % Page 2

3 Business Perfrmance Netwrk18 - Televisin Operatins Netwrk18 s listed subsidiary TV18 wns and perates the largest netwrk f channels 53 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 68% market share in Q4 FY18. During market hurs (Weekdays, 8 AM t 4 PM) CNBC TV18 maintained an even higher share f 74% and was #1 in the genre. During the Budget speech at hrs n 1st Feb 2018, CNBC TV18 was abut 4x the entire cmpetitin cmbined, with a 79% market share in English Business News genre. CNBC Awaaz cntinues its leadership in the Hindi Business News genre with 73% market share. During Trading Hurs (8 AM t 4 PM n weekdays), CNBC Awaaz maintained 80% market share in the genre. CNN News18 s market share rse t 10.2%, leading t its rank imprving t #4. News18 India market share in Hindi speaking markets (HSM) cntinued t rise, clcking 11.3%. The channel remains in the tp 5. In HSM in Evening Prime Time, News18 India was a strng #3 player with a share f 14.6% amngst cmpetitin; and even beat the market-leader in Urban and Megacities. Our Reginal News cluster (including News18 Lkmat) has the highest reach in the cuntry, with 540 Mn audiences tuning int the netwrk in Q4 FY18. Viewership grssed 4.5% f all news viewership, making it the largest reginal news player by a wide margin. News18 Rajasthan cntinues t be the leader #1 in the genre by far, with mre than 80% market share. Entertainment Natinal, Reginal & Digital Flagship pay-gec Clrs maintained its #1 psitin in Urban HSM with ~19% viewership share, and has a 9.5% verall viewership share (Urban+Rural). The channel leads in 5 ut f 12 weekday primetime slts. Fictin series Bepannaah pened with the highest viewership in the genre fr FY 18. Rishtey Cineplex cntinued its ascent, rising t #3 in the genre (#1 in FTA Hindi Mvies) with a 9.5% viewership share, up frm 9% 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. Page 3

4 Nick cntinued its leadership in the Kids genre, with a 19.7% share f viewership, and 5 f the tp 10 shws. Between Nick, Snic and Nick Jr, ur Kids prtfli cmmanded a 30.6% market-share. In English entertainment, Viacm18 channels ccupy the tp three psitins, with their cmbined viewership shares rising t ~60%. Cmedy Central and VH1 rank #1 (24.9%) and #2 (18.6%) respectively; while Clrs Infinity has garnered ~16.1% share t rank #3. MTV was the #2 yuth channel amng peers, with 27.4% viewership. Flagship series MTV Radies Rising was launched in February. MTV Beats launched last year (by replacing MTV Indies) cntinued n its grwth trajectry as the fastest grwing Hindi music channel. It has clcked 12.9% viewership share in a crwded categry. VOOT, Viacm18 s Over The Tp (OTT) exclusive digital vide destinatin was cmmercially launched in May 16, and is amngst tp 3 ad-supprted VOD apps in the cuntry. VOOT grss dwnlads have risen t ~68mn, and average daily viewership is 40+ minutes. VOOT Original Untag wn Best Brand Integratin- Web Series at the VDONxt Awards. There is a strng fcus n reginalizatin with launch f Clrs Tamil n VOOT. Clrs Kannada retained its strng #1 psitin in Kannada reginal entertainment with a 33.9% market share, and 6 f the tp 10 shws. Clrs Super (2 nd Kannada GEC, launched in July 2016) adds anther 9.9% viewership, taking the Viacm18 Kannada prtfli share t 43.8%. Clrs Marathi rse t #2 in the genre with 19.8 % viewership share, and Clrs Bangla maintained its #3 spt even as viewership rse ff a lw-base. Viacm18 Mtin Pictures Magnum Opus Padmaavat entered league f Tp 5 Hindi films f all time. The studi als successfully released Aapla Manus (Marathi), Huse Next Dr (Hindi) & Daddy s Hme 2 (English) Inftainment Factual entertainment & Lifestyle In Megacities, Histry TV18 had a market share f 19.5%, clsely trailing the genre leader (Discvery 21.4%). In Megacities, FYI TV18 ranked #1 channel in the Lifestyle genre, taking 32% 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 Netwrk18 digital cntent prperties reach 25% f ttal news cnsumptin audience. Netwrk18 slidified its leadership psitin in the News / Infrmatin industry amngst cmpetitin with 60.7 mn unique visitrs spending a ttal f 1.92 billin minutes n Netwrk18 prperties in Feb Vide views crssed 290 millin n Facebk in Feb 2018 with reginal cntributing t ~85% f views. Mneycntrl Mneycntrl has cnslidated its psitin as India s leading business & finance destinatin in the digital landscape with a mnthly traffic f 21 millin users and 0.5 billin page views Driven by strng Budget cverage, average mnthly mbile user cunt in Q4 FY18 increased by 2X ver the same perid last year. On budget day Desktp and M-site traffic tuched 3 mn users, while app users tuched ~2.4 mn which is the highest ever n a single day. Mneycntrl app cntinues t remain best-in-class, with a recrd 4 mn MAU in Q4 FY18 which is the highest ever. Against cmpetitin, the app cntinues t rank #1 in India with 3x users cmpared t The Ecnmic Times News18.cm News18.cm cntinues t maintain the grwth mmentum in Q4 FY18, with UV s grwing by 13% Q--Q t ~72 mn, and page views reaching ~ 394 mn News18 vernacular surpassed incumbents like Navbharat Times, Aaj Tak etc t scale frm #6 psitin in Q3 FY18 t #3 psitin in mnthly users in Q4 FY18 News 18 English is gradually emerging as vide destinatin fr news with 3 mn vides being played in Q4 FY18 FirstPst Firstpst with its digital-first rientatin cntinues t shw grwth in traffic and engagement. While the user base has been n an uptrend with 5% grwth; engagement has increased by mre than 75% as cmpared t previus quarter. Vide cnsumptin has grwn by 30% in Q4'FY18 ver Q3'FY18 Page 5

