TV18 Broadcast Q2 Net Profit Slumps 95% YoY To Rs 10.28 Cr

TV18 Broadcast, a subsidiary of News18 Group, released its Q2FY23 results on Tuesday. It reported that its consolidated net profit decreased 95.55 per cent year-on-year (YoY) to Rs 10.28 crore for the second quarter, which ended on 30 September 2022.

Its profit in the year-ago quarter stood at Rs 231.40 crore.

In comparison to Rs 1,307.90 crore in the corresponding quarter, a year back, consolidated revenue from operations jumped 12.65 per cent to Rs 1,473.43 in Q2 FY23.

Due to the high level of inflation, which became a barrier for many companies, especially in the FMCG sector, the company stated that there was a lack of economic activity during the quarter.

In the wake of these adverse factors, a decrease in advertising spending on new product launches and sustenance campaigns was observed. 

In an earnings statement, TV18 Broadcast reported that both startup and ecommerce advertising were also down because of the challenging fundraising environment.

Across all categories, TV ad inventory fell by three per cent on a YoY basis, with news industry-wide dropping by roughly 10 per cent. Thus, the entertainment segment's ad revenue flattened and the revenue from news ads also saw a downfall. 

As a result of Colors Rishtey's revenue decline, there was an impact on the entertainment industry.

In spite of this turbulent condition, TV18 Group has made investments across both entertainment and news segments to sustain its growth.

Although it was noted that in spite of the fact that these investments resulted in lower profitability due to higher costs than revenues, they boosted operating metrics.

"The first half of the fiscal has been challenging for most sectors. However, we believe that this phase should only be a minor bump in the long runway for growth. Our presence across the full spectrum of content segments and platforms places us in a unique position to leverage the combined strengths of our assets," said Adil Zainulbhai, Chairman, Network18.

"We have set clear objectives for our different business segments and are working on executing our plans in that direction. Despite the macro environment being less than ideal for growth currently, we continue to make investments which will help us create a strong foundation for the long-term and will hold us in good stead as growth returns," he added.

On Tuesday, TV18 Broadcast’s shares closed 3.87 per cent higher at Rs 37.55 apiece on the BSE.