TV Today shares surge over 7% following decision to close radio biz

New Delhi: Publicly listed media conglomerate TV Today’s Thursday announcement to close shop for their radio business received a thumbs up from the stakeholders who appeared to be appreciative of the company’s focus on profitability.

The company's board approved the proposal to close the loss-making radio business under the Ishq FM brand in Mumbai, Delhi, and Kolkata during a meeting held on Thursday.

The shares jumped over 7.5% in the wee trading hours outperforming the sector by more than 5%. The network’s stock reached above its 50-day moving averages. 

On January 9, the stock traded at a high of Rs 227 before closing at Rs 213. TV Today has a 52-week-high of Rs 308.15. 

The small-cap share currently holds the market capital of roughly Rs 1300 crores. 

TV Today informed stock markets that its radio business contributed under 1.7% of its revenue in FY24. As per the network, the business is expected to be closed in six months time. 

The radio business turnover was at Rs 16.18 crore and registered a loss of Rs 19.53 crore in the financial year ended March 2024.

"The Board of Directors of TV Today Network at their meeting held today, i.e., January 9, 2025, has inter alia approved the closure of FM Radio Broadcasting operations of the Company subject to regulatory approvals, if any, and fulfilment of other compliances as may be required," it said.

While citing the reason for closure, the private news channel broadcaster said, "Given the state of the industry, its dynamics and evolution of FM Radio Broadcasting business, the Board of Directors considered it in the better interest of the company to close this business instead of continuing the same."