Buzzing Stock: Shares of TV18 Broadcast have rallied 13% in one week

TV industry saw all-time high advertising volumes in the third quarter driven by strong consumer demand, increased spending by existing brands for a higher share of voice.

Shares of TV18 Broadcast Limited has rallied 13.29% in the past 5 trading sessions and were among the top gainers on the S&P 500 intraday today, up 4.90% as of 1.15 pm. Let us understand the drivers behind the stock price movement.

TV18 Broadcast Ltd operates as a television broadcasting network. It engages in entertainment channels, news broadcasting, digital content, and allied businesses. The company was founded by Raghav Bahl on June 6, 2005, and is headquartered in Noida, India.

The company reported its results for the quarter ended December 2021 this week, in which it reported its highest-ever quarterly revenue of Rs 1,567 crore, up 15.15% YoY despite the pandemic induced headwinds faced by the movie business. Its PBIDT (Ex Other Income) also came at a record high of Rs 355.02 crore with margins of 22.65% for the October-December 2021 quarter (Q3FY22). In Q3FY21, operating EBITDA and margin stood at Rs 320.70 crore and 23.56%, respectively. However, consolidated PAT de-grew 6.23% YoY to Rs 200.34 crore from Rs 213.65 crore in a year-ago quarter.

The TV industry has seen all-time high advertising volumes in the third quarter driven by strong consumer demand, increased spending by existing brands for a higher share of voice and new advertisers using the medium to widen their reach. Buoyed by the advertising demand and a robust viewership share, both Entertainment and News businesses delivered strong growth in advertising revenues with YTD revenues surpassing the full-year FY21 level, the company said.

Addressing the shareholders of the company, Chairman Adil Zainulbhai has stated that the company is building a strong and sustainable media franchise that not only delivers quality content to the Indian audience but also value to the shareholders. He added that as content consumption continues to grow across mediums, the company aims is to build platforms of choice for consumers looking for news and entertainment content in their local languages, movies and leading sports events.

At 1.15 pm on Thursday, the stock of TV18 Broadcast Limited was seen trading at Rs 54.55, up by 4.90% or Rs 2.55 per share as against a 1.03% decline on the benchmark index. The 52-week high of the scrip is recorded at Rs 55.80 and the 52-week low at Rs 26.05 on the BSE.