Network18 Media and Investments Ltd., a media company, stated on Tuesday that its consolidated net profit for the fourth quarter ended March 31, 2022, increased by 58.1 percent year over year (YoY) to Rs. 61.8 crores.
The business reported a net profit of Rs 39.1 crore in the comparable quarter of the previous year. From Rs 1,414.7 crore in the corresponding quarter last year, total revenues for the period increased 14.6 percent YoY to Rs 1,621.1 crore.
The company reported an increase in operational revenue of 15%, driven by the movie industry and increased advertising revenue. The margin for TV news was 21.4 percent, while revenue increased by 10% YoY. The margin for the entertainment industry was at 16 percent, and sales increased by 11 percent YoY. Revenue from digital news increased by 32% year over year, with an 8% margin.
The company's operating profit reached Rs 1,080 crore (+36 percent YoY), its highest level ever. This was made possible by the strong financial results of all three verticals: TV news, entertainment, and digital news.
Strong revenue growth and ongoing cost controls gave the TV news segment's margins, which increased by 500 basis points to 21%, operating leverage. Despite a significant 26 percent YoY increase in operating expenditures, the entertainment industry kept margins at a healthy 18+ percent. Profitability for digital journalism had a dramatic turnaround, thanks to an increase in ad income.
Network18 Chairman Adil Zainulbhai stated: "FY22 was a tremendous year, not only from a financial standpoint but also in terms of establishing a solid platform on which the firm may expand going forward. Our decision to invest in start-up companies a few years ago was vindicated by the financial performance, which has begun to demonstrate encouragingly favorable results.
EBITDA and margins for the TV news industry have been rising steadily for the past four years, with EBITDA increasing by >7x and margins by 5x. Despite costs dramatically rising as investments in content across markets were scaled up, the entertainment industry nonetheless maintained margins of 18+ percent. Additionally, the digital news made a rapid turnaround from being barely break-even a year ago to becoming profitable in FY22 and delivering margins similar to group margins.
In a similar vein, he remarked, "We have strengthened our core TV offering while setting an ambitious goal to become a prominent player in the digital area. We'll keep strengthening our tenet of "Digital First, TV Always," making the most of our current advantages to expand in the markets where we now operate and pave the way in new ones with fresh, cutting-edge products.
The strategic alliance Network18 has formed with Viacom18, according to Zainulbhai, is a significant step in that direction. It will help the business get on a long-term growth trajectory and develop into one of India's top content organizations.