Network18 Media & Investments Ltd shares surged nearly 2% to Rs 91.30 on the BSE at 09:30 am after reporting marginal growth in its Q3 results.

The company reported a 54% increase in its overall net profit on a sequential basis to Rs 307 crore for the quarter ending December 2021 on January 18. Profit would have increased by 60% if a tax credit of Rs 7.3 crore was not taken into account in the previous quarter.

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The net profit is down 8% year on year from Rs 333 crore due to a tax reversal of Rs 99.4 crore in the same quarter last year. Without the tax advantage, the net profit would have increased by 31% year on year (YOY).

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Consolidated operating revenue increased 19% quarter on quarter (QoQ) to Rs 1,657 crore. The annual increase was 17%, led by substantial growth in advertising revenues in both the TV Entertainment and News sectors, as well as a solid viewing share and consumer reach. Digital News grew at a rapid rate, with advertising revenue more than doubling compared to FY20.

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The company’s News and Entertainment segment increased its consolidated revenue by 15% year on year to Rs 1,567 crore, boosted by substantial growth in advertising revenues in its business and regional news channels. Its entertainment bouquet ranks third in the country in terms of viewing, with an 11% viewership share.

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The company reported its highest-ever operating EBITDA (earnings before interest, tax, depreciation, and amortisation) in any quarter of Rs 355 crore, an increase of 11% year on year.

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The digital news business continues to expand, with operational revenue increasing by 41% year on year to Rs 82 crore, up from Rs 58 crore the previous year. Despite a 22% rise in operating expenditures to Rs 65 crore for the quarter, operational EBITDA grew thrice to Rs 17 crore from Rs 6 crore in the same time the previous year.