TV18 Broadcast has registered a 150 percent growth in Q2 FY21 profit following a rebound in advertising revenue and strong operating margin.
Consolidated profit increased to Rs 115 crore from Rs 46 crore in the same period last fiscal.
Consolidated revenue declined 10 percent year-on-year to Rs 1,013 crore in Q2 FY21. However, consolidated operating EBITDA climbed 56 percent to Rs 164 crore as revenue was firmly on the road to full recovery, the company said in a BSE filing.
"Advertising revenue rebounded as economic activity restarted on tapering of lockdowns. News business' advertising fully recovered, as viewership settled at a higher level. Entertainment recovery is near-complete. The dip in advertising revenue has reduced to single-digits now," it stated.
Consolidated EBITDA margin expanded to 16.2 percent in Q2 from 9.3 percent in the year-ago period, following a steep jump in margins for both news and entertainment segments.
"TV18's broadcasting businesses have recovered from the impact of the COVID-19 pandemic to a large degree. Our proactive measures on cost-control have resulted in much-improved profitability across both news and entertainment despite certain market segments still suffering from pressures due to the coronavirus pandemic," Adil Zainulbhai, its Chairman, said.
"We have ensured business continuity through rejigging processes, innovatively revived alternative revenue streams, and focused on aligning content distribution strategy with market opportunity. As we head into festive season, the underlying trends on both viewership and monetisation are supportive," he added.
Disclaimer: TV18 Broadcast is a subsidiary of Network18 Media & Investments Ltd which publishes Moneycontrol.
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