Source : Exchange4media

Times Internet Limited (TIL), a subsidiary of Bennett Coleman & Company Limited (BCCL), has reported an 18% drop in revenue from operations at Rs 979.06 crore for the fiscal ended 31st March as against Rs 1,189.43 crore in the previous fiscal. Total income dropped 9.24% to Rs 1237.70 crore from Rs 1363.77 crore.

The company’s expenses declined 23% to Rs 1214.38 crore from Rs 1572.16 crore a year ago. Total employee benefit expense dropped 6.3% to Rs 557.67 crore from Rs 595.25 crore. Advertising promotional expense was down 46% to Rs 131.24 crore from Rs 244.25 crore.

TIL’s net loss narrowed 79% to Rs 40.53 crore from Rs 196.06 crore. The company said that its Post-Covid cost rationalisation efforts on various cost items like tech, marketing, facilities would also lead to long-term cost efficiency in the system.

Online advertising income surged 26% to Rs 621.27 crore from Rs 492.84 crore. Revenue from print media business was down 76% to Rs 71.7 crore from Rs 300.46 crore. Web Portal & Support Services revenue declined 30.47% to Rs 50.58 crore from Rs 72.75.

Subscription Income rose 33% to Rs 33.31 crore from Rs 25.12 crore. Revenue from SMS Services was down 32% at Rs 64.98 crore from Rs 94.87 crore. Times Card Income dropped 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 Fees revenue nosedived by 49% to Rs 26.68 crore from Rs 51.88 crore. The company earned Rs 16.07 crore from content selling as against Rs 17.84 crore.

There was no response from the company till the time of filing this report.

Times Internet is India’s largest digital products’ company which runs diverse portals and niche websites. The key digital properties managed by the company include timesofindia.com (TOI.com), economictimes.com, navbharattimes.com, Times Card, Times City, Times Jobs (comprising digital feature TechGig.com), Dineout, Smart App, MensXP, iDiva, Speaking Tree, Cricbuzz.com, and Times Prime.

Even as its matured businesses have become profitable or are near profitability, the company is investing in transactional & subscription businesses like Dineout, Times Prime, ETMoney for ARPU uplift and continued growth along with investment in Technology and R&D. Many of these new businesses are on an exponential growth path and would require investment for continued growth while competing against deep pocket corporate/well-funded startups.

In its filing, the company said that its Board of Directors are hopeful of better performance with increased revenues in the coming financial year by moving more and more users to subscription and transaction products to monetise the existing base better. This, it added, will result in revenue growth and better profitability in the coming years. “However, for the next two years we expect to continue investing in our transaction/ subscription business, which will result in profitability to remain muted despite very high growth in revenues,” TIL said in its regulatory filing.

Some steps taken by the company for revenue growth and profitability improvement include merger of the profitable Cricbuzz business into the company, investments in subscription products like TOI+, ETPrime, TimesPrime, Dineout passport for continued subscriber growth. It has also invested in High ARPU transactional business like Dineout, ET money & ILN commerce, Gradeup for revenue growth. The company also has investments in Qureka, MX, etc. for revenue growth.

During the fiscal, the company had subscribed to 0.0001% Convertible Note of MX Media for a total consideration of $25 million (Rs 184 crore). The Convertible note is convertible into securities as per the terms and conditions set out under the Note Purchase Agreement dated December 10, 2020, entered into between the Company, MX Media, Blue Berry Tech Limited, and Tencent Cloud Europe B.V.

Further, the company received 5,944 equity shares in Schoolay Technologies (Schoolay) as a consideration for the transfer of 58,138 shares held in Voonik Technologies pursuant to the share swap. Post which Voonik was acquired by Schoolay.

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

The Scheme of Amalgamation of Torqus Systems with the company was filed with the National Company Law Tribunal, New Delhi with the aim of housing entire Dineout related business into the Company.

Pursuant to the notice of conversion received from BCCL, the 2,87,32,56,000 or 8% Non-Cumulative Compulsorily Convertible Preference Shares of Rs 10/- each issued and allotted to BCCL were converted into Equity Shares of the Company of Rs. 10/- each, in accordance with the conversion ratio of 1:1.