Also this quarter is weakest for Tv18 as it comes after budget and before the festive season. I think that Tv 18 with a 80% business news space in our country and available at an expanded restructured market cap of Rs Rs 1600 crores is a solid concept with a favourable risk reward ratio.

Television Eighteen (TV18) has reported strong revenue surge of 56% in Q1FY07 at Rs416m, as it continues to capitalize upon its dominance in the business news genre and internet venture gains relevance (Rs51.5m revenues). EBITDA margin has improved by 50bp and PAT has risen sharply by 80%, at Rs144m aided by lower tax rate.

TV18 and the group companies have been the fastest in terms of adding newer growth drivers. Besides presence across the news genres (CNBC TV18, CNN IBN, Awaaz, Channel 7), TV18 is also rapidly scaling up its internet venture. TV18’s various internet properties (moneycontrol, commoditiescontrol, poweryourtrade, ibnlive, jobstreet and yatra online) offer scope to monetize as also attract high value. TV18 has also tied up with a private equity player (SAIF Partners) for its foray into the Home Shopping space (expected to be operational by Q4FY07). We believe that TV18 has highly attractive business model with multiple earnings avenue and its ability to scale up each of these business ventures. TV18 has also planned to raise capital aggregating Rs3bn to fund its new business ventures. Besides, TV18’s proposed restructuring offers significant potential to capture the value of GBN and newer ventures. Given the captivating business model, we reiterate our Outperformer call. The stock currently trades at 20x FY07E earnings and remains the top pick in the sector.

Captivating business model – Reiterate Outperformer
We like the fact that TV18 is seeding new growth drivers and each of them are not just scalable but also attract high
value. Confident of the strong growth momentum, TV18’s willingness to scout for newer avenues and two of the
strongest global broadcast properties (CNBC & CNN) on its side, TV18 is a captivating business model. We continue to maintain our Outperformer call.

Edited by prashantmohta - 01/Aug/2006 at 11:27pm

Tv18 stock was Up 10% today closed at 650.news was that FIIS can buy more in the stock.

GLOBAL BROADCAST NEWS LTD (GBN), A TV 18 GROUP CO.OWNER OF CNN IBN HAS ANNOUNCED FOR AN IPO TO RAISE 100 CR.HOW SHAREHOLDER WILL BE BENIFITTED FROM THIS STEP.FURTHER IF IT IS SPINOFF CASE THE CO.ALSO OWNED SEVERAL BUSINESSES.