Moneycontrol
Oct 12, 2017 05:16 PM IST | Source: Moneycontrol.com

Buy TV 18 Broadcast; target of Rs 57: KR Choksey

KR Choksey is bullish on TV 18 Broadcast has recommended buy rating on the stock with a target price of Rs 57 in its research report dated October 12, 2017.

Buy TV 18 Broadcast; target of Rs 57: KR Choksey

KR Choksey's research report on TV18 Broadcast


TV18 reported its Q2 FY18 results, where revenues fell below our estimates but margins have improved on yoy basis Revenue stood at INR 2,272 Mn, up 4% qoq and down 5% yoy EBITDA (under Ind AS consolidated) stood at INR (1) Mn in Q2 FY18, an improvement over INR (109 Mn) in Q2 FY17 PAT was recorded at INR 75 Mn in Q2 FY18, versus INR 51 Mn in Q2 FY17, primarily due to improvement in performance of JVs and gaining operating efficiency.


Outlook


Going ahead, we expect advertising revenues to pick up drastically on the back of company’s aggressive attempt to invest in regional platform for both news and entertainment, improved viewership driven by localized HD content, and increase in ad spending due to festive season. We expect Marketing & Distribution expenses to reduce for new channels which usually have a turnaround time of 1-2 years and therefore expect to further improve margins.


For all recommendations report, click here


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