ICICI Direct's research report on TV Today Network
TV Today reported a weak set of numbers on account of marginal TV broadcasting growth and a sharp decline in radio ad revenue. Operating revenue came in at Rs 180.3 crore, up 5.1% YoY with TV broadcasting revenue at Rs 142.3 crore (1.5% YoY growth). Radio revenues declined 52.5% YoY and came in at Rs 2.8 crore owing to the overall slowdown in the radio advertising scenario. Digital revenue registered strong growth of 47.1% YoY and came in at Rs 27.7 crore. EBITDA came in at Rs 34 crore, down 22.7% YoY due to higher other expenses (included some one-off provisioning for gratuity and CSR expenditure). EBITDA margin came in at 18.8%, 677 bps lower YoY. Consequently, PAT was at Rs 23 crore (vs. our estimate of Rs 35.9 crore) due to the weak operating performance.
Also, given the minimal capex requirement, we expect the dividend payout trend to continue, going ahead, making it further attractive. We maintain BUY rating on the stock with a target price of Rs 380 valuing at 12x FY21E EPS.
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