Quarterly Performance for March 2015 (Consolidated)

The consolidated operating revenues increased by 12% to Rs 629.75 crore. The revenue from media operation segment grew by 14% to Rs 628.95 crore while that of film production and distribution de-grew by 67% to Rs 4.80 crore.

OPM has inclined by 66 bps at 13.1% due to decrease in marketing, distribution and promotional expenses by 870 bps to 18% of adjusted net sales. However, there was rise in programming cost by 470 bps to 32.3%, employee cost by 210 bps to 16.2% and other expenses by 120 bps to 20.4% as a percentage of net sales. The resultant operating profits was up by 18% to Rs 82.59 crore.

The PBIT margin from media operation has inclined by 379 bps to 13.7%, thus resulting in PBIT of Rs 85.93 crore, increased by 58%. The loss at PBIT level in film production and distribution business stood at Rs 2.44 crore against loss of Rs 4.59 crore in the corresponding period of last year.

Other income increased 221% at Rs 28.74 crore. The interest cost decreased by 17% at Rs 10.90 crore. Depreciation charge decreased 61% to Rs 8.03 crore. The profit before tax & EO has inclined by 104% to Rs 92.41 crore.

EO expense for the quarter was Rs 6.15 crore which is diminution in the value of goodwill and obsolescence/impairment (accelerated depreciation) in the value of certain tangible and intangible assets

The tax credit for the quarter stood at Rs 0.51 crore. After considering share from associates and minority interest, the net profit increased by 166% to Rs 95.47 crore due to increase in other income and fall in deprecation & EO expense.

CNBC-TV18 maintained its leadership as the No.1 channel in its genre with a market share of 58% in Q4 FY15. In the quarter, the channel also grew 77% in viewership and registered a 10% increase in reach over Q4 FY14. In this quarter, CNBC-TV18 was the No.1 channel in its genre during Budget week, dominating with a 63% market share

CNBC Awaaz continued to dominate as the No.1 channel in the Hindi business news genre with a market share of 60%+ in FY15. Furthermore, it was also the No.1 channel in its genre during the budget days with 65%++ market share in FY15. CNBC Awaaz marked the completion of 10 illustrious years of leadership since inception during this quarter. The landmark was celebrated by launching a new flagship property called ‘ACT – Action, Collaboration, Transformation'. The `ACT for Growth' Summit chaired by Honourable Finance Minister Shri Arun Jaitley and the ‘ACT for Good Governance' Summit chaired by Shri Amit Shah, laid out a blueprint for India's growth and governance. The channel also introduced the ‘Gift a Prosperous Future' initiative, launched by Shri Arun Jaitley to drive the agenda for financial inclusion in India – the first such attempt by any media outlet in the country

CNBC Bajar, Network18's newest addition to its business channel bouquet, launched to strong positive sentiment from the Gujarati business community. CNBC Bajar viewership increased by 193%+++ in Q4 FY15 over launch quarter Q2 FY15

CNN-IBN became the No.1 channel in the English general news category in Q4 FY15 with a market share of 33%. It also increased its viewership by 43% over Q3 FY15. Key initiatives in this quarter included special programming around the Delhi Assembly Elections, The Union Budget 2015, The Cricket World Cup 2015 and the channel's extensive coverage of President Obama's visit to India

IBN7 emerged as the 3rd most viewed channel** amongst those who claim to watch Hindi news in FY15. IBN7's average weekly reach grew by 6% in FY15 over FY 14. IBN7 had extensive coverage of key events of the quarter including Budgets (Financial and Railway), Delhi elections and Cricket World Cup 2015.

IBN Lokmat continued its strong performance with a 26%+ market share in Q4 FY15. The channel had an extremely successful year bagging 15 awards at NT Awards 2014, 4 prestigious Ramnath Goenka Excellence in Journalism Awards, and 3 Laadli gender sensitivity Awards.

History TV18 garnered maximum market share of 26.4% in the factual entertainment genre in 6 metros in Q4 FY15. The channel made a mark in social media, with over 21700 followers on Twitter. The History TV18 app crossed 5 00000 downloads and was recognized as the Best Application on both Android and Windows at the MOBBYS Awards 2014.

Colors was the No.1 channel on weekends prime time across all 4 quarters of the year and moved to No.2 spot on weekday prime time in Q4 FY15, up from No.3 spot in Q3 FY15. During the quarter, the historical drama ‘Chakravartin Ashoka Samrat' was sampled by 96 million* viewers in its first 4 weeks, ‘Bigg Boss' finale

MTV garnered over 6 million viewers in Q4 FY15. ‘Roadies X2' has been the leading non-fiction weekly format show in Q4 FY15. MTV also launched ‘Roadies Torrentz'– an app that allows users to download or watch online full episodes of ‘Roadies', as well as the game app ‘MTV Catastrophe', both extremely well received.

