TV Today Network reported quarterly revenue growth of 46.9% year-over-year to Rs78.9 crore, aided by steady growth in its broadcasting business and the amalgamation of its radio business. However, the company reported a loss of Rs10.1 crore for the quarter compared to a profit of Rs8.1 crore last year, with its operating margin contracting significantly, owing to losses incurred in its newly amalgamated radio business. For the full year, TV Today reported revenue growth of 13.9% but net profit declined 7.9% due to a Rs38 crore loss in the radio business. The analyst downgraded the stock to Neutral given losses in the radio business and a

1. 4QFY2010 Result Update I Media
May 24, 2010
TV Today Network NEUTRAL
CMP Rs103
Performance Highlights Target Price -
During the quarter, TV Today (TVTN) amalgamated its radio broadcasting Investment Period -
business of Radio Today Broadcasting Ltd (RTBL), effective from April 1, 2009.
Hence, the current quarter’s results and the FY2010 financials include the full Stock Info
year’s results of operations of RTBL and are not comparable yoy or qoq. After Sector Broadcasting
strong revenue traction in the broadcasting business and amalgamation of the
Radio business, we have revised our Top-line estimates for TVTN marginally Market Cap (Rs cr) 597
upwards by 3-4%. However, on the Operating front, we have cut our Margin Beta 1.2
estimates by 250-350bp to model in losses incurred in the Radio Business. We
downgrade the stock to Neutral. 52 WK High / Low 152/76
Avg. Daily Volume 397,908
Broadcasting business on steady footing; Radio drags Bottom-line: TVTN
reported a Top-line growth of 46.9% yoy to Rs78.9cr (Rs53.7cr), aided by Face Value (Rs) 5
steady growth in its broadcasting business and the amalgamation of its Radio
BSE Sensex 11,516
business. In terms of Earnings, the company reported a loss of Rs10.1cr (Profit
of Rs8.1cr) and its Operating Margin contracted by 596bp yoy to 3.5% Nifty 4,944
(9.5%), owing to losses incurred in its Radio business. Earnings for the quarter
Reuters Code TVTO.BO
were also impacted due to a significant dip in Other Income to a loss of
Rs0.1cr (Income of Rs8.9cr), as loans advanced to the Radio subsidiary to the Bloomberg Code TVTN @IN
tune of Rs55cr were reversed post-amalgamation. For the full year FY2010,
TVTN reported a Top-line of Rs285cr (Rs266.6cr advertising revenue, Rs14cr Shareholding Pattern (%)
subscription revenue and Rs4.4cr radio revenue). Earnings for the year Promoters 55.9
declined to Rs31cr, due to a Rs38cr loss in the Radio business.
MF/Banks/Indian FIs 37.3
Outlook and Valuation: Going ahead, we expect TV Today to post a CAGR of FII/NRIs/OCBs 0.1
14.2% in its Top-line and 40% in Earnings (due to a low base in FY2010, after
the radio amalgamation) during FY2010-12E. Earnings for the period are Indian Public 6.7
likely to be boosted due to a lower Tax rate on account of accumulated losses Abs. (%) 3m 1yr 3yr
in the Radio business. While amalgamation of the Radio business and the
strategic investment into Mail Today indicate some signs of aggression (key Sensex 1.3 18.6 15.8
investor concern over the past several years), substantial losses in both the
businesses and a lack of clarity are likely to act as overhangs on TV Today’s TVTN (8.0) 3.6 (35.0)
stock price. Hence, we downgrade the stock to Neutral, with a Fair Value of
Rs102 (based on 10x FY2012E EPS).
Key Financials (Standalone)
Y/E March (Rs cr) FY2009 FY2010E FY2011E FY2012E
Net Sales 250 285 328 371
% chg 8.1 13.9 15.1 13.3
Net Profit (Adj) 34 31 53 61
% chg (23.2) (7.9) 71.5 14.6
OPM (%) 17.6 18.3 21.5 23.7
EPS (Rs) 5.6 5.2 8.9 10.2
P/E (x) 17.8 19.4 11.3 9.8 Anand Shah
P/BV (x) 1.8 1.7 1.5 1.3 Tel: 022 – 4040 3800 Ext: 334
E-mail: anand.shah@angeltrade.com
RoE (%) 10.4 8.9 13.4 13.5
RoCE (%) 7.7 8.1 11.2 12.7
Chitrangda Kapur
EV/Sales (x) 1.8 1.5 1.3 1.1
Tel: 022 – 4040 3800 Ext: 323
EV/EBITDA (x) 9.9 8.3 5.8 4.6 E-mail: chitrangdar.kapur@angeltrade.com
Source: Company, Angel Research
1
Please refer to important disclosures at the end of this report Sebi Registration No: INB 010996539

