TV18 Broadcast Shares Near 52-week High After Sharp Jump In Net Profit QoQ

Shares of TV18 Broadcast in intra-day trade on January 19, 2022 scaled close to its 52-week high price after gaining over 12 percent to Rs. 55.15. The 52-week high price of the scrip on the NSE is Rs. 55.8 apiece.

This is after the company reported a steep 35% jump in net profit for the December ended quarter sequentially to Rs. 312 crore backed by a healthy ad expenditure amounting to Rs. 263.35 crore. However, on a YoY basis, the net profit has come down by 17% from Rs. 377 crore because of the tax reversal during the corresponding quarter last year of Rs. 102 crore, excluding which there is an increase in profit by 13% YoY.

Revenue from operations at the firm climbed 20% sequentially to Rs. 1567 crore and on yearly basis also moved higher by 15% given the stellar growth witnessed by the television news segment.

The company posted healthy revenue growth in both of its businesses of news (TV18) and Entertainment (Viacom18+AETN18+Indiacast). The revenues from the News business registered a 13% YoY growth to Rs. 347 crore as against Rs. 306 crore during the same period a year ago. The News vertical of the company runs 20 local channels and saw a healthy increase in its advertising revenue for the period under review, mainly due to business and regional news channels.

Likewise, the Entertainment segment of the company performed well with 16% growth in revenue during the quarter under review to Rs. 1220 crore as against Rs. 1055 crore in the same period last year. The business comprises Viacom18's 35 channels together with VOOT and AETN18's 2 infotainment channels and has 11% viewership share.
The EBITDA margin however contracted by 360 bps YoY to 21.4% for the December quarter.
Last, the stock of TV18 Broadcast traded at a price of Rs. 53.15, up over 8% at around 12:25 pm.

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