ITV

Tag: TV Today Network Limited

  • Q1-17: TV Today topline, bottomline up

    Q1-17: TV Today topline, bottomline up

    BENGALURU: TV Today Network Limited (TVTN) reported 7.7 percent increase in standalone revenue (TIO) for the quarter ended 30 June 2016 (Q1-17, current quarter) as compared to the corresponding quarter of the previous year (Q1-16). Standalone profit after tax (PAT) increased 23.9 percent in the current quarter as compared to Q1-16. TVYN reported TIO and PAT of Rs 136.94 crore and Rs 22.38 crore (16.3 percent margin) in Q1-17 as compared to Rs 127.12 crore and Rs 18.06 crore (14.2 percent margin), respectively.

    EBIDTA for the current quarter increased 22.9 percent to Rs 36.80 crore (26.9 percent margin) as compared to the Rs 29.95 crore (23.6 percent margin) in the corresponding year ago quarter.

    Segment results

    The company has two main segments – Television broadcasting (TV) and Radio broadcasting (Radio) – it currently three runs radio stations under the brand Oye FM 104.8 at New Delhi, Mumbai and Kolkata. The company has been partially successful in selling off a few of its radio stations to Entertainment Network India Limited (ENIL, Radio Mirchi) and has also recently signed on ENIL on to hawk ads for its three remaining stations. Probably, the results of this association will start showing over the next few quarters.

    TVTN’s TV segment reported 9.1 percent year-over-year (y-o-y) growth in operating revenue to Rs 136 crore in Q1-17 as compared to Rs 124.66 crore in Q1-16. The segment reported an operating profit of Rs 33.79 crore in the current quarter as compared to Rs 28.11 crore in the corresponding year ago quarter.

    Radio segment reported 45.3 percent decline in operating revenue at Rs 1.35 crore in Q1-17 as compared to Rs 2.62 crore in the corresponding year ago quarter. The segment reported a higher operating loss of Rs 3.52 crore in the current quarter as compared to an operating loss of Rs 2.82 crore in Q1-16.

    Let us look at the other numbers reported for Q1-17

    Total expenditure in the current quarter increased 2.3 percent to Rs 107.61 crore (78.6 percent of TIO) as compared to Rs 105.16 crore (82.7 percent of TIO) in Q1-16.

    Production cost increased 11.2 percent y-o-y in Q1-17 to Rs 13.48 crore (9.8 percent of TIO) as compared to Rs 12.11 crore (9.5 percent of TIO). Employee Benefit Expense in the current quarter increased 18.6 percent y-o-y to Rs 38.73 crore (28.3 percent of TIO) as compared to Rs 32.66 crore (25.7 percent of TIO).

    Advertisement expense in Q1-17 declined 18.6 percent to Rs 31.13 crore (22.7 percent of TIO) from Rs 38.24 crore (23.6 percent of TIO) in Q1-16.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • Radio Mirchi to hawk Oye FM 104.8 ads

    Radio Mirchi to hawk Oye FM 104.8 ads

    BENGALURU: Entertainment Network India Limited (ENIL) has informed the bourses that it has entered into an Advertising Sales Agreement (ASA) with TV Today Network Limited (TVTN) on 24 August 2016, in relation to TVTN’s 3 (three) private FM radio stations at New Delhi, Mumbai and Kolkata. Pursuant to the ASA, TVTN has agreed to appoint ENIL as an agent of TVTN with effect from September 1, 2016 to facilitate the sale of TVTN’s airtime to third-parties who wish to advertise using TVTN’s airtime. ENIL operates stations under the brand Radio Mirchi.

    Early last year, TVTN had offered to sell seven radio stations that it ran under the brand Oye FM 104.8. The company had entered into a non-binding memorandum of understanding with ENIL to sell all its seven radio stations to it subject to approvals and conditions. TVTN received approval from the Ministry of Information and Broadcasting (I&B Ministry) in July last year for sale of four of its radio stations at Jodhpur, Amritsar, Patiala and Shimla to ENIL and a binding agreement was signed between the two in September to that effect. The I&B Ministry had earlier declined its approval on the grounds that the proposed sale by TV Today Network and proposed purchase by ENIL is not in conformity with the FM radio guidelines.

  • Radio Mirchi to hawk Oye FM 104.8 ads

    Radio Mirchi to hawk Oye FM 104.8 ads

    BENGALURU: Entertainment Network India Limited (ENIL) has informed the bourses that it has entered into an Advertising Sales Agreement (ASA) with TV Today Network Limited (TVTN) on 24 August 2016, in relation to TVTN’s 3 (three) private FM radio stations at New Delhi, Mumbai and Kolkata. Pursuant to the ASA, TVTN has agreed to appoint ENIL as an agent of TVTN with effect from September 1, 2016 to facilitate the sale of TVTN’s airtime to third-parties who wish to advertise using TVTN’s airtime. ENIL operates stations under the brand Radio Mirchi.