2. TVTN I 4QFY2010 Result Update
Exhibit 1: Financial Performance Update
Y/E March (Rs cr) 4QFY10 4QFY09 % chg FY2010 FY2009 % chg
Net Sales 78.9 53.7 46.9 284.8 250.0 13.9
Employee Cost 25.1 16.0 57.2 83.0 69.9 18.7
(% of sales) 31.9 29.8 29.2 28.0
Transmission & Prod. 13.8 6.8 103.3 35.9 26.9 33.4
(% of sales) 17.5 12.6 12.6 10.8
Advt. & Dist Cost 16.5 16.9 (2.0) 60.3 67.5 (10.7)
(% of sales) 20.9 31.4 21.2 27.0
Other Expenditure 20.7 9.0 130.3 53.6 41.6 28.9
(% of sales) 26.2 16.7 18.8 16.6
Total Expenditure 76.1 48.6 56.6 232.8 205.9 13.0
Operating Profit 2.8 5.1 (45.2) 52.1 44.1 18.1
OPM (%) 3.5 9.5 18.3 17.6
Interest 6.9 0.1 7.0 0.1
Depreciation 8.3 4.6 78.9 21.1 19.4 8.6
Other Income (0.1) 8.9 23.1 24.2 (4.6)
PBT (excl Ext. Items) (12.5) 9.3 47.0 48.7 (3.5)
Ext Income/(Exp.) 0.0 0.0 (0.0) 0.0
PBT (Incl. Ext Items) (12.5) 9.3 47.0 48.7 (3.6)
(% of Sales) (15.9) 17.3 16.5 19.5
Prov. for Taxation (2.5) 1.2 16.1 15.2 6.1
(% of PBT) 19.6 12.7 34.3 31.2
Recurring PAT (10.1) 8.1 30.9 33.5 (7.9)
PATM (%) (12.8) 15.1 10.8 13.4
Reported PAT (10.1) 8.1 30.9 33.5 (8.0)
Equity Shares (cr) 5.8 5.8 5.8 5.8
EPS (Rs) (1.7) 1.4 5.3 5.8
Source: Company, Angel Research; Note: Numbers not comparable due to merger of Radio business
Radio business transfer complete
During the quarter, TV Today completed the transfer of its radio broadcasting
business of Radio Today Broadcasting Ltd (RTBL), effective from April 1, 2009. RTBL
runs India's first talk-based, women-centric radio station under the banner of Meow
104.8 FM in seven cities (Delhi, Mumbai, Kolkata, Amritsar, Patiala, Shimla and
Jodhpur). In accordance, TV Today will issue 1.66mn equity shares to the equity
shareholders of RTBL, in a ratio of 1 equity share for every 6 equity shares held in
RTBL, leading to an equity dilution of 2.8% in TV Today. Consequent to the merger,
the company is eligible for Tax benefits, due to carry forward losses of the erstwhile
RTBL.
For FY2010, the Radio business registered a Top-line of Rs4.4cr, and losses of
Rs22cr and Rs38cr at the EBIT and PAT levels, respectively. The same have been
consolidated for the full year in 4QFY2010.
Forays into Print Media via Mail Today
TV Today has made a strategic investment in Mail Today Newspapers Pvt. Ltd.
(MTNPL), a JV between the India Today Group and Daily Mail of London (part of the
Associated Newspapers Group), by making an advance payment of Rs18.5cr
towards subscribing to the equity shares of MTNPL. The management has indicated
that it will be investing a total amount of Rs45cr for a ~10-12% stake in Mail Today.
Mail Today, established in November 2007, is a daily newspaper in the compact
format, published by MTNPL. Currently, there is one edition of the paper published
from Delhi, which consists of 48 pages.
May 24, 2010 2

