TV Today: An overview - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

TV Today: An overview

Mar 30, 2007

About the company: Promoted by Living Media India Limited, TV Today Network Limited (TVTN) was incorporated in December 1999. Presently, TVTN runs four News & Current Affairs channels. The primary source of income for the Company is Ad sales revenue. Aaj Tak - its flagship channel has been awarded the "Best News Channel" by the Indian Television Academy for 6 successive years. TVTN, with its strong network consists of four news channels:

Aaj Tak Aaj Tak, one of the most visible Hindi news channels has improved its market share from 23% in May 2005 to 26% in May 2006. After all these years, it still remains a market leader in the Hindi news channel space and this will hold the company in good stead in garnering ad revenues going forward.

Headlines Today - India's first exclusive 24-hr English news channel focused not only on general news but also on additional content of sports, film industry, technological advancements, etc. Despite increased competition from the players like CNN IBN and Times Now, Headlines Today registered 4% growth in viewership from 6.5 m in FY05 to 7 m in FY06. But a drop in market share still remains a serious concern.

Tez The channel made for the busy viewer, does not include long discussions and unnecessary analysis. It is suitable for those who do not want to listen to detailed bulletin. The market share improved significantly from Sept 2005 to May 2006 with an impressive reach of 5.80 million viewers.

Delhi Aaj Tak The Delhi/NCR specific news channel provides information on key news in the capital. The channel attempts to capture Delhi's rising consumerism, rapidly improving infrastructure and all aspects of life.

Financial Performance

The topline has grown at a 33% CAGR between FY02 and FY06. The bottomline has shown an impressive growth of 80% CAGR during the same period. Operating margins stood at around 40% during FY06. While this is indeed impressive, it is significantly lower from the highs of 54% the company achieved in FY03. Net profit margins stood at around 17% in FY06. The company has zero debt.

(Rs m) FY02 FY03 FY04 FY05 FY06 CAGR (%)
Net Sales 517 1,085 1,402 1,391 1,596 32.6%
Operating Profit 151 582 688 433 636 43.4%
OPM (%) 29.1% 53.6% 49.1% 31.1% 39.9%  
Interest 50 89 90 82 80  
PBT 28 421 495 231 431  
Tax 0.4 157 178 87 145  
Profit after tax 28 264 316 144 287 79.7%
NPM (%) 5.3% 24.3% 22.5% 10.3% 18.0%  

Future outlook:

The Indian television market is undergoing a major technological change. New distribution platforms such as digital cable, DTH and IPTV have already hit the market. TVTN's success will follow from increased penetration. Advertisers loyalty will be retained due to customized rate cards. Strong newsgathering network and excellence in editing by experienced management will be the key strengths to maintain market leadership. Aaj Tak and Headlines Today are available in the US and soon will also be available in other international markets. All TVTN Channels are encrypted providing viewers with a superior viewing experience and quality content. On the back of booming news industry, TVTN has also forayed into developing quality journalists through TV Today Media Institute. All in all, the company looks well poised to take advantage of the growth in the Indian media industry.

Equitymaster requests your view! Post a comment on "TV Today: An overview". Click here!

  

More Views on News

TV TODAY NETWORK 2020-21 Annual Report Analysis (Annual Result Update)

Nov 3, 2021 | Updated on Nov 3, 2021

Here's an analysis of the annual report of TV TODAY NETWORK for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of TV TODAY NETWORK. Also includes updates on the valuation of TV TODAY NETWORK.

What Fuelled the Sudden Surge in PVR and Inox Shares Today (Views On News)

Sep 27, 2021

Shares of both multiplex chain operators surged almost 18% to hit their 52-week highs.

8 Penny Stocks with Exceptionally High Promoter Holding (Views On News)

Sep 25, 2021

While high promoter holding is a good thing, there can be rare cases where penny stock promoters use misleading information about the actual valuation.

Shareholder Activism Triggers a 30% Rally in Zee Entertainment Shares (Views On News)

Sep 14, 2021

Zee Entertainment shares zoom after top investors seek CEO and MD Punit Goenka's removal.

Here's Why Affle India Hit 5% Upper Circuit Today (Views On News)

Jul 2, 2021

In the past one year, the company's share price is up 202%. Can it go higher?

More Views on News

Most Popular

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TV TODAY NETWORK SHARE PRICE


Nov 26, 2021 (Close)

TRACK TV TODAY NETWORK

  • Track your investment in TV TODAY NETWORK with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON TV TODAY NETWORK

TV TODAY NETWORK - CREATIVE EYE COMPARISON

COMPARE TV TODAY NETWORK WITH

MARKET STATS