The share price of Network18 Media & Investments jumped more than 14 percent on Thursday after the company reported a three-fold rise in its Q4 consolidated net profit with a sharp growth in operational performance.

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The company posted a 241.9 percent jump in consolidated net profit at Rs 205.8 crore for the fourth quarter of fiscal 2021 as compared to Rs 60.19 crore in the corresponding period of last year.

The company's consolidated revenue in Q4FY21 from operations declined 3.4 percent to Rs 1,414.7 crore from Rs 1,464.51 crore, YoY.

On the operational front, EBITDA during the quarter grew by 24 percent YoY to Rs 279 crore and operating margin expanded to the highest ever, around 19.7 percent, from 15.4 percent in the corresponding period.

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Network18 Media & Investments reports 3-fold jump in Q4 profit at Rs 205.8 crore

TV news margins near-doubled YoY to 16 percent, as ad revenue grew through the year, and entertainment margins at 18.6 percent YoY are the highest ever, led by cost efficiencies, said the company, adding digital news broke even on a full year basis, driven by accelerated revenue growth.

The company's entertainment advertising ex-live-events (which were deferred) has grown in high single digits, as recovery from COVID was cemented with a full roster of original programming.

Digital news maintained its growth trajectory, rising around 50 percent YoY for the third consecutive quarter, it said.

Domestic subscription revenue growth due to improved tie-ups in TV and digital (both B2B and B2C) offset stress in international. Subscription revenue remained largely resilient to COVID impact, and grew 1 percent in FY21, it said.

Also Read: TV18 Broadcast shares jump 7% on strong Q4 earnings

"The group has successfully dealt with the challenges posed by the COVID pandemic, and posted much improved profitability in a difficult year," said Adil Zainulbhai, Chairman of Network18.

"The connect of our diverse brands with consumers has only grown during this period. This bears testament to our business process resilience and innovation in adversity; factors which have proved critical and will continue to remain of prime importance as we navigate any future challenges," he added.

"Resumption of 2 channels on Freedish and strong performance of marquee properties Bigg Boss and Dance Deewane continues to drive up viewership and monetization," the company said in an exchange filing.

The company's consolidated profit in FY21 grew by 873.6 percent to Rs 546.59 crore, compared to Rs 56.14 crore in FY20, led by improved operating profitability and 33 percent lower interest costs. In the same period, revenue declined 12.2 percent to Rs 4,705.11 crore compared to previous year.

At 2:05 pm, the shares of Network18 Media & Investments were trading 11.82 percent higher at Rs 43.05 apiece on the BSE.

(Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

First Published:Apr 22, 2021 2:19 PM IST