Kotak Securities has come with its September`12 quarterly earning estimates for media space. Research firm expect subdued performance from media sector stocks, on account of continued weakness in advertising expenditures (general weakness plus the base of last year, which had an early onset of festive season), strength in newsprint prices, and competitive pressures. However, weakness in adex shall be less pronounced among broadcasters than among newspaper publishers, on account of strength in adex from FMCG companies, whose advertising is tilted to broadcasters.
Among newspaper publishers, the trend of decline in margins is likely nearing an end on cost saving initiatives launched towards FY12-end. Dish TV, the lone company in our coverage universe which is a pure-play on subscription, is likely to bring in financials largely in line with 1QFY13, as subscriber figures are likely to ramp up only towards the deadline date for Phase - 1 (Oct 31). Expect the sector overall to bring in revenue growth of 10%, and EBITDA growth of 8% in our coverage universe (y/y comparisons).
| Revenues (Rs Mn) | PAT (Rs Mn) | |||||
| Q2 FY13 | Q1 FY13 | QoQ (%) | Q2 FY13 | Q1 FY13 | QoQ (%) | |
| DB Corp | 3,751 | 3,770 | -0.5 | 454 | 437 | 4.1 |
| Dish TV | 5,349 | 5,200 | 2.9 | -221 | -323 | -31.8 |
| ENIL | 709 | 689 | 3 | 126 | 130 | -3.5 |
| HT Media | 5,030 | 4,899 | 2.7 | 432 | 438 | -1.4 |
| TV18 Broad | 3,573 | 3,469 | 3 | -188 | -234 | -19.7 |
| Jagran | 3,207 | 3,175 | 1 | 662 | 557 | 18.8 |
| Sun TV | 4,395 | 4,258 | 3.2 | 1,670 | 1,643 | 1.7 |
| Zee Entert | 8,880 | 8,430 | 5.3 | 1,682 | 1,582 | 6.4 |
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