TV18 Broadcast Ltd operates one of India's popular television broadcast networks.The company generate revenue primarily through the sale of advertisements, sponsorships and subscriptions of television channels and through theatrical and ancillary revenues of films The network reached an average of approximately 222.92 million television viewers in first quarter of the calendar year 2013.
It has channels such as CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD, CNN-IBN, IBN7 and IBN-Lokmat TV18 also operates a jointventure with Viacom, called Viacom18, which houses a portfolio of popular entertainment channels - Colors, Colors HD, MTV, SONIC, Comedy Central, VH1, Nick, Nick Jr. and NickTeen - and Viacom18 Motion Pictures, the group's filmed entertainment business. TV18 has also forayed into the Indian factual entertainment space through A+E Networks and operates History TV18. TV18 and Viacom18 have also formed a strategic joint venture called IndiaCast, a multi-platform'content asset monetization' entity mandated to drive domestic and international channels distribution, placement services and content syndication for the bouquet of channels from TV18, Viacom18 and other broadcasters.
After the compulsory digitalization,the broadcasters revenue is expected to grow at CAGR of 26 percent from 2012 to 2017. Increase in the declared subscriber base and aggregation of distribution on behalf of broadcasters is expected to drive up the share of subscription to total broadcaster revenue from 36 percent in 2012 to 48 percent in 2016. (Source: FICCI KPMG Report 2013).
The advertisement market is expected to grow at a CAGR of 14 percent over 2012-17. (Source:FICCI KPMG Report 2013).
The financials doesn't give much idea about the potential of industry in which the company is operating.All the channels of the company are market leaders in respective segments.The company had huge debt burden but with the rights issue the company managed to bring down debt considerably. Many doubt about the promoter quality but i think most of it is priced in the share price already. The company is showing signs of huge growth in coming years. At the cmp of 20 rs this is one of the best digitalization growth story that can be added to one's long term portfolio
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