TV 18 Q4 net rises 81 per cent on strong volume growth

TV 18 group, the largest electronic media house in the country, has reported fourth quarter and full year 2005-06 results, which are in line with expectations. The company substantially improved operating revenues from its various business segments while achieving better operating margins as well.

For the quarter ended March 31, 2006, consolidated net profits increased 52.59 per cent to Rs15.3 crore from Rs10.03 crore for the previous year quarter. Total consolidated revenues increased 66.5 per cent to Rs53.51 crore from Rs32.14 crore during the previous year quarter.

Adjusted for extraordinary expenses of Rs3.43 crore towards employee stock options, net profits for the quarter increased 81.24 per cent over the previous year quarter.

Revenues from television operations increased 52.67 per cent over the previous year quarter while internet revenues jumped nearly five fold to Rs6.04 crore from Rs1.04 crore.

Operating profits increased 91.34 per cent to Rs28.58 crore from Rs14.94 crore for the previous year quarter. Operating margins as a percentage of operating revenues, after considering revenue share with CNBC, improved to 56.41 per cent from 46.47 per cent.

For the full year 2005-06, consolidated net profits increased 13.22 per cent to Rs37.25 crore from Rs32.9 crore for the previous year. Consolidated revenues increased 54.44 per cent to Rs152.01 crore from Rs98.43 crore.

During the year, the company incurred an expense of Rs5.76 crore towards employee stock options. Adjusted for this extra-ordinary expense, net profits for the full year increased 24.25 per cent.

Operating profits for the full year increased 63.94 per cent to Rs75.29 crore from Rs45.93 crore during the previous year. Operating margins as a percentage of operating revenues, after considering revenue share with CNBC, improved to 49.43 per cent from 46.66 per cent during the previous year.

Television revenues increased 47.38 per cent over the previous year while internet revenues jumped 290 per cent.

Interest costs for the full year increased by 123.68 per cent while depreciation charges went up by 42.14 per cent. Tax provision, including deferred taxes, increased substantially to Rs12.61 crore from a credit of Rs65 lakh for the previous year.

The TV18 group had announced a restructuring plan to consolidate its holdings in various television properties like CNBC-TV18, CNN-IBN, Awaaz etc. The group has also announced the consolidation of its internet properties like moneycontrol.com and commoditycontrol.com under a separate company.