Home-grown media and entertainment giant Network18 Media and Investments Ltd has reported an increased consolidated net loss for the first quarter of the current financial year. The company’s consolidated net loss stood at Rs 127.66 crore during the quarter, compared to a net loss of Rs 112.29 crore recorded during the same period last year. According to the company, the quarter saw a challenging environment due to weak advertising demand.
While the company’s revenue from operations rose 10.75 per cent to Rs 1,245.12 crore against Rs 1,124.24 crore in the corresponding period of the previous financial year, so did its total expenses. The company recorded an identical 10.75 per cent growth in expenses at Rs 1,307.87 crore against Rs 1,180.82 crore in the year-ago quarter.
“The ad-environment has been tepid, led by advertisers paring spends amidst weak markets/macro/regulatory flux, and concentration of advertising around sports. However, news (both broadcast and digital) benefitted from election-related advertising during the quarter. We expect the environment to pivot as we head into the festive season,” said a company statement.
The media company also pointed out that the disruption from the rollout of the New Tariff Order (NTO) has smoothened and its subscription income has received a boost. “Nevertheless, some flux in distribution and viewership is lingering, which we expect to taper away in the near term.
As consumers make their pack/channel choices, we believe that strong content propositions and distinctive brands will continue to gain traction. Our bouquet is well-placed to benefit, through leading channels and improved distribution tie-ups,” the firm added.
Consolidated loss in Q1FY20: Rs127.66 crore
Consolidated loss in Q1FY19: Rs112.29 crore
Revenue, expenses up
While the company’s revenue from operations rose 10.75 per cent during the quarter, so did its total expenses for the period