Hold TV Today Network: target of Rs 280: ICICI Direct
ICICI Direct recommended hold rating on TV Today Network with a target price of Rs 280 in its research report dated February 14, 2021.
February 15, 2021 / 04:26 PM IST
ICICI Direct's research report on TV Today Network
TV Today reported a better-than-expected set of Q3FY21 numbers on the back of cost reduction and lower tax outgo. Operating revenue came in at Rs 223.6 crore, flattish YoY (up 0.5%) with TV broadcasting revenue at Rs 185.9 crore (3.4% YoY growth). Radio segment disappointed again with a straight eighth quarterly de-growth with revenues declining 54.4% YoY to Rs 2.1 crore as ad pricing remained low. Digital revenue recovered reported healthy growth of 20% YoY and came in at Rs 35.5 crore. EBITDA was at Rs 77.5 crore, up 27.5% YoY owing to lower marketing/distribution costs. EBITDA margin came in at 34.7%, up 734 bps YoY. The company shifted to lower corporate tax rate. Subsequently, PAT jumped 46% YoY to Rs 54.8 crore.
We maintain our HOLD rating with a revised target price of Rs 280/share (at 9x FY22E earnings, earlier TP: Rs 240).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.