Viacom18, the media arm of Indian billionaire Mukesh Ambani’s conglomerate Reliance Industries Limited (RIL), has reported a notable increase in revenues for the financial year 2023-24.
Monday’s annual financial report unveiled Viacom18, gross revenue surging to $1.3 billion, marking a substantial increase from $871 million in the previous fiscal year. Operational revenue followed suit, experiencing a remarkable 49% year-on-year growth to reach $1.1 billion. Despite these gains, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a downturn, from $3.9 million to $28.3 million in the preceding year. Viacom18 attributed this decline to increased investments in sports, news, and entertainment digital services, which bolstered growth across platforms such as JioCinema, Moneycontrol, and News18.
The company said, “Consolidated EBITDA of the group was impacted by continued investments in sports and digital verticals of Viacom18, the leading drivers of revenue growth for the foreseeable future.”
Furthermore, in its news business, Viacom18 has reported a notable 19% year-on-year increase. The company attributes this growth to a combination of factors, including both its TV network and digital platforms. Additionally, Viacom18 highlights sports as the primary driver of revenue expansion.
The company’s movies segment experienced significant growth, largely attributed to the release of “Fighter,” which has emerged as India’s highest-grossing film of 2024 to date. Additionally, driven by a strong viewership share, Viacom18 highlighted a substantial increase in advertising revenue across its TV network businesses.
Notably, in February of this year, Viacom18’s plans for a merger with Disney’s Star India, estimated to be valued at $8.5 billion, were officially confirmed. However, this joint venture remains subject to regulatory approval. Additionally, in this joint venture, RIL will hold a 16.34% stake, while Viacom18 will possess 46.82%, and Disney will own 36.84%.
Viacom 18 said this joint venture will, “seek to lead the digital transformation of the media and entertainment industry in India and offer consumers high-quality and comprehensive content offerings anytime and anywhere. With the addition of Disney’s acclaimed films and shows to Viacom18’s renowned productions and sports offerings, the JV will offer a compelling, accessible, and novel digital-focused entertainment experience to people in India and the Indian diaspora globally.”