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TV18 Q1 EBITDA pulled down by new channel launches

MUMBAI: TV18 Broadcast’s fiscal first
quarter operating profit has dropped
75 per cent to Rs 11.8 crore (Rs 118
million) due to new channel launches
that resulted in a hike in programming
and marketing costs.
While programming cost jumped 26 per
cent over the year-ago period,
marketing expenses were up 33 per
TV18 posted a consolidated net loss of
Rs 4.29 lakh (Rs 0.43 million) in the
quarter ended 30 June 2015. The loss
was mainly because of the increase in
expenses incurred on rebranding of
ETV regional entertainment channels
as Colors and increased operational
expenses owing to six recent regional
news channel launches in the last
In the earlier-year quarter, net loss
was considerably higher at Rs 154.54
crore (Rs 1.5 billion) due to a onetime
exceptional cost of Rs 223.28 crore
(Rs 2.23 billion).
Operating revenue in the quarter
ended 30 June 2015 saw a 13 per cent
increase to Rs 596.67 crore (Rs 5.97
billion), up from Rs 527.74 crore (Rs
5.28 billion) a year ago.
The company noted that the
performance in the first quarter of
FY15 was significantly influenced by
advertisement income due to the
general election.
Expenses surged 16.9 per cent to Rs
595.83 crore (Rs 5.96 billion), from
Rs 509.53 crore (Rs 5.09 billion) a
year ago.
During the quarter, TV18’s wholly
owned subsidiary Panorama Television
launched ETV News Odia, the 10th
regional news channels under the ETV
brand (ETV Rajasthan, ETV Urdu, ETV
Bihar / Jharkhand, ETV Uttar
Pradesh / Uttarakhand, ETV Madhya
Pradesh / Chhattisgarh, ETV Bangla
News, ETV Kannada News, ETV Odia
News, ETV Haryana / Himachal
Pradesh and ETV News Gujarat).
Revenue from media operations stood
at Rs 566.31 crore (Rs 5.66 billion),
up from 513.42 crore (Rs 5.13
billion). However, segment loss from
operations was at Rs 8.94 crore (Rs
89.45 million), compared to a profit of
Rs 19.37 crore (Rs 193.66 million)
recorded in the earlier year.
TV18’s share in revenue from film
production and distribution (Viacom18
Motion Pictures) was at Rs 52.61
crore (Rs 526.07 million), up from
14.31 crore (Rs 143.15 million).
Profit from the segment stood at Rs
1.34 crore (Rs 13.36 million),
compared to a loss of Rs 95.44 lakh
(Rs 9.54 million) in the previous year.
TV18 consolidated includes 100 per
cent of TV18 and Panorama Television,
50 per cent interest in Viacom18, IBN
Lokmat, as well as AETN18 and Prism
TV Ltd.
Standalone business
Meanwhile, on a standalone basis,
which includes performance of CNN-
and CNBC Bazar, TV18 has posted a
net profit of Rs 8.87 crore (Rs 88.69
million), compared to a net loss of Rs
109.06 crore (Rs 1.09 billion) a year
Income from operations dropped to Rs
126.24 crore (Rs 1.26 billion), from
Rs 139.24 crore (Rs 1.39 billion) a
year ago. Expenses were marginally
up at Rs 118.24 crore (Rs 1.18
billion), from Rs 116.23 crore (Rs
1.16 billion) in the earlier year.
The financial performance of TV18
failed to excite investors and the
scrip tumbled on the bourses after the
announcement of the results. The
TV18 scrip saw a 5.85 times surge in
TV18 scrip closed Wednesday at Rs
37.05, down 12.31 per cent on the

TV18 Q1 EBITDA pulled down by new channel launches

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