Pitchers Famed TVF Grows Its Revenue 2X & Becomes Profitable

Last updated on July 25th, 2023 at 11:15 am

You might know TVF because of its Pitchers, Cubicles, Tripling & other entertaining videos. The OTT & video company has grown its revenue 2x & became profitable.

The video production company The Viral Fever recovered from a pandemic-hit fiscal year in FY22 with an operating income that increased by approximately twofold. TVF released a number of successful series during FY22, including Aspirants and Kota Factory.

According to TVF’s annual financial accounts filed with the Registrar of Companies, the company’s collection increased by 2.4X to ₹ 76.8 crore in FY22 from ₹ 32.15 crore in FY21 due to the success of its various series.

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Around 66% of TVF’s total revenue in FY22 came from license fees associated with the uploading of episodes, web series, videos, and postings to OTT platforms like Zee5, Amazon Prime, Sony LIV, and others. In FY22, the revenue from these increased 2.8X to ₹ 50.63 crore.

During FY22, the combined revenue from advertising and subscription fees increased by 22% to Rs 6.98 crore. In the previous fiscal year, the company additionally made ₹ 19.19 crore from other operating activities.

The expense of producing shows turned out to be the biggest cost center for the Tiger Global-backed company since it is a video streaming and production company. 

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52.2% of the total expenditure was made up of this, and in FY22, it increased 2.4X to Rs 38.3 crore.

For The Viral Fever, salaries and other employee-related expenses barely increased 10% to Rs 20.62 in FY22. 

Due to the ESOPs’ non-cash nature, we did not include the negative expenses the company recorded against adjustments of share-based payments (ESOPs), which totaled Rs 62.58 crore.

During FY22, costs for cloud services and advertising decreased by 29.7% and 34.2%, respectively, to ₹ 2.37 ₹ 2.04 crore. 

Legal and professional fees cost the corporation Rs 2.23 crore, raising total costs by 44.7% to ₹ 73.43 crore in FY22.

The Mumbai-based company entered the black thanks to the increase in scale and regulated costs. In FY22, it made ₹ 5.72 crore in profit as opposed to Rs 14.31 crore in losses. 

Its ROCE and EBITDA showed gains of 33.35% and 9.95%, respectively. It invested Re 0.96 to generate one unit of operating revenue on a per-unit basis.

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The figures from TVF show how challenging and unpredictable the studio industry can be. 

While commissioned shows give the industry some regularity and security, they can also prevent the business from reaping significant benefits when these shows become hits, as some of its shows have. 

That explains the company’s multi-platform strategy, which includes employing OTT platforms like YouTube as well as TVF Play, a proprietary app.

The pressure to continue producing hits for its target demographic of millennials and those who wish they might still be one will likely continue to be the largest obstacle. 

One wonders whether the long-term goal is to create a strong enough collection of popular shows to generate consistent streaming revenue and then possibly an acquisition.