🧾 At a Glance
Network18 owns TV channels, news portals, OTT platforms and even your YouTube recommended videos (thanks, Viacom18). But behind the glitz of the screen, the financials look like a tragedy. In the last five years, revenue has doubled, but so have the losses. ROE is in the red, cash flow is negative, and the recent Viacom18 “restructuring gain” was like slapping makeup on a zombie.
🎥 1. TL;DR — Network18 in One Frame
| Metric | FY20 | FY25 | Change |
|---|---|---|---|
| Revenue (₹ Cr) | 5,357 | 6,888 | 🔼 +29% |
| Net Profit (₹ Cr) | 56 | -1,777 | 🔻 Titanic Dive |
| ROE | -2.3% | -3.3% | ❌ Negative |
| Stock Price (₹) | ~48 | ₹52.3 | 😐 +9% in 5 yrs |
| 5Y Stock CAGR | — | — | 🐢 ~1.75% |
| Market Cap | ₹7,500 Cr | ₹8,057 Cr | 😬 Meh |
One of the most diversified media houses — yet financially, it’s like a Netflix series that starts great and crashes by Season 2.
🧠 2. What the Business Actually Does
Network18 is Reliance’s content empire — directly or through its ~56.89% stake.
- 🧾 News: CNN-News18, CNBC-TV18, News18 Regional
- 📺 Entertainment (via Viacom18): Colors, Voot (now shut), JioCinema
- 💻 Digital Media: Moneycontrol, Firstpost, News18.com
- 🎥 Production + Distribution: Viacom18 owns content + streaming rights for IPL (with JioCinema), movies, OTT
Key Update:
In FY25, Network18 sold its stake in Media18 Distribution Services Ltd (worth a grand ₹1 lakh). No, that’s not a typo. Just normal media shuffling.
📉 3. Financial Performance: “TRPs Up, Profits Down”
Let’s not sugarcoat it. This is a flop show on the balance sheet:
📺 Revenue
- FY20 → FY25 Revenue: ₹5,357 Cr → ₹6,888 Cr
- That’s just ~5% CAGR over 5 years
- For a tech-meets-content company in India’s OTT boom? Weak.
🔥 Operating Margins
- OPM: Peaked at 18% in FY22
- Now: -5% in FY25
- How does a content giant lose money on ads, distribution AND subscriptions?
💸 Net Profit
- FY22: ₹838 Cr PROFIT (thanks to exceptional Viacom gains)
- FY25: ₹-1,777 Cr LOSS
- Like hiring a blockbuster actor and still tanking box office
💰 4. Cash Flow: “Moneycontrol” But No Money?
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY22 | +₹641 Cr | -₹249 Cr | -₹381 Cr | +₹12 Cr |
| FY24 | -₹6,465 Cr | +₹9,929 Cr | +₹1,139 Cr | +₹4,603 Cr |
| FY25 | -₹1,912 Cr | -₹3,636 Cr | +₹720 Cr | -₹4,828 Cr |
Translation: JioCinema’s content costs might be eating into the cash flows. This isn’t “cash burn”, it’s an arson.
🧨 5. What Went Right?
✅ Viacom18 Deal Flow: Merged with Reliance Storage Ltd & Bodhi Tree, got IPL streaming rights = 👑 of Indian OTT
✅ JioCinema Boom: Watch IPL for free? Thank Network18 + Ambani
✅ Digital Leadership: Moneycontrol = India’s largest finance platform
✅ Debt Reduced in FY25: Borrowings halved from ₹8,156 Cr → ₹2,960 Cr
✅ Promoter Skin in Game: Still 56.89% owned by Reliance — won’t let it drown… yet.
🚨 6. What’s Going Wrong?
❌ Consistent Losses: ₹1,777 Cr loss in FY25 despite strong assets.
❌ Negative ROE for 5 straight years: -3% and falling
❌ Working Capital Stress: Working capital days touched 463 in FY24 — absurd for media
❌ High Volatility in Financials: Profit to loss, to profit to loss again. Scriptwriter on acid?
❌ Stock Performance = Flat Noodle: +9% in 5 years vs Nifty 100 up 110%+
🎭 7. Peer Pressure — Compared with Media Frenemies
| Company | Market Cap (Cr) | OPM % | ROCE % | 5Y Stock CAGR | P/E |
|---|---|---|---|---|---|
| Saregama | ₹9,598 Cr | 18% | 18.05% | ~30%+ | 47.8x |
| Tips Music | ₹8,423 Cr | 22% | 112.4% | ~50%+ | 50.6x |
| Network18 | ₹8,057 Cr | -5% | 0.61% | 1.75% | Loss-making |
Verdict: Everyone’s singing and dancing. Network18 is buffering.
🧮 8. Fair Value Range – Is This Worth a Channel Subscription?
Let’s try some logic in this chaos.
Base Case (If it stops bleeding)
- Revenue: ₹7,500 Cr
- OPM: 10% (hope) = ₹750 Cr EBITDA
- EV/EBITDA: 8x (discounted for chaos)
- Enterprise Value = ₹6,000 Cr
Assuming ₹3,000 Cr net debt:
- Equity Value = ₹3,000 Cr → ₹30/share
Bull Case (Viacom18 + IPL streaming profits kick in)
- EV/EBITDA = 12x
- EBITDA = ₹1,000 Cr
- EV = ₹12,000 Cr → Equity Value = ₹9,000 Cr
- FV = ₹55–60/share
🎯 EduInvesting Fair Value Range: ₹30 – ₹60
(Yes, current price ₹52 is pricing in a lot of IPL optimism)
😏 Bonus Scene — Meme Time
Anchor: “Sir, what’s your earnings guidance?”
CFO: “We don’t guide earnings. We guide emotions.”
🎬 Investors watching their shares drop every quarter:
“Colors hai… par sab laal dikh raha hai.”
🚀 What to Watch Ahead
- 🎯 Profitability of JioCinema (free IPL = great; revenue? TBD)
- 🔄 Promoter Reshuffling (Viacom18 stake changes = market shakeup)
- 📢 Broadcast Regulation impact
- 💰 Monetization of OTT — will JioCinema start charging?
🏁 Final Thoughts: “Network18 — India’s Netflix or Reliance’s Nuisance?”
Right now, it’s:
- 📉 Bleeding on the books
- 📺 Dominating in content
- 🧩 Structurally complicated (Viacom, Jio, RIL all involved)
It’s a great story for media students. For investors? Only if you’re okay with a drama-filled portfolio.
✍️ Written by Prashant | 📅 June 21, 2025
Tags: Network18, Reliance media stocks, JioCinema, Viacom18, OTT disruption, Media stock recap, EduInvesting
