Network18 shares surge nearly 13% on turning profitable in Q1; trading volumes spike

Shares of media company Network18 Media and Investments rose as much as 14.78% to hit an intraday high of ₹64 on the BSE a day after it reported June quarter earnings. On the National Stock Exchange, Network18 shares rose as much as 15% to hit an intraday high of ₹64.06.

Network18 Media and Investments turned profitable in the first quarter of current financial year as it reported net profit of ₹516.17 crore as against loss of ₹69 crore in the previous quarter and loss of ₹75 crore in the same period last year.

The strong earnings in June quarter came on the back of an exceptional gain of ₹587 crore arising out of its shareholding in Eenadu Television Private Limited (ETPL).

Network18's revenue from operations, however, fell 5% to ₹430 crore from ₹453 crore in the year-ago period as the base quarter had a healthy contribution of election-linked advertising. Further, ad environment for the genre continued to be soft due to weak consumer demand and a sports packed quarter, the company said.

“Another quarter of strong operating performance, however, persisting macro-economic headwinds meant that it did not translate into a commensurate financial performance. Our steady progress across operating metrics over the last few quarters is a testimony to our vision for the business and the strategic execution of our plans. Our new product launches highlight our forward-looking approach and our endeavour to continue diversifying our business and build new avenues of growth,” said Adil Zainulbhai, Chairman of Network18.

During the quarter, Network18 launched CNBCTV18 Prime, a global business news channel created for the ‘global Indian’. Designed for CXOs, decision-makers, and business leaders, CNBC TV18 Prime delivers incisive, data-driven coverage of international developments through an India-first lens. As Indian enterprises expand their presence on the world stage, CNBC TV18 Prime addresses the growing demand for intelligent, relevant, and actionable global coverage that goes beyond headlines, Network 18 said.

Network18 shares were witnessing heavier than usual trading volumes as trading volume spiked by 47 times to 16.98 crore shares against an average trading volume of 36 lakh shares.

On the BSE, 1.22 crore shares changed hands against an average of 2.43 lakh shares traded daily in the past two weeks.

As of 12:22 pm, Network18 shares traded 13.52% higher at ₹63.61 massively outperforming the BSE500 index which was trading on a flat note.