Quarterly Performance for September 2016 (Consolidated)

The consolidated operating revenues increased by 5% to Rs 239.83 crore. After factoring in the change in status of Prism TV from subsidiary to Joint Venture from 1st August 2015, on a like for like basis, the growth in revenue is 22%. Prism TV was consolidated as a subsidiary till 31st July 2015 and became a Joint Venture effective 1st August 2015.

The gross revenue from media operation segment grew by 14% to Rs 647.19 crore while that of film production and distribution de-grew by 80% to Rs 8.60 crore.

OPM was negative for the quarter. The resultant operating loss stood at Rs 10.90 crore.

PBIT from media operation stood at Rs 1.33 crore. The loss at PBIT level in film production and distribution business stood at Rs 2.90 crore.

Other income stood at Rs 10.25 crore, inclined by 2%. The interest cost increased by 29% at Rs 6.71 crore. Depreciation charge increased 32% to Rs 11.84 crore. The loss before tax stood at Rs 19.20 crore.

The tax credit for the quarter stood at Rs 0.09 crore. After considering share from associates and minority interest, the net profit declined by 71% to Rs 5.16 crore due to share of profit from associates.

The group continued to push innovative and high quality content, and also spread its wings into regional markets via new channels. In keeping with fast-changing content consumption patterns, the group also strengthened its digital outreach.

In the Entertainment space, Viacom18 launched its second regional entertainment channel in the Kannada market branded as Colors Super in July 2016 to further strengthen its pole position. MTV Beats, a 24*7 music television channel, has replaced MTV Indies during Q2 FY17.

VOOT, the OTT platform launched in Q1 FY17, has garnered more than 10 million app downloads with over 15 million monthly active users across mobile and web. Rishtey Cineplex, a Hindi movie channel launched in May 2016 strengthened its position during the quarter.

The aggregate impact on the operating loss of the new initiatives of Viacom18 considered in the consolidated segment results is Rs 34.1 crore. During the quarter, Prism TV Private Limited, (regional entertainment channels), a Joint Venture between TV18 and Viacom Inc. USA, was merged with Viacom18 pursuant to the Scheme of Arrangement approved by the order of the Hon'ble Bombay High Court on 12th August 2016.The consolidated segment results for the quarter includes a onetime expense relating to merger (including stamp duty) of Rs 7 crore.

FYI TV18, a lifestyle programming channel from the AETN18 stable (a JV between TV18 and A+E Networks), was commercially launched on July 4, 2016. The channel incurred an operating loss of Rs 9.2 crore during the July-Sept quarter.

In the Information space, the three regional news channels namely News18 Kerala, News18 Tamil Nadu and News18 Assam/N.E that were launched during the first quarter of the current year stabilized during the quarter and expanded their reach. These three new channels incurred an operating loss of Rs 22.8 crore during the quarter.

Business Performance

TV18 owns and operates the largest network of channels – 47 in India spanning news and entertainment. In addition, to this we also cater to the global Indian Diaspora through our 11 international channels.

TV18's Television channels are watched by around 570 million viewers and are leaders in most segments in news and entertainment

CNBC TV18 maintained #1 rank in the English Business News genre with a 50% market share in Q2 16-17. During market hours (Weekdays, 8 AM to 4 PM), CNBC TV18 maintained a higher share of 57% and was #1 in its genre.

The channel reached 23.5 million viewers during the quarter, some 8.5 million viewers more than its nearest competitor.

CNBC Awaaz continues to be dominant in the Hindi Business News genre with a 60% market share. During trading hours (8 AM to 4 PM weekdays) CNBC Awaaz maintained a 67% market share in its genre. The channel reached 48.2 million viewers on an All India basis of which 43.9 million viewers were from HSM.

CNBC Bajar reached a total of 8.1 million viewers on an All India basis, of which 5.5 million viewers were from Gujarat. On the occasion of the 2nd Anniversary of CNBC-BAJAR, multiple special shows and key interviews were aired in a week-long campaign.

CNN News18 garnered 18% Market share during Q2 16-17 and was the #2 channel in the genre. In Mega Cities, CNN News18 maintained a 39% market share in September, making it the clear leader in the English News genre. The channel reached 27.6 million viewers in Q2 16-17. CNN News18 further strengthened its weekend offering with the launch of a new conversation-based show called ‘Off Centre'.

