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• The Network18 Group is a leading media conglomerate with businesses panning across news (business and general),
entertainment (Hindi GEC, kids channel, youth channel), e-commerce, digital (or internet portals) and print media.
• The Network18 Group has five news channels, which together contribute 31% to overall group revenues. Within the
entertainment segment, the group has a JV with Viacom called Viacom18, which operates four channels and houses
the Indian Film Company (a film fund). The entertainment segment is the biggest contributor to the group’s revenues
at nearly 45%. The digital and e-commerce businesses are currently small and contribute 9% and 12% to overall
revenues respectively.
• Group restructuring: Network18 group has had an extremely complicated group structure with inter-group
ownerships. The existing structure of Network18 Group has four separately listed entities – Network18 Media and
Investments (the holding company), TV18 (business news and web business), IBN18 (general news and entertainment
business) and Infomedia18 (yellow pages and print businesses). The group has announced a restructuring after which
IBN18 (New TV18) would own all the broadcast properties and Network18 would be the holding company for New
TV18 besides having all the non-broadcast businesses of the group. The restructuring is expected to be complete in
Q4FY11. The process would largely put to rest concerns over the complicated ownership structure and bring in
transparency.
• IBN18 (New TV18): The scale-up of Viacom18 (Colors in particular) has been ahead of expectations with Colors
reigning the GEC space and Viacom18 clocking revenues of Rs8.3bn in its second year of operations. As Colors
narrows its differential in rack rates with Star Plus, advertising revenues would tread a strong growth trajectory.
Colors has terminated its distribution deal with Sony One Alliance (Rs3bn for three years) and has now formed a JV
with the Sun TV Group – Sun18 – to distribute all the channels of its network. With ZEEL garnering ~Rs10bn in
distribution revenues annually from India and international markets, the #2 GEC channel, Colors, offers strong
growth potential. IBN18 is proposing to add new channels in the lifestyle and movies genres.
• Network18: Network18 is the holding company for the broadcasting assets (to own 58.3% of New TV18 post
restructuring) and houses the digital, publishing and e-commerce businesses of the group. Network18 also runs an
investment book (book value of ~Rs3bn), which owns equity stake in companies like DEN Network, Yatra.com, etc.
Network18 is looking to monetizing some of these investments over the next six months.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
• The Network18 Group is a leading media conglomerate with businesses panning across news (business and general),
entertainment (Hindi GEC, kids channel, youth channel), e-commerce, digital (or internet portals) and print media.
• The Network18 Group has five news channels, which together contribute 31% to overall group revenues. Within the
entertainment segment, the group has a JV with Viacom called Viacom18, which operates four channels and houses
the Indian Film Company (a film fund). The entertainment segment is the biggest contributor to the group’s revenues
at nearly 45%. The digital and e-commerce businesses are currently small and contribute 9% and 12% to overall
revenues respectively.
• Group restructuring: Network18 group has had an extremely complicated group structure with inter-group
ownerships. The existing structure of Network18 Group has four separately listed entities – Network18 Media and
Investments (the holding company), TV18 (business news and web business), IBN18 (general news and entertainment
business) and Infomedia18 (yellow pages and print businesses). The group has announced a restructuring after which
IBN18 (New TV18) would own all the broadcast properties and Network18 would be the holding company for New
TV18 besides having all the non-broadcast businesses of the group. The restructuring is expected to be complete in
Q4FY11. The process would largely put to rest concerns over the complicated ownership structure and bring in
transparency.
• IBN18 (New TV18): The scale-up of Viacom18 (Colors in particular) has been ahead of expectations with Colors
reigning the GEC space and Viacom18 clocking revenues of Rs8.3bn in its second year of operations. As Colors
narrows its differential in rack rates with Star Plus, advertising revenues would tread a strong growth trajectory.
Colors has terminated its distribution deal with Sony One Alliance (Rs3bn for three years) and has now formed a JV
with the Sun TV Group – Sun18 – to distribute all the channels of its network. With ZEEL garnering ~Rs10bn in
distribution revenues annually from India and international markets, the #2 GEC channel, Colors, offers strong
growth potential. IBN18 is proposing to add new channels in the lifestyle and movies genres.
• Network18: Network18 is the holding company for the broadcasting assets (to own 58.3% of New TV18 post
restructuring) and houses the digital, publishing and e-commerce businesses of the group. Network18 also runs an
investment book (book value of ~Rs3bn), which owns equity stake in companies like DEN Network, Yatra.com, etc.
Network18 is looking to monetizing some of these investments over the next six months.
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