TV Today reports weak performance on margins front
News: TV Today reported a weak set of numbers on margins front as employee costs led to decline in margins and impacted bottomline. Topline came in at Rs 218.2 crore, up 7% with TV and other media (clubbed segment of broadcasting and digital) revenues at Rs 214.6 crore (up 7 % YoY). Reported EBITDA came in at Rs 47.3 crore, down 9.6% YoY with EBITDA margins at 21.7% (down 399 bps YoY, impacted by higher employee costs (up 27% YoY). Reported PAT at Rs 35.1 crore was down 6.1% YoY with lower margins dragging the bottomline.
View: TV Today’s operating numbers were disappointing largely on margins front (albeit better than peers) and we seek further details on the nature of high costs. We also seek further clarity on the overall ad environment in the industry.