Balaji Telefilms Rating: Not rated; Aiming to break even by FY20 end

By: |
Published: August 24, 2019 1:59:31 AM

TV realisation rose 12% y-o-y in Q1; coverage discontinued and rating withdrawn

Q1 revenue stood at Rs 0.8 bn (vs Rs 1.3 bn y-o-y).

Balaji Telefilm targets break-even (consolidated) by the end of FY20 on higher revenue from Zee5 partnership, strong movie slate (pre-sales of `1 bn) and cost-saving initiatives across TV shows. TV realisation rose 12% y-o-y in Q1 aided by market share gains (18% vs. 16% q-o-q). TV gross margin stood at 30% as new shows stabilised and cost- saving initiatives benefited.

ALT Balaji’s aggregate pay subscribers ramped up to 25.3 mn (21.3 mn in Q4; 27.3 mn currently). Management highlighted partnership with Zee5 on content-sharing model (60+ shows) from second half of the fiscal (all content to be behind paywall). Equity infusion in Alt

Balaji to be `1.5 bn
(`1 bn for content). As we are reviewing our coverage, we discontinue coverage on Balaji Telefilms and withdraw our estimates/rating.
Standalone performance (TV + movies)

Q1 revenue stood at Rs 0.8 bn (vs Rs 1.3 bn y-o-y). TV content revenue grew 21% y-o-y to `696 mn and gross margin stood at 30% (13% y-o-y; flat q-o-q). Ebitda margin stood at 12.8% (not comparable on IND AS adjustment), while PAT stood at `25 mn.

TV content

Content hours grew 15% to 196 hours; Avg rev/hour at `3.56 mn (+12% y-o-y).


Revenue stood at `123 mn (`58 mn y-o-y) with Ebitda loss at `393 mn (vs loss of `265 mn y-o-y). It added 5 shows on the platform in this quarter (currently 42 shows); the app remains among top 5 paid video-streaming apps according to App Annie.


No movies were released in Q1; release of ‘Mental hai kya’ and ‘Jabariya Jodi’ happened in Q2FY20 and 2 titles will be in H2FY20; production costs for all these movies have already been recovered via pre-sales (`1 bn). Management highlighted digital/music rights of the same have been sold to Zee Entertainment.

The company maintained guidance of `0.5 bn PBT in FY20. Inventory for movies stood at `0.68 bn and for digital shows stood at `1.46 bn at the end of the first quarter.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Sensex, Nifty see a breather on FPI rollback buzz; Nifty Bank sees biggest weekly fall in 11 months
2Yes Bank share price jumps 9% after $1.2 billion fund raising plan report
3Share Market Highlights: Sensex ends 228 points up, Nifty above 10,800; Yes Bank, VEDL top gainers