Network18 Media & Investments reported a loss for the second quarter on Tuesday, as advertisers spent less and the media conglomerate backed by billionaire Mukesh Ambani poured funds into new television channels and shows.

Viacom18, a joint venture in which Network18 is a 51 percent owner, has launched three new sports channels having won digital streaming rights of the lucrative Indian Premier League cricket tournament for the subcontinent, which it expects to help attract viewers, a Reuters report from Bengaluru stated.

YouTube and Netflix have proven to be a big challenge for the already crowded Indian television industry as cheap Internet plans have helped video streaming websites compete with TV channels.

Consolidated loss attributable to owners of Network18 widened to Rs. 364.9 million ($4.44 million) for the three months ended September 30 from Rs. 33.2 million in the previous quarter.

“The profitability of the (entertainment) business was impacted as the advertising revenue lagged expectations despite content investments helping us strengthen our ratings in certain markets,” Network18 said in a statement.

For Network18, which incorporates a spate of media houses including channels CNBC-TV18 and Colors, quarterly expenses increased nearly 34 percent to Rs. 15.92 billion due to higher operational and promotional expenses.

Network18’s revenue from operations still increased nearly 12 percent to Rs.15.49 billion.

The company had posted a profit of  Rs. 390.2 million in the September quarter a year ago.

Meanwhile, a press release on Q2 results that was posted by the company on the BSE website, and seen by Indianbroadcastingworld.com, listed some highlights that are as follows:

• TV18’s two national news channels— CNN News18 and News18 India — join CNBC TV18 as undisputed leaders in English and Hindi markets, respectively.
• News18 Jammu Kashmir Ladakh Himachal is the first channel launched by a major news network to cover the region.
• Colors fortifies #2 position in the Hindi GEC segment; TV18’s entertainment network had 9.9 percent viewership share in the non-news genre during the quarter.
• Network18 Group continued to invest in content, marketing, and distribution initiatives, to create a strong foundation for long-term growth, leading to a 34 percent increase in operating costs
• Viacom18’s proposed transaction with Bodhi Tree and Reliance got antitrust body CCI approval.
• Viacom18 Sports is gearing up to broadcast and stream the world’s most watched sporting event, FIFA World Cup, in the Indian subcontinent from November 20. The network saw an increased activity during the quarter with airing of Durand Cup and BWF events along with premium sports leagues.
• Viacom18 will continue to make investments going forward with an endeavour to scale-up its presence across segments.

Adil Zainulbhai, Chairman of Network18, said in a statement: “The first half of the fiscal has been challenging for most sectors. However, we believe that this phase should only be a minor bump in the long runway for growth. Our presence across the full spectrum of content segments and platforms places us in a unique position to leverage the combined strengths of our assets.

“We have set clear objectives for our different business segments and are working on executing our plans in that direction. Despite the macro environment being less than ideal for growth currently, we continue to make investments which will help us create a strong foundation for long-term and will hold us in good stead as growth returns.”