6 CNBCTV18.cm Netwrk18 launched CNBC TV18.cm; the digital cunterpart f its flagship business news brand CNBC-TV18 n 6 th April, CNBC TV18.cm is a premium digital platfrm ffering a mix f riginal and smartly curated cverage f news, analysis and trends abut the stck market, business and ecnmy. It als ffers fresh perspectives n entrepreneurship, leadership, start-ups and ther finer aspects f business and ecnmy in varius multimedia frmats. Digital Cmmerce BkMyShw During the quarter, ver 3.7 millin BkMyShw apps have been installed. BMS has successfully cmpleted ticketing fr all the matches f ISL Turnament and Nidahas triangular cricket turnament in Sri Lanka. It has gne live with nline ticketing fr 4 IPL Teams. BMS managed the prestigius Swan lake event, as well as the Arijit Singh tur acrss India. It als managed the seasn 2 theatrical musical event Mughl-e-Azam. HmeShp18 The bard f directrs had apprved a cmbinatin f HmeShp18 with anther leading TV shpping platfrm ShpCJ t imprve their standing in the cmpetitive digital cmmerce space; which has been cmpleted. 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 has ceased t be a subsidiary f Netwrk18 frm 15 th February 2018 as a result, Netwrk18 cntinues as the largest sharehlder in the cmbined entity (Link t press release) Hmeshp18 s lsses have been slashed thrugh restructuring and cst ptimizatins, even as the business remains under pressure. Netwrk 18 - Print Under its publishing divisin, Netwrk18 perates 3 leading brands -- Overdrive, Better Phtgraphy and Better Interirs, alng with prestigius magazine Frbes India. Frbes India has substantially imprved its circulatin revenue. Page 6

