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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