Times Internet FY21 Online ad revenue increases 26% to Rs 621.27 crore

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Times Internet Limited (TIL), a subsidiary of Bennett Coleman & Company Limited (BCCL), reported an 18% drop in operating income to Rs 979.06 crore for the year ended March 31 from Rs 1,189, 43 crore in the previous fiscal year. Total income fell 9.24% to Rs 1237.70 crore from Rs 1363.77 crore.

The company’s expenses fell 23% to Rs 1,214.38 crore from Rs 1,572.16 crore a year ago. Total spending on employee benefits fell 6.3% to Rs 557.67 crore from Rs 595.25 crore. Promotional advertising spending fell 46% to Rs 131.24 crore from Rs 244.25 crore.

TIL’s net loss decreased by 79% to Rs 40.53 crore from Rs 196.06 crore. The company said its efforts to rationalize post-Covid costs on various cost elements such as technology, marketing and facilities would also result in long-term profitability of the system.

Online advertising revenue jumped 26% to Rs 621.27 crore from Rs 492.84 crore. Revenues from print media activities fell 76% to Rs 71.7 crore from Rs 300.46 crore. Revenue from the web portal and support services declined 30.47% to Rs 50.58 crore from Rs 72.75.

Subscription income increased 33% to Rs 33.31 crore from Rs 25.12 crore. SMS service revenues fell 32% to Rs 64.98 crore from Rs 94.87 crore. Times Card Income fell 22% to Rs 51.67 crore from Rs 66.34 crore.

E-commerce and commission income fell 53% to Rs 18.5 from Rs 39.29 crore. Events – Sponsorship and participation fee revenue fell 49% to Rs 26.68 crore from Rs 51.88 crore. The company earned Rs 16.07 crore from selling content from Rs 17.84 crore.

There has been no response from the company until the time of filing this report.

Times Internet is India’s largest digital products company operating various niche portals and websites. Key digital properties managed by the company include timesofindia.com (TOI.com), economictime.com, navbharattimes.com, Times Card, Times City, Times Jobs (including TechGig.com digital functionality), Dineout, Smart App, MensXP, iDiva, Speaking Tree, Cricbuzz.com and Times Prime.

Even though its mature businesses have become profitable or are close to profitability, the company invests in transactional and subscription businesses such as Dineout, Times Prime, ETMoney for ARPU increase and continued growth as well as investments. in technology and R&D. Many of these new businesses are on an exponential growth path and would require investments for continued growth while competing with well-funded start-ups / startups.

In its filing, the company said its board expects better performance with increased revenue in the coming fiscal year by moving more and more users to subscription and transaction products for better. monetize the existing base. This, he added, will translate into revenue growth and better profitability in the years to come. “However, for the next two years, we plan to continue investing in our transaction / subscription business, which will result in profitability that will remain modest despite very high revenue growth,” TIL said in its regulatory brief.

Some measures taken by the company for revenue growth and improvement of profitability include the merger of the profitable Cricbuzz business into the company, investments in subscription products such as TOI +, ETPrime, TimesPrime, Dineout passport for continued growth in subscribers. He also invested in high ARPU transactional activities such as Dineout, ET money & ILN commerce, Gradeup for revenue growth. The company has also invested in Qureka, MX, etc. for income growth.

During the year, the company had subscribed to 0.0001% of MX Media convertible notes for a total consideration of 25 million dollars (Rs 184 crore). The convertible note is convertible into securities in accordance with the terms and conditions set out in the ticket purchase agreement dated December 10, 2020, entered into between the Company, MX Media, Blue Berry Tech Limited and Tencent Cloud Europe BV.

In addition, the company received 5,944 shares of Schoolay Technologies (Schoolay) in consideration for the transfer of 58,138 shares held in Voonik Technologies as part of the share exchange. Position from which Voonik was acquired by Schoolay.

As part of the share exchange transaction between Metarain Distributors (Myra), API Holdings (PharmEasy) and Medlife International, the company received 48,116 PharmEasy shares in consideration for the transfer of the Myra / Medlife shares.

The Torqus Systems merger scheme with the company has been filed with the National Company Law Court in New Delhi with the aim of consolidating all Dineout related activities into the company.

In accordance with the conversion notice received from BCCL, the 2.87.32.56,000 or 8% of preferential shares with mandatory non-cumulative conversion of Rs 10 / – each issued and allocated to BCCL were converted into equity shares of the Company. of Rs. 10 / – each according to the conversion ratio of 1: 1.

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