IBN7 maintained a 5.4% market share in the Hindi News Genre in Q2 16-17. The channel reached a total of 217 million viewers on an All India basis, of which 212.7 million viewers were from HSM. During the original as well as the repeat airing of the interview with Prime Minister Narendra Modi, IBN 7 was the clear No.1 channel across all English, Hindi and regional news channels, ahead of channels like Aaj Tak, India TV, Zee News, ABP News and India News. IBN7 enjoyed a Market Share of 19.1% among Hindi News Channels during the original telecast of the interview, well ahead of its nearest competitor Aaj Tak, which maintained a 14.8% share.

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

IBN Lokmat maintained a 17.4% market share in the Marathi news genre (8 channels) in Q2 16-17. The channel reached 48.7 million viewers on an All India basis, of which 44.3 million viewers were from Maharashtra. IBN Lokmat continued to captivate audiences through in-depth coverage of key local, national and international events, as well as impactful campaigns. IBN-Lokmat was also the No 1 Marathi News Channel during the interview with Prime Minister Narendra Modi.

Colors was a strong #2 in the entertainment genre during the quarter. The channel was the leader in the fiction genre with 3 of its shows namely Shakti, Kavach, Udaan in the top 10 shows. It was also the leader in the non-fiction genre with shows such as Comedy Nights Bachao and Jhalak Dikhhla Jaa featuring in the top 5 nonfiction shows. Colors was also the #1 in the Social media buzz.

Our various other entertainment channels such as MTV, Comedy Central, Colors Infiniti, Nick continue to lead in genres such as Kid, English Entertainment and Youth. During the quarter, MTV Beats, a 24*7 music television channel, has replaced MTV Indies.

Viacom18 Motion Pictures released 3 films during the quarter: "Budhia Singh – Born to Run", "Star Trek Beyond" and "Ben Hur" were all well received at the box-office

VOOT, Viacom18's Over The Top (OTT) exclusive digital video destination, which was commercially launched in May'16, has gained significant traction among urban millenials. Since its launch in May, VOOT has garnered more than 10 million app downloads with over 15 million monthly active users across mobile and web. Viewers spend 40 minutes on average each day on the platform. Its current shows include library content and VOOT originals.

Colors Kannada continued to be the #1 player in Karnataka with a 36% market share during Q2. The channel, a leader in fiction and non-fiction genres, launched many new TV shows and events and has 5 out of the top 10 shows in the genre. Colors Super, the 2nd Kannada Regional GE, was launched in July 2016.

Colors Marathi continued to be a strong #2 channel in the Marathi GE genre with 27% market share."Tu Majha Sangaati" and "Ganpati Bappa Morya" were among the top shows in the genre.

Several awards won by multiple teams including Appies, Indian Content Marketing Awards, Big Bang, DMA Create Effect Awards, IDMA, ACEFMarketing Capability Award, Emvies etc..

Local productions continued to record high viewership for History TV18 reaching out to 124 million viewers in Q2 16-17. History TV18 garnered 14% market share on an All India basis in Q2 16-17 among Factual Entertainment channels.

FYI TV18, a lifestyle programming channel was launched in Q2 16-17. The channel revolves around 3 pillars of Circle, Space & Taste, with relationships forming a common thread between them. FYI TV18 features shows that form a perfect blend of local & global drivers. With the channel launch, the focus of promotions was on the local shows "Real 2 States Couples" and "Rivals in Law". Other local productions on the space pillar "Small Budget Big Makeover" and several international shows are slated for launch in October. FYI TV18 has maintained 17% Market Share in the lifestyle genre. The channel has overtaken NDTV Good Times within a few weeks of the channel's launch.

Performance for half year ended September 2016 (Consolidated)

The consolidated operating revenues decreased by 10% to Rs 450.52 crore. The gross revenue from media operation segment grew by 9% to Rs 1235 crore while that of film production and distribution de-grew by 71% to Rs 27.50 crore.

OPM was negative for the quarter. The resultant operating loss stood at Rs 29.89 crore.

The loss at PBIT level from media operation stood at Rs 15.09 crore. The loss at PBIT level in film production and distribution business stood at Rs 6.23 crore.

Other income stood at Rs 19.87 crore, declined by 4%. The interest cost decreased by 14% at Rs 11.30 crore. Depreciation charge increased 22% to Rs 21.34 crore. The loss before tax stood at Rs 42.67 crore.

The tax credit for the half year stood at Rs 0.95 crore. After considering share from associates and minority interest, the loss at bottom-line stood at Rs 8.97 crore.

Shareholding Pattern

The promoter holds 60.40% stake in the company.

Valuation

The scrip is trading around Rs 44.45