>MEDIA: Performance by Balaji Telefilms, Info Edge, Dish TV, ENIL, HT Media, Jagran Prakashan, Sun TV Network & ZEE Entertainment

Slowdown to impact growth


In the backdrop of economic slowdown, media companies are expected to report negative growth with TV broadcasters being worst hit followed by radio and print. Margins are expected to contract across broadcasters and print companies while PAT will de-grow by 9.9% YoY across our coverage universe. We expect negative surprises across companies.


■ Slowdown to impact growth: In the backdrop of economic slowdown across sectors, festive season remained lacklustre for the companies with ad revenues coming under pressure. We believe TV broadcasters are the worst hit during the quarter followed by radio and print companies. We are expecting a de-growth in ad revenue for ZEEL and ENIL while Sun TV Network is expected to show flat growth. Print companies are expected to post ~10-13% ad revenue growth during the quarter.


■ Subscription revenues to grow marginally: ZEEL is expected to post marginal growth sequentially in subscription revenues whereas Sun TV’s analog subscription revenues are expected to de-grow, though DTH revenues of both companies are expected to post robust growth. However, Dish TV is facing challenges on subscriber additions post festive season.


■ Margins under pressure: Margins are expected to shrink 396bps YoY for our coverage companies. Both print & broadcasting companies are expected to report margin contraction. ENIL, Info Edge and Dish TV are expected to register the maximum rise in margins.


■ Profits to decline: PAT for our coverage universe is expected to de-grow by 9.9% YoY. However, sequentially, it is expected to register 4% growth. The print sector is expected to outperform the broadcasting sector due to higher ad revenue growth. The base effect is also expected to impact broadcasting companies.


■ Equal weight on the sector: We maintain Buy on Sun TV, Jagran Prakashan, ENIL, ZEEL and HT Media. We have a Hold on Balaji Telefilms and Sell on Info Edge.


To read the full report: MEDIA
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