    Early last year, TVTN had offered to sell seven radio stations that it ran under the brand Oye FM 104.8. The company had entered into a non-binding memorandum of understanding with ENIL to sell all its seven radio stations to it subject to approvals and conditions. TVTN received approval from the Ministry of Information and Broadcasting (I&B Ministry) in July last year for sale of four of its radio stations at Jodhpur, Amritsar, Patiala and Shimla to ENIL and a binding agreement was signed between the two in September to that effect. The I&B Ministry had earlier declined its approval on the grounds that the proposed sale by TV Today Network and proposed purchase by ENIL is not in conformity with the FM radio guidelines.

  • FY-16: TV Today revenue up 14.6 percent; PAT up 16 percent

    FY-16: TV Today revenue up 14.6 percent; PAT up 16 percent

    BENGALURU: TV Today Network Limited (TVTN) reported 14.6 percent increase in consolidated revenue (consolidated total income from operations, consolidated TIO) for the year ended 31 March 2016 (FY-16, current) as compared to the previous year. The company’s consolidated Profit after Tax (PAT) increased 16 percent in FY-16. TVTN reported consolidated TIO of Rs 546.01 crore in FY-16 and Rs 476.58 crore in FY-15. PAT in the current year was Rs 95.04 crore (17.2 percent PAT margin) as compared to Rs 81.03 crore (17 percent PAT margin) in FY-15.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    The company’s total expenditure in the current year increased 14.8 percent to Rs 430.25 crore (78.8 percent of TIO) from Rs 374.91 crore (78.7 percent of TIO) in the previous year.

    Simple EBIDTA increased 11.1 percent to Rs 146.33 crore (26.8 percent EBIDTA margin) from Rs 131.70 crore (26.7 percent EBIDTA margin) if FY-15.

    TVTN’s advertising, distribution and sales promotion (ad expense) in FY-16 increased 17.5 percent to Rs 119.52 crore (21.9 percent of TIO) from Rs 101.75 crore (21.3 percent of TIO) in FY-15.

    The TVTN board has recommended a final dividend @ 35 percent on the paid-up capital of the company, i.e., Rs 1.75 per share of Rs 5/- each for FY-16 subject to the approval of shareholders at the ensuing Annual General Meeting (AGM) of the company.

     

  • FY-16: TV Today revenue up 14.6 percent; PAT up 16 percent

    FY-16: TV Today revenue up 14.6 percent; PAT up 16 percent

    BENGALURU: TV Today Network Limited (TVTN) reported 14.6 percent increase in consolidated revenue (consolidated total income from operations, consolidated TIO) for the year ended 31 March 2016 (FY-16, current) as compared to the previous year. The company’s consolidated Profit after Tax (PAT) increased 16 percent in FY-16. TVTN reported consolidated TIO of Rs 546.01 crore in FY-16 and Rs 476.58 crore in FY-15. PAT in the current year was Rs 95.04 crore (17.2 percent PAT margin) as compared to Rs 81.03 crore (17 percent PAT margin) in FY-15.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    The company’s total expenditure in the current year increased 14.8 percent to Rs 430.25 crore (78.8 percent of TIO) from Rs 374.91 crore (78.7 percent of TIO) in the previous year.

    Simple EBIDTA increased 11.1 percent to Rs 146.33 crore (26.8 percent EBIDTA margin) from Rs 131.70 crore (26.7 percent EBIDTA margin) if FY-15.

    TVTN’s advertising, distribution and sales promotion (ad expense) in FY-16 increased 17.5 percent to Rs 119.52 crore (21.9 percent of TIO) from Rs 101.75 crore (21.3 percent of TIO) in FY-15.

    The TVTN board has recommended a final dividend @ 35 percent on the paid-up capital of the company, i.e., Rs 1.75 per share of Rs 5/- each for FY-16 subject to the approval of shareholders at the ensuing Annual General Meeting (AGM) of the company.

     

  • Q3-2016: TV Today revenue up 18%; PAT up 40%

    Q3-2016: TV Today revenue up 18%; PAT up 40%

    BENGALURU: Following revenue and profit growth in the previous quarter, TV Today Network Limited (TVTN) reported 18.1 per cent YoY increase in standalone Total Income from Operations (TIO) in the quarter ended 31 December, 2015 (Q3-2016, current quarter) to Rs 149.67 crore as compared to Rs 126.88 crore and 17.8 per cent higher QoQ as compared to Rs 127.04 crore.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    All numbers in this report are standalone unless stated otherwise.

