TV 18: Back in black - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

TV 18: Back in black

Jan 15, 2002

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.

(Rs m) Consolidated %
  2QFY02 3QFY02 change
Sales 65 77 19.2%
Other Income 14 10 -28.4%
Expenditure 64 64 -0.1%
Operating Profit (EBDIT) 1 14 1182.1%
Operating Profit Margin (%) 1.6% 17.6%  
Interest 6 8 33.8%
Depreciation 7 8 22.2%
Profit before Tax 2 7 268.3%
Other Adjustments -17 -4 NA
Tax 0 1 NA
Profit after Tax/(Loss) (15) 2 NA
Net profit margin (%) -23.4% 2.6%  
No. of Shares (eoy) (m) 10.9 10.9  

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 (, 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
Particulars 2QFY02 3QFY02 % Change
News based content 56.0 66.2 18.2%
Entertainment based content 5.2 7.5 43.7%
Web Initiatives 3.7 3.6 -1.6%
Total Revenues 64.9 77.3 19.1%

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.

Equitymaster requests your view! Post a comment on "TV 18: Back in black". Click here!


More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms