TV 18 Broadcasting (TV18) is the broadcasting arm of the Network18 group. The company has over the
years scaled up its business substantially and currently owns 27* channels (news, Hindi GEC, music,
and regional channels), up from the single CNBC TV18 channel that it owned ten years ago. Most of the
channels are in top three ranks in their respective segments.
Digitisation – subscribers’ revenue drivers: With the advent of digitisation, we expect the revenues for
the industry to increase on the back of higher subscription revenues as more subscribers are reported
vs the current structure of high level of under-reporting by local cable operators. In our view, the
biggest beneficiaries of digitisation will be leading broadcasters like TV18 as the increasing uptick in
subscription revenues will see a complete flow through to the bottom lines as there is not much
incremental cost involved.
In the recent months, the company has successfully raised Rs2,625 crore through the right issue for the
purpose of funding their recent acquisition of ETv group’s bouquet of regional entertainment channels
and news channel and to reduced the debt by Rs420 crore. We believe as a result, the company will
expand its viewership base and attract more diverse viewer base across our media properties, which
would improve profitability.
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