Print media revenue to grow 35% in FY22, still lower than pre-pandemic levels
Sharp cost rationalisation measures and digitalisation of content will lead to a revival in profitability to 9-10 per cent, ratings agency
said, admitting that the bottomline will grow despite the 20-30 per cent rise in newsprint prices over the last six months.
The agency, which ratings on companies representing 40 per cent of the revenues for the sector, said credit profiles of large print media companies will be resilient, cushioned by healthy liquidity and strong balance sheets, while for the remaining ones, liquidity management will be crucial.
“The second wave has impacted ad revenues in the last quarter, as it correlates strongly with economic activity. We expect ad revenues to recover from the current quarter as economic activity revives,” its director Nitesh Jain said.
As for subscription revenue, the sector is witnessing a structural change amid a shift in consumer preference towards digital news, from physical newspapers, the agency said, adding this is more prominent for English newspapers, which have a higher share in metros and tier-1 cities, where digital adoption is also higher.
