PL First Cut – TV18 2QFY24

PL First Cut – TV18 2QFY24 – Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd

TV18 2QFY24 Results| Not Rated | Market cap Rs73,872mn |Higher investments in sports and digital lead to losses

✳️Revenue increased 22% YoY to Rs17,942mn driven by the performance of News business (up 20% YoY), Movie Studio, Sports, and Digital verticals. Revenue from news and entertainment business stood at Rs3,570mn/14,372mn respectively.

✳️EBITDA loss stood at Rs1,981mn as operating cost increased by 39% YoY driven by higher programming costs in Sports and Digital segments.

✳️Loss after MI stood at Rs289mn.

Read through for ZEE: Top-line of entertainment business (excluding news) was up 22% YoY to Rs14,372mn driven by strong performance in digital, sports and movie business. However, excluding sports and digital, ad-revenue has declined as consumption demand has been sluggish coupled with lower spends by new-age businesses.

Along the lines of TV18, which reflects soft consumer sentiment, we expect ZEEL’s domestic ad-revenue to decline 2.5% YoY with an EBITDA margin of 11.1%.