TV18 Broadcast shares plunge over 7% after net profit falls 96% YoY

Shares of media firm TV18 Broadcast plunged nearly 7% to Rs 35 in Wednesday's intraday trade after the company reported a 96% year-on-year (YoY) decline in its consolidated net profit to Rs 10.28 crore for the second quarter of 2022.

The company had posted a net profit of Rs 231.40 crore for the September quarter of the previous fiscal.

However, TV18 Broadcast’s consolidated revenue from operations rose by 13% to Rs 1,473.43 crore compared with Rs 1,307.90 crore in the corresponding quarter a year ago. Its total expenses were at Rs 1,485.95 crore, up 35% YoY from Rs 1,104 crore earlier.


According to the firm, economic sentiment remained weak during the quarter with high inflation posing a challenge for companies, especially in the FMCG sector.

During the quarter, brands held back advertising spends on new product launches and sustenance campaigns. Advertising spends by startups and e-commerce players also declined due to the difficult fund-raising environment, TV18 Broadcast said in a statement.

"Total TV ad inventory declined by 3% on a YoY basis with the news category seeing a drop of nearly 10%. As a result, the ad revenue of our entertainment segment was flat YoY while news ad revenue saw a decline. The entertainment business was also affected by the drop in Colors Rishtey revenue," it added.

At 10.39 am, the stock was trading 5% lower at Rs 35.70 over the last previous day’s closing price of Rs 37.55 apiece. The stock has fallen nearly 52% in the last six months, while it has given a negative return of 23% year-to-date.