TV Today - Q1FY21 First Cut - ICICI Securities

CMP - Rs. 202, Market Cap - Rs. 1205 crore

TV Today reported a weak set of Q1FY21 numbers mainly due to sharp fall in ad revenues across all segments during lockdown.

Q1FY21 earnings summary

- Topline came in at Rs. 167.7 crore, down 31.9% YoY (below our estimates of Rs. 187.4 crore) with TV broadcasting revenues of Rs. 137.8 crore (33.7% YoY de-growth) due to low ad volumes and high base effect (general elections in Q1FY20). Although news channels viewership spiked during the quarter, monetisation of gained viewership would have been a challenge due to adverse ad scenario as per our understanding. Radio revenues were minimal at Rs. 0.2 crore, witnessing 70% YoY decline and a straight 6th quarterly de-growth. Digital segment's growth momentum came to a halt as revenues were down 5% YoY at Rs. 27.6 crore

- Reported EBITDA came in at Rs. 30 crore, down 59.7% YoY (lower than our estimate of Rs. 47.3 crore) with margin of 17.9% (down 1235 bps YoY). Although company managed cost saving on production, employee and other fronts, sharp drop in revenues resulted in an EBITDA decline

- Consequently, reported PAT de-grew 75% YoY to Rs. 12.8 crore, well below our estimates of Rs. 30 crore, given the weaker operating performance

Overall, TV Today's numbers were weaker than anticipated amidst the Covid-19 led lockdown significantly affecting ad spends by corporates. However, on the positive side, news has been the key beneficiary of viewership gain. We seek further clarity on the overall ad environment and recovery path for TV broadcasting as well as digital segment. We will soon come out with an update.

Shares of TV TODAY NETWORK LTD. was last trading in BSE at Rs.201.45 as compared to the previous close of Rs. 208.65. The total number of shares traded during the day was 10817 in over 678 trades.

The stock hit an intraday high of Rs. 214.4 and intraday low of 200.05. The net turnover during the day was Rs. 2248003.

Source : Equity Bulls

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