    Profit after tax (PAT) for Q3-2016 increased 40.1 per cent YoY to Rs 36.90 crore (24.7 per cent margin) as compared to Rs 26.34 crore (20.8 per cent margin) and 51.8 per cent higher QoQ as compared to Rs 24.32 crore (19.1 per cent margin). 

    The company had sold four of its radio stations at Amritsar, Patalia, Jodhpur and Shimla on 18 September, 2015 to Entertainment Network (India) Limited (ENIL) as an ongoing concern for a lump sum consideration of Rs 4 crore adjusted for net working capital as a sale agreement. The transaction resulted in a profit of Rs 2.07 crore included in ‘Other Income’. 

    The company had sought permission from the Ministry of Information and Broadcasting to grant approval of its three radio stations in New Delhi, Mumbai and Kolkata, which was subsequently refused. Subsequently, TVTN has filed a writ petition at the High Court in New Delhi against the MIB’s refusal, which is still pending.

    EBIDTA calculated for Q3-2016 at Rs 55.82 crore (37.3 per cent margin) increased 27.7 per cent YoY as compared to Rs 43.71 crore (34.5 per cent margin) and was 27.7 per cent higher QoQ as compared to Rs 35.71 crore (28.1 per cent margin).

    Segment revenue

    TVTN’s Television Broadcasting segment (TV segment) reported a 16.6 per cent YoY increase in operating revenue in Q3-2016 at Rs 147.65 crore as compared to Rs 126.68 crore and 18.7 per cent more QoQ as compared to Rs 124.43 crore in Q2-2016. Operating profit from the segment in the current quarter increased 49.1 per cent YoY to Rs 54.48 crore as compared to Rs 39.22 crore and 49.1 per cent higher QoQ as compared to Rs 36.68 crore.

    The company’s radio segment reported 49.4 per cent YoY decline in operating revenue at Rs 2.02 crore as compared to Rs 4 crore, and 22.5 per cent lower operating revenue as compared to Rs 2.61 crore in the immediate trailing quarter. The segment’s operating loss in the current quarter was higher at Rs 2.54 crore as compared to the operating loss of Rs 1.94 crore in Q3-2015 but lower than the operating loss of Rs 5.48 crore in Q2-2016.

    Rebranding of Headlines Today to India Today

    In Q1-2016, TVTN rebranded its English news channel from Headlines Today to India Today from 23 May, 2015 in order to benefit from the brand name of India Today. TVTN says that it incurred a marketing expense of Rs 14.38 crore towards re-branding in that quarter. Consequently, the company’s advertisement, distribution and sales promotion expense (ad expense) in Q1-2016 was Rs 38.24 crore (30.1 per cent of TIO). This quarter, TVTN’s ad expense was one per cent lower YoY at Rs 24.82 crore (16.6 per cent of TIO) as compared to Rs 25.06 crore (19.8 per cent of TIO) but was 5.5 per cent more than Rs 23.53 crore (18.5 per cent of TIO) in Q2-2016.

    Let us look at the other numbers reported by TVTN

    Total Expenditure in Q3-2016 at Rs 101.24 crore (67.5 per cent of TIO) was 11.7 per cent higher YoY as compared to Rs 86.20 crore (71.4 per cent of TIO) and was two per cent higher QoQ as compared to Rs 99.03 crore (78 per cent of TIO) in the previous quarter.

    Production cost in Q3-2016 increased 14.9 per cent YoY to Rs 13.75 crore (9.2 per cent of TIO) as compared to Rs 11.96 crore (9.4 per cent of TIO) and almost flat (up 0.2 per cent) QoQ as compared to Rs 13.72 crore (10.8 per cent of TIO).

    Employee Benefit Expense in the current quarter at Rs 37.26 crore (24.9 per cent of TIO) was 19.5 per cent higher YoY as compared to Rs 31.19 crore (20.7 per cent of TIO) and was 11.6 per cent higher QoQ as compared to Rs 33.38 crore (26.3 per cent of TIO) was 16 per cent higher YoY as compared to Rs 28.78 crore.

    Other expenses in Q3-2016 at Rs 18.02 crore (12 per cent of TIO) was 22 per cent higher YoY as compared to Rs 14.77 crore (11.7 per cent of TIO), but was 12.9 per cent lower QoQ as compare to Rs 20.71 crore (16.3 per cent of TIO).

