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- 03 Feb 2023
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WEAK PERFORMANCE; DIVIDEND ANNOUNCEMENT A POSITIVE SURPRISE - TV TODAY LATEST QUARTERLY RESULT
TV Today – Q3FY23 First Cut
(CMP - Rs 285, MCap - Rs 1702 crore)
Q3FY23 earnings summary
Topline came in at Rs 231.3 crore, down 10% YoY (lower than our estimate of Rs 250 crore, ~5% YoY decline) on a healthy base. TV and other media (clubbed segment of broadcasting and digital) revenues came in Rs 228.9 crore (down 9% YoY) below our expectation of 2% YoY decline. The performance was impacted by weak TV ad spends and lower ad inventory, as per our understanding. We note that TV18 news business reported a tad better number (down ~6% YoY) in Q3FY23. Radio revenues were at Rs 2.4 crore, down 58% YoY
Reported EBITDA came in at Rs 36 crore, down 58% YoY (well below our estimates of Rs 55 crore) while EBITDA margins came in at 15.6% (down 17 percentage points YoY), below our estimate of 22%. The performance at margins was impacted by negative operating leverage. We seek details from management if it had some one-off elements
Reported PAT at Rs 27.6 crore was down 55% YoY (vs estimates of Rs 40 crore) with lower margins dragging the bottomline
View: TV Today’s operating numbers were disappointing impacted by weak TV ad spends. We expected revenues recovery in FY24 with slew of state elections and build up to national election driving spends along with overall recovery. Key monitorable would be margins recovery trajectory ahead along with ad spends.
Impact: Neutral