Quarterly Performance for June 2016 (Consolidated)

The consolidated operating revenues decreased by 23% to Rs 210.69 crore. On a like-for-like basis, after factoring in the change in status of Prism TV Private Limited from a subsidiary to Joint Venture, the growth in revenue is 18%. The gross revenue from media operation segment grew by 4% to Rs 587.81 crore while that of film production and distribution de-grew by 64% to Rs 18.90 crore.

OPM was negative for the quarter. The resultant operating loss stood at Rs 18.99 crore.

The loss at PBIT level from media operation stood at Rs 16.42 crore. The loss at PBIT level in film production and distribution business stood at Rs 3.33 crore.

Other income stood at Rs 9.62 crore, declined by 10%. The interest cost decreased by 42% at Rs 4.59 crore. Depreciation charge increased 11% to Rs 9.50 crore. The loss before tax stood at Rs 23.46 crore.

The tax credit for the quarter stood at Rs 0.85 crore. After considering share from associates and minority interest, the loss stood at Rs 14.13 crore against profit of Rs 8.61 crore. During the quarter the Group made aggressive investments in new channel launches and re-launches of existing ones, on talent and various digital businesses. These initiatives reflect in lower profitability for the quarter. Total comprehensive loss stood at Rs 14.58 crore.

Investment in content -- new channels, new programming, local production, new formats and events -- saw a significant increase during the quarter, in line with the group's vision to provide innovative content to its viewers. The group has also strengthened human capital by hiring experienced professionals in various areas, in line with its strategy to invest in growth in the digital media space, new-age content delivery and to maintain its leadership position across businesses.

During the quarter, CNN-IBN was re-branded and re-launched as CNN-News18. A one-time expense of Rs. 3.5 crore towards re-branding was incurred during the quarter. The channel is already #2 in Urban India

Three news channels -- News18 Kerala, News18 Tamil Nadu and News 18 Assam/N.E -- were launched in the month of April, further strengthening the group's footprint in the regional news genre. These three channels accounted for Rs 13.9 crore of the overall operating losses for the quarter.

Rishtey Cineplex, a Hindi movie channel and VOOT, Viacom18's exclusive digital video destination in the Over The Top or OTT space, were launched in May'16. Viacom18 also launched HD channels in Kannada, Marathi and Bangla during the quarter. The aggregate operating loss attributed to these new initiatives of Viacom18 in the consolidated results is Rs. 29.2 crore

FYI, a factual entertainment channel from the AETN18 stable (a JV between TV18 and A&E Network), was commercially launched on 5th July 2016. The operating loss of Rs. 5.4 crore for this channel is included in the April-June quarter

TV18's TV channels are watched by around 572 million viewers and are leaders in most segments in news and entertainment

CNBC TV18 maintained #1 rank in the English Business News genre with 42% market share in Q1 FY17. During market hours (Weekdays, 8 AM to 4 PM) CNBC TV18 maintained a higher share of 44% and was #1 in the genre.

CNBC Awaaz continues to be dominant in the Hindi Business News genre with 59% market share during trading Hours (8 AM to 4 PM on weekdays). Overall, CNBC Awaaz maintained 66% market share in the genre

CNBC Bajar continued to engage well with its audience, with the channel reaching a total of 6 million viewers across India, of which 4 million viewers were from Gujarat

The key highlight of the first quarter of FY 2016-17 was the re-launch of CNN-IBN. The channel underwent a complete revamp on 18th April and rebranded itself as CNN-News18 along with a new logo and a completely new look.

CNN News18, with the re-launch of the channel, garnered 17% Market share in the English News Genre in Q1 FY17. In Urban India, CNN News18 is #2 in the genre with 18% market share

IBN 7 maintained a 6% market share in the Hindi News Genre in Q1 FY17

Launch of 3 Regional News channels -- News18 Kerala, News18 Tamil Nadu and News 18 Assam/N.E. -- in the month of April, bringing the total number of language news channels to 13 across 17 states under Panorama Television Pvt. Ltd. a wholly owned subsidiary

ETV Bihar/Jharkhand, and ETV Rajasthan remained dominant players in their respective markets, occupying #1position

IBN Lokmat maintained 25% market share in the Marathi news genre in Q1 FY17

At the prestigious NT Awards 2016 held in June 2016, IBN Lokmat bagged 8 awards including Best Talk Show, Best Current Affairs Show and Best Entertainment Show

Colors was a strong #2 in the entertainment genre during the quarter (just 1% below its #1 rival in terms of market share).The channel was the leader in the fiction genre with 3 of its shows in the top 10 fiction shows. The channel also had 3 out of top 5 non-fiction shows in the Hindi general entertainment (GE) genre.