7 Netwrk18 Media & Investments Limited Reprted Cnslidated Financial Perfrmance fr the Quarter and year ended 31 st March, 2018 ( in Crres) Quarter ended Year ended 31st Mar'18 31st Dec'17 31st Mar'17 31st Mar'18 31st Mar'17 1 Incme Value f sales and services ,068 1,491 Gds and Services Tax included in abve Revenue frm peratins ,839 1,491 Other incme Ttal Incme ,952 1,546 2 Particulars Expenses Cst f materials cnsumed and traded gds sld Marketing, distributin and prmtinal expense Emplyee benefits expense Finance csts Depreciatin and amrtisatin expense Other expenses Ttal Expenses ,067 1,789 3 Prfit/ (lss) befre nn-cntrlling interests/ share f (6) (115) (243) prfit/ (lss) f assciates and jint ventures, exceptinal items and tax (1-2) 4 Share f prfit/ (lss) f assciates and jint ventures (19) (3) (23) 3 (18) 5 Prfit/ (lss) befre exceptinal items and tax (3 + 4) (25) 34 (0) (112) (261) 6 Exceptinal items Prfit/ (lss) befre tax (5-6) (25) 34 (0) (112) (261) 8 Tax expense Current tax Deferred tax (0) 2 Shrt/ (excess) prvisin fr tax relating t earlier years (23) Ttal tax expense Prfit/ (lss) fr the perid (7-8) (45) 11 (23) (174) (271) 10 Other Cmprehensive Incme (i) Items that will nt be reclassified t prfit r lss 17 (17) (ii) Incme tax relating t items that will nt be reclassified (0) (0) (0) (0) (1) t prfit r lss (iii) Items that will be reclassified t prfit r lss 7 (8) (15) 2 (5) Ttal Other Cmprehensive Incme 24 (25) Ttal Cmprehensive Incme fr the perid (9 + 10) (21) (14) (17) (167) (261) Prfit/ (lss) fr the perid attributable t: (a) Owners f the Cmpany (46) 12 (33) (154) (233) (b) Nn-cntrlling interest 1 (1) 10 (20) (38) Other cmprehensive incme attributable t: (a) Owners f the Cmpany 20 (24) (b) Nn-cntrlling interest 4 (1) (7) 2 (4) Ttal cmprehensive incme attributable t: (a) Owners f the Cmpany (26) (12) (20) (149) (219) (b) Nn-cntrlling interest 5 (2) 3 (18) (42) The Grup reprted separate infrmatin abut its tw perating segments, namely, Media peratins and Film prductin and distributin till quarter ended 31st December, In the current quarter, cnsequent t the changes in the structure f its internal rganisatin and the review f the perating results by the Grup s Chief Operating Decisin Maker and cnsideratin f the aggregatin criteria as stipulated in Ind AS 108 'Operating Segments', the Grup has determined that it perates in a single reprtable perating segment Media and Entertainment. Hence there is n separate reprtable segment as per Ind AS 108 'Operating Segments'. Page 7

8 TV18 Bradcast Limited Reprted Cnslidated Financial Perfrmance fr the Quarter and Year ended 31 st March, 2018 ( in Crres) Particulars Quarter ended Year ended 31st Mar'18 31st Dec'17 31st Mar'17 31st Mar'18 31st Mar'17 1 Incme Value f sales and services , Gds and Services Tax included in abve Revenue frm peratins , Other incme Ttal Incme ,504 1,022 2 Expenses Marketing, distributin and prmtinal expense Emplyee benefits expense Finance csts Depreciatin and amrtisatin expense Other expenses Ttal Expenses ,513 1,026 3 Prfit/ (lss) befre nn-cntrlling interests/ share (9) (4) f prfit f assciate and jint ventures, exceptinal items and tax (1-2) 4 Share f prfit f assciate and jint ventures Prfit befre exceptinal items and tax (3 + 4) Exceptinal items Prfit befre Tax (5-6) Tax Expense Current tax Deferred tax (0) 1 2 (1) 1 Ttal Tax Expense Prfit/ (lss) fr the perid (7-8) (1) Other Cmprehensive Incme (i) Items that will nt be reclassified t prfit r lss (2) (ii) Incme tax relating t items that will nt be (0) (0) (0) (0) (1) reclassified t prfit r lss (iii) Items that will be reclassified t prfit r lss 6 (8) (15) 1 (5) Ttal Other Cmprehensive Incme 7 (6) (14) 1 (8) 11 Ttal Cmprehensive Incme fr the perid (9 + 10) 6 10 (8) 9 (2) Prfit/ (lss) fr the perid attributable t: (a) Owners f the Cmpany (3) (b) Nn-cntrlling interest 2 (0) (2) (1) (13) Other cmprehensive incme attributable t: (a) Owners f the Cmpany 6 (6) (14) 1 (8) (b) Nn-cntrlling interest 1 - (0) (0) 0 Ttal cmprehensive incme attributable t: (a) Owners f the Cmpany 3 10 (6) (b) Nn-cntrlling interest 3 (0) (2) (0) (13) The Grup reprted separate infrmatin abut its tw perating segments, namely, Media peratins and Film prductin and distributin till quarter ended 31st December, In the current quarter, cnsequent t the changes in the structure f its internal rganisatin and the review f the perating results by the Grup s Chief Operating Decisin Maker and cnsideratin f the aggregatin criteria as stipulated in Ind AS 108 'Operating Segments', the Grup has determined that it perates in a single reprtable perating segment Media and Entertainment. Hence there is n separate reprtable segment as per Ind AS 108 'Operating Segments'. Page 8

9 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 Q4 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 9

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