Full year FY 19 have been released:
Revenues at ₹747 crores
EBITDA (₹237 crores) margin at 31.7% and Net Profit (₹130 crores) margin at 17.4%. RoE at 16.7%.
Just 4% growth in revenue & 5% growth in Net Profit (Maybe NTO wont be easy to steer through!.
Q4 has been pretty bad - Operating revenue at ₹166 crores vs 199 crores in Q3 and ₹181 crores in Q4’18.
Q4’19 EBITDA margin sharply down at 25% and Net margin at 12%.
just came across this link wherein it appears that the aaj tak/ india today app is owned by Living media, the holding company, im wondering why it shouldnt be housed in the listed entity, doesnt it reflect poor on the governance bit ?
This digital revenues are going up every quarter at more than 30%
hello sir, living media company is holding comapny of aditya birla group which owns 27.5% in tv today hopes this work to you
cheers
vimal agrawal
As per the 2018 annual report (page 4)
While Television continues to be important, Digital
will help the company drive exponential growth. The
Digital business is seen as the business of the future.
During the year, your Company acquired operations
of Digital Business from Living Media India Limited
(Holding Company) as a going concern on slump sale
basis. India Today Group has successfully expanded
its digital footprint with nine popular online video
channels – News Tak, Life Tak, Tech Tak, Sports Tak,
Food Tak, Astro Tak, Mumbai Tak, Bharat Tak and
Fit Tak. These Omni platform channels are creating
a new digital ecosystem under the Tak Brand nameMobileTak.in. In fact, Mobile Tak has become India’s
Fastest Growing Digital Video Brand with its 9 mobile
Source: https://www.bseindia.com/bseplus/annualreport/532515/5325150318.pdf
Also, as per the credit rating report
About the Company
TVTN is promoted by the India Today group. The company broadcasts 24-hour news channels Aaj Tak , Tez , and Dilli Aaj Tak (regional news) in Hindi, and India Today Television in English. The company also runs radio station ( Ishq 104.8 FM ) in Delhi, Mumbai, and Kolkata. TVTN acquired LMIL’s digital operations business in fiscal 2018. The digital business comprises Aaj Tak and India Today websites along with various social media and popular online video channels.
I am not sure what is current arrangement for digital properties/assets. It would be good to clarify with management, but it seems these digital assets are currently housed under the listed entity.
thanks for this, wasnt aware of this. The question then remains, why in first place the digital assets were built in the holding company and not in the listed company. The holding company has been in traditional print media business and the digital assets which I am presuming to be recently built should ideally have been built in the listed company instead of the hold co.
I think this company will not be affected by the shift to OTT. As news and broadcast sports are the only segments keeping TV alive even in a developed market like the US. Apart from that, it seems like they are reinvesting their profits from Aaj Tak to their website and app. Therefore, digital revenues keep growing. I personally think the management is very effective and great capital allocators. They recently closed down Dilli Aaj Tak, which might be another way they are streamlining their business. Thoughts?
Disc: Invested
They are good allocators of capital but they too made mistakes like venturing into radio and news paper business. But soon realised that they need to exit.
The problem in Hindi news is that there are no entry barriers. But some of the channels are running even with losses for example ndtv and zee.
Aaj Tak being the leader has only 20% market share. But revenue share is I think 40%.
It can be invested for a doubler in 3 years
Their digital revenues were 75 cr in 2019 which increased to 114 cr in 2020. As per management, digital will increase at a faster clip. Their EBIDTA in digital was 9 cr in 2019 while now it is 24 cr in 2020.
So operating leaverage is playing out here.
For example their television EBIDTA were same, radio losses widened but still their over all EBIDTA increased 5%.
Over time if they get rid of radio and only concentrate on tv and digital their over all probability will increase and that’s what management is trying.
I won’t be surprised this company clocking 200 cr profit figure in 2 to 3 years.
Even if modest pe is given it should be say 15 we get a 3 bagger here.
The valuation and business definately looks compelling, though im still trying to assess the integrity and competence of management. The mail today (newspaper business) was bought by the Company from the promoters in 2010 for 45 cr approx for which impairment charge is being recognized now. similarly in 2017-18 the digital business was bought out from the parent company for cash consideration. Arent these corporate governance issues ? The management compensation is also steep relative to the profitability of the company. Any insights on competence of Mrs Kallie Poorie as she is now at the helm ? Any other insights on ability and integrity of management will help, thanks
Promoter is buying. They paid dividend of rs 20 recently. They are hoarding cash but giving it away from time to time.
That purchase looked more like a cross trade than open market buying looking at the trade size and average volumes in market
It’s real promoter buying not any other trade.
The promoter bought 115,227 shares on 19th may and 184,000 shares on 20th may. The total corresponding volumes (NSE) on these days were 162007 and 214662 (note these are total volumes, the delivery volumes would be lesser). There hasnt been much price movement despite close to entire volume on these days being taken up by the promoter. Hence this looks a cross trade to me and not open market buying.
Delivery % on 19th was 86% while on 20th it was 96%. The bse announcement shows market purchase.
I think some experience boarders should come and help like Hitesh bhai
Any idea why they paid such a large dividend last year? Dividend payout ratio was 95% which was abnormally high compared to last few years.
The reason why they paid 20 Rs dividend last year is very simple. They generally pay less dividend every year compared to the cash they have. So when cash exceeded a lot they had no option but to give it back. So they are slow in paying but they do want to pay it back. May be they keep looking for some acquisitions. I feel next year again there is 20 Rs dividend is on cards as cash now stands at 400 crores. Next year it will be 500 crores. So who knows they may give even 30 rs.
isnt the stock under valued considering debt free, news oriented business (not subject to OTT disruption), etc? any insights into management integrity/ quality ?
To clear debt of parent… Now they are debt free… Go through credit rating reports… It will give you insight in business.
