TV18 Broadcast Q2 profit jumps 15%, subscription revenue rises 43%

TV18 Broadcast, part of the Network18 group, has reported a 15.33 percent year-on-year increase in September quarter consolidated profit at Rs 46.55 crore, helped by fall in tax cost.

The media company’s profit in year-ago quarter was at Rs 40.36 crore.

Consolidated revenue from operations declined 5.94 percent year-on-year to Rs 1,127.13 crore due to a soft advertising environment.

However, subscription revenues grew a robust 43 percent to Rs 461 crore compared to same period last year.

“The advertising environment continues to remain challenging; however, positivity in subscription income and cost optimizations through tie-ups and tech deployments have filled-in the gap,” Adil Zainulbhai, Chairman of TV18 said.

“Breadth of offerings remains our calling card, and the group continues to invest along the 2 identified axes of growth, Regional and Digital,” he added.

The company said weak macro-economic trends dragged down consumer spends and depressed broader corporate appetite for above-the-line marketing activity. However, certain categories of new-economy advertisers were bright spots, and tailwinds in regional and digital consumption continued to attract attention, he added.

Advertising spends began to rise led by the advent of the festive season late in the quarter, and big-ticket programmes and events planned around the same, company said.

The company said domestic yields have improved, led by the strength of bouquet as demonstrated by consumer choice for channels and packs. “Improved distribution tie-ups give our channel portfolio unparalleled reach across TV & Digital,” it added.

At the operating level, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) declined 3 percent year-on-year to Rs 105 crore in quarter ended September 2019, but cost optimizations boosted Q2 entertainment EBITDA margin by 150bps YoY to 11.4 percent.

Tax expenses for the quarter stood at Rs 9.83 crore, falling sharply by 57.17 percent from Rs 22.95 crore in same period last year.

The stock was quoting at Rs 21.95, up Rs 0.05, or 0.23 percent on the BSE at 13:48 hours IST.

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