1QFY13 media sector revenue to grow by 14%: Angel Broking

Angel Broking has come with its June quarterly earning estimates for media sector. According to the research firm, the media universe's revenue to grow by 14% yoy. Revenue growth of print media companies for the
quarter would primarily be aided by advertising from the education sector and resilient local ad revenue.

In our view, the delay in implementation of DTH and continued cable losses in  Tamil Nadu would impact SUN TV's top line, but strong content on its GECs will ensure good advertising and broadcasting  revenue. PVR is also expected to post healthy revenue growth on the back of many successful releases during the quarter.

During FY2012, print media stocks underperformed due to OPM pressure on account of higher newsprint costs and cyclical nature of ad revenue growth (sluggish due to slower GDP growth). Due to these cyclical headwinds, stocks are currently trading at cheaper valuations. However, considering the structural positives of the print business (high brand loyalty and significant entry barriers), in our view, print media stocks deserve a premium to the Sensex.

Company Name	Net Sales (Rs Cr)		Net Profit (Rs Cr)
	1QFY13E	% chg	1QFY13E	% chg
DB Corp	412	16.6	65	7.3
HT Media	553	11.9	53	3.1
Jagran Prakashan	364	22.3	46	-6.5
PVR	145	24.5	5	-65.6
Sun TV	478	5.2	185	-1.3