Network18 Group widens net loss to Rs 168 cr in Q4

Media conglomerate Network18 Group widened its net loss to Rs 168.1 crore for the fourth quarter ended March 31, 2012, from Rs 44.1 crore recorded during the corresponding period in the previous financial year.

The widening of net loss was on account of NW18 incurring one-time losses of Rs 23.9 crore for discontinued operations - deferring the launch of a proposed hindi movie channel and The Indian Film Company (TIFC).

NW18 incurred further loss of Rs 30.1 crore during the quarter because of the launch of new channels — Sonic, Comedy Central and Colors HD and History TV18.

Operating revenues for NW18 increased by 62.5% to Rs 659.6 crore from Rs 405.8 crore. Sai Kumar, group chief executive officer, NW18 said, “Our subscription revenues have grown substantially over last year and we see this trend continuing as our revamped distribution organization is now supported by a positive regulatory environment. Going forward we expect near to medium term softness on the advertising front but are confident of delivering a strong operating performance.”

For the financial year 2011-12, NW18 reported 31.5% increase in operating revenue at Rs 1,952 crore. The company had posted operating revenues of Rs 1484 .1 crore in 2010-11. The growth in revenues largely came due to an increase of 43.5% in revenues from entertainment business to Rs 792 crore.

Net loss during the year stood at Rs 388.5 crore as compared to net loss of Rs 36.7 crore registered in 2010-11. Losses amounted to Rs 63.5 crore for discontinuation of operations related to the hindi movie channel and TIFC and to another Rs 74.6 crore for launching new channels.