Quarterly Performance for December 2016 (Consolidated)

The consolidated operating revenues increased by 1% to Rs 249.98 crore. The results reflect the headwinds from the subdued industry environment, aggressive investments by the group into upgrading and expanding media bouquet, and the competitive intensity in the digital space.

The gross revenue from media operation segment grew by 1% to Rs 687.61 crore while that of film production and distribution grew by 77% to Rs 18.66 crore.

OPM declined by 596 bps to 13.9% due to rise in employee cost and other expenditures. The operating profit declined by 29% to Rs 34.74 crore.

PBIT from media operation declined by 65% to Rs 32.11 crore. The loss at PBIT level in film production and distribution business stood at Rs 0.53 crore.

Other income stood at Rs 4.75 crore, inclined by 64%. The interest cost increased by 25% at Rs 5.93 crore. Depreciation charge increased 91% to Rs 17.24 crore. The profit before tax declined by 66% to Rs 16.32 crore.

The tax outgo inclined 626% to Rs 6.11 crore. Tax rate increased from 2% to 37%. After considering share from associates and minority interest, the net profit declined by 77% to Rs 19.70 crore due to overall poor performance.

The group continued to invest in its information and entertainment bouquet. It consolidated its position by scaling-up the new regional channels launched over the last year, and a further impetus into digital content and delivery via OTT app VOOT.

A sharp pullback/deferment in spends by advertisers in November-December was partially offset by good growth in the festive season (which fell entirely in October this year), and a mild revival at the fag-end of the quarter.

During the quarter, TV18 strengthened its relationship with CNBC and extended the licensing arrangement with CNBC Asia to use the CNBC brand and content until March 31, 2028 for the business news genre.

The aggregate operating loss of the new initiatives of Viacom18 (2nd Kannada GEC Colors Super, OTT video destination VOOT and movie channel Rishtey Cineplex) considered in the consolidated segment results is Rs 34.8 crore.

"fyi TV18", a lifestyle programming channel from the AETN18 stable (a JV between TV18 and A&E Network), was commercially launched on July 4, 2016. The channel incurred an operating loss of Rs 5.2 crore during the quarter

In the news space, the three regional news channels -- 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 9.1 crors during the quarter

Hindi News channel IBN7 was re-branded and re-launched as "News18 India" during the quarter for a one-time expense of Rs 3.3 crore.

The board has approved a proposal for merger of wholly owned subsidiaries of TV18 with the Company; intended to simplify the corporate structure, consolidate businesses, and gain synergy and scale benefits.

Business Performance

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

TV18's Television channels are watched by around 586 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 54% market share in Q3 16-17. During market hours (Weekdays, 8 AM to 4 PM), its lead over rivals was even higher with a market share of 58%.

The channel reached 27.7 million viewers during the quarter, some 11.9 million viewers more than its nearest competitor.

CNBC Awaaz continues to be dominant in the Hindi Business News genre with a 56% market share. During trading hours (8 AM to 4 PM weekdays) CNBC Awaaz maintained a 58% market share in its genre. The channel reached 56.5 million viewers on an All India basis of which 52.3 million viewers were from HSM.

CNBC Bajar reached a total of 9.7 million viewers on an All India basis, of which 6.8 million viewers were from Gujarat.

CNN News18 garnered 18% Market share during Q3 16-17 and was the #2 channel in the genre. In Mega Cities, CNN News18 maintained a 30% market share in Q3 16-17, making it the clear leader in the English News genre. The channel reached 34.1 million viewers in Q3 16-17.

IBN7 unveiled a new brand identity, logo and tagline along with a refreshed on-air look. The new avatar of the channel - News18 India--was revealed at 6.57 pm on 9th November with the tagline "Danke Ki Chot Par". Post re-launch of the channel, News18 India Market Share amongst competition increased from 6.6% to 7.3%

The channel's website was also revamped and rebranded as news18india.com. In the lead up to the rebranding, the channel strengthened its editorial team, introduced new anchors and launched new shows and formats.

