NETWORK18 - Netwrk.18 Media

📊 NSE: NETWORK18 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 10:29

💰 Financial Performance

Revenue Growth by Segment

News Business operating revenue grew 7.2% YoY to INR 477.2 Cr in Q2 FY26, despite a 7% YoY decline in industry-wide TV News inventory demand. H1 FY26 News revenue was flattish at INR 907.6 Cr (up 1.1% YoY) due to the high base of election-linked advertising in the previous year. Consolidated operating income for FY24 was INR 9,297 Cr, while H1 FY25 income stood at INR 4,966 Cr.

Geographic Revenue Split

The company operates an all-India network with leadership in key regional markets including Marathi, Bengali, and Kannada. It maintains a dominant national position in Hindi and English news segments, reaching over 250 million people monthly across the country.

Profitability Margins

Operating EBITDA margin for the News Business was 1.5% in Q2 FY26 compared to 1.6% in Q2 FY25. H1 FY26 margin improved to 1.3% from 1.1% YoY. Consolidated net loss for H1 FY25 was INR 348 Cr, primarily due to losses in digital and print segments offsetting healthy TV news profits.

EBITDA Margin

News Business Operating EBITDA grew 5.1% YoY to INR 7.4 Cr in Q2 FY26 and 21.7% YoY to INR 11.5 Cr in H1 FY26. Consolidated PBILDT for FY24 was negative INR 658 Cr, reflecting significant investments in digital initiatives.

Capital Expenditure

Significant capital investments are directed toward content development and technology infrastructure to strengthen digital news platforms. While specific future INR Cr values are not disclosed, ICRA notes that free cash flows are expected to remain muted due to these ongoing medium-term investments.

Credit Rating & Borrowing

Short-term bank facilities and Commercial Paper are rated [ICRA]A1+ (reaffirmed in Dec 2024). The rated amount for Commercial Paper was enhanced from INR 2,250 Cr to INR 2,750 Cr. Borrowing costs are competitive due to strong parentage and a track record of refinancing short-term debt.

⚙️ Operational Drivers

Raw Materials

Primary operational costs consist of content development (editorial coverage) and technology infrastructure, which represent approximately 98% of the News Business operating revenue (INR 469.8 Cr expense against INR 477.2 Cr revenue in Q2 FY26).

Import Sources

Not applicable as the company is a service-based media entity; content is primarily generated domestically across India.

Key Suppliers

Not specifically disclosed; however, the company relies on technology infrastructure providers and content creators for its 20-channel portfolio.

Capacity Expansion

Current capacity includes 20 TV channels (14 regional) and multiple digital platforms. Expansion is focused on increasing digital reach and strengthening regional market positions in Bengali and Kannada.

Raw Material Costs

Operating expenses for the News Business grew 7.2% YoY to INR 469.8 Cr in Q2 FY26, matching revenue growth. Prudent expense control resulted in flat operating costs for H1 FY26 despite inflationary pressures.

Manufacturing Efficiency

Viewership share increased by 220 bps YoY in Q2 FY26, reaching a 13.5% all-India share. Reach efficiency is marked by over 250 million monthly viewers.

Logistics & Distribution

Distribution reach is a critical driver; investments continue to ensure the network remains the largest in India by reach and viewership.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Growth will be driven by scaling digital news platforms (Moneycontrol, News18.com), strengthening regional TV market leadership, and improving pricing yields. The company is also transitioning Viacom18 into a direct subsidiary of RIL to streamline the media portfolio while retaining a 13.54% stake to benefit from entertainment segment upside.

Products & Services

TV News broadcasting (20 channels), Digital News platforms (Moneycontrol, Firstpost), Print media (Forbes India, Overdrive), and digital commerce/ticketing (BookMyShow).

Brand Portfolio

CNBC TV18, CNN News18, News18 India, Moneycontrol, Firstpost, Forbes India, Overdrive, BookMyShow, Viacom18.

New Products/Services

Continued expansion of multi-lingual digital platforms and strengthening the YouTube presence, where it is currently the biggest digital news network.

Market Expansion

Targeting deeper penetration in regional markets like West Bengal and Karnataka to capitalize on growing regional language consumption.

Market Share & Ranking

Ranked #1 TV news network in India with a 13.5% all-India viewership share.

Strategic Alliances

Joint Venture for News18 Lokmat; strategic stakes in Viacom18 (13.54% post-dilution), BookMyShow (~39%), and ETPL (24.5% economic interest).

🌍 External Factors

Industry Trends

The industry is seeing a 7% decline in TV news ad inventory demand as consumption shifts toward digital and OTT. Network18 is positioning itself as a digital-first news network to capture this 15-20% annual growth in digital news consumption.

Competitive Landscape

Stiff competition from other national news networks and rapidly growing digital-only news platforms.

Competitive Moat

The primary moat is the strong parentage of Reliance Industries Limited (RIL), which holds a 56.89% stake. This provides superior financial flexibility and a 100% refinancing track record for short-term debt. The network's reach (250mn monthly) creates a significant barrier to entry for new competitors.

Macro Economic Sensitivity

High sensitivity to GDP growth and corporate profitability as they dictate advertising budgets. Soft revenue conditions were noted in H1 FY26 due to the macro environment.

Consumer Behavior

Shift toward digital news consumption on YouTube and mobile apps; Network18 has adapted by becoming the largest news network on YouTube.

Geopolitical Risks

Low direct impact, though global economic shifts can influence domestic corporate ad spending.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by MIB and TRAI regulations regarding broadcasting standards, pricing controls, and service rendering.

Environmental Compliance

Low exposure to environmental risk; adheres to Ministry of Information and Broadcasting (MIB) and TRAI guidelines.

Taxation Policy Impact

Consolidated Profit Before Tax for H1 FY26 was INR 190.10 Cr, including a share of profit from associates of INR 190.94 Cr.

Legal Contingencies

Not disclosed in available documents; no major pending court case values provided.

⚠️ Risk Analysis

Key Uncertainties

Refinancing risk is a key concern as 100% of the INR 3,032.93 Cr debt is short-term. Modest operating profitability due to digital/print losses (H1 FY25 net loss of INR 348 Cr) remains a monitorable risk.