TV18's operating profit up 29% YoY at Rs 1,039 cr in FY22
FY22 revenue for the company grew by 14% YoY led by growth in advertising revenues across all 3 segments – business, regional and national news
TV18 Broadcast Limited announced its results for the quarter and financial year ended March 31, 2022.
For FY22, the company’s consolidated margins rose to 18.8%, highest ever, despite intermittent COVID impact. It had highest ever operating profit at Rs. 1,039 cr (+29% YoY), driven by robust financial performance of both TV News and Entertainment verticals. News margins expanded by 500bps to 21% with strong revenue growth and continued cost controls providing operating leverage. The entertainment business maintained margins at strong 18%+, despite a substantial 26% YoY increase in operating costs. The company’s PAT rises to Rs. 926 cr, up 24% YoY, despite impact of Rs. 132cr higher tax provision.
In Q4FY22, the company reported 11% growth in operating revenue driven by movies business and ad revenue growth. News revenue grew 10% YoY and margin was at 21.4%. Entertainment business revenue grew 11% YoY and margin was at 16%.
Ad revenues during the quarter grew 2.8% YoY, despite a low base (11% YoY decline last year), impacted mainly due to increasing inflation, Russia Ukraine conflict and dampening consumer demand. Subscription revenues continue to remain subdued, down 3.6% YoY & down 1% QoQ at INR 4510mn achieving 96% of pre-COVID levels (Q4FY20), as subscriptions business continues to remain under stress on the back of NTO 2.0 uncertainty. For FY22, ad revenue had a strong growth of 32% YoY (on a low base – 20% YoY decline last year), led by TV advertising volumes reaching record levels and Digital advertising continuing to gain traction.
In Q4FY22, EBITDA margins were 17%, down 370bp YoY; impacted by higher marketing and distribution cost and other operating expenses which grew 30% YoY & 19% YoY. While for FY22, Consolidated margins improved 80bp YoY to 18.8%, which was highest ever, despite intermittent COVID impact. PAT during the quarter was INR 2,209mn, down 12% YoY impacted by 1) lower margins, 2) dip in other income and 3) increase in taxes, which was partially offset by reduced interest expenses and depreciation expenses by 20% and 14% YoY respectively. For FY22, PAT stood at INR 9,262mn, up 24% YoY, despite impact of INR 1,320mn higher tax provisionduring the year.
Not only this, Voot‘s paid subscriber base (Voot Select) saw a sharp jump during the quarter, driven by its offering of exclusive content, digital original shows, and a portfolio of sports properties. In Q4, Viacom18 Studios distributed the Hindi film ‘Gangubai Kathiawadi’ in the overseas territories and Viacom18 Studio’s digital content production arm, Tipping Point delivered the second season of the super hit web series ‘She’ as part of its output deal with an OTT platform.
In FY22, the share of the entertainment network in non-news genre was 11.2%, with Colors being the #2 prime-time channel in the pay Hindi GEC genre. The channel launched 10 fiction and 5 impact shows to strengthen its viewership share in the genre. Colors Kannada and Colors Marathi were amongst the top 3 channels in their respective markets and Kids and English portfolios were leaders in their genres.
As per the BARC ratings which resumed on 17th March, TV18 News portfolio was #22 in terms of reach and #32in terms of viewership share. The network maintained undisputed leadership in English business news and had strong positions in English and several regional markets.
Talking about the result, TV18 Chairman Adil Zainulbhai said, “FY22 was a remarkable year, not only from the perspective of financial performance, but in terms of building a strong foundation on which the business can continue to grow for the foreseeable future. Media presents a long-term growth opportunity enabled by improving infrastructure, rising disposable incomes and increasing content quality. We have set ourselves an ambitious target to become a leading player in the digital space while strengthening our core TV offering. We will continue to solidify our ‘Digital First, TV Always’ proposition, leveraging our existing strengths to grow in segments where we are present and breaking ground in new markets with new and innovative offerings. The strategic partnership we have struck for Viacom18 is a big step in this direction which will help set the Company on a long-term growth trajectory and create one of India’s leading content company.”
TV18 owns and operates the network of 60 channels in India, spanning news, entertainment and sports genres. One in every 2 Indians is a consumer of our broadcast content. The network also caters to the Indian diaspora globally through 21 international channels. FY22 revenue grew by 14% YoY led by growth in advertising revenues across all 3 segments – Business, Regional and National News.
Operating margins improved by 470bps to 20.7%, highest ever, as continued cost controls limited growth in expenses to only 8% YoY, helping the business realise operating leverage. Margin expansion was also helped by continued improving performance of Regional News business. Entertainment business delivered its highest-ever annual EBITDA of Rs. 777cr while maintaining strong margins of 18.2%.
Moreover, 26% increase in FY22 revenues was driven by the strong growth in advertising and movie business revenues. Advertising growth on a YoY basis was helped by a lower base but even compared to FY20, the business delivered a strong growth. Subscription revenue remained flattish during the year and movies revenue returned to a semblance of normalcy in the second half.
Instagram, LinkedIn, Twitter, Facebook & Youtube