The television industry saw muted growth in advertising in the Oct-Dec quarter on a high base from last year, and the fact that most of the ad spends had been diverted to Cricket World Cup, hitting general entertainment channel (GEC) spends, according to a note by Elara Securities.
Zee Entertainment’s ad revenue is expected to decline 1.5 pc on year, as against a 3 pc growth, the brokerage said.
Subscription revenue is also expected to moderate on a quarter-on-quarter basis due to the implementation of New Tariff Order 3.0 in March 2023. Subscription revenue is seen growing 3.5 pc on year for Zee TV, and 4 pc for SunTV. The absence of movie revenue – Zee’s last release was Gadar 2, while that of SunTV was Jailer – may also drag total revenue down on a quarter-on-quarter basis, Elara Securities’ Karan Taurani said.
Oct-Dec was also likely to have been a subdued quarter for PVR Inox, with only Animal and Salaar films having posted a healthy performance. PVR Inox’s box office and food and beverages revenue is expected to grow 17.6 pc and 17.2 pc on year, respectively, in Oct-Dec.
Metrics such as average ticket price are likely to have been flat on a quarter-on-quarter basis, whereas the spend per head is likely to have grown around 5 pc on quarter due to synergistic benefits and menu innovation. Ad revenue is likely to recover 100 pc against the versus pre-Covid level in Oct-Dec due to the festive season, but on a per screen basis, ad revenue may have only recovered around 85 pc, Elara said.
PVR Inox added 22 new screens in Oct-Dec and 50 screens in the Apr-Dec period.
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