Consolidated profit befor tax tumbled 86.8% to Rs 32.67 crore in Q4 FY23 as compared to Rs 247.30 crore reported in the same period last year. Total expenses rose 10.49% YoY to Rs 1,413.49 crore in Q4 FY23.

The company's consolidated operating EBITDA was Rs 77 crore in Q4 FY23, falling 70% from Rs 254 crore posted in the corresponding quarter previous year. Operating EBITDA margin slipped to 5.5% in Q4 FY23 as against 17% in Q4 FY22.

On full year basis, the company's consolidated net profit declined 80.1% to Rs 116.18 crore in FY23 as against Rs 584.50 crore in FY22. Revenue from operations rose 7% YoY to Rs 5,912.09 crore in FY23, despite the weakness in advertising environment persisting throughout the year and removal of Colors Rishtey from DD FreeDish.

The media company said that the inflation softened marginally during the quarter, but economic sentiment continued to be weak, impacting the advertising revenue of the M&E sector. While staple categories saw improvement in demand, discretionary demand remained under pressure, especially in rural markets.

Consumer companies continued to be cautious on raising advertising spends as TV impressions were also down 6% YoY during the quarter. Ad inventory of News segment declined by 10% YoY while it was flat for other genres, both during the quarter and for the full year. Despite the decline in inventory, News segment delivered growth in Q4 due to IP-led monetization, leading to a QoQ improvement in EBITDA and margins. Entertainment business ad revenue declined on a YoY basis.

The company added that the impact on advertising revenue had a direct bearing on margins as we continued with investments to strengthen our position across segments. The profitability of the business also suffered due to investments in new initiatives - digital entertainment and sports, which had a negative contribution to EBITDA of Rs 170 crore and Rs 475 crore for Q4 and for the full year, respectively.

News business revenue rose 4% YoY and the EBITDA margin was at 18.1% in Q4 FY23. The rise in revenue was primarily driven by IP events' advertising revenue and CNBCTV18.com. TV News ad inventory declined by 11% at industry level due to the soft advertising demand as well as drop in the news genre share as a percentage of the total viewership pie. While lower-than-expected advertising revenue directly impacted the profitability, the company said that its investments during the year have helped the business establish strong positions across markets.

Viacom18's Q4 revenue from Entertainment business (excluding Viacom18 Studios) grew in high single digits, primarily driven by sports segment. Non-sports ad revenue declined due to the soft advertising demand and the impact of withdrawal of Colors Rishtey from DD FreeDish. Similarly, increase in operating costs was also driven by sports business and excluding the same cost was marginally lower. FY23 revenue growth was led by movie and sports segments as TV revenue declined due to the impact of slow advertising demand.

Adil Zainulbhai, chairman of TV18 said, “Viacom18's strategic partnership with some of the biggest names in the media space is great news for the company. With talent, resources, and technological capabilities at its disposal, it has the potential to change the narrative of India's M&E landscape. We are heartened by the operating performance of our business this year which has delivered significant progress across verticals. We are excited to begin the new fiscal on a positive note, with an endeavor to translate this operating success into a strong financial performance.”

TV18 Broadcast, a subsidiary of Network18 manages its primary business of broadcasting. TV18 runs the largest news network in India, spanning business news, general news and regional news channels.