  • Q3-2016: TV Today revenue up 18%; PAT up 40%

    Q3-2016: TV Today revenue up 18%; PAT up 40%

    BENGALURU: Following revenue and profit growth in the previous quarter, TV Today Network Limited (TVTN) reported 18.1 per cent YoY increase in standalone Total Income from Operations (TIO) in the quarter ended 31 December, 2015 (Q3-2016, current quarter) to Rs 149.67 crore as compared to Rs 126.88 crore and 17.8 per cent higher QoQ as compared to Rs 127.04 crore.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    All numbers in this report are standalone unless stated otherwise.

    Profit after tax (PAT) for Q3-2016 increased 40.1 per cent YoY to Rs 36.90 crore (24.7 per cent margin) as compared to Rs 26.34 crore (20.8 per cent margin) and 51.8 per cent higher QoQ as compared to Rs 24.32 crore (19.1 per cent margin). 

    The company had sold four of its radio stations at Amritsar, Patalia, Jodhpur and Shimla on 18 September, 2015 to Entertainment Network (India) Limited (ENIL) as an ongoing concern for a lump sum consideration of Rs 4 crore adjusted for net working capital as a sale agreement. The transaction resulted in a profit of Rs 2.07 crore included in ‘Other Income’. 

    The company had sought permission from the Ministry of Information and Broadcasting to grant approval of its three radio stations in New Delhi, Mumbai and Kolkata, which was subsequently refused. Subsequently, TVTN has filed a writ petition at the High Court in New Delhi against the MIB’s refusal, which is still pending.

    EBIDTA calculated for Q3-2016 at Rs 55.82 crore (37.3 per cent margin) increased 27.7 per cent YoY as compared to Rs 43.71 crore (34.5 per cent margin) and was 27.7 per cent higher QoQ as compared to Rs 35.71 crore (28.1 per cent margin).

    Segment revenue

    TVTN’s Television Broadcasting segment (TV segment) reported a 16.6 per cent YoY increase in operating revenue in Q3-2016 at Rs 147.65 crore as compared to Rs 126.68 crore and 18.7 per cent more QoQ as compared to Rs 124.43 crore in Q2-2016. Operating profit from the segment in the current quarter increased 49.1 per cent YoY to Rs 54.48 crore as compared to Rs 39.22 crore and 49.1 per cent higher QoQ as compared to Rs 36.68 crore.

    The company’s radio segment reported 49.4 per cent YoY decline in operating revenue at Rs 2.02 crore as compared to Rs 4 crore, and 22.5 per cent lower operating revenue as compared to Rs 2.61 crore in the immediate trailing quarter. The segment’s operating loss in the current quarter was higher at Rs 2.54 crore as compared to the operating loss of Rs 1.94 crore in Q3-2015 but lower than the operating loss of Rs 5.48 crore in Q2-2016.

    Rebranding of Headlines Today to India Today

    In Q1-2016, TVTN rebranded its English news channel from Headlines Today to India Today from 23 May, 2015 in order to benefit from the brand name of India Today. TVTN says that it incurred a marketing expense of Rs 14.38 crore towards re-branding in that quarter. Consequently, the company’s advertisement, distribution and sales promotion expense (ad expense) in Q1-2016 was Rs 38.24 crore (30.1 per cent of TIO). This quarter, TVTN’s ad expense was one per cent lower YoY at Rs 24.82 crore (16.6 per cent of TIO) as compared to Rs 25.06 crore (19.8 per cent of TIO) but was 5.5 per cent more than Rs 23.53 crore (18.5 per cent of TIO) in Q2-2016.

    Let us look at the other numbers reported by TVTN

    Total Expenditure in Q3-2016 at Rs 101.24 crore (67.5 per cent of TIO) was 11.7 per cent higher YoY as compared to Rs 86.20 crore (71.4 per cent of TIO) and was two per cent higher QoQ as compared to Rs 99.03 crore (78 per cent of TIO) in the previous quarter.

    Production cost in Q3-2016 increased 14.9 per cent YoY to Rs 13.75 crore (9.2 per cent of TIO) as compared to Rs 11.96 crore (9.4 per cent of TIO) and almost flat (up 0.2 per cent) QoQ as compared to Rs 13.72 crore (10.8 per cent of TIO).

    Employee Benefit Expense in the current quarter at Rs 37.26 crore (24.9 per cent of TIO) was 19.5 per cent higher YoY as compared to Rs 31.19 crore (20.7 per cent of TIO) and was 11.6 per cent higher QoQ as compared to Rs 33.38 crore (26.3 per cent of TIO) was 16 per cent higher YoY as compared to Rs 28.78 crore.

    Other expenses in Q3-2016 at Rs 18.02 crore (12 per cent of TIO) was 22 per cent higher YoY as compared to Rs 14.77 crore (11.7 per cent of TIO), but was 12.9 per cent lower QoQ as compare to Rs 20.71 crore (16.3 per cent of TIO).

