Implementation of TRAI’s MRP regime impacts TV Today’s Q4 results
MUMBAI: The implementation of the TRAI’s MRP regime has taken a toll on TV Today Network’s Q4 results. The news broadcaster’s standalone net profit for the quarter ended 31st March to Rs 20.21 crore as against Rs 32.61 crore in the corresponding quarter of the previous fiscal.
The company’s revenue from operations to Rs 165.65 crore compared to Rs 181.1 crore in the same quarter of the previous fiscal. Total expenses saw a marginal dip at Rs 142.6 crore compared to Rs 129.9 crore.
The TV broadcasting revenue operating profit dropped to Rs 29.2 crore as against Rs 62.61 crore in the year ago period. Revenue from the segment declined to Rs 141.4 crore from Rs 158.6 crore. The radio business posted an operating profit of Rs 2.91 crore compared to an operating loss of Rs 2.29 crore. Revenue dropped to Rs 4.65 crore from Rs 6.83 crore.
For the full fiscal, the company’s consolidated net profit was up at Rs 131.43 crore from Rs 118.93 crore in FY18. Its consolidated total income was also up at Rs 778.91 crore from Rs 745.63 crore.
Total expenses jumped to Rs 574.9 crore from Rs 548.4 crore.
TV broadcasting revenue operating profit dropped to Rs 180.8 crore from Rs 202.6 crore. Revenue was down at Rs 611.1 crore from Rs 606.8 crore. Operating loss from the radio segment narrowed to Rs 4.73 crore from Rs 13.6 crore. Revenue remained flat at Rs 23.29 crore compared to Rs 23.89 crore.
Meanwhile, the company has decided to withdraw the application from ministry of information and broadcasting (MIB) for the transfer of radio business of the company, comprising of three radio stations in Delhi, Mumbai and Kolkata (currently operated under the frequency 104.8FM and brand name ISHQ 104.8FM) to Entertainment Network India Limited (ENIL).
It further stated that the board of directors has granted an in-principle approval for transfer of radio Business of the company to Vibgyor Broadcasting, a wholly owned subsidiary of the company, as a going concern, subject to approval of shareholders and MIB and such other approvals, consents, permissions and sanctions as may be required or deemed necessary.
The company stated that in order to have better focused management for the radio business, it has been advised to segregate the radio business by transferring it into a separate company. “Accordingly, it is proposed to transfer the Radio Business to Vibgyor Broadcasting Private limited, a wholly owned subsidiary, as a going concern,” the company said in its BSE filing.
The board of the company has also approved equity investment of an amount not exceeding Rs. 5 lakh in Vibgyor Broadcasting. The sale/disposal is expected to complete in approximately 6 to 9 months.