Network18 Media & Investments rose 1.56% to Rs 38.95 after consolidated net profit surged 124.8% to Rs 333.38 crore on 3.5% decrease in net sales to Rs 1,422.45 crore in Q3 December 2020 over Q3 December 2019.
Profit was boosted by improved performance, lower finance costs and tax reversals. Consolidated profit before tax (PBT) jumped 36.5% to Rs 252.60 crore in Q3 December 2020 as against Rs 185 crore in Q3 December 2019. Tax rebate for the quarter stood at Rs 99.38 crore as against a tax expenditure of Rs 36.71 crore in Q3 December 2019. The Q3 result was declared post trading hours yesterday, 19 January 2021.
Consolidated operating EBITDA grew 21% to Rs 324 crore in Q3 December 2020 over Rs 268 crore in Q3 December 2019. Operating EBITDA margin improved to 22.8% in Q3 FY21 as against 18.2% in Q3 FY20.
The company said that entertainment has fully recovered from COVID-19 impact, led by programming returning to normalcy and high-impact content driving ad-yields up during festive season. Viewership remained strong despite sports (IPL) and peer non-fiction shows competing for eyeballs. Sustained focus on high-quality reportage without hyperbole continues to bolster the news business, even amidst the absence of BARC ratings during the quarter. Digital News revenue rose more than 50% Y-o-Y (year-on-year) for the second quarter in a row.
Subscription revenue rose 2% year-on-year (YoY) as lockdown impact on some consumer segments was seen tapering. Domestic subscription revenue remained strong, offset stress in international while improved distribution tie-ups for TV and Digital continue to drive subscription growth.
Adil Zainulbhai, the chairman of Network18 Media & Investments, said: "The group has fully recovered from the effects of the pandemic, even as safety measures and innovative solutions to logistical challenges continue to be deployed. We have treated this period as an opportunity to rethink our businesses, and are emerging stronger and ready for the post-COVID world. As TV consumption remains healthy and Digital adoption grows in tandem, we believe the group is well positioned to straddle the space. The benefits of cost controls effected over the past year are now visible, as all three verticals are at much improved profitability levels. In this new year that is bringing in new hope, our constant endeavor will be to create value and deliver on our promise of class-leading content."
Network18 Media & Investments is promoted by Independent Media Trust of which Reliance Industries is the sole beneficiary.
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