ETV Bihar/Jharkhandremained a dominant player in its respective markets, occupying #1position with 57% market share

IBN Lokmat maintained a 16.1% market share in the Marathi News Genre (comprising eight channels in Q3 16-17. The channel reached a total of 46.7 million viewers on an All India basis, of which 43 million viewers were from Maharashtra. IBN-Lokmat India's Best Marathi News channel was once again honoured by the prestigious Ramnath Goenka Excellence in Journalism Awards. Halimabi Abdul Kureshi bagged the honour in the category "Reporting on Politics & Government" this year

Colors continued its strong performance and was the #1 channel amongst comparable peers. The channel was the leader in the fiction genre with 5 of its shows namely Naagin – S2, Shakti, Sasural Simar Ka, Udaan & Shakti in the top 10. It was also the leader in the non-fiction genre with shows such as Bigg Boss – S10 and Jhalak Dikhhla Jaa featuring in the top 5 non-fiction shows. Colors also maintained its #1 position amongst GECs in

social media buzz.

Rishtey was the #1 free-to-air (FTA) channel and the #2 channel overall (Pay+FTA) in week 52 amongst GECs. Naagin was the #1 show in the rural market. Three of its shows -- Naagin, Mohe Rang Do Laal, Udaan – were amongst the top 10 shows in the rural market.

Various other entertainment channels such as MTV, VH1 and Nick continue to lead in genres such as Kid, English Entertainment and Youth respectively. MTV Beats captured a respectable 9% market share within a quarter of its launch.

VOOT, Viacom18's Over The Top (OTT) exclusive digital video destination was commercially launched in May'16, and has gained significant traction among urban millennials. VOOT was recently selected as one of the "Top Trending and Most Entertaining Apps of 2016" by Google's Play Store. It has demonstrated a strong growth in installs, with gross cumulative installs trending towards the 20mn mark. Its average watch time has grown to 45 minutes vs ~40 minutes in Q2FY17

Colors Kannada retained its pole position in Karnataka with a 31% market share during December 2016. The channel has 4 out of the top 10 shows in the genre. Colors Super, the 2nd Kannada Regional GE, which was launched in July 2016 has achieved a 5% market share

Colors Marathi continued to be a strong #2 channel in the Marathi GE genre with a 23% market share. Colors Marathi HD #1 HD channel among comparables

History TV18 garnered a 16% market share on an all India basis in Q3 16- 17 among 7 Factual Entertainment channels. In Megacities, History TV18 maintained No.2 rank in the Factual Entertainment genre, taking a 23% market share.

fyi TV18, a lifestyle programming channel launched in Q2 16-17 has garnered a 18% Market Share in Q3 16-17 in the Lifestyle genre

Performance for nine months ended December 2016 (Consolidated)

The consolidated operating revenues increased by 6% to Rs 700.50 crore. The gross revenue from media operation segment grew by 6% to Rs 1922.61 crore while that of film production and distribution de-grew by 56% to Rs 46.16 crore.

OPM declined by 170 bps to 0.7%. The operating profit declined by 73% to Rs 4.85 crore.

PBIT for media operation declined by 86% to Rs 17.02 crore. The loss at PBIT level in film production and distribution business stood at Rs 6.76 crore.

Other income stood at Rs 24.62 crore, declined by 27%. The interest cost decreased by 3% at Rs 17.23 crore. Depreciation charge increased 46% to Rs 38.58 crore. The loss before tax stood at Rs 26.35 crore.

The tax outgo inclined 82% to Rs 5.16 crore. After considering share from associates and minority interest, the net profit declined by 90% to Rs 10.73 crore due to overall poor performance.

Shareholding Pattern

The promoter holds 60.40% stake in the company.

Valuation

The scrip is trading around Rs 37.75