The Indian Media and Entertainment (M&E) industry has progressed well. In an environment of volatility and dynamism, the industry continues to grow at a rapid pace year on year. The Indian media story is promising. The growth journey of India’s M&E industry has been strong and is expected to continue to grow at a healthy rate for the coming 5 years.
Most segments of the M&E sector are showing growth, consolidation and innovation led by digital, both on the consumer side and through the content supply chain. Digital has transformed the access to content and participation in media and the consumers have shown affinity towards great content and brands on newer screens.
Within this environment of change, India has the potential to emerge as a global M&E hub. Opportunities, content and players are all becoming universal and India - backed by a stable macroeconomic outlook, a youthful workforce and the government’s “Make in India” and “Digital India” blueprints - is strongly positioned to exploit such trends.
The implementation of GST presented challenges, however its impact is expected to be short term. The M&E industry’s economic impact on the country’s GDP extends beyond just direct revenue. There are multifaceted economic implications of the industry on the overall economy.
The performance of your Company has been quite satisfactory. Your Company continued to improve its profitability. The total revenue (standalone) during the year under review increased by about 12.07% over the previous year. The operating profit margin for the year was healthy at 25.91%. Advertisement revenue during the year increased by 10.13%.
While Television continues to be important, Digital will help the company drive exponential growth. The Digital business is seen as the business of the future. During the year, your Company acquired operations of Digital Business from Living Media India Limited (Holding Company) as a going concern on slump sale basis. India Today Group has successfully expanded its digital footprint with nine popular online video channels - News Tak, Life Tak, Tech Tak, Sports Tak, Food Tak, Astro Tak, Mumbai Tak, Bharat Tak and Fit Tak. These Omni platform channels are creating a new digital ecosystem under the Tak Brand name-MobileTak.in. In fact, Mobile Tak has become India’s Fastest Growing Digital Video Brand with its 9 mobile exclusive digital channels and more than 1 billion video views across various publishing platforms in just 8 months.
Further, with a view to restructure, amalgamate and consolidate the newspaper business of Mail Today Newspapers Private Limited (indirect wholly-owned subsidiary) “Mail Today” with the television business of the Company and to bring editorial content and business synergies, your Company has initiated the process of demerger of the newspaper undertaking of Mail Today and merged the same with the Company. The Scheme also involves merger of India Today Online Private Limited (the wholly owned subsidiary of the Company) with the Company.
Television continues to remain amongst the most important entertainment mediums in the country. Of the estimated 286 million households in India, TV penetration reached 64%, taking the total number of TV viewing households to 183 million, earmarking a growth of 3.5% over the last year. This accounted for approximately 780 million viewers.
The TRAI Tariff order, 2017, is currently under implementation. It is presumed by the industry that if the order is implemented, it would have a significant impact on broadcasters, distribution companies and consumers. The key impact of the order would be a possible reduction in number of channels to end customer, closure of under performing channels and regulation of channel prices. This could have an impact on subscription revenue and distribution cost of your Company. The Management is monitoring this development closely and is gearing up to take appropriate steps.
At last, but most importantly, I would like to acknowledge the efforts of each member of the Company, be it my colleagues on the Board or my colleagues at all levels in the Company, for their hard work and exemplary performance in making this year a successful and satisfying one. They have all been working as a team to create an institution which is financially sound and one that we can all be proud of. My heartiest thanks to our shareholders for their continued co-operation and support.