TV Today Network Limited (NSE: TVTODAY, BSE: 532515) has announced the termination of its agreements with Creative Channel Advertising and Marketing Private Limited (CCAMPL), effectively cancelling the proposed sale of its FM radio operations. This decision marks a significant shift in the company's strategic plans for its radio business segment.

Key Developments

• Agreements Terminated: TV Today Network has ended two key agreements with CCAMPL:

  1. The Memorandum of Understanding (MoU) and its addendum for the proposed sale of FM Radio Broadcasting Operations.
  2. The Advertising Sales Agreement and its addendum.

• Affected Radio Stations: The cancelled sale would have included three FM radio stations operated by TV Today Network in Mumbai, Delhi, and Kolkata.

• CCAMPL's Withdrawal: According to the company's disclosure, CCAMPL communicated via email their inability to continue with the agreements, leading to their withdrawal.

Background and Timeline

The termination of these agreements comes after a series of earlier intimations to the stock exchanges:

• Initial disclosure of the proposed transaction
• Further updates on the agreements
• Additional information provided to shareholders and regulators

Implications for TV Today Network

The cancellation of the FM radio operations sale suggests that TV Today Network will retain its presence in the radio broadcasting sector. This decision could have significant implications for the company's future strategy and financial outlook in the media industry.

Regulatory Compliance

TV Today Network made this announcement in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both the BSE Limited and the National Stock Exchange of India Limited about this development.

Management Statement

Ashish Sabharwal, Group Head - Secretarial & Company Secretary & Compliance Officer of TV Today Network, signed off on the regulatory filing, emphasizing the company's commitment to keeping shareholders and the market informed of significant corporate decisions.

Investors and industry observers will likely be watching closely to see how this change in plans affects TV Today Network's overall business strategy and performance in the competitive Indian media landscape.

TV Today Network , a prominent player in the Indian media industry, has reported a significant downturn in its financial performance for the first quarter. The company's latest financial results reveal a stark contrast to its performance in the same period last year, with substantial declines across key financial metrics.

Net Profit Plummets

The most notable figure in the company's Q1 results is the sharp drop in net profit. TV Today Network reported a net profit of ₹7.40 crore, a dramatic decrease from ₹51.40 crore recorded in the corresponding quarter of the previous year. This represents a staggering 85.60% year-over-year decline in profitability.

Revenue Takes a Hit

The company's top line also suffered a considerable setback. Q1 revenue stood at ₹197.00 crore, down from ₹310.00 crore in the same quarter last year, marking a 36.45% decrease. This significant reduction in revenue indicates challenging market conditions or potential shifts in the media landscape affecting TV Today Network's operations.

EBITDA and Margin Compression

Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw an even more pronounced decline:

The EBITDA fell by a substantial 89.53%, from ₹71.60 crore to ₹7.50 crore. This decline was accompanied by a significant compression in the EBITDA margin, which dropped from 23.10% to 3.81%, a decrease of 19.29 percentage points.

Implications and Outlook

These results indicate a challenging quarter for TV Today Network, with pressures evident across all major financial metrics. The substantial declines in revenue, profitability, and operational efficiency suggest that the company may be facing headwinds in its core business areas.

While the specific reasons for this performance decline are not detailed in the available data, factors such as changing viewer preferences, increased competition in the media space, or broader economic challenges could be contributing to these results.

Stakeholders and market observers will likely be watching closely to see how TV Today Network responds to these challenges and what strategies it may implement to improve its financial performance in the coming quarters.