G-Next Media’s PTC Network to launch three new channels

MUMBAI: G-Next Media, the holding company of PTC Network, is planning to launch three more channels to expand its audience base and generate additional revenue.

The company has already publicised the names of two channels PTC Simran and PTC Music. Currently, it owns and operates three channels namely PTC Punjabi, PTC News and PTC Chak De in entertainment, news and music genres respectively.

“The company is expected to launch three more channels soon which will have different content for the viewers and will the company generate additional revenues in the years to come,” BrickWork Ratings said in a rating rationale report about the company.

According to the rating agency. G-Next Media’s net profit fell to Rs 1.96 crore in FY18 compared to Rs 3.36 crore in FY17. The company’s EBITDA in FY18 fell to Rs 8.04 crore from Rs 8.47 crore.

The company’s operating income fell to Rs 70.62 crore from Rs 83.80 crore in FY17. This sharp increase in the revenue during FY17 has been mainly on account of additional revenue generated through selling distribution rights of one Punjabi movie.

Brickwork Ratings had assigned the ratings for the bank loan facilities of Rs 13.65 crore of the company. The long-term rating has been rated BB+ stable while the short-term rating has been rated A4+.

The rating factor the extensive experience of promoters of the company, established operational track record of the company, strong presence in the market and comfortable debt protection metrics.

The company has exclusive live telecast rights of Gurbani from Shri Harmandir Sahib (Golden Temple) Amritsar which is aired globally for millions of viewers in India as well as globally.

The rating is constrained by the moderate scale of operations, limited geographical market covered by the company, high level of competition from other Punjabi, Hindi channels.

G-Next Media’s business is mainly driven by regional content which limits its geographical expansion to other parts of the country in terms of viewership. Almost 75% of the revenues are generated from advertising and the rest from programmes.

The company’s operating margin is moderate but the net profit margins are thin. The company’s operating profit margin was 11.39% in FY18 and 10.10% in FY17. Whereas the net profit margin was only 2.78% in FY18 and 4.01% in FY17.

The company faces very stiff competition from other Hindi and Punjabi channels in the market. The company should focus on content to retain its market share and acquire new territories.

G-Next Media was incorporated on 7th December 2006 to carry on the business of Print and electronic Media through any mode like computer media, television media, and press media. The company runs three Punjabi channels namely PTC News, PTC Punjabi and PTC Chak De, one of the top-rated channels in Punjab.

All these channels are run in Pan India basis while PTC Punjabi is also available in USA, Canada, Australia, UK, and New Zealand through its subsidiaries G-Next Media USA LLC in the USA, G-Next Media UK Limited (incorporated in January 2015). Rabindra Narayanan and Lakhbir Singh are the directors of the company having three decades of experience in the entertainment industry.

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