Fuelled for the Future Annual Report 2017-18 Contents FINANCIAL STATEMENTS Standalone STATUTORY REPORTS Independent Auditor’s Report 118 Balance Sheet 124 CORPORATE OVERVIEW Management Discussion & Analysis 30 Statement of Profit and Loss 125 Board’s Report 63 A Message from the Chairman 02 Statement of Changes in Equity 126 Diverse Brand Portfolio 04 Business Responsibility Report 90 Cash Flow Statement 127 The Future is Ours to Shape 06 Corporate Governance Report 98 Notes on Financial Statements 128 Anchoring a Bold Commitment 08 Consolidated A Confluence of Perspectives 12 Independent Auditor’s Report 165 Evocative Subjects, Consolidated Balance Sheet 170 Immersive Experiences 14 Consolidated Statement of Beyond the Small Screen 21 Profit and Loss 171 Innovating to Statement of Changes in Redefine Digital Experience 22 Equity 172 Board of Directors 26 Consolidated Cash Flow Statement 174 Corporate Information 28 Notes to the Consolidated Financial Statements 175 Notice Notice, Attendance Slip & Proxy Form 221 To view the online version of this report www or for other information log on to: www.network18online.com Breaking News. Spectacular Events. Path-breaking Stories. Genre-defining Shows. The pulse of the country. INFORMATION. ENTERTAINMENT. IMPACT. Network18 has grown to be one of the leaders in the highly competitive media and entertainment landscape in India, in a relatively short span of time and with no legacy brands backing it. Its diversified offerings span television broadcasting (across news and entertainment), digital (both content and commerce), print, and allied businesses. Our content engages millions on a daily basis, cutting across genres, geographies and mediums. We touch hearts through our entertaining and emotive shows with the same aplomb as we open minds by our insightful and impactful news. We are consistently expanding the vistas for the Indian viewer, and pride ourselves in a balanced approach towards both content and intent, a pan- India presence, and the broadest slate of impact-creating properties in the industry. Our success is the by-product of an unflinching pursuit to shape the future of media and entertainment. We are always, Fuelled for the Future Network18 Media & Investments Limited A MESSAGE FROM THE CHAIRMAN Dear Shareholders, "In FY 2017-18, Network18 continued to invest in media – both TV and emerging media and repositioned itself for the continually changing market" THE YEAR IN RETROSPECT FY 2017-18 was in many ways a year of continued investment in growth areas, while we consolidated certain businesses. I am very proud to state that Network18 TV channels now touch the lives of 70 crore Indians, representing 90% of the television universe. Our broadcast subsidiary TV18 made a strategic investment to acquire 1% additional stake in the Viacom18 entertainment JV, taking its overall stake to 51%, and gaining operational control. The move epitomises our belief that in the rapidly evolving media and entertainment landscape, TV18 and affiliates will be instrumental in driving synergies and increasing agility across the multi-platform group. 2 232 Corporate Overview Statutory Reports Financial Statements A Message from the Chairman Annual Report 2017-18 In another strategic move, we consolidated the per ComScore, 177 million people consumed operations of another leading home-shopping news digitally in April 2017. Being leaders in player ShopCJ under the HomeShop18 umbrella, the digital space with best-in-class properties, creating India’s largest home-shopping entity. which we continue to improve, we are favourably The merger brings benefits of scale and synergy, positioned to make the most of this opportunity. necessary to withstand competition. Following It is pertinent to mention here that one in every this, Homeshop18 ceases to be a subsidiary of five Internet users in India use Network18’s digital your Company; nevertheless, Network18 will properties. Moneycontrol is by far the largest continue to be the largest shareholder. finance platform; News18.com commands 40% more engagement than competitors; on Firstpost, Two launches were made around the end of the users spend 64% more time than competitors on financial year – Colors Tamil in February 2018 every mobile visit; and VOOT has 35 million active and the digital destination of CNBC-TV18 in April users with average stickiness of 40+ minutes. 