Tag: TV today

  • TV Today Q2 net jumps 40% to Rs 106 mn

    TV Today Q2 net jumps 40% to Rs 106 mn

    MUMBAI: The early signs of revival from the last fiscal’s economic downturn are visible now. Showing recovery is TV Today Network, the holding company of news channels including Aaj Tak and Headlines Today.

    The company has posted a net profit of Rs 106.12 million for the quarter ended 30 September, up 40.06 per cent, as compared to Rs 75.77 million in the prior year period.

    Income from operations, however, dropped marginally by 3.51 per cent to Rs 645.45 million in the quarter under review.

    TV Today has limited its expenses to Rs 561.11 million, down 4.72 per cent from the year-ago period.

  • TV Today Q1 net zooms 81% to Rs 166 mn

    TV Today Q1 net zooms 81% to Rs 166 mn

    MUMBAI: TV Today Network, which operates a clutch of news channels including Aaj Tak and Headlines Today, is showing signs of recovery from the economic downturn.

    Net profit in the first quarter has surged 81.35 per cent to Rs 166.44 million, after falling over two consecutive quarters.

    Total income rose 10.76 per cent to Rs 710.41 million in the quarter.

    The company also managed to curtail its expenses to Rs 561.32 million, compared to Rs 551.69 million a year ago. 

    Shares of TV Today closed Thursday at Rs 93.55 on the BSE, up 5.41 per cent from its previous close.

  • TV Today to close buy-back of shares on 25 July

    TV Today to close buy-back of shares on 25 July

    MUMBAI: Aroon Purie-promoted TV Today Network announced Monday it would close the buy-back issue of its equity shares of Rs 5 each with effect from 25 July.

    No order for the buy-back shall be placed after 22 July.

    TV Today also said the company has already bought back 244,884 equity shares for an aggregate amount of Rs 19.73 million.

    TV Today Network, part of the India Today group, operates TV news channels Aaj Tak, Headlines Today, Tez and Delhi Aaj Tak.

  • Revenue slowdown crimps TV Today’s profit growth

    Revenue slowdown crimps TV Today’s profit growth

    MUMBAI: A slowdown in revenue growth has crimped TV Today Network’s net profit in FY’09. For a company conscious of shoring up profitability at the cost of expansion for turnover growth, a 23 per cent fall is surely a setback.

    While the company’s revenue grew at a steady clip over the last few years, it was unable to sustain the momentum in FY’09. Used to over 20 per cent growth over the last few years, TV Today posted a revenue growth of just 9 per cent in FY’09 amid a slump in the advertising spend among companies.

    Total income stood at Rs 2.74 billion in FY’09, compared to Rs 2.51 billion a year ago. Expenses grew at the same rate as the last few years, from Rs 1.68 billion in FY’08 to Rs 2.05 billion in FY’09.

    The chart below shows the company’s performance over the last few years.

    31-Mar-09

    31-Mar-08

    31-Mar-07

    31-Mar-06

    Total Income (Rs millions)

    2,741.98

    2,514.20

    2,024.40

    1,678.90

    YOY growth%

    9.06

    24.19

    20.58

    Expenditure (Rs millions)

    2,059.02

    1,685.10

    1,372.00

    1,075.20

    YOY growth%

    22.19

    22.82

    27.60

    Net Profit (Rs millions)

    335.5

    435.5

    310.9

    277.7

    YOY growth%

    -23.0

    40.1

    12.0

    An average performance by TV Today in the last two quarters of FY’09, as compared to the corresponding quarters of FY’08, has helped worsen matters.

    The graph below shows the total income of the company across all quarters of FY’08 and FY’09. The dip in revenue towards the end of the year is evident from this.

    The drop in profit is indicated in the graph below.

    TV Today had incidentally lowered its expenses in the last quarter, perhaps in anticipation of tough times. The expenditure over the quarters is shown below.

    Q1

    Q2

    Q3

    Q4

    Expenditure

    551.69

    588.9

    579.24

    531.8

    TV Today has kept its expansion plans on hold, waiting for better market conditions. Till then, it will have to weather the rough weather.

