Quarterly Performance for June 2014 (Consolidated)

The consolidated operating revenues increased by 33% to Rs 527.74 crore. The revenue from media operation segment grew by 34% to Rs 513.42 crore while that of film production and distribution de-grew by 24% to Rs 14.32 crore.

OPM has inclined by 306 bps at 9% due to fall in marketing, distribution & promotion expenses declined by 1600 bps to 19.4% as a percentage of net sales. As a result, the resultant operating profits was up by 101% at Rs 47.72 crore.

The PBIT margin from media operation declined by 203 bps to 3.8%, thus resulting in PBIT of Rs 19.37 crore, decreased by 13%. The loss at PBIT level for film production and distribution business stood at Rs 0.95 crore.

Other income decreased 17% at Rs 5.83 crore. The interest cost was flat at Rs 14.92 crore. Depreciation charge increased 171% to Rs 29.51 crore. The profit before tax & EO inclined by 90% to Rs 9.11 crore.

There was EO expense of Rs 223.28 crore for the quarter which is one-time exceptional adjustment. The Group has accounted for obsolescence/impairment in the value of certain tangible and intangible assets to the extent of Rs 122.27 crore and write-off and provisions of non-recoverable and doubtful loans/advances /receivables to the extent of Rs 87.70 crore. Further, Exceptional Items also includes Rs 13.31 crore towards severance pay and consultancy charges. The tax credit for the quarter was Rs 0.10 crore. After considering minority interest, the loss at net profit stood at Rs 154.54 crore due to EO expense.

Business News Operations:-

• CNBC TV18 and CNBC Awaaz maintained their leadership as the No.1 channels in the respective genres with 45% and 56% market shares respectively, this quarter. The channels lead in terms of viewership in both market and Pre-market hours.

• Business News Operations also saw the successful launch of CNBC Bajar, India's first Gujarati language business channel on July 1, 2014.

General News Operations:-

• CNN IBN sustained its strong viewership performance with a 26% market share in the genre. This quarter witnessed focused coverage of General Elections 2014 through the launch of new shows like, ‘Election Special', Young India Debates', ‘Election Katha by Ram Guha' and special interviews with prominent newsmakers. On the counting day, CNN IBN was the No. 1 English News channel**.

• IBN7- The channel sustained its viewership performance reaching 65 million people.

• IBN Lokmat completed 6 years of incisive reporting and comprehensive coverage in this quarter. The channel held the No.2 spot with a 30% market share in the genre

Infotainment-History TV18 :-

• History TV18, sustained its strong viewership this quarter with an 18% market share and the highest time spent per viewer, a lead it has maintained since launch. In an effort to increase viewer engagement, the brand also launched the HISTORY TV18 App, India's first truly second-screen channel app, enabling viewers to chat live on TV via a ticker. The App received a stupendous response with over 250,000 downloads within the first month of launch

Entertainment Business:-

• Colors remained the undisputed leader during weekends with a 27% market share. Non-fiction continued to create new milestones with, ‘Jhalak Dikhlaja' being sampled by 123 million viewers and ‘Comedy Nights with Kapil' continuing to run as the No.1* non-fiction show in the genre. The channel also launched a new fiction show, ‘Meri Aashiqui tumse hi'. Colors strengthened its digital engagement with the launch of its app on Android, iOS and Windows.

• MTV continued its leadership in viewership reaching 5.5 million viewers and further cemented its position as India's No.1 youth brand in digital engagement with more than 27 million fans and followers on social media platforms.

• VH1 led the English entertainment genre with a 26% (source: TAM 15-34 AB Market: 7 Metros without Chennai, 7 AM to 11 PM) market share in the quarter. The channel created and aired ‘Sound Nation', a multi-city award show for Indian artists in the quarter.

• Comedy Central, Nick and Sonic sustained their strong viewership in the quarter.

• Viacom18 Motion Pictures saw the successful release of "Transformers – Age of Extinction". Other releases in the quarter were, "Manjunath", Telugu film "Anamika" and Tamil film "Nee Enge En Anbe".

ETV News:-

• ETV News saw the successful launch of ETV Gujarati bringing the total bouquet strength to nine channels; ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar, ETV Urdu, ETV Kannada, ETV Bangla, ETV Haryana. The channels sustained their strong viewership performance aidedby the National General Elections

ETV Entertainment:-

• ETV Kannada maintained its position at No.2 in the Karnataka market, and a No.1 position in Bangalore driven by a lineup of strong fiction and non-fiction properties in Q1 FY15.

• ETV Bangla continued to grow in a competitive regional market reaching out to 6.5 million viewers in the quarter.

• ETV Marathi continued to innovate in non-fiction programming with the launch of "Zhunj Marathmoli" – a task based celebrity reality show. The channel reached out to 23.5 million viewers in this quarter.

Performance for year ended March 2014 (Consolidated)

Reported results are inclusive of the financial consolidation of ETV News (100%) and ETV Entertainment (50%) from 22 nd Jan 2014 till 31 st March 2014. On 22^nd Jan 2014, post receipt of required regulatory approvals, TV18 completed the acquisition of the ETV channels–100% of ETV News, 50% of ETV Entertainment and 24.5% of ETV Telugu.In accordance with the accounting policies, ETV News and ETV Entertainment have been consolidated at 100%on a line by line basis.

The consolidated operating revenues increased by 16% to Rs 1968.13 crore. The revenue from media operation segment grew by 21% to Rs 1895.46 crore while from film production and distribution declined by 41% to Rs 101.77 crore.

OPM has inclined by 412 bps at 10.7%. The resultant operating profits was up by 88% at Rs 210.73 crore.

The PBIT margin from media operation inclined by 446 bps to 9.8%, thus resulting in PBIT of Rs 185.05 crore, increased by 122%. The loss at PBIT level in film production and distribution business stood at Rs 24.2 crore.

Other income decreased 26% at Rs 32.42 crore. The interest cost decreased by 58% to Rs 60.53 crore. Depreciation charge increased 33% at Rs 55.79 crore. The profit before tax and EO stood at Rs 126.83 crore against loss of Rs 29.65 crore in the last year.

There was EO expense of Rs 27.41 crore which is one-time restructuring and acquisition charge of ETV and a one-time severance pay as part of the company's restructuring initiative to realize operational synergies across the news network. The tax outgo inclined by 10% to Rs 13.82 crore. After considering minority interest, the net profit stood at Rs 103.63 crore against loss of Rs 25.45 crore in the last year.

Other Developments

Independent Media Trust (IMT), of which Reliance Industries Limited is the sole beneficiary, has acquired a controlling stake of the promoter group entities namely RB Mediasoft Private Limited, RRB Mediasoft Private Limited, Adventure Marketing Private Limited, Watermark Infratech Private Limited, Colorful Media Private Limited, RB Media Holdings Private Limited, and RB Holdings Private Limited (collectively referred to as ‘Holding Companies') from Raghav Bahl and Ritu Kapur on 7 July, 2014. Pursuant to such acquisition, Raghav Bahl, Ritu Kapur and other existing promoters / promoter group of the Company (other than the ‘Holding Companies' and Network18 Media & Investments Limited) have ceased to be promoters / promoter group of the Company from 7 July, 2014. Independent Media Trust, Reliance Industries Limited, the Holding Companies and Network18 Media & Investments Limited are the promoters of the Company w.e.f 7 July, 2014.

Shareholding Pattern

The promoter holds 57.04% stake in the company.

The promoters shares pledged are nil.

Valuation

The scrip is trading around Rs 28.9.