TV18 Broadcast, the part of Network 18 Group, has registered a strong 83.9 percent year-on-year growth in consolidated profit at Rs 377.2 crore for the quarter ended December 2020, backed by improved performance, lower finance cost and tax reversals.
The operating EBITDA in Q3FY21 grew by 14 percent YoY to Rs 321 crore and operating margin continued to grow to a healthy 23.6 percent, rising 390 bps YoY.
"Advertising-recovery, cost-efficiency drove entertainment EBITDA margin to 25 percent, its highest ever, while TV News EBITDA margin ramped-up to around 19 percent, marking 4 years of consistent improvement," said the company in its BSE filing.
The company further said broad-based cost controls implemented across business lines had improved efficiencies, driving margin uptick. "Operating expenses was down 9 percent YoY even as we had a full content roster in the festive season, and linked thrust on marketing and distribution," it added.
Consolidated revenue from operations in Q3FY21 dropped 4.5 percent year-on-year to Rs 1,360.95 crore compared to the corresponding period, with 2 percent growth in subscription revenue YoY and rising advertising revenue.
"The group has fully recovered from the effects of the pandemic, even as safety measures and innovative solutions to logistical challenges continue to be deployed. We have treated this period as an opportunity to rethink our businesses, and are emerging stronger and ready for the post-COVID world," Adil Zainulbhai, Chairman of TV18 said.
"The resumption of original programming has driven TV consumption and monetization back to normalcy, even as Digital adoption grows in tandem. The benefits of cost controls effected over the past year are now visible, as both verticals are at much improved profitability levels," he added.
TV viewership (ex-News, as ratings have been blacked out during Q3) remained elevated around 10 percent versus pre-COVID levels on a consistent basis, even as lockdowns taper, said the company.
"Digital consumption of media continues to gain traction and currency, both through direct-to-customer offerings and telco-bundles," it added.Disclaimer: TV18 Broadcast is a subsidiary of Network18 Media & Investments Ltd which publishes Moneycontrol.