TV Today Network - Q1FY21 Result Update - ICICI Securities

TV Today reported a weaker than estimated set of numbers in all segments for Q1FY21 led by sharp de-growth in the broadcasting segment. Operating revenue fell 31.9% YoY to Rs. 167.7 crore with TV broadcasting revenue at Rs. 137.8 crore (33.7% YoY de-growth) due to low ad volumes and high base effect (general elections in Q1FY20). Radio segment reported a sixth consecutive quarterly de-growth with revenues declining 70% YoY at Rs. 20 lakh. Growth momentum of digital revenue came to a halt. It fell 4.6% YoY at Rs. 27.6 crore. EBITDA was at Rs. 30 crore, down 59.7% YoY as the topline saw a steep decline. EBITDA margin came in at 17.9%, down 1235 bps YoY. Subsequently, reported PAT was at Rs. 12.8 crore, down 75% YoY, due to a weak operating performance.

Valuation & Outlook

Aaj Tak has maintained its leadership in the Hindi news segment while India Today is also among Top five channels in segment. The extended nationwide lockdown in the quarter has led to strong TV impressions across news segments. While ad growth was muted given the absence of premium rates based events (albeit much better than other segments), we expect TV Today to capitalise on gained viewership and post a strong recovery once normalcy is restored. TV Today has discontinued a news channel and a print daily, which should lead to administrative and production cost savings, thereby better margins. We maintain our BUY rating with a target price of Rs. 240/share (at 8x FY22E earnings).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_TVToday_Q1FY21.pdf

Shares of TV TODAY NETWORK LTD. was last trading in BSE at Rs.224.35 as compared to the previous close of Rs. 210.85. The total number of shares traded during the day was 43719 in over 2392 trades.

The stock hit an intraday high of Rs. 236.95 and intraday low of 209.3. The net turnover during the day was Rs. 9907488.

Source : Equity Bulls

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