ICICI direct.com has come with its September`12 quarterly earning estimates for media sector. According to research report, ad growth across the media industry is not expected to witness any significant turnaround in Q2FY12 as economic conditions continue to remain tough. While broadcasters are expected to post modest ad growth, subscription revenues are expected to maintain their stable growth. Print media & radio would also post modest ad growth due towhole of the festive season shifting to Q3FY13 (Q2FY12 had three days of festivity). English print players are expected to continue witnessing degrowth owing to higher exposure to national advertisers. We expect our media universe to post revenue growth of 7.1% YoY and 0.2% QoQ.
Margins across the media industry are expected to remain under pressure due to subdued ad growth. While increase in domestic newsprint prices would lead to a marginal decline in margins for regional print players,
English players’ margins would be pressurised by ad de-growth. While Zee would witness a decline in its margins due to higher sports losses, Sun’s margins would be marred by a decline in analogue subscription revenue YoY due to competition from ARASU cable since Q3FY12. Aggressive ad campaigns by distribution companies are expected to pressurise their margins.
| Revenue Rs crore | PAT Rs crore | |||
| Q2FY13E | % Change (QoQ) | Q2FY13E | % Change (QoQ) | |
| DB Corp | 365.1 | -3.1 | 42.5 | -2.6 |
| Dish TV | 535.6 | 3 | -22.8 | NA |
| ENIL | 74.5 | 8.2 | 11.5 | -11.1 |
| Hathway Cable | 129.5 | -4.9 | -18.9 | NA |
| HT Media | 480.7 | -1.9 | 37.6 | -7.7 |
| Jagran Prakashan | 316.7 | -0.2 | 64.1 | 15 |
| PVR | 173.2 | -2.4 | 13.9 | 84.4 |
| Sun TV | 457.8 | 7.5 | 167.4 | 1.9 |
| Zee Ent | 829.5 | -1.6 | 152.9 | -3.3 |
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