  • Q1-2016 TRAI report: Radio industry performance improves

    Q1-2016 TRAI report: Radio industry performance improves

    BENGALURU: The Telecom Regulatory Authority of India (TRAI) released combined advertisement (Ad) revenues of 239 private FM radio stations for the quarter ended 30 June, 2015 (Q1-2016) a few days ago. There were a total of 243 radio stations in the India as on that date. 

    Trends across 16 consecutive quarters (four fiscal years) 

    Please refer to Figures A and B below. The all India simple average revenue per radio station and the QoQ and YoY (year on year) change has been calculated using TRAI data – the overall ad revenue mentioned by TRAI divided by the number of radio stations, which have reported revenue numbers to TRAI.

    As has been the trend over the period mentioned above, Q1 of a year is generally the leanest quarter in terms of ad revenue as per TRAI data. The second quarter – Q2 has the next lowest average ad revenues per station. Over the last two consecutive years FY-2014 and FY-2015, the highest ad revenue per radio station per year has been reported for the third quarter (Q3), while in FY-2012 and FY-2013, the highest ad revenue was reported in Q4, so there is a tie for the first and the second highest quarters in terms ad revenue per station between Q3 and Q4.

    For the year ended 31 March, 2015 (FY-2015), this website had mentioned that the numbers reported by the radio industry for the year were the probably the best (Indiantelevision link, Radioandusic link) so far. Despite an 8.88 per cent QoQ (quarter on quarter) fall in average ad revenue per station in Q1-2016, the ad average revenue per station of Rs 1.65 crore is the best yet for the first quarter over a period of four years. In Q1-2015, YoY ad revenue grew 11.90 per cent. Hence historical trends indicate that FY-2016 could be an even better year in terms of average revenue per station and overall revenues.

    Note (1): (a)100,00,000 = 100 lakh = 10 million = 1 crore

    (b) The author has taken the liberty to introduce a measure – average revenue per radio station. This is a rough yardstick and may not necessarily be indicative of a station or a networks performance, because factors such as geography and market conditions within the area of operations are among many of the factors that will also determine performance.

    (c) This report is skewed more towards general financial numbers in terms of revenue and results, and not operational performance.

    The TRAI report for Q1-2016

    As per the TRAI report for Q1-2016, the total advertisement revenues reported by 239 radio stations was Rs 393.9 crore or Rs 1.65 crore per station. In the immediate trailing quarter of Q1-2016, that is, for Q4-2015 (quarter ended 31 March, 2015), the combined advertisement revenues reported by 241 radio stations was Rs 435.89 crore or Rs 1.81 crore per station, hence the above mentioned QoQ drop of 8.88 per cent (Rs 0.16 crore) in ad revenue per station. For Q1-2015 (quarter ended 30 June, 2014 or Q1-2015), 241 radio stations reported combined ad revenues of Rs 354.97 crore or Rs 1.47 crore per station, or the above mentioned YoY growth of ad revenue per station of 11.90 per cent or Rs 0.18 crore per station in Q1-2016.

    Please refer to Fig A. The slope of the simple linear trend line (the dotted black line with a red end in Fig A below) projects that the average ad revenue per station in Q2-2016 should be about Rs 1.78 crore, which would be significantly higher than the Rs 1.66 crore reported for Q2-2015. How much this figure is in line with the actual number depends upon the numbers reported by the radio companies and revealed by TRAI. But, if one were to go by the published Q2-2016 results of some of the players in this report, the combined revenues of these sample player has gone up in double digits Q2-2016 as compared to Q1-2016, and of course are higher than those reported for Q2-2015.

    Further, Figure B below indicates that QoQ fall in ad revenue per station in Q1-2016 was the second steepest fall during a 13 quarter period starting Q1-2013 (Q1-2013 as compared to Q4-2012) until Q1-2016. The steepest QoQ fall in ad revenue per station was in Q1-2013 at 9.95 percent during the same period. The highest YoY rise in ad revenue per station was in 21.31 percent in Q2-2014. Q4 is another quarter that has seen QoQ dips in ad revenue per station in FY-2014 and FY-2015. YoY, ad revenue per station has always increased between Q1-2012 and Q1-2016.

    Let us look at how a few radio networks performed:

    Note (2):  (a) This report considers PAT posted by two radio companies (ENIL – Radio Mirchi, 32 radio stations; Jagran Prakashan – Radio City – 20 radio stations), along with operating results of DB Corp (My FM, 17 stations); B. A.G.Films (Radio Dhamaal, 10 stations); HT Media (Fever FM, four stations); and TV Today (Oye! FM, six stations), or a total of six radio networks that represent 89, or 36.63 per cent of the 243 private FM radio stations in Q1-2016.

