media revenue is anticipated to increase 13–15% to Rs 30,000 crore this fiscal year due to higher spending on advertising by corporations in key sectors and an increase in government ad spending in light of the forthcoming state and parliamentary elections, according to a Crisil report. The profitability of the print media sector will increase by 1,000 basis points (bps) to 14.5% this fiscal year as a result of rising topline and falling newsprint prices. The growth predictions are based on an analysis of Crisil-rated print media companies, which generate more than 40% of the industry's revenue.
The sector's revenue plummeted by 40% in FY21 due to the pandemic. However, FY22 and FY23 saw it bounce back by 25% and 15%, respectively, as pent-up demand released by the economic recovery boosted ad spend. Print publications generate 70% of their revenue from advertising, with subscriptions making up the remaining 30%, according to Crisil.
Crisil Ratings Director Naveen Vaidyanathan said the steadfast domestic demand for fast-moving consumer goods, retail, clothing, and fashion jewelry, the launches of new automobiles, the rising preference for higher education, online shopping, and growing real estate sales bodes well for the print media sector. He added that these industries, which account for around two-thirds of print media's ad revenue growth, will maintain the current trend. He stated that higher ad spending by the government, which contributes a fifth of the sector’s ad pie, in the wake of the upcoming elections will also push growth.
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