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For March 2017 quarter, the consolidated operating revenues decreased by 8% to Rs 278.92 crore due to yet to recover advertisement spending on regional channels and launches of regional news & entertainment channels over the last 18 months, including 4 in early-FY17.. The gross revenue from media operation segment grew by 2% to Rs 679.36 crore while that of film production and distribution grew by 97% to Rs 46.06 crore. OPM declined by 2088 bps to 9.5%. The net profit declined by 90% to Rs 8.39 crore due to overall poor performance.
Quarterly Performance for March 2017 (Consolidated)
The consolidated operating revenues decreased by 8% to Rs 278.92 crore due to yet to recover advertisement spending on regional channels and launches of regional news & entertainment channels over the last 18 months, including 4 in early-FY17.. The gross revenue from media operation segment grew by 2% to Rs 679.36 crore while that of film production and distribution grew by 97% to Rs 46.06 crore.
OPM declined by 2088 bps to 9.5% due to rise in employee cost, marketing, distribution & promotional cost and other expenditures. The operating profit declined by 71% to Rs 26.44 crore. Excluding the impact of new initiatives and one-time expense, the operating profit for the quarter is Rs 60.9 crore.
PBIT from media operation declined by 84% to Rs 15.75 crore. The PBIT in film production and distribution business stood at Rs 7.04 crore.
Other income stood at Rs 18.71 crore, increased more than 999%. The interest cost increased by 13% at Rs 5.20 crore. Depreciation charge increased 96% to Rs 17.79 crore. The profit before tax declined by 72% to Rs 22.16 crore.
The tax outgo stood at Rs 19.95 crore. Tax rate increased from 1% to 90%. After considering share from associates and minority interest, the net profit declined by 90% to Rs 8.39 crore due to overall poor performance.
Quarter Highlights
The media industry is still facing impact of deferment of advertising spends that kicked-in from November-December 2016 on likely slow-down in consumer spending. Further, the revival of advertising spends has been witnessed at a much faster clip for national channels, while regional markets are still recovering with a lag. This has been exacerbated by the company's launches of regional news and entertainment channels over the last 18 months, including 4 in early-FY17.
The new initiatives of Viacom18 (2nd Kannada GEC Colors Super, OTT video destination VOOT and movie channel Rishtey Cineplex) continued to perform well on all operational metrics. The aggregate operating loss of the new initiatives considered in the consolidated segment results for the quarter is Rs 36.1 crores
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 incurred an operating loss of Rs 26.9 crore during the quarter
"fyi TV18", a lifestyle programming channel from the AETN18 stable (a JV between TV18 and A&E Network), commercially launched in July 2016, gained a market share of 21% in the quarter. The channel incurred an operating loss of Rs 7.6 crore during the quarter
CNBC TV18, during the live coverage and analysis of the Union Budget on 1st Feb 2017, garnered 86% market share. On Counting Day of the Assembly Elections of 5 states, CNN News18 was the #1 English News channel.
Colors is now a strong #2 channel, while Nick and Sonic together place us as the top Kids content provider today with a ~29% market-share. Free-To- Air movie channel Rishtey Cineplex (launched in early FY17) has also garnered an 8% viewership-share in a highly fragmented genre.
OTT entertainment app VOOT continues to gain traction, and witnessing more sticky usage patterns than competition. The second Kannada GEC Colors Super has gained a 6% market-share within a year of launch. Overall regional News bouquet has also witnessed a surge in viewership share during the quarter, led by in-depth coverage of state elections.
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.
CNBC TV18 maintained #1 rank in the English Business News genre with 58% market share in Q4 16-17. During market hours (Weekdays, 8 AM to 4 PM) its lead over rivals was even higher with a market share of 65%.
CNBC TV18, during the live coverage and analysis of the Union Budget on 1st Feb 2017, garnered 86% market share. It maintained its phenomenal performance throughout the week, taking 79% market share in Week 5'2017 - the highest in a given week for any English Business News channel since the introduction of the new measurement universe in Oct 2015.
CNBC Awaaz continues to be dominant in the Hindi Business News genre with 59% market share
On Budget day, Flagship English Language news channel CNN News18 was a clear leader in Mega Cities with 29% market share. On Counting Day of the Assembly Elections, CNN News18 was the #1 English News channel.
News18 India garnered a Market Share of 8.7% in Q4 16-17 in HSM, up from 7.2% in Q3 16-17 and 5.9% in Q4 15-16.
