TV Today - Q2FY21 First Cut - ICICI Direct

(CMP - Rs. 210, MCap - Rs. 1253 crore)

TV Today reported a good set of Q2FY21 numbers as TV broadcasting and digital segment performance was ahead of our expectations.

Q2FY21 earnings summary

- Topline came in at Rs. 176.7 crore, down 2% YoY (above our estimates of Rs. 163.7 crore) with TV broadcasting revenues of Rs. 143.6 crore (flattish YoY). News channels viewership was strong for the second consecutive quarter (albeit lower than Q1) and monetisation of gained viewership was better in terms of ad volume/pricing than expected leading to 0.5% growth YoY in broadcasting (estimated de-growth: 6.5%). Radio revenues were at Rs. 1 crore, witnessing 65.7% YoY decline and a straight 7th quarterly de-growth. Digital segment rebounded with 13% growth YoY to Rs. 31.2 crore against our estimate of 5% growth

- Reported EBITDA came in at Rs. 41.2 crore, up 21.2% YoY (above our estimate of Rs. 29.3 crore) with margin of 23.3% (up 445 bps YoY).While company reported topline de-growth, reduced admin expenses (suspension of a print daily in August) and employee costs led to expansion in operating margins

- Consequently, reported PAT grew 20.6% YoY to Rs. 27.7 crore, above our estimates of Rs. 18.3 crore, given the healthier operating performance

TV Today's numbers were better than anticipated amidst the still recovering ad scenario. News has been the key beneficiary of viewership gains as people resorted to TV to get latest updates. We seek further clarity on the overall ad environment as though ad volume has improved during the current quarter, recovery in ad pricing holds the key. TV Today is losing its market share as well as top position in the Hindi segment which could be a growth hindrance. Sustained growth in the digital segment will also be important. We will come out with an update soon.

Shares of TV TODAY NETWORK LTD. was last trading in BSE at Rs.210 as compared to the previous close of Rs. 202.9. The total number of shares traded during the day was 6279 in over 586 trades.

The stock hit an intraday high of Rs. 216.15 and intraday low of 202.1. The net turnover during the day was Rs. 1309069.

Source : Equity Bulls

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