  • Radio losses drag down TV Today net

    Radio losses drag down TV Today net

    MUMBAI: TV Today Network has seen an 8.69 per cent dip in its net profit for FY10. The company posted a net profit of Rs 308.67 million, lower than last fiscal’s Rs 335.5 million.

    The income from operations at Rs 2.85 billion is up 13.83 per cent from FY09 when it stood at Rs 2.5 billion.

    As far as the expenses for the firm go, its overall expenditure of Rs 2.54 billion is higher than last year’s Rs 2.25 billion, which is in tune for a growing firm. However, while almost all segments of expenditure saw an increase, the advertising, marketing and distribution expenses dropped to Rs 602.9 million this fiscal, as compared to Rs 675.32 million in the previous year. This is in sync with what analysts had predicted would happen post the merger of Radio Today Broadcasting (which runs Meow FM).

    The company’s operating profit went up by 25.37 per cent which is a significant jump. The operating profit of Rs 309.24 million in FY10, compared to Rs 246.67 million in FY09, indicates that the normal business activities of the firm are growing.

    The other income earned by the firm is marginally down this fiscal at Rs 231.04 million from last year’s Rs 242.08 million. However, one of the key factors that led to a lower net profit this year is the hit that it has taken in its balance sheet on account of higher interest and finance charges courtesy Radio Today’s merger with it. The latter had been making losses and had taken huge loans. At Rs 70.49 million, the interest and finance charges in the TV Today financials were significantly higher than last year’s Rs 1.37 million.

    However thanks to the company’s overall growth its EPS on a Rs 5 face value share is only marginally lower. At Rs 5.31 in FY10 on a diluted basis, it compares well to Rs 5.79 in FY09. The company’s management has announced a dividend of 15 per cent for the fiscal.

    The income generated by the radio segment was Rs 43.61 million, while TV Broadcast was Rs 2.80 billion. However, while the TV segment made a profit of Rs 578.49 million this year, the radio segment made a loss of Rs 221.26 million and this was a major factor in the overall net profit of the firm being down.

    The firm has made an advance of payment of Rs 185 million to Mail Today Newspapers to subscribe to its equity and enter the daily newspaper space. The venture is currently notching up huge losses but the management believes it will end up being a profitable decision.

  • TV Today approves buyback plans

    TV Today approves buyback plans

    MUMBAI: TV Today Network Ltd board has approved the proposal for buy back of shares from the open market.

    TV Today has said that the amount would not exceed Rs 293.07 million, being 10 per cent of aggregate of paid-up equity capital and free reserves of the company as on 31 March, 2008.

    TV Today’s offer price will not exceed Rs 115 per share. The promoters will, however, go ahead with the buy-back proposal if they are exempted from the Sebi (Substantial Acquisition of Shares and Takeover) Regulations, 1997, under which they will have to make an open offer.

    Shares of TV Today ended Thursday at Rs 105.20 on the BSE, down 1.64 per cent from the previous day’s close.

  • TV Today Q4 net profit up at Rs 135.1 million

    TV Today Q4 net profit up at Rs 135.1 million

    MUMBAI: TV Today Network has posted a standalone net profit of Rs 135.1 million for the quarter ended 31 March 2008, up from Rs 122.6 million in the corresponding quarter last fiscal.

    During the period, the company’s revenue stood at Rs 702.2 million as against Rs 612.6 million in the year ago period.

    TV Today Network’s expense has increased in the quarter to stand at Rs 493.7 million (from Rs 424.2 million). Advertisement, marketing and distribution cost has increased from Rs 92 million to Rs 137.9 million.

    For the entire year ended 31 March 2008, TV Today Network’s net profit has surged 40 per cent to touch Rs 435.5 million from Rs 310.9 million in the year ago period.

    The topline has grown by 24 per cent to Rs 2.51 billion as against Rs 2.02 billion last year.