2018. With fresh subjects and cinematic quality These numbers exemplify our digital might and content, Colors Tamil has already begun to make we remain focussed on creating more digital-first its presence felt in a highly competitive market, content and promoting fresh ideas to woe diverse garnering 5% viewership share. The CNBC-TV18. consumer preferences. com/CNBC-TV18 app are digital companions to our leading channel CNBC-TV18, and will be our The industry is witnessing the trend of rising premium digital platform offering business news consumer preference for regional content. and information. Towards this, we have made significant inroads. We have the largest regional news network, March 2018 witnessed an important transition comprising 14 channels in 15 languages and for your Company when all the general news covering 26 states. In our entertainment portfolio channels were clubbed together under one as well, we are filling important white spaces and mega brand – News18. Unveiled at the highly already have 7 regional entertainment channels prestigious Rising India Summit, in the presence across six geographies, with a mix of localised and of Honourable Prime Minister of India and other dubbed content. dignitaries, the unification marked News18’s journey to become one of the largest news We will continue to invest to get to an overall network brands in the world. leadership position in media. During the year, we had created a platform for state-level dialogues between political leaders and MESSAGE TO STAKEHOLDERS common people under the ‘Rising Series’, and the Our proactive investments and initiatives and Rising India Summit was the grand culmination of industry tailwinds in advertising make for an that series. exciting FY 2018-19 and beyond. We will remain focussed towards rolling out richer and more THE FUTURE BECKONS engaging content along with accelerating pace of As we move ahead, we are geared up for the next innovation to grow value for all stakeholders. phase of growth, which we believe will come One in every five from two key areas: increasing consumption of I extend my heartfelt gratitude to every employee Internet users content on digital platforms and surge in regional of Network18, who with their passion and in India uses viewership. commitment have taken this organisation to Network18’s digital greater heights. I also take this opportunity to properties As per a FICCI-EY report, the online video thank all the directors and other stakeholders for consuming audience has grown by a massive their unrelenting trust in Network18. 64% to 250 million users in 2017, and is estimated to double to 500 million users by 2020, driven Warm regards, by rapid smartphone penetration, growing Internet speeds and low data charges. Even Adil Zainulbhai news consumption on mobile is surging. As Chairman 3 232 Network18 Media & Investments Limited DIVERSE BRAND PORTFOLIO Unparalleled pan- Business interests India news coverage spread across Partnerships with by 1,200 journalists, Wide range of television, digital global media and Touching the lives presented through 33 entertainment content and entertainment of 70 crore people top-notch anchors channels across commerce, movie leaders CNBC, CNN, in India through across 20 domestic all genres (except production, print Viacom Inc, A+E television and channels in 26 states Sports) spanning magazines, and allied Networks, and millions more by our and 15 different Hindi, English and 6 businesses Forbes digital properties languages regional languages News Business General Regional TELEVISION News News News 4 232 Corporate Overview Statutory Reports Financial Statements Diverse Brand Portfolio Annual Report 2017-18 Entertainment Hindi General Regional English Youth and Infotainment Entertainment Entertainment Entertainment Music Hindi Films Kids Entertainment PUBLICATIONS FILM PRODUCTION CONTENT ASSET AND DISTRIBUTION MONETISATION ALLIED Digital Content BUSINESSES Business & Finance News & Opinions Entertainment & VOD DIGITAL COL OSCEUM MEDIA PRIVA TE LTD Digital Commerce 5 232 Network18 Media & Investments Limited THE FUTURE IS OURS TO SHAPE What makes Network18 fuelled for the future Brand Innovative recall People content power Alongside content Our channels offer delivery, we focus A collaborative, differentiated and on brand-building engaging and innovative content, through technology learning environment catering to all the Diverse and relevant Fresh results in excellence major genres platforms packaging ideas at all levels A multi-platform Our leading presence lets programmes are us deliver this designed to inspire innovative content new thought to target audiences processes and new everywhere ideas 6 232 Corporate Overview Statutory Reports Financial Statements The Future is Ours to Shape Annual Report 2017-18 HIGHLIGHTS, FY 2017-18 13.4% Network18's broadcast arm TV18 is the 3rd Took operational control in Launched Colors Tamil to fill entertainment joint venture vital white space in regional largest broadcaster in the Viacom18 and raised stake entertainment portfolio in country, and with subsidiaries/ to 51% South India associates commands a