3. TVTN I 4QFY2010 Result Update
Outlook and Valuation
The current quarter’s results and FY2010 financials include the full year’s results of
operations of RTBL; hence, these are not comparable yoy or qoq.
After the strong revenue traction in the broadcasting business (reflected in the
4QFY2010 results) and amalgamation of the Radio business, we have revised our
Top-line estimates for TVTN marginally upwards by 3-4%, modeling in: 1) a 14%
CAGR in Advertising revenues (Headlines Today has gained marketshare in English
News by 500-600bp to ~17% YTD), 2) Subscription revenues of Rs17cr and Rs19cr
in FY2011E and FY2012E, respectively (reported ~Rs14cr in FY2010), and 3) Radio
revenues of Rs6cr and Rs7.5cr in FY2011E and FY2012E, respectively (reported
Rs4.4cr in FY2010).
However, on the Operating front, we have cut our Margin estimates by 250-350bp,
despite a Margin improvement in the Broadcasting business (TVTN has saved
substantially to the tune of ~Rs20cr in carriage fees for FY2010), to model in losses
incurred in the Radio Business (Incurred a Rs22cr loss at the EBIT level and Rs38cr at
the PAT level in FY2010). On a conservative basis, we have assumed Radio losses to
remain at similar levels, despite the potentially synergistic benefits after the
amalgamation with TVTN. Hence, our Earnings estimates have been revised
downwards by 10-13%.
Exhibit 2: Revision in Estimates
Old Estimate New Estimate % chg
(Rs cr) FY2011E FY2012E FY2011E FY2012E FY2011E FY2012E
Revenue 314 360 328 371 4.2 3.1
OPM (%) 25 26 22 24 (337bp) (261bp)
EPS 10 12 9 10 (10.3) (12.7)
Source: Company, Angel Research
Going ahead, we expect TV Today to post a CAGR of 14.2% in its Top-line and 40%
in Earnings (due to a low base in FY2010, after the radio amalgamation) during
FY2010-12E. Earnings for the period are likely to be boosted due to a lower Tax
rate, on account of accumulated losses in the Radio business. The management has
indicated that debt has increased to Rs35cr (due to amalgamation of the radio
business) and cash on books stands at Rs120-130cr.
While the amalgamation of the Radio business and strategic investment into Mail
Today indicate some signs of aggression (key investor concern over the past several
years), substantial losses in both the businesses and a lack of clarity are likely to act
as overhangs on TV Today’s stock price. Hence, we downgrade the stock to Neutral,
with a Fair Value of Rs102 (based on 10x FY2012E EPS).
Key upside risks to our estimates include: 1) A Significant reduction in the losses of
the Radio business, and 2) The Launch of new channels (possible after shifting to the
new office premise in 2HFY2011).
May 24, 2010 3

4. TVTN I 4QFY2010 Result Update
Profit & Loss Statement (Standalone) Rs crore
Y/E March FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Gross sales 189 231 250 285 328 371
Less: Excise duty - - - - - -
Net Sales 189 231 250 285 328 371
Total operating income 189 231 250 285 328 371
% chg 18.5 22.2 8.1 13.9 15.1 13.3
Total Expenditure 137 169 206 233 257 283
Cost of Material 21 27 27 36 42 47
SG&A Expenses 34 46 68 60 66 72
Staff Costs 45 55 70 83 90 101
Other Expenses 37 40 42 45 51 55
EBITDA 52 63 44 52 71 88
% chg (0.2) 20.3 (29.6) 18.1 35.5 24.7
(% of Net Sales) 27.5 27.1 17.6 18.3 21.5 23.7
Depreciation 17 16 19 21 24 29
EBIT 35 47 25 31 46 59
% chg 1.6 33.0 (47.0) 25.5 49.5 26.6
(% of Net Sales) 18.5 20.1 9.9 10.9 14.1 15.8
Interest & other Charges 0 0 0 7 4 2
Other Income 14 20 24 23 24 24
(% of PBT) 27.9 30.5 49.7 49.1 36.2 30.1
Share of Associates - - - - - -
Recurring PBT 48 67 49 47 66 81
% chg 13.4 38.1 (27.1) (3.5) 40.9 22.3
Extr. Exp./(Inc.) - - - (0) - -
PBT (reported) 48 67 49 47 66 81
Tax 17 23 15 16 13 20
(% of PBT) 35.1 34.6 31.2 34.3 20.0 25.0
PAT (reported) 31 44 34 31 53 61
Add: Share of associates - - - - - -
Less: Minority interest (MI) - - - - - -
PAT after MI (reported) 31 44 34 31 53 61
ADJ. PAT 31 44 34 31 53 61
% chg 12.8 39.1 (23.2) (7.9) 71.5 14.6
(% of Net Sales) 16.6 18.9 13.4 10.8 16.2 16.4
Basic EPS (Rs) 5.4 7.5 5.8 5.3 8.9 10.2
Fully Diluted EPS (Rs) 5.3 7.4 5.6 5.2 8.9 10.2
% chg 12.8 39.1 (23.2) (8.0) 71.7 14.6
May 24, 2010 4

