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TV18 net profit up 40% in Q3FY20

The advertising revenue remains subdued. However, subscription revenue increased 40% to Rs 458 crore YoY after NTO which has created a transparent and non-discriminatory B2C regime

TV18 Broadcast on Tuesday reported a 40% increase in its consolidated net profit at Rs 205.16 crore for the quarter ended December 31, 2019.

The company had posted a net profit of Rs 146.96 crore for the corresponding period of the previous fiscal, TV18 Broadcast said in a regulatory filing.

Consolidated operating Ebitda (Earnings before interest, taxes, depreciation, and amortization) stood at Rs 268 crore for the quarter under consideration, as against Rs 88 crore a year ago.

Consolidated revenue from operations of the company stood at Rs 1,425.37 crore for the quarter under consideration, as against Rs 1,474.70 crore a year ago.

"Monetisation of content through partnerships and continued subscription revenue growth coupled with cost optimisations across verticals boosted profitability," the company said.

"In line with the strategy of being platform agnostic, the group stitched multiple partnerships with notable digital platforms for serving their users a discerning selection of our content," it added.

Q3 operating revenue for News was near-flat YoY. The company blamed headwinds for BFSI sector, weak government spends, and limited international advertising compared with last year for dragging the growth.

Subscription revenue during the quarter increased 40% to Rs 458 crore YoY after implementation of the NTO (new tariff order) which has created a transparent and non-discriminatory B2C regime, the company said.

"Improved distribution tie-ups across cable and telcos have brought the consumer closer to our class-leading content bouquet at an affordable optimum price," TV18 said.

Advertising recovered around the festive season but continued to remain under pressure for the quarter.

"The prevalent weakness in macro-environment and sluggish spending appetite by advertisers continued to drag ad-revenue down YoY for both News and Entertainment. Shift of channels from DD Freedish to Pay ecosystem continues to impact Hindi GEC ad-revenues for all the top broadcasters," company said.

Government's initiatives to boost growth and a natural refresh-and-recalibration of ad-budgets should revive ad-growth as we head towards the new fiscal, it added.

"Our emphasis on delivering value to the consumer, expanding the partner ecosystem and raising profitability were the primary milestones during the past quarter," TV18 Chairman Adil Zainulbhai said.

Amidst a difficult ad-environment and continued regulatory flux, the rise in rankings for flagship channels is a positive indicator for the future, he added.

"We are constantly adjusting our programming and business model for the continual technology, consumer and regulatory changes in the business," Zainulbhai said.

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