The Network18 group’s digital business arm will have a reason to cheer with the recent release of it Q2 FY14 Earnings report. The report discloses revenues from four major business segments viz. television and motion pictures (colours, viacom etc.), advertising, digital content (moneycontrol, in.com, ibnlive,firstpost) and virtual commerce business (Homeshop18)
As revealed from the data in the earnings release, the falling digital and eCommerce segment finally got a boost with increased revenues and reduced operational losses.
The group reported a revenue of INR 124.8 crores in its digital content and eCommerce business, an approx. 16% rise from INR 106.9 crores generated in Q1 FY14. The operating losses reduced substantially to INR 9.3 crores.
The revenues from digital content operations are reported to be INR 20.4 crore, an INR 1.3 Cr fall from the previous quarter this year. The digital commerce revenues stood at 104.4 Cr, showing around 22% growth over the Q1FY14 and a 59% growth over Q2FY13.
Talking about the consolidated losses, the company reported a net loss of INR 36.3 crores for the quarter ended Sept. 30, 2013 as compared to the net loss of INR 50.3 crores in the same period last year. Consolidated operating revenues for the quarter stood at INR 669.8 crores on a reported basis, which is a 26.87% high over INR 528 crore in the year ago period.
Although, the growth seems nice here, but considering the 90% Y-o-Y growth in Q1FY14 digital commerce revenues, the current quarter results are quite below expectations.
Other developments of the group in this quarter include strategic partnership of Bookmyshow with PVR Cinemas for 5 years. Also recently, Homeshop18 had raised USD14 Mn from GS Home Shopping funds managed by OCP Asia Ltd. (OCP Asia) & Network18, thereby valuing HomeShop18 at USD 360 Mn.
To read the complete release, click here.
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