NDTV bottom-line black despite revenue decline in Covid2019 quarter

Operating revenue declined 34 percent y-o-y in Q1 2021

BENGALURU: The Prannoy and Radhika Roy-led Indian media house New Delhi Television Ltd (NDTV) reported 33.7 percent lower year-on-year (y-o-y) consolidated revenue from operations for the quarter ended 30 June 2020 (Q1 2021, quarter or period under review) as compared to the corresponding quarter of the previous year Q1 2020 and 21.5 percent lower than that reported for the immediate trailing quarter Q4 2020. Despite the sharp drop in consolidated operating revenue, the company reported consolidated profit after tax (PAT) of Rs 7.55 crore for the quarter under review, albeit 54.7 percent lower than the Rs 16.66 crore in Q1 2020 and 17.9 percent lower q-o-q than the Rs 9.20 crore reported for Q4 2020.  Reported consolidated operating revenues for Q1 2021, Q1 2020 and Q4 2020 were Rs 72.73 crore, Rs 109.67 crore and Rs 92.60 crore respectively.  All figures mentioned in this paper are consolidated unless stated otherwise.

Total income including other revenue for Q1 2021 declined 35 percent y-o-y to Rs 74.02 crore from Rs 113.87 crore in Q1 2020 and declined 27.4 percent from Rs 102 crore in Q4 2020. Calculated consolidated operating profit or simple operating EBITDA for the period under consideration was 36.8 percent lower y-o-y at Rs 15.98 crore (22 percent of operating revenue) as compared to Rs 25.29 crore (23.1 percent of operating revenue) for Q1 2020, but 40.4 percent higher q-o-q than the Rs 11.38 crore (12.3 percent of operating revenue) for Q4 2020.

Even before the lockdown, the company has been cutting expenses. Consolidated total expenses for Q1 2021 declined 31.2 percent y-o-y to Rs 64.64 crore from Rs 93.96 crore in Q1 2020 and were 27.8 percent lower q-o-q than the Rs 89.49 crore in Q4 2020.  Production expenses and cost of services in Q1 2021 declined 52.5 percent y-o-y to Rs 11.47 crore from Rs 24.16 crore in Q1 2020 and fell 43.6 percent q-o-q from Rs 20.32 crore in Q4 2020. Employee benefits expenses in Q1 2021 were 28.8 percent lower y-o-y at Rs 22.39 crore as compared to Rs 31.46 crore in Q1 2020 and declined 24.2 percent q-o-q from Rs 29.54 crore in Q4 2020.

Finance costs declined 11.4 percent y-o-y during the period under review to Rs 2.57 crore from Rs 2.90 crore in Q1 2020, but increased 1.6 percent q-o-q from Rs 2.53 crore in Q4 2020. Operating and administrative expenses for Q1 2021 fell 13.5 percent y-o-y to Rs 14.28 crore from Rs 16.51 crore and reduced 32.2 percent q-o-q from Rs 21.07 crore in Q4 2020. Marketing, distribution and promotional expenses for Q1 2021 were 29.7 percent lower y-o-y at Rs 8.61 crore as compared to Rs 12.25 crore in the corresponding quarter of the previous year and 16.3 percent lower q-o-q that the Rs 10.29 crore in the immediate trailing quarter.

NDTV has two segments – television, media and related operations; and retail/e-commerce. NDTV has reported nil revenue and nil result for the latter for Q2 2021.

Television segment operating revenue declined 33.3 percent y-o-y in Q1 2021 to Rs 72.73 crore from Rs 108.98 crore in Q1 2020 and was 20.8 percent lower q-o-q than Rs 91.80 crore in Q4 2020. NDTV reported 46.8 percent y-o-y decline in operating profit before exceptional items, share in profit/ (loss) of associate/ joint ventures, interest and tax to Rs 14.70 crore in Q1 2021 from Rs 27.64 crore in Q1 2020 and 20.7 percent lower than Rs 18.54 crore in Q4 2020.

