TV Today Network - Q2FY21 Result Update - ICICI Direct

TV Today reported a better-than-expected set of Q2FY21 numbers led by a faster recovery in revenues in broadcasting and digital segment. Operating revenue came in at Rs. 176.7 crore, down 2% YoY with TV broadcasting revenue at Rs. 143.6 crore (~1% YoY growth). Radio segment disappointed again with a straight seventh quarterly de-growth with revenues declining 65.7% YoY to Rs. 1 crore as ad spend across sectors remained low. Digital revenue recovered fastest with healthy growth of 12.7% YoY and came in at Rs. 31.2 crore. EBITDA was at Rs. 41.2 crore, up 21.2% YoY owing to reduced admin expenses (suspension of a print daily) and employee costs. EBITDA margin came in at 23.3%, up 445 bps YoY. Subsequently, PAT was at Rs. 27.7 crore, up 20.6% YoY due to a good operating performance.

Valuation & Outlook

Aaj Tak has lost its leadership in the Hindi news segment while India Today market share is on the decline in the English segment. Considering the state elections in Bihar in Q3, news segment will maintain viewership. However, overall news viewership has dipped QoQ post initial phases of lockdown. Losing market leadership and absence of currency data during the quarter will affect ad volume/pricing in our view. We will wait till flagship channel gets traction and also monitor how viewership data by new standards plays out. We downgrade our rating from BUY to HOLD 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 Q2FY21.pdf

Shares of TV TODAY NETWORK LTD. was last trading in BSE at Rs.203.55 as compared to the previous close of Rs. 200.8. The total number of shares traded during the day was 2624 in over 130 trades.

The stock hit an intraday high of Rs. 203.95 and intraday low of 200.85. The net turnover during the day was Rs. 533411.

Source : Equity Bulls

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