Result update – TV Today Network

TV Today’s performance was impacted by weak ad spends and lower ad inventory.

• The topline came in at | 231.3 crore, down 10% YoY on a healthy base. TV and other media (clubbed segment of broadcasting and digital) revenues came in at | 228.9 crore (down 9% YoY). The performance was impacted by weak TV ad spends and lower ad inventory. The digital segment has grown in double digits, as per our understanding.
• EBITDA came in at | 36 crore, down 58% YoY with margins at 15.6% (down 17 percentage points YoY), impacted by negative operating leverage.
• PAT at | 27.6 crore was down 55% YoY with weak operating performance.
• Key positive was the company announcing | 67/share as special interim dividend, a much-awaited move effectively utilising | 400 crore of cash, which was yielding sub optimal return and depressing return ratios.

Key triggers for future price performance

• Viewership trend over the medium term as this will drive the ad revenue growth trajectory.
• Digital segment expansion with new properties/inorganic acquisition.

ICICI Direct Research