TV18 revenue grows 10% amidst a challenging macro environment

Reliance-owned TV18 Tuesday said its consolidated revenue grew 10% YoY to Rs 1,265 crore during quarter ending June 30, amidst a challenging macro environment.

The company had earned Rs 1,155 crore in the corresponding quarter a year ago.

The growth in consolidated revenue was driven by the 13% growth in Entertainment business revenues.

TV news ad revenue was flattish YoY, with branded content-led monetisation compensating for the loss of state elections linked revenue last year. The network also optimised inventory on key channels as news advertising eco-system adjusted back to ratings which had resumed after a period of ~18 months in March.

A high inflation environment posed a challenge for advertising growth, with total TV ad inventory (excluding sports) being flat on a YoY basis, despite the base quarter being impacted by pandemic, the company said in a regulatory filing.

However, the increased cost of operations have resulted in lower EBITDA margin. The EBITDA margin slipped to 4.6% in Q1FY23 from 16.2% in the corresponding quarter of the previous year.

“In line with the growth plans, we are ramping up our investments to establish a strong competitive position in Entertainment segment and to strengthen our news business. With most of these investments in content, marketing and expansion of our teams being front- loaded, operating costs grew faster than revenue, impacting the profitability,” the company said.

With inflationary headwinds showing encouraging signs of easing down in some of the categories, TV18 said that it is heading into the festive period with a cautious optimism.

Commenting on the results, Adil Zainulbhai, Chairman of TV18, said, “The overall macro-economic environment has been challenging for the industry, but the key development for us this quarter was the acquisition of exclusive digital rights of IPL. With strong tailwinds favouring digital consumption, it gives us a perfect opportunity to scale-up our OTT offering. Coupled with the partnership with Bodhi Tree and Reliance, it will enable our entertainment and sports business to grow to a multiple of what it is today. Our news network’s gradual rise in the share is a testament to the success of the strategic tweaks we have been making based on consumer insights. Our endeavour is to make both our News and Entertainment verticals, default platforms of choice for consumers across the country.”

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