    (b) While Q3 for the current fiscal (Q3-2016) has already ended on 31 December,2015 and financial results will be declared by the players in a few weeks times, individual Q2-2016 (quarter ended 30 September, 2015) results have already been reported by them. The Q2-2016 numbers of individual players in this report have been obtained from their filings with regulatory bodies, the TRAI number for Q2-2016 has been extrapolated and could prove to be inaccurate.

    (c) Revenues for the sample stations mean Total Income from Operations and generally include ad revenue and other operating revenues.

    (d) Phase III and other radio stations acquisitions: ENIL has received permission from the Ministry of Information & Broadcasting (MIB) to acquire four stations from TV Today Network Limited (Oye! FM), viz., those at Amritsar, Patiala, Shimla and Jodhpur – which the company says have been/will be re-branded and re-launched shortly as Mirchi, adding to its North India network strength. With another seven stations acquired in phase III auctions, the core Mirchi brand will now be available in 43 cities. There are/will be a total of 39 FM radio stations that Jagran Prakashan Limited currently has. This includes the existing 20 radio stations plus 11 stations acquired in phase III auctions and eight radio stations under the brand Radio Mantra. Radio Mantra was earlier operated by Shri Puran Multimedia, Jagran’s promoter group. Besides, the group also runs a web radio network with 21 web radio streams under Planetradiocity.com. During the Phase III auctions, DB Corp (My FM) acquired 14 frequencies, through which MY FM will extend its presence to seven states and 30 cities with 31 stations. HT Media acquired 10 radio frequencies during phase III auctions, taking its total radio stations to 14. However these changes are not considered here, for this report pertains to the period before the new stations were acquired.

    Entertainment Network India Limited (ENIL) that operates brand Radio Mirchi is the only separately listed radio company in India and one of the most profitable ones by far. Other stations/radio brands of consequence, whose results are within the public domain have been considered in this report.

    Please refer to Figure C below. The curved black line with a red extrapolated end (curve D in Figure C below) indicates the all India average ad revenue per station as per TRAI data. Three radio networks had average revenue per station that has consistently been higher than the all India average. Revenue per station was the highest in the case of Fever FM (Curve A in the Figure C below) at Rs 6.13 crore in Q1-2016 and 7.34 crore in Q2-2016, followed by Radio Mirchi (Curve B in Fig C below) with Rs 3.17 crore in Q1-2016 and Rs 3.63 crore in Q2-2016. Radio City (Curve C in Fig C below) also reported average revenue per station of Rs 2.37 crore in Q1-2016 (43.64 per cent more than the all India average ad revenue per station of Rs 1.65 crore) and Rs 2.78 crore in Q2-2016.

    The other three – Dhamaal (Curve G in Fig C below), My FM (curve E in Fig C below) and Oye! FM (curve F in Fig C below) reported lower average revenue per station than the industry average ad revenue per station.

    In Q1-2016, the combined revenues of the six players fell 15.86 per cent (fell Rs 37.51 crore) QoQ to Rs 199.01 crore from Rs 236.51 crore, a drop that was significantly higher than the 8.88 per cent QoQ fall in the average ad revenue per station based on TRAI numbers. Also, YoY, the combined revenue reported by these stations increased by 7.15 per cent from Rs 185.73 crore, much lower than the 11.90 per cent YoY growth in ad revenue per station as per TRAI numbers. These combined QoQ numbers have been significantly pulled down by the 18.38 per cent QoQ drop (Rs 22.87 crore drop) in Radio Mirchi’s revenues in Q1-2016. Combined YoY increase has not been as sharp as compared to the industry average, because all the players reported lower revenue growth rates in Q1-2016 as compared to Q1-2015 than the growth rate of the all India average ad revenue per station.

    The lowest QoQ fall in percentage terms in Q1-2016 was by Fever, which saw revenues drop 5.03 per cent (drop of Rs 1.30 crore), while the highest drop was 36.85 per cent (drop of Rs 1.44 crore) in the case of Oye! FM.

    The highest YoY percentage growth in Q1-2016 among the six players in this report in revenues was by Radio City at 10.19 per cent (Rs 4.38 crore), while Oye! FM reported a YoY decline of 26.74 per cent (Rs 0.9 crore) in revenues in Q1-2016.

