Kunal - Not true, the only channels proposed to be exempt from the 12- minute rule are free-to-air channels. News channels are very much under the proposed rule:
However, as per the document - Aaj Tak has about 16 minutes of ads/hour during prime time. If this is reduced to 12 minutes, the channel will have to hike their rates by 25% on an average to maintain revenues.
Not sure how feasible that would be.
Thanks Karan. My bad. But my understanding is leaders will be able to adjust prices accordingly as they have some sort of pricing power over other channels. Zee was able to maintain the prices. there may be some initial blips but it will normalise in couple of quarters.
check out this link saurabh. Though I need to go through it once or twice to comprehend it fully. Time to completely digitise is by 31/12/2016. The article focus on ground difficulties between MSO/LSO. Article also creates a doubt whether even after digitisation - MSO/LSO operator still have the room to manoeuvre the data and under report subscribers. Please look out for the same. Inviting Karan and others to contribute as well
MIB has given the approval to ENIL to buy the 4 radio station of TV today…Good news for TV today
it would be interesting to know how much ENIL is paying for these radio station . Also if anybody has knowledge or done research on of what percentage of TV Today revenue was contributed by the 4 radio channels.
someone tracking results and have an idea or word with management? i wish to go long on this one. any capex plans?
they should have been doing good due to operating leverage kicking in…but the employee expenses have gone up sharply recent qtrs…unfortunately shareholders will be paying for mgmt egos…
management egos in the sense?
hiring high cost employees without much addition to viewership- They are number one in hindi- which is generating good profits-Even after adjusting for election impact in 2014- current profit growth is very low- compared to the time before these are hired-
last 4 years before 2015- their expense is constant around 280 cr…top line improved from300 to 400- almost everythign flowed in bottom line- showing huge operating leverage- but unfortunately in 2015- expenses increased by 60 cr (20%) - top line also increased 25%…bottom line increased by 30%…margins maintaining same level as last year…if not for these increases profit should have been doubled…any way lets see 1st qtr results…to see how much value add these additional expensive employees add…
Well described malli.
But see they have hired well known people on board. I call them IPR- intellectual property rights. India tv has its viewership increased on back of rajat sharma. It will help aaj tak in maintaing lead and thus raise advt. prices at regular intervals.
With 3rd round of digitisation set to be completed by dec. 2015 - operating leverage will increase more and gets fully reflected by mid 2017.
Results out…
Top line down 6%(127 vs 133)… Which is expected as last year general election has big impact on qtr…
Employee expense gone up 20% yoy and 10% QoQ …advertising and sales promo up90% yoy…18% QoQ …pat down 45% (27 vs 50)… 14 cr went towards rebranding headlines today to india today TV … They are making 45 cr investment in loss making mail today new s paper…there is significant other income both in last qtr and this qtr… Not sure what is it …
Next qtr will fully answer whether new channel will add value or not … As Bihar elections will give some additional pick up on topline
It’s better to look for a investment rationale than looking for a rationale for day to day movement.
From a long term point i agree with you! But sometimes these short term movements are indicators of long term trend in a stock. I looked at the Volkswagen chart for last 3 months it had a downward trend from past 3 months even though the scandal broke out couple of weeks back. Might just be a coincidence, but insider trading do happen and cannot be ignored.
The research report which are not publicly available, should not be shared on this platform nor it should have any links to those reports. This is clearly a copyright violation.
The TV Today chart looks interesting and has given a breakout from a descending triangle. The stock made a higher low before piercing the trendline upwards on high volume. After a steep fall due to the Dec quarter sluggish sales and margin pressures the stock seems to have recovered. The sales of its loss making radio stations will surely add a fillip to its profitablity. It is a zero debt company with a great ROCe. Disc - I have taken a beginning position in the stock at 278 with the expectation that the exit from the radio business substantiated by the price pattern will play out and power the stock ahead
After breaking out from the descending triangle TV Today ( posted above) seemed to have formed a pennant. Price has yet to breakout so the pattern is not confirmed yet. However, it looks increasingly likely that it will and one could pre-empt it by getting in early. The pennant will probably last for a few days.
As per my reasoning, analysts are predicting loss of revenue in coming quarters because of less advertisements from companies
Is this specific to TV today or due to gst they are assuming lower spends
Zee entertainment is also decreasing from last few days because of this (lower spends due to gst)
Thanks for the information; if you do have any links to these reports - kindly do share.
From what I am reading (at least skimming) - there should not be much impact to advertisement in general (print and non-print).
and the full report
https://drive.google.com/file/d/0B__jkUmZw_88bERzWFp5YlFZaTQ/view
