ABP News, ABP Ananda lift ABP News Network’s FY18 profitability
MUMBAI: News broadcaster ABP News Network’s net profit for the fiscal ended 31 March has gone up 61% due to strong performance by Hindi and Bengali news channels ABP News and ABP Ananda.
The company’s net profit has jumped to Rs 48.99 crore in FY18 from Rs 30.36 crore in the year ago period. The profit before interest lease depreciation and tax (PBILDT) was up at Rs 95.56 crore from Rs 79.77 crore.
The PBILDT margin witnessed improvement in FY18 on account of increase in ad rates in ABP News and ABP Ananda on account of their established position in their respective genres supported by marginal reduction in operating losses incurred in new ventures.
Higher PBILDT level primarily coupled with decline in the capital charge led to improvement in the PAT margin in FY18. The cash accruals of the company remained satisfactory at Rs 66 crore vis-à-vis term debt repayment obligation of Rs 11.25 crore in FY18.
With improvement in the profitability level of the company, the net-worth position of the company recovered. Strong cash-flow from established channels (ABP News and ABP Ananda) supported the loss from newer ventures, repayment of term debt and other obligation in FY18 and Q1FY19.
Total operating income jumped to Rs 467.79 crore compared to Rs 436.69 crore on the back of higher revenue from advertisement. In Q1 FY19, the company’s total operating income stood at Rs. 121.3 crore while the PBILDT & PAT margins remained satisfactory.
The company’s major source of income is through advertisements contributing around 98% of the total revenues in FY18 with ABP news contributing to majority of ad revenue followed by ABP Ananda.
The share of subscription income has remained low due to slack regulation and non-disclosure of actual number of subscribers resulting in leakage of income.
The network currently broadcasts four news channels- ABP News (Hindi), ABP Ananda (Bengali), ABP Majha (Marathi) and ABP Asmita (Gujarati). In July, it had launched its Punjabi news channel ’ABP Sanjha’ in Canada.
ABP News Network’s long-term bank facilities amounting to Rs 40 crore was revised to A+ Stable from A Stable by Care Ratings. The rating was revised due to the improvement in the financial performance of the company in FY18 and Q1FY19 marked by improvement in the ad revenue, profitability margin, debt protection metrics and healthy cash accrual.