    During the year, Aaj Tak expanded its international footprint by launching in UK and continental Europe.

    TV Today CEO G Krishnan said, “In spite of a highly competitive market, we are on the growth track. We will continue to deliver value to our investors and advertisers by further expanding the news base.”

  • Rajesh Jathar joins News 24 as regional ad sales head

    MUMBAI: B.A.G Films and Media Limited has announced the appointment of Rajesh Jathar as regional head (corporate advertising sales, West and South) of its broadcasting arm News 24.

    On the new appointment, B.A.G. MD Anurradha Prasad said, “We are confident that Jathar vast and varied experience in the field of media and entertainment would add to the growth of the company.”

    Jathar has more than 14 years of experience in both print and television advertising sales. Prior to B.A.G., he was working with NDTV Media. He has also worked with Zee, the TV Today group and Hindustan Times, at various positions.

  • News Channels: Sensation-fatigue, government’s attitude and regional channels will decide future content

    Why has phenomenon of unrestrained inputs developed is one question that if answered well, will rid us of taking moralistic positions. In this the points made by QW Naqvi, News Director at TV Today are pertinent.

    Naqvi says that first there was none, and then there was clutter of private news channels and the clutter will increase as days go by. To cut the clutter, channels did what has been seen in Bollywood in terms of genres of films. Some channel did something, which clicked and all channels started doing the same thing, which became a wave.

    Successive waves of formulae came and went, first family tension-based stories, then crime, then violence and sex and then bhoot-pret and the seemingly ridiculous, as this year the channels bent over backwards to snatch the ephemeral eyeballs from each other.

    Part of the phenomenon is because Indian news channels spend relatively much less money and try to break even fast and run the shortest course, cutting at the corners, but that is only part of the story.

    The other part is that over the past year, lifestyles have vastly changed and worries have shifted in the urban middle class areas from roti-kapda-makaan to a restless quest about how to best entertain themselves. The news channels have been trying to answer that quest for the viewers by experimenting with their own formulae, from serious to sensatonal.

    In this process Aaj Tak itself became a victim, in the sense that it did go over to the sensational, though it did not banish serious news or socially relevant stings that shook the country.

    And here comes the third point: Aaj Tak is – despite the veering away from serious news – doing the best in terms of turnover. What does that show? That advertisers are flocking for the raw hide?

    Quite contrarily, Narayan Rao says that despite sticking to the hard news path, they are today not number three in ratings, but firmly sticking to the number two position in terms of revenue, so what does that show?

    Perhaps the picture will become clearer if we see that despite drawbacks, IBN 7 did reach a point where it had a 14 per cent market share this year, from a lowly six a year ago, and though it could not retain that share that for too long, according to Ashutosh, “this shows that there is scope for serious news”.

    Also, according to industry sources, India TV is far more disadvantaged in revenue terms than its ideological opponent IBN 7, which though it has not broken even is doing better business.

    But the ethical debate in 2007 was really being driven by the fact that there has been a consistent fear in the minds of the CEOs that the vanilla channels with soaring and consistent ratings, would sooner or later bag the big brands, who could shift greater proportions of their spendings to higher rated channels.

    Rating itself has been debated widely this year, especially in the captains in the news channel space, and barring India TV, which says that only those gripe about rating who get the wrong end of the stick, all major channels are today questioning various aspects of rating system of TAM, even while agreeing that it is as of date the industry standard.

    The sample size has been questioned, so has been the possibility of tampering with people metre homes, and also the issue that it is a Western system that does not take into consideration the plurality of Indian society, and even the highest rated channel’s news head, Naqvi too feels that there is need for vast improvements in the system.

    This year, TAM has ruled the market, creating what Sardesai has termed the ‘tyranny of the eyeball-driven marketplace’.

    But then going by the above discussion, where we saw Aaj Tak stay at No. 1 with its mix of the sensational and serious in equal measure, and yet NDTV stay at No. 2 with its insistent on serious journalism, it seems that TRP is not driving revenue flows: it is after all, perceptions, and here is why.

