Network18 Faces ₹1,435 Crore Loss Amidst Post-Merger Restructuring with Star India

By Howly Digital Staff | April 29, 2025

In its first financial report following the much-anticipated merger of Viacom18 and Star India, Network18 Media & Investments has reported a staggering consolidated net loss of ₹1,435.79 crore. The loss, disclosed for the second half of FY25, stems largely from exceptional charges related to derecognizing its former subsidiaries.

The media conglomerate’s results reflect a major transition in its operational and financial structure. Viacom18, once a cornerstone of Network18’s entertainment business, along with distribution arm IndiaCast, have officially exited the parent company's consolidated accounts after being absorbed into the larger Star India ecosystem under Digital18.

This reorganisation also brought a major revenue reshuffle. For Q4 FY25, Network18 posted a total income of ₹564.5 crore—down sharply from ₹2,580 crore a year ago. The steep decline is largely due to the removal of Viacom18 and TV18’s financial contributions.

The corporate reshuffle began late last year when Reliance Industries Ltd., which holds the majority stake in Network18, converted over 24.6 crore preference shares into equity in Viacom18. That move effectively repositioned Viacom18 as an associate company, not a subsidiary—triggering accounting changes that led to the heavy loss.

Despite the massive headline numbers, Network18’s core news business showed resilience. The segment posted ₹522 crore in Q4 FY25 revenue—a slight 2.5% year-over-year dip—but full-year revenues rose 4.3% to ₹1,896 crore. The company credited strong market viewership and strategic pricing as key factors helping to offset a broader industry decline in advertising inventory.

Operating costs for the quarter also came down sharply—from ₹2,792 crore in Q4 FY24 to ₹630 crore—due to the restructured business model.

With Viacom18 and JioCinema now operating under the merged Star India umbrella, Network18 is expected to focus more heavily on its digital news growth and regional market dominance. The company has indicated strategic emphasis on Marathi, Bengali, and Kannada markets, aiming to leverage its existing viewer base to regain advertising momentum.

As India’s media industry continues to consolidate and digitise, Network18’s bold pivot could define a new blueprint for legacy media houses navigating the future.