Home > Internet > BookMyShow clocks maiden profit of Rs 1.4Cr on Rs 29Cr revenue in FY12; HomeShop18 makes Rs 107Cr loss

BookMyShow clocks maiden profit of Rs 1.4Cr on Rs 29Cr revenue in FY12; HomeShop18 makes Rs 107Cr loss

August 31, 2012  | 

The two e-commerce properties of Network18 Media & Investments have a contrasting picture when it comes to profitability during the last financial year. While its online movie and events ticketing business BookMyShow made its maiden profit of Rs 1.4 crore, the television and online shopping business HomeShop18 slipped deeper into loss with a net loss of Rs 107 crore for the year ended March 31, 2012.

Both businesses are backed by venture capital and private equity investors. While BookMyShow recently raised fresh funds from Accel Partners, HomeShop18 is backed by private equity firm SAIF Partners.

BookMyShow: The movie and events ticketing portal saw a sharp jump in revenues that almost doubled to Rs 29 crore, compared to Rs 16 crore in FY11 or the year ended March 31, 2011. This means the firm accelerated its revenue growth from just around 32 per cent during 2010-11 to 81 per cent in 2011-12.

This was accompanied by the firm (Big Tree Entertainment) clocking a net profit of Rs 1.4 crore, compared to the net loss of Rs 41 lakh in the previous year.

Given VCCircle’s valuation of Big Tree Entertainment in the latest deal with Accel Partners (more on that here), the ticketing portal attracted a valuation of more than 9 times its latest annual revenues and over 182x its net profit. This will also set some benchmarks for other deals in the space. Unlike larger firms, tech startups like these are typically valued on the basis of their revenues. So the revenue multiple is a more tangible valuation ratio for other startups to watch out for, when they negotiate for investments in their own firms.

HomeShop18: The digital commerce firm, which draws a chunk of its business from the home-shopping network and runs an e-commerce portal, also saw acceleration in revenue growth with the turnover of TV18 Home Shopping Network (which runs HomeShop18) rising 35 per cent to Rs 90.9 crore for FY12 from Rs 67 crore.

But the pain point for the business lies in the fact that its net loss more than doubled to Rs 107.2 crore, compared to Rs 50.9 crore for the year ended March 31, 2011. This also implies that the loss of the company was more than revenues.

(Edited by Sanghamitra Mandal)

Tags: BookMyShow, HomesShop18

7 Comments

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A Prasanna August 31, 2012 17:37

There is something seriously wrong with HomeShop18 figures. they are No:3 as per Comscore data has 3.4 million visitors and has a total turnover of only 91 crores which means 7.5 crores per month. Does this 91 crores is only the commission or the GMV?. My take is that with the kind of traffic and promotions they run and the kind of website they have got, they should be doing at least 500 crores GMV only in E- Commerce

Vivek Sinha August 31, 2012 18:10

It would need to be actual revenues (as in commission) not GMV though the disclosures does not clarify that. Earlier news reports did suggest they are over Rs 500 crore in GMV.

A Prasanna September 1, 2012 10:18

Vivek Sinha – Wondering what will be the same figures for flipkart and ebay?

Pranay September 1, 2012 12:19

Similarly, in case of BMS, is the revenue their commissions / convenience fees earnings ; or the gross tickets value booked?

Jaspreet September 1, 2012 13:01

No wonder HS18 is making a loss which is greater than the total revenue. I had order a HTC One V on 24th August and there has been no update on the order. All I can do is to log a ticket via My Account and no-one even has the courtesy to reply to it. I call up their CC and all they tell me is that I have to wait for another 8-10 days before there would be an update on the ticket. I request for talking to their manager. The manager is either always busy in some meetings or they put me on hold for 10 minutes and out of frustration I hangup. Manager saab get out of those meetings and start resolving customer complaints. Gosh!! IT would be 15 days and then they would be kind enough to make an update on the ticket. And this when the said product is available on their site. If someone from HS18 actually looks at the order# is 915746871.

Venus Kalra September 1, 2012 16:40

With Traffic increasing exponentially, I don’t understand why they have so huge and that too more than the company’s revenue. Would love to hear some insight for yatra.com (Another Network18 venture)

Vivek Sinha September 3, 2012 13:33

@Pranay BMS revenue is pure revenues as one can deduce from the fact that they were doing on an ‘average 1 million tickets per month’ (during April-Dec 2011), and given that they charge something like Rs 20-30 as charge per ticket it matches with their revenues for the year.

@Prasanna similar latest disclosures for ebay and Flipkart are not available. But for Flipkart I would guess actual revenues is in the Rs 100 crore range assuming gross margins of around 20% of GMV (remember it does not sell apparel yet which is a higher margin category) and that Flipkart did around Rs 500 crore worth of GMV last financial year. Having said that HomeShop18 and Flipkart are not strictly comparable as bulk of HomeShop18′s business comes for television shopping. As for ebay India, it is a marketplace so its fee or commission would be relatively smaller than those ecom sites who are essentially e-tailers rather than being platform providers. However, it used to be a profitable venture atleast till a couple of years ago.

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