TV18's EBITDA margins to expand by 1250 bps over FY13-15: Anand Rathi

Cites lower carriage fee payouts and growth in subscription income post digitisation of cable TV for expansion

Media group TV18’s EBITDA margins is expected to expand by 1250 basis points over FY13 to FY15 due to lower carriage fee payouts and growth in subscription income post digitisation of cable TV, said analysts at Anand Rathi Research.

Recovery in advertising growth from FY 2014 is also expected to help margins, the analysts said.

Anand Rathi analysts expect the net debt of the company to be around Rs 380 crore post ETV Investments' rights issue of the company. 

It implies a comfortable financial position – net debt-to-enterprise value of 6.5% (vs 49% pre-issue).

"With limited expansion activity expected ahead, the balance sheet would stay healthy. This would shift investor focus to the company’s operational strengths and opportunities in the space," the company said.