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Stringent cost cutting measures have helped TV18 Broadcast Ltd (a listed subsidiary of Network18 Ltd) improve the operating margin to 15 per cent in the third quarter of FY14, up from nine per cent last year on a consolidated basis. The operating profit for the quarter stood at Rs 77.5 crore, (up 61.12 per cent from Q3 FY13's Rs 48.1 crore), far exceeding the Street estimates of Rs 46.83 crore.
TV18's news and infotainment business saw severe cut in operating cost, with employee cost coming down by 14.95 per cent to Rs 56.3 crore. The maximum cuts were made in the marketing and promotion department, where the company reduced costs from Rs 174.6 crore in Q3 FY13 to Rs 50.4 crore this year (down 71.13 per cent).
TV18's revenues for the quarter were more or less in line with Street estimates at Rs 525. 5 crore (estimates Rs 526.5 crore). This is up three per cent from last year's revenue of Rs 512.4 crore. The advertising revenues grew three per cent year on year.