    Let us not forget that Aaj Tak had started out a decade ago as the private sector’s perfect answer to sterilised government reporting on Doordarshan and had been marked by three specific attractions: accuracy and speed and courage. The perception of Aaj Tak as a credible channel that talked a lot more things than the PMs and the CMs had made it a darling of the masses as well as the classes.

    When advertisers today decide on apportioning monies from their budget, their perception of NDTV and Aaj Tak have remained the same, though one changed and the other did not.

  • ‘Ten Sports’ distribution is open for negotiations’ : Gurjeev Singh Kapoor – Set Discovery head

    ‘Ten Sports’ distribution is open for negotiations’ : Gurjeev Singh Kapoor – Set Discovery head

    Riding high on the ICC World Cup, Set Discovery reaped a harvest of $120 million (around Rs 4.8 billion) in 2006-07.

    The challenges, though, are stiff this year as flagship Hindi general entertainment channel Sony TV is floundering. But direct-to-home (DTH) revenues will start kicking in substantially as subscribers have doubled. And the cricket play is not over yet.

    The One Alliance, Set Discovery’s brand, has recently added three news channels from TV Today including Hindi market leader Aaj Tak. It is also planning to form regional bouquets with presence in Tamil, Telugu and Bengali markets.

    In an interview with Indiantelevision.com’s Sibabrata Das, Set Discovery head Gurjeev Singh Kapoor speaks about the distribution company’s interests in bidding for Ten Sports and HBO as they come up for grabs while chalking out its expansion plans.

    Excerpts:

    Will Set Discovery manage to retain its last fiscal revenue of $120 million in a year where it doesn’t have strong cricketing properties?
    I wouldn’t like to comment on the revenue front. But we would surpass it this fiscal, thanks to DTH (direct-to-home) where the numbers have doubled. We are also close to signing up with Reliance ADAG and Bharti Airtel’s upcoming DTH ventures. We have done IPTV deals with players like IOL Broadband, HFCL and Aksh Optifibre. And don’t forget that Ten Sports had a lineup of live cricket telecast.

    But Ten Sports admits that not having India cricket will affect their ad revenues this fiscal. Won’t this same logic extend to distribution?
    Ten Sports is a good sporting channel for distribution. Though it doesn’t have live India playing content this fiscal, we could capitalise on other cricket as it was exclusive. Having no India cricket may affect advertising. But our experience shows that distribution profits if there is live and exclusive content on the channel. Besides, Ten Sports has WWE which is a good property for distribution.

    Will Ten Sports not slip out of The One Alliance after the term ends in March 2008, particularly after Zee has taken a 50 per cent stake in the sports channel?
    Ten Sports’ distribution is open again for negotiations, despite Zee having taken a 50 per cent stake. The channel strategically helped us in pushing our bouquet and with the ICC World Cup, we had back to back cricketing properties. We gained from the ‘synergy effect.’ We are going to bid for it again. The distribution is up for grabs.

    Why didn’t Sony bid for the ICC World Cup, if it is crucial to have a cricketing property to push distribution bouquets?
    Our experience shows that on the distribution revenue front, it is always good to have 2-3 boards if you are getting live and exclusive cricket. We, undoubtedly, gained in subscription revenue because of the World Cup. But it is also true that we couldn’t encash on smaller markets because the World Cup is a largely shared property. We had to share with Doordarshan the India and other important big matches.

    Which is why Sony bid and took the New Zealand cricket board?
    Our cricket story will not stop there. We are looking at cricketing properties that make business sense for us. The thought process is that we will bid for IPL and other boards that come up for renewals.

    We are actively seeking a regional presence. We are looking at having Tamil, Telugu and Bengali channels

    Sony was in talks to distribute Neo Sports. Did it fail because Neo was asking for very high minimum guarantees?
    We couldn’t agree on the commercial terms. Though Neo has the BCCI rights to international cricket played in India, matches will have to be shared with DD. We felt the asking price was on the higher side.

