Jan 15, 2002|
TV 18: Back in black
TV 18 is out of red after posting 8 consequent quarters of loss. The company has reported a net profit of Rs 2 m for 3QFY02. Sales have grown by 19% on a sequential basis. Operating margins also improved considerably reflecting improved efficiency and profitability in all lines of its business. The company has written off entire one time costs relating to restructuring charges.
|Operating Profit (EBDIT)
|Operating Profit Margin (%)
|Profit before Tax
|Profit after Tax/(Loss)
|Net profit margin (%)
|No. of Shares (eoy) (m)
All the three revenue streams of the company viz news based content creation for CNBC India, entertainment based content creation and finally revenues from its web initiatives (Moneycontrol.com, which it operates through its subsidiary E 18) are finally generating profits. While the news based content revenues have grown by 18% on the back of increase in programming content, entertainment business has grown by more than 43%. Revenues from E 18 have however, remained stagnant.
TV-18 Revenue Mix
|News based content
|Entertainment based content
The rise in entertainment business revenues seems to be on the back of success of 'Kya Masti Kya Dhum' programme launched on Star Plus couple of months back. It seems that this programme would have contributed to increase in entertainment based revenues. The entertainment division of the company has become a 100% subsidiary of the company for increased focus on business, cost and revenues.
While the spurt in operating margins is encouraging the company has a long way to go to achieve its targets. Though the entertainment business of the company may witness growth in coming quarters, news based content division and web division of the company are not expected to post attractive growth rates. We expect the company to post marginal EPS for FY03. Considering this the stock looks expensive at the current market price of Rs 96.
More Views on News
Aug 14, 2017
The management believes that GST will aid the advertising spends in the long-run.
Jun 21, 2017
Should one subscribe to the IPO of GTPL Hathway Ltd?
Apr 26, 2017
Should you subscribe to the IPO of S Chand and Company Limited?
More Views on News
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407