    For Q2-2016, the six networks reported 15.55 per cent QoQ growth in combined revenues to Rs 229.95 crore from Rs 199.01 crore. YoY, combined revenue of the six networks in percentage terms in Q2-2016 increased 10.27 per cent (increased by Rs 21.42 crore). Dhamaal saw the highest YoY revenue growth in Q2-2016 at 25.93 per cent (0.46 crore), while Mirchi saw the highest YoY growth in Q2-2016 in absolute rupees at Rs 12.13 crore (11.65 per cent). Oye! FM saw a YoY decline in revenues of 38 per cent (declined 1.60 crore) in Q2-2016.

    Fig D below indicates the operating results of four of the six networks considered in this report and Profit after tax (PAT) for the other two. While Mirchi has reported the highest profit after tax, far surpassing the operating results or EBIDTA reported by the other five, it is Fever FM that is likely to be the most profitable one, considering that during the period under consideration, it had only four radio stations in its network.

  • Q2-2016: TV Today revenue up 24.4 percent; PAT up 84.1 percent

    Q2-2016: TV Today revenue up 24.4 percent; PAT up 84.1 percent

    BENGALURU: TV Today Network Limited (TVTN) reported 24.4 per cent YoY increase in standalone Total Income from Operations (TIO) in the quarter ended 30 September, 2015 (Q2-2016, current quarter) to Rs 127.04 crore as compared to Rs 102.13 crore and was flat (reduced by 0.1 percent) QoQ as compared to Rs 127.11 crore.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    All numbers in this report are standalone unless stated otherwise.

     

    Profit after tax (PAT) for Q2-2016 increased 84.1 percent YoY to Rs 24.32 crore (19.1 percent margin) as compared to Rs 13.21 crore (12.9 percent margin) and was 35.4 per cent higher QoQ as compared to Rs 17.96 crore (14.1 per cent margin).

     

    The company says that it has sold four of its radio stations at Amritsar, Patalia, Jodhpur and Shimla on September 18, 2015 to Entertainment Network (India) Limited (ENIL) as an ongoing concern for a lump sum consideration of Rs 4.00 crore adjusted for net working capital as a sale agreement. Such transaction resulted in a profit of Rs 2.07 crore included in ‘Other Income’.

     

    EBIDTA calculated for Q2-2016 at Rs 35.71 crore (28.1 percent margin) increased 51.7 percent YoY as compared to Rs 23.54 crore (23 percent margin) and was 19.8 percent higher QoQ than Rs 29.82 crore (23.5 percent margin).

     

    Segment revenue

     

    TVTN’s Television Broadcasting segment (TV segment) reported a 27.1 percent YoY increase in operating revenue in Q2-2016 at Rs 124.43 crore as compared to Rs 97.91 crore and almost flat (reduced 0.2 percent) operating revenue as compared to Rs 124.65 crore in Q1-2016.  Operating profit from the segment in the current quarter increased 73.3 percent YoY to Rs 36.68 crore as compared to Rs 21.16 crore and increased 31.2 percent QoQ from Rs 27.98 crore.

     

    The company’s radio segment reported 38 percent YoY decline in operating revenue at Rs 2.61 crore as compared to Rs 4.21 crore, but 5.9 percent higher operating revenue as compared to Rs 2.47 crore in the immediate trailing quarter. The segment’s operating loss in the current quarter was higher at Rs 5.47 crore as compared to the operating loss of  Rs 1.80 crore in Q2-2015 and the operating loss of  Rs 2.61 crore in Q1-2016.

     

    Rebranding of Headlines Today to India Today

     

    Last quarter (Q1-2016), TVTN rebranded its English news channel from ‘Headlines Today’ to ‘India Today’ from May 23, 2015 in order to benefit from the brand name of India Today. TVTN says that it has incurred a marketing expense of Rs 14.38 crore towards re-branding in that quarter. Consequently, the company’s advertisement, distribution and sales promotion expense (ad expense) in Q1-2016 was Rs 38.24 crore (30.1 percent of TIO). This quarter, TVTN’s ad expense was 6.9 percent lower YoY at Rs 23.53 crore (18.5 percent of TIO) as compared to Rs 25.27 crore (24.8 percent of IO) and 38.5 percent lower QoQ as compared to the above mentioned Rs 38.24 crore (30.1 percent of TIO) in Q1-2016.

     

    Let us look at the other numbers reported by TV Today

     

    Total Expenditure in Q2-2016 at Rs 99.03 crore (78 percent of TIO) was 14.9 percent higher YoY than Rs 86.20 crore (84.4 percent of TIO), but 5.9 percent less QoQ than the Rs 105.29 crore (82.8 percent of TIO) in the previous quarter.

     

    Production cost in Q2-2016 increased 17.3 percent YoY to Rs 13.72 crore (10.8 percent of TIO) as compared to Rs 11.70 crore (11.5 percent of TIO) and increased 13.3 percent QoQ as compared to Rs 12.11 crore (9.5 percent of TIO).

