Video production firm, The Viral Fever has finally turned profitable after a pandemic-stricken fiscal year. Despite the challenges posed by the pandemic, TVF was able to adapt and continue producing content like Aspirants and Kota Factory that resonated with audiences and its revenue grew over 2X during FY22, Entracker reported.
The entertainment industry was hit hard by the pandemic, with many production companies and studios shutting down operations. However, TVF was able to pivot and focus on creating content that was relatable to audiences during the pandemic. The company produced a number of web series, short films, and other content that were able to capture the mood of the times and connect with viewers. This helped TVF to grow their collection by 2.4X to Rs 76.8 crore in the financial year 2021-22 (FY22) from Rs 32.15 crore in FY21, the report added.
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In addition to its creative efforts, TVF reportedly implemented cost-saving measures, such as reducing its overhead expenses and streamlining its operations. These efforts helped the company to remain financially stable, even in the midst of the pandemic. The company also diversified its revenue streams by exploring new opportunities in the digital space. This includes creating original content for streaming platforms and partnering with brands for sponsored content.
License income from uploading shows, web series, videos and posts on OTT platforms such as Zee5, Amazon Prime, Sony LIV, and others reportedly formed around 66 per cent of TVF’s total collections in FY22. Income from these surged 2.8X to Rs 50.63 crore in FY22.
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The income from advertising and subscription fee collectively grew 22 per cent to Rs 6.98 crore during FY22. It is said that the company also made Rs 19.19 crore from other operating activities in the last fiscal year.
According to the report, the cost of production of shows turned out to be the largest cost center for the Tiger Global-backed firm. The total cost accounted for 52.2 per cent of the overall cost and spiked 2.4X to Rs 38.3 crore in FY22.
Moreover, the company booked negative expenses of Rs 62.58 crore against adjustments of share-based payments (ESOPs) which we did not include in the calculations due to its non-cash nature.
The rise in scale with controlled expenses brought the Mumbai-based company into the black. It recorded Rs 5.72 crore in profit during FY22 as compared to a loss of Rs 14.31 crore in FY21. Its ROCE and EBITDA registered positively at 33.35 per cent and 9.95 per cent.
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