MTV Indies showed 13% growth in reach in Q4 FY15 over Q3 FY15. The Pepsi MTV Indies App received over 190000 sessions in Q4 FY15 and crossed over 20000 downloads

Vh1 was a leader in the English music and lifestyle genre with a 24%+ market share in Q4 FY15. The channel led the genre with differentiated programming like ‘Cat Fish' and coveted awards shows like The 57th Grammy Awards, Brit Awards and Golden Globe in addition to the best of International music

Nick continued to be a leader in the kids genre through the year with hit shows like ‘Ninja Hattori', ‘Motu Patlu' and ‘Pakdam Pakdai', and interactive activities around the year, including a School Contact program ‘Class Mein Blast' reaching out to 400 schools and 320000 children across 11 cities. 

ETV Marathi was re-christened as Colors Marathi during FY15, along with a new tag line ‘Saaz Nava Rang Nava' highlighting the new avatar of the channel. In Q4 FY15, Colors Marathi became the No.2 channel in the genre with 21%* market share and reached out to more than 32 million viewers. During Q4 FY15, Colors Marathi telecast world TV premiere of blockbuster movie ‘Pyarvali Lovestory' and Marathi International Cinema and Theatre Awards (MICTA), with both delivering the highest ever ratings for the channel since October 2012.

ETV Gujarati had a relative share of 28% across all Gujarati regional channels and reached out to over 9 million viewers in Q4 FY15. ETV Gujarati also continued many long running successful properties including ‘Rasoi Show' and ‘Flavors of Gujarat'.

ETV Kannada ranked No.2+ in its market and continued to be a leader in fiction and programming (Non- Film) during Q4 FY15. The channel had a relative share of 26%+ and reach of 54%+ for Q4 FY15, the highest for ETV Kannada in last 5 years. Newly launched comedy Show ‘Maja Talkies' and ‘Dancing Star 2' became the top two shows+ of the market in Q4 FY15

ETV Oriya viewership grew 65%++ in Q4 FY15 over Q4 FY14

ETV Bangla viewership grew over 50%+++ in Q4 FY15 over Q4 FY14. The channel reach grew to 41.3%+++ in Q4 FY15 from 34% in Q4 FY14. In FY15, ETV Bangla launched new innovative content such as fiction properties including ‘Maa Durga' and ‘Bomkesh', non-fiction properties like

‘Rannagharer Rockstar' and big movie premieres like ‘Game' and ‘Bachchan' to attract viewership. 

ETV Bihar Jharkhand and ETV Rajasthan held the No.1 positions in their markets with 47% and 43% market share, respectively in Q4 FY15

ETV Gujarati stood at No.2 position with a 32% market share in its genre in Q4 FY15

Performance for year ended March 2015 (Consolidated)

The consolidated operating revenues increased by 18% to Rs 2318.39 crore. The revenue from media operation segment grew by 20% to Rs 2281.35 crore while from film production and distribution declined by 50% to Rs 50.96 crore.

OPM has inclined by 18 bps at 10.9%. The resultant operating profits was up by 20% at Rs 252.52 crore.

The PBIT margin from media operation declined by 26 bps to 9.5%, The PBIT has increased by 17% to Rs 216.75 crore. The loss at PBIT level in film production and distribution business stood at Rs 6.44 crore against loss of Rs 24.20 crore in last year.

Other income increased 58% at Rs 51.34 crore. The interest cost decreased by 21% to Rs 47.85 crore. Depreciation charge decreased 28% at Rs 40 crore. The profit before tax and EO increased by 70% to Rs 216.02 crore.

There was EO expense of Rs 233.29 crore which is one-time exceptional adjustment. The Group has accounted for obsolescence/impairment in the value of certain tangible and intangible assets to the extent of Rs 135.99 crore and write-off and provisions of non-recoverable and doubtful loans/advances /receivables to the extent of Rs 81.29 crore and diminution of goodwill of Rs 3.57 crore. Further, Exceptional Items also includes Rs 12.43 crore towards severance pay and consultancy charges.

The tax outgo inclined by 53% to Rs 21.19 crore. After considering share from associates and minority interest, the net profit has decreased by 57% to Rs 44.54 crore due to EO expense.

Other Developments

Pursuant to the enactment of the Companies Act, 2013 (the Act), the Group has, effective from 1st April 2014, reassessed the useful life of its fixed assets and has computed depreciation as provided in Schedule II to the Act. Consequently depreciation for the quarter and year ended 31st March, 2015 is higher by Rs. 1.69 crore and Rs 6.97 crore respectively and the net profit is lower by Rs Rs 1.69 crore and Rs 6.97 crore respectively. Further, based on the transitional provision provided in Schedule II, an amount of Rs 7.44 crore has been adjusted with the opening reserves during the year ended 31st March, 2015.

Equator Trading Enterprises Private Limited ("Equator") (including its subsidiaries Panorama Television Private Limited and Prism TV Private Limited) had become wholly owned subsidiary of the Company with effect from 22nd January, 2014. Hence, the consolidated results of the current period include the results of these subsidiary companies. Eenadu Television Private Limited had also become an associate with effect from 22nd January, 2014

Shareholding Pattern

The promoter holds 60.41% stake in the company.

The promoters shares pledged are nil.

Valuation

The scrip is trading around Rs 39.55.