5. TVTN I 4QFY2010 Result Update
Balance Sheet (Standalone) Rs crore
Y/E March FY2007 FY2008 FY2009 FY2010E FY2011E FY2012E
SOURCES OF FUNDS
Equity Share Capital 29 29 29 29 30 30
Preference Capital - - - - - -
Reserves& Surplus 226 264 293 319 366 422
Shareholders Funds 255 293 322 347 396 452
Minority Interest - - - - - -
Total Loans 4 - - 35 20 10
Deferred Tax Liability 3 2 (2) (2) (2) (2)
Total Liabilities 262 295 320 381 414 460
APPLICATION OF FUNDS
Gross Block 160 157 162 190 243 309
Less: Acc. Depreciation 73 79 97 119 143 172
Net Block 88 78 65 71 100 137
Capital Work-in-Progress 10 8 31 38 24 22
Goodwill - - - - - -
Investments 55 110 53 73 98 98
Current Assets 224 160 227 264 268 288
Cash 80 49 91 111 95 92
Loans & Advances 78 32 70 83 95 108
Other 65 80 65 71 78 89
Current liabilities 115 60 56 66 76 86
Net Current Assets 109 100 171 198 192 203
Mis. Exp. not written off 0 - - - - -
Total Assets 262 295 320 381 414 460
Cash Flow Statement (Standalone) Rs crore
Y/E March FY2007 FY2008 FY2009 FY2010E FY2011E FY2012E
Profit before tax 48 67 49 47 66 81
Depreciation 17 16 19 21 24 29
Change in Working Capital (1) (21) (27) (7) (10) (12)
Interest / Dividend (Net) (6) (11) (11) (2) (6) (11)
Direct taxes paid 17 23 15 16 13 20
Others (6) (1) (9) (7) (4) (4)
Cash Flow from Operations 35 27 5 35 57 64
Inc./ (Dec.) in Fixed Assets (14) (6) (29) (35) (39) (64)
Inc./ (Dec.) in Investments (15) (52) 62 (20) (25) 0
Cash Flow from Investing (29) (58) 34 (55) (64) (64)
Issue of Equity 0 0 (0) (0) 1 0
Inc./(Dec.) in loans (0) (4) 0 35 (15) (10)
Dividend Paid (Incl. Tax) 5 5 5 5 5 5
Interest / Dividend (Net) (7) (9) (9) (9) (10) (12)
Cash Flow from Financing 2 (1) 3 39 (9) (3)
Inc./(Dec.) in Cash 8 (32) 42 20 (16) (3)
Opening Cash balances 72 80 49 91 111 95
Closing Cash balances 80 49 91 111 95 92
May 24, 2010 5

6. TVTN I 4QFY2010 Result Update
Key Ratios
Y/E March FY2007 FY2008 FY2009 FY2010E FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) 19.0 11.2 21.7 11.5 10.5 9.3
P/CEPS 12.0 10.1 17.6 9.9 9.1 8.1
P/BV 2.3 2.8 2.6 2.3 2.0 1.8
Dividend yield (%) 0.7 0.7 0.7 0.7 0.7 0.7
EV/Sales 2.4 1.8 1.8 1.5 1.3 1.1
EV/EBITDA 8.7 6.8 9.9 8.3 5.8 4.6
EV / Total Assets 1.7 1.4 1.4 1.1 1.0 0.9
Per Share Data (Rs)
EPS (Basic) 5.4 7.5 5.8 5.3 8.9 10.2
EPS (fully diluted) 5.3 7.4 5.6 5.2 8.9 10.2
Cash EPS 8.3 10.3 9.1 9.0 13.0 15.2
DPS 0.8 0.8 0.8 0.8 0.8 0.8
Book Value 43.9 50.6 55.5 60.1 66.6 76.0
Dupont Analysis
EBIT margin 18.5 20.1 9.9 10.9 14.1 15.8
Tax retention ratio 0.6 0.7 0.7 0.7 0.8 0.8
Asset turnover (x) 0.3 0.4 0.2 0.2 0.2 0.2
ROIC (Post-tax) 3.3 4.7 1.1 1.2 2.5 2.8
Cost of Debt (Post Tax) - - - - - -
Leverage (x) (0.5) (0.5) (0.5) (0.4) (0.4) (0.4)
Operating ROE 1.7 2.2 0.5 0.7 1.4 1.6
Returns (%)
RoCE (Pre-tax) 14.0 16.7 8.0 8.8 11.6 13.4
Angel RoIC (Pre-tax) 27.6 35.3 15.8 16.6 22.1 23.9
RoE 13.0 16.0 10.9 9.2 14.3 14.3
Turnover ratios (x)
Asset Turnover (Gross Block) 1.2 1.5 1.6 1.6 1.5 1.3
Inventory / Sales (days) - - - - - -
Receivables (days) 126 126 95 91 87 87
Payables (days) 78 83 67 71 71 72
W.cap. cycle (ex-cash) (days) 56 81 117 112 108 109
Solvency ratios (x)
Net debt to equity (0.5) (0.5) (0.4) (0.4) (0.4) (0.4)
Net debt to EBITDA (2.5) (2.5) (3.3) (2.9) (2.5) (2.0)
Interest Coverage (EBIT / Interest) 286.1 495.9 180.5 4.4 11.6 29.3
May 24, 2010 6

7. TVTN I 4QFY2010 Result Update
Research Team Tel: 022- 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
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Disclosure of Interest Statement TVTN
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies’ Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below Rs 1 lakh for Angel and its Group companies.
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Tel : (022) 3952 4568 / 4040 3800
Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE:
INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946
Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM /
CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302
May 24, 2010 7