TV9 group revenues touch Rs 200 crore in FY 18

 

HYDERABAD, May 13: Associated Broadcasting

Company Pvt Ltd (ABCPL), which operates a host of new channels

in different languages under TV9 logo, has recorded 21 per

cent growth in revenue to a little over Rs 200 crore in FY 18.

The company made Rs 5.86 crore profit after tax

during the year, according to Care Ratings.

ABCPL was recently in the news after its CEO and

whole-time director Ravi Prakash was shown the door on

allegations of forgery, among other charges.

Alanda Media and Entertainments had acquired over 90

per cent stake in ABCPL last year.

“This (growth in FDY 18) is primarily on account of

Telangana and Karnataka TV9 channels gaining popularity and

ability of the channels to maintain its leadership position,”

Care said in a rating report.

Maintaining leadership position was possible with

its effective marketing and selling strategies resulting in

increased revenues, Care said.

Care Ratings assigned ‘CARE BBB, Stable’ to ABCPLs

Rs 25-crore long-term bank facilities and Care A3 to

short-term bank facilities of Rs 15 crore in its recent

report.

The rating assigned to the bank facilities of

ABCPL derives strength from strong and experienced management

team, financial strength of promoters, leading position of its

channels namely TV9 Telugu, TV9 Kannada and TV9 Gujarati, the

rating agency said.

Early FY 19, Chintalapati Holdings, iLabs Venture

Capital Fund and minority shareholders sold their stake to

Alanda Media totalling 90.54 per cent as on date.

Alanda is promoted by group of individuals, who

are related to the city-based ‘My Home Group’ the turnover of

which is around Rs 4,000 crore, and Megha Engineering and

Infrastructure Limited (MEIL).

Both the groups have diversified business

activities with huge net worth base.

ABCPL presently operates d7 free-to-air channels

and hence depends upon the advertising income.

ABCPL’s flagship channels namely TV9 Telugu, TV9

Kannada and TV9 Gujarati holds leadership position in their

respective regions and have significant contribution to the

revenue.

During March 2019, ABCPL launched its prime PAN

India Hindi news Channel free to air ‘TV9 Bharatvarsh’.

ABCPL faced high geographical concentration risk

with majority of the revenue around 80 per cent accounted from

channels based in Telangana and Karnataka.

However, the media house achieved positive Y-o-Y

overall growth of 20.67 per cent in FY 18.

Further, with the introduction of TV9 Bharatvarsh,

ABCPL is envisaged to lower the geographical concentration

risk to a greater extent, the rating agency added. (PTI)
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