Motilal Oswal has come with its June quarterly earning estimates for media sector. According to the research firm, the sector ad spends continued to be sluggish in 1QFY13. The low base for broadcasting companies should result in 5/12% YoY growth for Sun/Zee v/s YoY decline in the last two quarters. National advertising has been lagging retail growth, driving the underperformance of English v/s Hindi print. We expect HT/Jagran to report 6/10% YoY growth in ad revenue.
We expect DTH subscriber additions to improve QoQ from a low base but expect the 1QFY13 run rate to remain below our full year FY13 estimate, given the challenging macro environment and no meaningful benefit of ‘mandatory digitization’ in the metros, as yet.
INR depreciation remains a drag for print companies (given its adverse impact on newsprint prices) and Dish TV (debt as well as set-top box prices are USD-denominated). Higher USD would also increase costs in ZEE’s sports and international business, though this would be partially offset by the positive impact on international subscription revenue.
| Company Name | Sales (INR Million) | Net Profit (INR Million) | ||
| 12-Jun | Var. % QoQ | 12-Jun | Var. % QoQ | |
| Dish TV | 5,253 | 0.1 | -434 | Loss |
| HT Media | 5,382 | 8.9 | 338 | 54 |
| Jagran Prakashan | 3,344 | 7.7 | 440 | 2.7 |
| Sun TV | 4,523 | 5.9 | 1,777 | 11.7 |
| Zee Entertainment | 8,261 | -4.9 | 1,499 | 5.4 |
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