Network18 Q3 Results: Co reports net loss at Rs 1,435 crore post demerger with Viacom18

Network18 Media & Investments reported its December 2024 quarter consolidated losses at Rs 1,435 crore (attributable to shareholders) versus Rs 59 crore in the year ago period. However, the loss was on account of company's demerger with Viacom18.

The revenue from operations in Q3FY25 stood at Rs 1,361 crore versus Rs 1,774 crore reported by the company in the corresponding quarter of the previous financial year.

Network18 Media in its exchange filing attributed the loss to "exceptional items" which represented a loss of Rs 1,426 crore, relating to the derecognition of subsidiaries. The loss has been presently accounted on a provisional basis during the quarter.

It also said that the revenue figures are also not comparable for the corresponding previous periods.

In Q2FY25, the net losses stood at Rs 96 crore while the revenue from operations was at Rs 1,825 crore.

The QoQ and YoY losses are attributable to the owners of the company.

Not accounting for the exceptional item, Network18 reported a net profit of Rs 26 crore versus the loss of Rs 148 crore in Q2FY25 and Rs 102 crore in Q3FY24.

Commenting on the results, Network18's Chairman Adil Zainulbhai said that the restructuring of the business is now complete, simplifying the corporate structure for all its stakeholders.

"We are pleased with the progress made on the operating front, especially the manner in which our television network is growing. Having established leadership positions in national markets, we are now focused on select regional markets for driving the next phase of growth. Our Digital business is also gaining momentum, and we are harnessing the combined strength of our platforms to deliver a superlative and seamless experience to our consumers,” Zainulbhai said.

Viacom18’s business has merged with Star India. The scheme of arrangement for the merger of business of Viacom18 with Star India Pvt. Ltd. (SIPL) became effective on November 14, 2024, resulting in the creation of the joint venture (JV). The company claims to be one of India’s largest broadcasting and streaming businesses.

Reliance Industries (RIL) invested Rs 11,500 crores into the JV for its growth strategy. Viacom18 holds 46.82% stake in the JV with the balance being held by RIL (16.34%) and Disney (36.84%).

On December 30, 2024, Viacom18 ceased to be a subsidiary of Network18, post conversion of the Compulsory Convertible Preference Shares (CCPS) of Viacom18, held by RIL, into equity shares. The company now holds 16.12% of the equity share capital of Viacom18 and 13.54% on a fully diluted basis.

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