     

    Employee Benefit Expense in the current quarter at Rs 33.38 crore (26.3 percent of TIO) was 16 percent higher YoY as compared to Rs 28.78 crore (28.2 percent of TIO) and was 1.7 percent higher QoQ as compared to Rs 32.81 crore (25.8 percent of TIO).

     

    Other expenses in Q2-2016 at Rs 20.71 crore (16.3 percent of TIO) was 38.9 percent higher YoY as compared to Rs 14.91 crore (14.6 percent of TIO) and was 46.5 percent higher YoY than Rs 14.13 crore (11.1 percent of TIO).

  • Q3-2015: TV Today y-o-y PAT up 28%; income up 18%; Radio segment disappoints

    Q3-2015: TV Today y-o-y PAT up 28%; income up 18%; Radio segment disappoints

    BENGALURU: TV Today Network Limited (TVTN) reported a 27.6 per cent growth in Profit after Tax (PAT) to Rs 26.34 crore in the current quarter (quarter ended 31 December, 2015, Q3-2015) as compared to the Rs 20.65 crore in Q3-2014 and almost double (up 99.5 per cent) the Rs 13.21 crore in the immediate trailing quarter Q2-2015. For 9M-2015 PAT at Rs 72.34 crore was 59.1 per cent more than the Rs 45.46 crore in 9M-2014.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    The company reported 18.2 per cent growth in Net Total Income from Operations (TIO) at Rs 131.72 crore in Q3-2015 (quarter ended 31 December, 2015, current quarter) from Rs 11.142 crore in Q3-2014 and 17.9 per cent more than the Rs 116.69 crore in the immediate trailing quarter. 9M-2015 TIO improved 30.3 per cent to Rs 380.42 crore when compared to the Rs 292.03 crore in 9M-2014.

     

    Two segments contribute to TVTN’s numbers – Television Broadcasting and Radio Broadcasting. TVTN’s Radio Broadcasting segment, which operates under the brand Oye! FM, disappointed by reporting 8.5 lower revenue at Rs 4 crore in Q3-2015 as compared to the Rs 4.37 crore in the corresponding year ago quarter and 5.1 per cent less than the Rs 4.21 crore in Q2-2015. For 9M-2015 this segment reported 1 per cent growth in revenue at Rs 11.57 crore from Rs 11.46 crore in 9M-2014.

     

    The company’s radio broadcasting reported loss of Rs 1.94 crore in Q3-2015; loss of Rs 2.90 crore in Q3-2014 and loss of Rs 1.80 crore in Q2-2015. In 9M-2015, loss was lower at Rs 6.30 crore as compared to the Rs 7.24 crore in 9M-2014.

     

    Let us look at the other results reported by TVTN

     

    Total expense (TE) in Q3-2015 was 16.2 per cent higher at Rs 95.52 crore as compared to the Rs 82.23 crore in Q3-2014 and down 0.3 Rs 95.76 crore in Q2-2015. For 9M-2015, TE at Rs 290.59 crore was 28 per cent lower than the Rs 292.03 crore in 9M-2014.

     

    The company’s advertisement, distribution and sales promotion expenses (ad spends) in Q3-2015 were almost flat (up 0.8 per cent) at Rs 25.19 crore as compared to the Rs 25 crore and 0.3 per cent lower than the Rs 25.28 crore in Q2-2015. 9M-2015 ad spends at Rs 71.99 crore were 6.5 per cent lower than the Rs 67.62 crore in 9M-014.

     

    Production cost in Q3-2015 at Rs 12.89 crore was 18.8 per cent more than the Rs 10.85 crore in the year ago quarter and was 1.2 per cent more than the Rs 12.74 crore in Q3-2014. For 9M-2015, Production cost at Rs 39.08 crore was 39.8 per cent more than the Rs 27.94 crore in 9M-2014.

     

    TVTN’s Television Broadcasting (Television) segment reported 19.3 per cent growth in revenue to Rs 127.73 crore in Q3-2015 as compared to the Rs 107.06 crore in Q3-2014 and 18.8 per cent more than the Rs 107.48 crore in the immediate trailing quarter. Television segment reported 30.8 per cent revenue growth to Rs 366.84 crore in 9M-2105 from Rs 280.57 crore in 9M-2014.

     

    The Television segment’s operating profit in Q3-2015 at Rs 39.22 crore was 16.2 per cent more than the Rs 33.75 crore in Q3-2014 and was 85.4 per cent more than the Rs 21.16 crore in Q2-2015. 9M-2015 operating profit at Rs 111.81 crore was 46.7 per cent more than the Rs 76.2 crore in 9M-2014.