    Set Disocery has recently signed a pact with TV Today Network to distribute Aaj Tak, Headlines Today and Tej. Will Aaj Tak help you to push Sony TV, which has weakened its position, and Sab TV in the Hindi heartland?
    It will complement our two Hindi general entertainment channels. But more than that, it will open up the Hindi news channels to go pay. Star News and Zee News are virtually free. As Aaj Tak is the No. 1 in its genre, cable operators will now have to understand that Hindi news channels are also pay. Already NDTV India is planning to go pay.

    Our bouquet will have pay channels in every genre. We already had NDTV as the leading English news channel; and with Aaj Tak, we will now have the leader in the Hindi news segment.

    How much of an upside do you see in revenue terms?
    The only way we can ask for more revenues from cable operators is by expanding our content. As we are adding the three TV Today news channels, we are hiking our second bouquet price from Rs 58 to Rs 65. We have a 40-month deal with TV Today which extends across all distribution platforms – cable, DTH, IPTV.

    Is The One Alliance planning to add more channels?
    We will be pitching for English movie channel HBO as its distribution deal with Zee Turner comes up for renewal early next year.

    What about forming regional bouquets?
    We are actively seeking a regional presence. We are eagerly looking at having Tamil, Telugu and Bengali channels. While Andhra Pradesh has an estimated 11 million cable households, in case of Tamil Nadu it is 10 million and West Bengal five million. Even if we manage to convert 50 per cent of that, that is a lot of pay revenues. Kerala is not on our radar as even popular channel Surya is free-to-air.

    Along with the regional channels, we can push our national bouquet more aggressively into these markets.

    Will more existing channels go pay as carriage fee shoots up?
    Several existing channels are looking to go pay fast. Carriage or placement fee is going to shoot up and up as cable networks have no frequency available. Between Star, Set Discovery, Zee Turner and ESPN Star Sports, there are about 70 pay channels. So where is the space on analogue cable. Bandwidth is going to be a big problem for everybody to handle.

    The telecom regulatory authority of India (Trai) has asked for a la carte pricing from broadcasters in non-Cas (conditional access system) areas. Do you see this contributing to more carriage fee?
    If the tariff order sails through, Trai will actually be promoting carriage as a concept. The multi-system operators will charge for carrying the channels while we have to offer them on an a la carte basis.

    Why has Sony moved the Tdsat (Telecom Disputes Redressal and Settlement Tribunal) against the Trai tariff order for non-Cas areas?
    We have two points of contention. Even if broadcasters offer channels on a la carte basis, how do we get paid for the exact number of our subscribers? The other reason is that we will have to reduce the rates of our channels for non-Cas areas. In Cas areas we do so but are compensated in a way because there is exact declaration of subscribers.

    And for whose benefit is this a la carte rate for? How the hell does the consumer benefit as technology won’t allow for a la carte choice of channels without a set-top box?

    If the Trai tariff order for non-Cas areas goes through, it will be a disaster for the broadcasters. It will send bad signals to a new channel wanting to come to India.

    Aren’t broadcasters also unhappy with the progress of Cas?
    For the first time, all of us came under one roof to foster Cas. But what we realised is that MSOs were in a way curbed by the last mile operators who did not want Cas.

    We are concerned about the low penetration of set-top boxes. There was the T20 World Cup on ESPN Star Sports, India won the championship, and it was live and exclusive. How in a Cas market, there was no big upside? This defeats the purpose of Cas and leads to a lot of questions.

    Besides, Trai came out with a particular reporting format, but we haven’t got anything of that from the MSOs. We have no choice but to knock at the doors of Trai. We want the sector regulator to intervene.

    Why aren’t broadcasters joining hands with MSOs to market for set-top box penetration?
    We are willing but the MSOs have internal problems. The last mile operators see a bigger threat from digital cable rather than DTH.

     

    How do you see new entrants impacting the market?
    Competition is healthy for everybody so long as the new MSOs can invest in technology and have financial stability. If cable monopolies are attacked in towns, it means more choice for customers and more revenues for us.