It seems like the Network18 group is struggling hard enough in order to keep up its revenue. In its recently released earnings report for Q1 FY14, the group reported a revenue of INR 106.9 crores in its Digital content and ecommerce business, a 3% fall from INR 110.4 crores generated in Q4 FY13 ending March 31, 2013. Though, as compared to Q1 FY13, it registered a growth of 174% for the similar business arms in this quarter.
The consolidated growth for all businesses involving TV and motion pictures (colours, viacom, etc.) advertising, digital (moneycontrol, in.com, ibnlive,firstpost) and virtual commerce business (Homeshop18) stood at INR 556.6 crores on a reported basis.
As disclosed in the earnings release, the digital content operations recorded a growth of 30% with INR 21.7 crores revenue, along with more than 90% hike in Digital commerce revenues at INR 85.2 crores as compared to Q1 FY13.
Wherein, ecommerce businesses have shown quite improvement in revenues as compared to previous quarter (Q4 FY13), digital content revenues are still declining leading to high concerns for Network18 group. To be pointed out, during the quarter, the group’s online news platform Firstpost.com also acquired Fakingnews.com, an Indian satire & humor news website.
As per B. Saikumar, Group CEO, e-commerce businesses will continue their stellar growth and will play a major role in making a strong year ahead.
Considering the group’s other business segments performance on Y-o-Y basis, online movie ticketing service, Bookmyshow.com showed a revenue growth of over 45%. Also, it recently entered into a strategic partnership with PVR cinemas.
Homeshop18, the company’s online and television arm raised $30 million from OCP Asia Limited and Network18, adding the food and grocery in its product range with pan India delivery in the corresponding quarter.
Apart from this, Capital18 entered into an agreement with Japan based, Dentsu India Group to divest its approx. 80% stake in Webchutney, a digital creative agency, generating a return of over 200% for Network18. This was in line with company’s stated objective of profitably monetizing investments to create value for the shareholders of Network18.
An Indian mass media company with interests in television, print, internet, film, mobile content and allied businesses, Network18 is currently facing tough competition especially in the ecommerce segment with players such as Flipkart, Snapdeal, Indiatimes Shopping. Also, with the entry of global players like Amazon in the country, it surely indicates entirely new levels where the industry is going forward.