New Delhi [India], July 11 : Higher spending on advertisement by corporates and governments in view of the upcoming state and national elections are expected to lift the revenue of the Indian print media sector by 13-15 per cent, according to a report by Crisil Ratings.
Their revenues are expected to rise to upwards of about Rs 30,000 crore in 2023-24.
With a relative decline in newsprint prices, the rating agency said the profitability of the sector may surge by 1,000 basis points (or 10 percentage points) to 14.5 in the current financial year.
The revenue in the print media split 70:30 between ads and subscription had plummeted 40 per cent in fiscal 2020-21 amid the pandemic. However, fiscals 2022 and 2023 saw it bounce back by 25 per cent and 15 per cent, respectively, due to a post-pandemic pent-up demand.
"Steadfast domestic demand for fast-moving consumer goods, retail, clothing and fashion jewellery, launches of new automobiles, rising preference for higher education, online shopping and growing real estate sales sectors that contribute about two-thirds of the print media ad revenue will keep the momentum in ad revenue growth going," said Naveen Vaidyanathan, Director, Crisil Ratings.
"Higher ad spends by the government, which contributes a fifth of the sector's ad pie, in the wake of the upcoming elections will also push growth," Vaidyanathan said, adding they expect ad revenue to almost reach the pre-pandemic levels.
The sustained recovery, it said, indicates the popularity of print media in India. A significant share of readers continue to prefer physical newspapers as reflected in the 8-10 per cent growth in subscription revenue in each of the past two financial years.
This fiscal 2023-24, the revenue from the subscription is expected to grow 5-7 per cent, "largely led by moderate revisions in cover prices".
Additionally, among other reasons behind the firm revenue outlook, it noted, is that the print media companies, especially English newspapers, have started monetising premium digital content.
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