Network 18 Result Update

Network 18 Media & Investments Ltd. came out with its Q3FY10 results on 25th January 2010. The net sales for forQ3FY10 stood at Rs 370.10 crore while Net loss stood at Rs 21.08 cr.

RESULT HIGHLIGHTS:

• The net sales for the quarter ended December 09 grew by 66.15% in the quarter ended Dec-09 on a YoY basis while Net loss stood at rs 21.81 crores down 50% on a YoY basis
• The company turned EBITDA positive this quarter posting an EBITDA of Rs 8.10 cr against a loss in the same quarter a year ago
• While the company boasted of higher revenues from Infomedia18 it was able to curb its operating expenses which helped it in turning EBITDA positive
• The company also witnessed a decline in its interest costs which declined by 480 basis points and along with higher revenues curbing its non operating costs was a key factor in reducing losses by 50%
• 7 OUT OF 9 TV CHANNELS ARE NUMBER 1 IN THEIR RESPECTIVE CATEGORIES:
• The company's channel Color's became the No.1 Entertainment channel last quarter surpassing Star Plus & Zee and will commence its operations in USA & UK soon
• The company's news channel CNBC TV18 dominates more than 58% in the relevant market while CNBC Awaaz is the number 1 Hindi business news channel
• Homeshop18 witnessed its income double over the same quarter a year ago
• MTV & VH1 continues to lead in their respective genres
• Other income mainly income from investments declined substantially by almost 50% YoY because of selling of investments in the FY08-09

The golden era for the holding companies in India is yet to come like the developed markets in terms of being rewarded by the shareholders.

I strongly believe that the one should keep holding/create fresh longs in Network 18, since the kind of businesses both the web and tv space the company owns will create substantial shareholders value and moreover is currently trading at a huge discount to its NAV.