ICICI Direct has given Hold recommendation for TV Today Network with a target price of Rs. 280 in its research report issued on Feb 14, 2021

ICICI Direct’s research report on TV Today Network

TV Today reported a better-than-expected set of Q3FY21 numbers on the back of cost reduction and lower tax outgo. Operating revenue came in at Rs 223.6 crore, flattish YoY (up 0.5%) with TV broadcasting revenue at Rs 185.9 crore (3.4% YoY growth). Radio segment disappointed again with a straight eighth quarterly de-growth with revenues declining 54.4% YoY to Rs 2.1 crore as ad pricing remained low. Digital revenue recovered reported healthy growth of 20% YoY and came in at Rs 35.5 crore. EBITDA was at Rs 77.5 crore, up 27.5% YoY owing to lower marketing/distribution costs. EBITDA margin came in at 34.7%, up 734 bps YoY. The company shifted to lower corporate tax rate. Subsequently, PAT jumped 46% YoY to Rs 54.8 crore.

Outlook

We maintain our HOLD rating with a revised target price of Rs 280/share (at 9x FY22E earnings, earlier TP: Rs 240).

 

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