In note 1 of NDTV’s financial statement it is explained that parent company, which runs television business, has earned a standalone net profit of Rs 4.42 crore (Rs 442 lakh) during the quarter ended 30 June 2020 and, as of that date, the parent company’s current liabilities exceed its current assets by Rs 79.35 crores (Rs 7935 lakh). These conditions, along with other matters described in the note, indicate that a material uncertainty exists that may cast significant doubt on the ability of the parent company to continue as a going concern. The management has stated that the parent company has initiated certain strategic and operational measures included in note one to mitigate the uncertainty. Accordingly, they have prepared the statement on a going concern basis.

Follow Tellychakkar for the consumer facing news & entertainment

Latest Reads
Arnab Goswami to voluntarily, publicly disclose all his financial dealings

MUMBAI: Clearly, the face-off between the Maharashtra government led by Uddhav Thackeray, the Mumbai police led by its chief Param Bir Singh and Republic Media promoter and editor-in-chief Arnab Goswami is not going to end quickly or easily.

Television TV Channels News Broadcasting
Women viewership in sports show a steady growth, but are the brands ready?

New Delhi: It has been long believed that television mostly provides content aimed at its women viewers. The family dramas and reality shows have pivoted around this notion and advertisers have made the most of it to reach out to their rooted female audiences.

Television TV Channels Viewership
Animal Planet ropes in A-Capella group RaagaTrippin’ for a Republic Day special music video

MUMBAI: This Republic Day, Animal Planet is releasing a soulful natural symphony music video in association with RaagaTrippin’, the famous Indian A-capella group known for creating instrument-free music. This unique rendition of the famous patriotic song ‘Saare Jahaan Se Achha’ composed through...

Television TV Channels Factual
I worked with my team to ensure manipulation of TRP ratings: Partho Dasgupta

NEW DELHI: One of the prime accused in the alleged TRP manipulation scam, former BARC CEO Partho Dasgupta, in a written statement has admitted to getting money from Arnab Goswami in return for rigging the TRPs to make Republic Network lead the charts, Indian Express reported. He claimed that...

Television TV Channels Viewership
This Republic Day, HistoryTV18 brings viewers true stories of courage and sacrifice in Kargil War

India, January, 2021: 21 years after the Kargil War, the sacrifices of India’sbrave still remain etched in the nation’scollective memory. The war began with the infiltration of Pakistani troops into Indian territory in May 1999. After 60 daysof fierce fighting, the war ended with the Indian Army...

Television TV Channels Viewership
Republic Media Network alleges collusion between Times Network & Congress

The TRP scam that was unearthed by Mumbai Police on 8 October 2020 has brought the industry to a new low. Multiple broadcast networks have been attacking each other while the former leaders of the rating agencies have come under the scanner of investigation agencies.

Television TV Channels Viewership
ET Now launches programming line up for union budget 2021

In the run-up to Union Budget 2021, ET Now has announced an exclusive programming line-up with the theme, ‘Vaccine For Growth’. The budget programming is set against the agenda for India's ambitions to become a $5 trillion economy, as the country sees silver linings after the Covid2019 outbreak.

Television TV Channels News Broadcasting
What will James Murdoch and Uday Shankar invest in?

James Murdoch and Uday Shankar have announced a new joint initiative to invest in health care, online education and digital media initiatives in India. We all know that. For James, the partnership is expected to be a major priority and the centre of gravity for his $2 billion Lupa Systems,...

Television TV Channels People
Barc week 2: Star Plus, Colors & Sony Sab continue to remain top three channels on pay platform

MUMBAI: Star Plus, Colors, and Sony Sab have continued to remain in the list of top three channels on pay platform in week two (Saturday 9 January 2021 to Friday 15 January 2021) of Broadcast Audience Research Council of India (BARC) data. &TV, too, has retained its hold on the number 10 slot...

Television TV Channels Viewership

Sign up for our Newsletter

subscribe for latest stories

* indicates required