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TV18 Q3 FY14 net jumps 177% on back of strong Ent & News performance

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TV18 Q3 FY14 net jumps 177% on back of strong Ent & News performance

TV18 Broadcast has reported has reported 177 per cent YoY jump in net profit at Rs 51.2 crore for the third quarter ended December 31, 2013. The media group has reported its highest ever quarterly profit (EBITDA) at Rs 77.5 crore, up 61 per cent YoY from Rs 48.1 crore in Q3 FY13, with both the Entertainment and News businesses turning in strong quarters.

Reported revenues on a consolidated basis stood at Rs 525.5 crore for Q3 FY14, up 3 per cent over prior year.

On a consolidated basis, advertising revenues grew 3 per cent YoY. While the News and Infotainment advertising environment continues to be sluggish, Entertainment led by Colors and MTV delivered strong double digit advertising growth. Net distribution Income continued its steady growth at Rs.43.6 crore, a growth of 145 per cent YoY.

TV18’s Broadcast operations turned in a strong quarter with an operating profit of Rs 91.1 crore, up 110 per cent on a YoY basis.

Announcing the results, Raghav Bahl, Managing Director, Network18 said, “We are greatly enthused by the strong performance of TV18 despite the continued uncertainty in the macro-economic landscape. While environmental risks may continue in the medium term, we are confident of maintaining our growth trajectory. During the quarter, our pre-tax profits almost tripled due to the robust operating performance of our broadcast operations and a significantly deleveraged balance sheet. We are now in the sustained value creation phase of our journey even as we look to further strengthen our existing operations and consolidate our regional acquisition”.

Commenting on the results for the quarter, B Saikumar, Group CEO, Network18 said, “It has been a stellar quarter for our broadcast operations, which grew their margins substantially in a challenging environment. Our News business realised value from operating efficiencies. Our Entertainment operations at Viacom18, led by Colors, delivered a healthy performance even as Motion Pictures saw losses in this quarter. Infotainment operations at A+E Networks I TV18 broke into positive territory and IndiaCast continued on its robust growth trajectory. We look forward to building on network synergies with the launches of Rishtey India, MTV Indies and CNBC Bazaar, while sustaining our trajectory of profitable growth in the year ahead.”

Net distribution income stood at Rs 43.6 crore in Q3 FY14. Effective July 1, 2012, IndiaCast is now managing distribution operations of TV18 and Viacom18. Pursuant to this development, broadcast operations of TV18 are now reporting net revenues from distribution starting Q2 FY13.

Operating profit for business news operations, which include CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD channels, stood at Rs 33.5 crore in Q3 FY14, with an operating margin of 41 per cent. Operating revenues for the current quarter stood at Rs 80.7 crore.

General news operations returned to healthy profitability in the current quarter over last quarter and grew margins substantially over last year. Operating profit stood at Rs 15 crore, with an operating margin of 22 per cent. Operating revenues stood at Rs 66.9 crore.

Operating profits from the group’s television business stood at Rs 82.9 crore, a growth of 297 per cent over the previous year. The growth was driven by both strong advertising and distribution revenues. Q3 FY14 revenues for Viacom18 stood at Rs 557.6 crore, while operating profits stood at Rs 56 crore, an increase of 84 per cent YoY.

Q3 FY14 revenues for ETV News grew by 40 per cent to Rs 36.9 crore, while operating profits grew by 200 per cent to Rs 20 crore.

ETV Entertainment sharply reduced its losses from Rs 35 crore in Q2 FY14 to Rs 6 crore in Q3 FY14.

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