Media firm TV18 Broadcast Ltd on Tuesday reported an 87.86 per cent decline in its consolidated net profit to Rs 37.81 crore for the third quarter ended December 31, 2022, on account of a decline in advertising revenue.
The company had posted a net profit of Rs 311.55 crore for the October-December period of the previous fiscal, TV18 Broadcast said in a regulatory filing.
However, its consolidated revenue from operations rose by 12.8 per cent to Rs 1,767.71 crore compared to Rs 1,567.08 crore in the corresponding quarter a year ago.
The company faced "continued softness in advertising impacted profitability despite strong operating metrics across the board," said TV18 Broadcast in an earning statement.
TV18 Broadcast's total expenses were at Rs 1,812.90 crore, up 45.09 per cent in the December quarter of 2022-23 compared to year-ago period.
According to the company, continued softness in the macroeconomic environment dampened the advertising demand and impacted the revenue, in contrast to the strong festive demand witnessed last year, thereby impacting the growth.
"Despite inflation showing signs of easing, economic sentiment remained weak during the quarter. While core categories continued to spend on advertising, driving growth was challenging due to restrained spends by brands across categories and a sharp pull-back by start-ups and e-com players," said TV18 Broadcast.
TV18 Broadcast further said drop in advertising revenue had a direct impact on margins. Moreover, the profitability of the business also suffered due to investments in new initiatives, digital entertainment and sports.
Commenting on the results, TV18 Chairman Adil Zainulbhai said: "Our TV network continues to grow from strength to strength and our digital business has taken some big strides to build a strong foundation for growth. A tough macro-environment made it difficult from a financial perspective, but we are really pleased with the operating performance of our business." TV18 Broadcast, a subsidiary of Network 18 Group, owns and operates several news and current affairs channels which include CNN News18 and a host of general entertainment channels like MTV, VH1, Nickelodeon and Colors.
Shares of TV18 Broadcast Ltd dropped by 1.62 per cent to close at Rs 36.45 on BSE on Tuesday.
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