Network18 has cut down its expenses to Rs 872 crore from Rs 1,333 crore spent in the quarter ended March 2020.
"COVID-19 linked clampdown on spending by advertisers dragged ad-revenues sharply, especially on Entertainment," stated the company in its BSE filing.
It added, "However, TV subscription revenue remained resilient, and Digital subscriptions have accelerated. The business strategy and operating methodology were re-engineered amidst a strategic review to address the current challenging environment."
Network18's news portfolio's revenue in the Q1 FY21 was at Rs 230 crore versus Rs 298 crore in the same period last year registering a 23 per cent decline. Its entertainment business, Viacom18 including the infotainment bouquet took a bigger hit. The operational income was at Rs 546 crore compared to Rs 899 crore in Q1 FY 20 which makes it a 39 per cent decline.
Considering the scenario, Network18 had cut down its expenses to Rs 872 crore from Rs 1,333 crore spent in the quarter ended March 2020. "Resilience in TV subscription and Digital syndication revenue partly blunted the impact, limiting the fall in Operating Revenue to 35% YoY," stated the company.
Moneycontrol pro (MC subscription offering), the group said has continued its growth momentum with subscriber base crossing over "2.5 lakh in just over a year of its launch". "This signals a greater demand for premium content & features offered on the Moneycontrol Pro platform. Non MC Pro subscription products also seeing significant traction. All these initiatives have helped in building a robust subscription business for Moneycontrol," the group stated.