In Mega Prime Time, post its content refresh in Q3 16-17, News18 India continues to grow, fetching a slot Market Share of 11.1% in Q4 16-17, higher than the previous quarter of revamp (Q3 16-17 - 10.1%), and the quarter prior to revamp (Q2 16-17 – 7.1%) With a slot share of 11.1% , News18 India was amongst the Top 5 Hindi News channels in Mega Prime Time in Q4 16-17
IBN Lokmat garnered a Market Share of 17.2% in Q4 16-17 in Mah/Goa, up from 16.0% in Q3 16-17 and 16.9% in Q4 15-16
ETV regional news cluster has improved its viewership substantially over the past quarter. The company has re-launched 6 channels in the last 3 months under the News18 brand. Overall viewership share (as ratio of overall news viewing in the country) has more than doubled to 4% from 1.8% between January 2017 and March 2017. ETV Rajasthan and ETV UP/Uttarakhand saw a strong jump in market share (nearly 3x).
History TV18 garnered 15% market share in All India in Q4 among the 7 Factual Entertainment channels
FYI TV18, a lifestyle programming channel launched in Q2 16-17 has garnered a 21% Market Share in Q4 16-17 in the Lifestyle genre
Colors continued its solid performance as a strong #2 channel with leadership in key primetime slots. Colors had 3 to 5 shows among Top 10 Fiction Shows in genre; ‘Naagin S2' was #1 show at different points in time in the period. The quarter saw the successful launch of unique, high impact properties - Rising Star and Chote Miyan Dhakad.
Rishtey was the #2 free-to-air (FTA) channel and the #5 channel overall (Pay+FTA) in amongst GECs.
Rishtey Cineplex, the FTA movie channel launched in Q1FY17 was the #5 channel among comparables. It emerged as the #3 channel in Week 13.
Nick continued its leadership in the Kids genre. Between Nick and Sonic, Kids portfolio commanded a 29% market-share. Nick and Sonic each have 2 shows among Top 10 shows in the genre.
In English entertainment, VH1 and Colors Infinity occupied the top two spots in the genre; while Comedy Central is placed #4.
MTV has been the #2 channel in the Youth entertainment genre
MTV Beats has emerged amongst Top 5 channels of a highly cluttered genre.
VOOT, Viacom18's Over The Top (OTT) exclusive digital video destination was commercially launched in May'16, and continues to gain traction. It was selected among ‘Top Trending' and ‘Most Entertaining' Apps of 2016 by Google Play Store. The company continue to witness a strong growth in installs and active users. It is clocking a significant 40+ minutes of daily viewership. Current shows include library content and VOOT originals. VOOT Original series titled ‘Untagged' won critical and commercial acclaim.
Colors Kannada retained its strong #1 position in Kannada regional entertainment with a 29% market share. The channel has 5 out of the top 10 shows in the genre. Colors Super, 2nd Kannada Regional GEC which was launched in July 2016, has achieved a 6% market share
Colors Marathi continued to be a strong #2 channel in the Marathi GE genre with an 18% market share.
Live events - Successful fourth edition of Vh1 Supersonic in February 2017 achieved 10 Mn+ views on Facebook, coupled with 1.1Mn+ strong online
community
Performance for year ended March 2017 (Consolidated)
The consolidated operating revenues increased by 6% to Rs 979.41 crore driven by entertainment and national news. Segment profits were impacted by investments in new initiatives in regional and digital, and a pullback in advertising spends in the latter half of the year.
The gross revenue from media operation segment grew by 8% to Rs 2601.97 crore while that of film production and distribution de-grew by 29% to Rs 92.23 crore.
OPM declined by 1095 bps to 3.2%. The operating profit declined by 76% to Rs 31.29 crore.
PBIT for media operation declined by 74% to Rs 63.65 crore. The PBIT in film production and distribution business stood at Rs 0.28 crore.
Other income stood at Rs 43.33 crore, inclined by 26%. The interest cost increased by 20% at Rs 22.43 crore. Depreciation charge increased 62% to Rs 56.38 crore. The loss before tax stood at Rs 4.19 crore.
The tax outgo inclined 661% to Rs 25.11 crore. After considering share from associates and minority interest, the net profit declined by 90% to Rs 19.07 crore due to overall poor performance.
Shareholding Pattern
The promoter holds 60.40% stake in the company.
Valuation
The scrip is trading around Rs 41.50.
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