Rishtey Cineplex was commercially launched on 8th May 2016. At launch it ranked #10, but has climbed to #5 in just 6 weeks

MTV was #1 in Youth genre with a viewership share of 27%. "Roadies X4" was the top-rated show in the genre. New shows such as ‘Splitsvilla 9' and ‘MTV Airtel 4G Drive' launched in June. Music revamped on MTV with new audience engagement slots (Musicmoji & Naachos) added

Comedy Central was #2 in the English Entertainment genre with an 18% market share. Key launches during quarter include the Graham Norton Show, a popular British Talk Show, and Community, a Cult comedy series with a social message

VH1 was #3 in the genre with 14% market share. Key show aired during Q1 was Season Finale of Britain's Got Talent

Colors Infinity was the #4 channel in the genre with 11% market share. New shows launched during the quarter include Game of Silence, Royals and Grim. It also launched Infinity on Demand, which allows viewers to vote on the shows to binge on weekends

Nick continued to lead the Kids genre with a viewership share of 22%, while Sonic was #6 in the genre with a 9% market share. Nick had 3 shows among the top 10 shows in the genre

Viacom18 Motion Pictures released 2 films during the quarter: ‘Ki and Ka' and an English release ‘10 Cloverfield Lane'. Both were received well at the Box Office.

VOOT, Viacom18's Over The Top (OTT) exclusive digital video destination, was commercially launched in May'16. It has gained significant traction among urban millennials. Its current shows include library content and VOOT originals

Colors Kannada continued to be a leading #1 player in Karnataka with 36% market share during Q1. The channel, a leader in both fiction and non-fiction genres, launched many new TV shows and events

Colors Marathi continued to be a strong #2 channel in the Marathi GE genre with 36% market share. Aired multiple award functions and launched new TV shows.

HD Regional Entertainment channels in Kannada, Marathi and Bangla launched; Colors Super launch announced for July 2016.

Local productions continued to record high viewership for History TV18. History TV18 garnered 17% market share across India among the 7 Factual Entertainment channels in Q1 FY17, up from 16% in the previous quarter. In Mega Cities, History TV18 is the clear #2 in the genre with a 24% market share.

Performance for year ended March 2016 (Consolidated)

The consolidated operating revenues increased by 11% to Rs 2568.97 crore. The revenue from media operation segment grew by 9% to Rs 2477.78 crore while from film production and distribution inclined by 154% to Rs 129.20 crore.

FY15 profitability vis-à-vis FY16 was significantly influenced by advertisement income on account of the General Elections and the Union Budget.

OPM has declined by106 bps at 9.8%. The resultant operating profits was flat at Rs 252.51 crore.

The PBIT margin from media operation declined by 136 bps to 8.3%, The PBIT has decreased by 7% to Rs 206.56 crore. The PBIT in film production and distribution business stood at Rs 1.34 crore against loss of Rs 6.44 crore in last year.

Other income decreased 15% at Rs 43.79 crore. The interest cost decreased by 1% to Rs 47.17 crore. Depreciation charge increased 26% at Rs 50.50 crore. The profit before tax and EO decreased by 8% to Rs 198.63 crore.

EO for the year was nil against EO expense of Rs 233.29 crore in last year. The tax outgo inclined by 62% to Rs 34.40 crore. Tax rate increased from 10% to 17% YoY. After considering share from associates and minority interest, the net profit inclined by 306% to Rs 181.02 crore due to EO expense in last year.

Performance for year ended March 2016 includes operating loss of Rs 92 crore on account of new ETV news channels, launch of Colors Infinity and VOOT (an exclusive digital video OTT launched by Viacom18 in March 2016) and also a one-time expense of Rs.10 crore for rebranding ETV regional entertainment channels as Colors.

Other developments

The company has transited to Indian Accounting Standards (Ind-AS) with effect from 1st April 2016 with comparative results being restated. Under Ind AS, the joint ventures of the group including Viacom18, Indiacast and IBN Lokmat have now been accounted following "Equity method", as proportionate consolidation method is not allowed as per Ind AS.

Shareholding Pattern

The promoter holds 60.40% stake in the company.

Valuation

The scrip is trading around Rs 41.25