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TV Today FY15 net jumps 32% amid strong revenue growth

MUMBAI: Despite a sharp rise in expenses and a 45.23 per cent fall in standalone net profit in the fourth quarter, TV Today Network’s (TVN) full-fiscal performance remained strong.

Aided by a surge in revenues, the news broadcaster posted a handsome growth in its net profit for the financial year ended 31 March 2015.

The company saw a 32.1 per cent jump in its net profit to Rs 81.03 crore (Rs 810.3 million) in FY15, compared to Rs 61.32 crore (Rs 613.2 million) a year ago.

Incidentally, a stupendous growth in revenues in the first quarter of the fiscal (election spends) and in the third quarter (festive spends) ensured over 22 per cent increase in its operating revenues to Rs 474.7 crore (Rs 4.75 billion).

TVTN pnl yoy

Expenses

One major concern for TVTN could be the rise in expenses. Compared to FY14 when total expenses saw a marginal (2.3 per cent) increase over FY13, total expenses in FY15 surged 23.2 per cent, which is higher than even the percentage growth of revenue.

Employee cost, which had actually reduced in FY14 (compared to FY13), saw a 25.6 per cent jump. During the year, TV Today was bullish on hiring bigger names. At the beginning of the fiscal, Karan Thapar joined Headlines Today. Later, former Indian Express editor-in-chief and CEO Shekhar Gupta and CNN-IBN editor-in-chief Rajdeep Sardesai also joined the group during the fiscal.

While Gupta stepped down within three months, Sardesai continues to be consulting editor with India Today and does shows for both Aaj Tak and Headlines Today.

TV Today expenses yoy

Similarly, despite being the leader in the Hindi news space and a strong English news player, the exit quarter of the fiscal saw a major jump in carriage payout. The advertising, distribution and sales promotions expense saw 18.7 per cent increase in FY15 over the prior year.

TV Today’s profit from operations (before other income, finance costs, and exceptional items) jumped 19.5 per cent to Rs 101.66 crore (Rs 1.02 billion).

TV broadcasting segment

The television broadcasting segment, which comprises Aaj Tak, Headlines Today, Tez and Dilli Aaj Tak, saw its revenue jump to Rs 461.08 crore (Rs 4.61 billion) in FY15, from Rs 374.06 crore (Rs 3.74 billion) in the year-ago period. Segment profit from TV broadcasting stood at Rs 126.71 crore (Rs 1.27 billion), compared to Rs 103.74 crore (Rs 1.04 billion) in the year-ago period.

Radio segment

Oye FM continued to be the drag for TV Today. It registered revenue of Rs 15.48 crore (Rs 154.77 million) and generated a loss of Rs 9.28 crore (Rs 92.8 million) during the fiscal.

In the previous fiscal, revenue and loss from the radio segment stood at Rs 15.38 crore (Rs 153.79 million) and Rs 11.24 crore (Rs 112.38 million) respectively.

In the exit quarter of the fiscal, TV Today signed a non-binding MoU with Entertainment Networks India Ltd (ENIL) to sell its seven-city radio business Oye FM.

With the Information & Broadcasting Ministry having rejected the application, the company is looking at legal options.

Financial snapshot FY15

Q4 FY14

  • After a long time, the company saw a 45 per cent dip in its net profit for the quarter, compared to the year-ago period.
  • Net profit for the quarter was at Rs 8.69 crore (Rs 86.9 million), down from Rs 15.85 crore (Rs 158.5 million) in Q4 FY14.
  • Income from operations surged 17.7 per cent, while total expenses jumped 32.8 per cent.

TVTN pnl qoq

  • Advertising, distribution, and sales promotion (carriage) costs jumped by a whopping 80 per cent. Employee cost and production cost also witnessed a 36 per cent and 38 per cent increase respectively.

TV Today expenses

  • The highlight for the quarter was TV Today’s decision to sell its loss-making radio business to Radio Mirchi. The deal, however, is stuck in regulatory rigmarole.

Q3 FY15

  • TV Today’s revenue jumped 18.22 per cent to Rs 131.72 crore (Rs 1.32 billion).
  • Net profit for the quarter was up 27.6 per cent to Rs 26.34 crore (Rs 263.45 million).
  • Employee cost jumped 34.9 per cent to Rs 33.54 crore (Rs 335.4 million).

Q2 FY15

  • TV Today witnessed 21.8 per cent jump in its revenue to Rs 111.69 crore (Rs 1.12 billion), but a 30.23 per cent hike in expenses pulled down its net profit.
  • Standalone net profit was up just 2.89 per cent to Rs 13.20 crore (Rs 132.05 million).

Q1 FY15

  • Buoyed by political advertising, TV Today posted a stupendous 54.1 per cent increase in revenue from the year-ago period to Rs 137 crore (Rs 1.37 billion).
  • Net profit in the June quarter almost doubled to Rs 32.79 crore (Rs 327.9 million).
  • In the quarter, the company forked out Rs 38.75 crore (Rs 387.5 million) for acquisition of digital rights to its news channels from its holding company Living Media India Ltd. Such consideration paid[Editor1] has been recognised as an intangible asset, to be amortised over 10 years.
  • Advertising/distribution and sales promotion expenses shot up to Rs 21.53 crore.

TV Today scrip