As the fourth quarter of the financial year drew to a close and hence the end to FY2015, it is time to take a look at the performances of TV broadcasters during the last quarter.
In the previous quarter (Q3FY2015) we had seen broadcasters doing much better than in the previous quarter recording higher revenues in terms of advertising as well as subscription. Q3FY2015 results of Zee Entertainment Enterprise Ltd. (ZEEL) were much better as it recorded a growth in the consolidated operating profit (EBIDTA; earnings before interest, depreciation, tax and amortization) of 21.5% over the corresponding period in the previous year. The consolidated operating profit stood at Rs.3,533 million and increased from Rs. 2,907 million in Q3FY2014. Network18 too posted good results in comparison to last quarter. The consolidated operating revenues were up by 14.3% since the corresponding quarter of the previous year and stood at Rs.831.9 crore. It increased by 11.7% from Q2FY2015 which stood at Rs.744.8 crore. TV18’s total operating income increased significantly to Rs.607.2 crore during the quarter from Rs.525.5 crore in Q3FY2014 and Rs. 553.7 crore in Q2FY2015. Sun TV Network reported a robust 15.25% increase in its net profit that stood at Rs.214.13 crore from Rs.185.79 crore in Q3FY2014. TV Today Network in Q3FY2015 saw its standalone net profits increase by 28% which stood at Rs.26.34 crore from Rs.20.64 crore during the same quarter in the last fiscal. NDTV too saw its revenues increase during the quarter. The reported Profit After Tax (PAT) stood at Rs.2.65 crore from a negative PAT of Rs.1.66 crore in the corresponding quarter.
The positive results in Q3 were mainly due to the festive season spends of brands. However, since Q4 is the last quarter for the year it is regarded as a lean month where marketing spends can be reduced if the company or brand was not doing well during the year. Let us take a look at the Q4 results of TV broadcasters.
Q4 results end on a high
During Q4 ZEEL saw its profits take a hit. The operating profits (EBITDA) decline by 13.1% in comparison to the corresponding quarter in the previous year. While in Q4FY2014 it had recorded operating profits of Rs. 311.5 crore (Rs.3,115 million), in Q4FY2015 it dropped down to Rs.270.8 crore (Rs.2,708 million). The reason for this is though operating revenues had increased during the quarter the expenditure had also increased higher. While operating revenues grew by 16.3% as it increased Rs.1,347.1 crore (Rs.13,471 million) in Q4FY2015 from Rs.1,158.8 crore (Rs.11,588 million) in Q4FY2014, expenditure increased by 27% during the corresponding quarters from Rs.847.2 crore (Rs.8,472 million) in Q4FY2014 to Rs.1,076.3 crore (Rs.10,763 million). However, the PAT was positive and saw a 7.4% growth over the corresponding quarter during the last fiscal recording Rs.231.9 crore (Rs.2,319 million) profit over Rs.216.2 crore (Rs.2,162 million) during the same quarter last year.
Advertising revenues for the quarter were Rs 669.7 crore (Rs 6,697 million), recording a growth of 15.0% over Q4 FY14. Subscription revenues increased by 10.2% which was Rs.510.8 crore (Rs 5,108 million) for the quarter ended March 31, 2015. The total revenues grew by 16.2% over the corresponding quarter last year.
Network18 saw a positive quarter in Q4 as operating revenues increased by 14% against the corresponding quarter last year and by 1.1% against Q3FY2015. In Q4FY2015 operating revenues recorded were Rs.841.4 crore as against Rs.738.3 crore in Q4FY2014 and Rs.831.9 crore in Q3FY2015. The operating profit before depreciation, interest and tax (PBDIT) stood at Rs.69.7 crore an increase of 71.5% from Q4FY2014 where it stood at Rs.40.6 crore and an increase of 3.8% against Q3FY2015 where it stood at Rs.67.1 crore. Q4 FY15 Profit Before Tax (before exceptional items and prior period items) on a consolidated basis stood at Rs. 56.6 crore, turning positive from a loss of Rs. 2.9 crore in Q4 FY14.
TV18 also saw growth in profit since the corresponding quarter during the last fiscal. The broadcasters operating revenues grew by 11.7% over Q4FY2014 which stood at Rs.629.75 crore in Q4FY2015 from Rs.563.30 crore in Q4FY2014. The operating revenues also grew by 3.7% since Q3FY2015 which stood at Rs.607.23 crore in the last quarter. The net profit for the quarter increased enormously to Rs.86.77 crore from Rs.22.89 crore in Q4FY2014, this is a 279% increase since the corresponding quarter. The net profit also increased by 62% since the last quarter (Q3) where the net profit stood at Rs.53.51 crore.
Sun TV Network also saw a growth in revenues in comparison to the corresponding quarter last year, however the growth was lower in comparison to others. The total operating revenues grew by 5.4% over Q4FY2014. While the total operating revenues in Q4FY2015 stood at Rs.548.58 crore, in Q4FY2014 it stood at Rs.520.18 crore. However, in comparison to the last quarter (Q3) the operating revenues stood a little higher at Rs.552.44 crore. The net profit for Q4FY2015 was Rs.202.99 crore as against Rs.197.57 crore in Q4FY2014, an increase of 2.7%.
Raj Television Network (Raj TV) saw a good growth in revenues during Q4 this year. Its total operating revenues increased to Rs.22.9 crore (Rs.2,299 lakh) in Q4FY2015 from Rs.17.9 crore (Rs.1,790 lakh) in Q4FY2014, which is an increase of 28.4%. It operating revenues also increased by 13.1% since the Q3FY2015. The total expenses also declined marginally since the corresponding quarter to Rs.13.7 crore during this quarter from Rs.15.4 crore in Q4FY2014. The result was the net profit increasing by 162% as it stood at Rs.264.35 lakh in Q4FY2015 from Rs.100.65 lakh in Q4FY2014.
News TV networks record lower net revenues
TV Today Network total operating income increase by 17.5% since the corresponding quarter of the last fiscal. The operating revenues in Q4FY2015 stood at Rs.114.54 crore, while it stood at Rs.97.41 crore in Q4FY2014. However, expenses saw it take a hit on the net profits as it reduced by 82% since the corresponding quarter. The net profit in Q4FY2015 stood at Rs.8.69 crore, while in Q4FY2014 it stood at Rs.15.85 crore.
NDTV Network saw its total operating revenues increase by 33.3% since the corresponding quarter. The total operating income in Q4FY2015 stood at Rs.120.34 crore, while in Q4FY2014 stood at Rs.90.22 crore. However, the company recorded a net loss during the quarter. This is however a little lower than the net loss recorded during the corresponding quarter. While in Q4FY2015 the net loss recorded was Rs.10.69 crore, in Q4FY2014 it was Rs.16.48 crore.
Broadcasters have seen growth in revenues during the fourth quarter this year in comparison to the previous year which shows that the industry is growing. However, there were quite a few broadcasters that saw their net earnings during the quarter affected. This is due to the increasing expenses that keep growing for broadcasters and can eat into revenues. Overall Q4 results show that the TV broadcast industry is growing at a healthy pace.