TV18 Group revenue growth over 90 per cent; net profit up 191pc

In the fourth quarter for which TV18's financial results are being published after its joint venture with CNBC was restructured, the television news software major has posted a revenue growth of 92 per cent year-on-year (YOY) at Rs169.42 million (from Rs.88.00 million). It's operating profit at Rs86.37 million (from Rs.30.82 million) increased 180 per cent YOY.

The operating margin was sustained at 50.98 per cent (from 35.02 per cent) while net profit at Rs62.09 million* (from Rs21.34 million*) increased 191 per cent YOY. The company's EPS was Rs4.00*

*excluding Forex gains / losses and deferred tax adjustment
Caution:

1. These results are not comparable to the previous year as after the restructuring of the JV with CNBC, the current results are based on a substantially different structure of revenues and costs as compared to results published for the previous year

2. While it is a statutory requirement to publish standalone results for TV18, they give an incomplete picture of the operations and can be misleading. Therefore, investors are advised to use consolidated figures for any correct analysis. Consolidated accounts include TV18 India and its subsidiary companies TV18 Mauritius, Eighteen Entertainment India, E18 and MCD.

Quarterly results are Not Comparable to the previous year quarter:

1. Broadcast costs were earlier being paid by CNBC India (the 51:49 JV company domiciled in Mauritius). TV18 was meeting these costs via an equity infusion in CNBC India. Accordingly, these broadcast costs were being capitalised in TV18's books. However, from July'03, these costs are being fully expensed in TV18's accounts

2. As a consequence of the restructuring, TV18 is required to pay a revenue share to CNBC Asia (earlier, under the 51:49 JV, no such revenue share was payable). Accordingly, this revenue share has been fully expensed in TV18's accounts starting July'03

3. In the earlier structure, there was a non-cash inventory split between CNBC and TV18. But in the new structure, CNBC Asia pays TV18 for purchase of inventory on CNBC-TV18