New Delhi [India], January 4 : Media companies are likely to report a subdued performance in the upcoming Q3FY25 results, according to a report by Nuvama.
The report noted that while certain segments are expected to show growth, overall results may remain lackluster due to mixed factors impacting the industry.
It said, "Media companies are likely to report a muted Q3FY25".
The report highlighted that multiplex operator PVR INOX is expected to witness an 8 per cent year-on-year (YoY) and 3 per cent quarter-on-quarter (QoQ) increase in revenue, supported by higher average ticket prices (ATP), advertising revenue, and other operating income. These metrics are likely to grow by 9 per cent, 36 per cent, and 12 per cent QoQ, respectively.
However, footfalls are projected to disappoint, declining by 4 per cent QoQ to 37.2 million due to a lackluster October.
It also noted that the music company Saregama is expected to be a standout performer, with revenues likely to surge 52 per cent YoY and 28 per cent QoQ.
This growth will be driven by exceptional performance in live events, which are estimated to grow 8.5 times YoY, and robust improvement in music licensing revenue, likely to rise by 18% YoY.
Broadcasters, however, are expected to continue facing challenges. Ad revenues are likely to decline on a YoY basis due to muted ad spending by FMCG companies. On the brighter side, subscription revenues are anticipated to improve YoY, driven by price hikes and a growing subscriber base.
It said, "Broadcasters shall continue to suffer a YoY dip in ad revenues due to muted ad spends by FMCG companies."
Looking ahead, the report predicts that advertising revenues for broadcasters will likely rebound in FY26 as consumer companies regain pricing power. A reversal in the urban slowdown in the second half of the 2025 calendar year (H2CY25) could further support growth.
However, challenges are expected to persist in Q4FY25 for multiplexes due to a limited lineup of major movie releases and gaps between film schedules, exacerbated by the exam season in the latter half of the quarter.
It said, "we expect ad revenues to improve in FY26 as pricing power comes back for consumer companies and due to a likely reversal in urban slowdown in H2CY25 (Q4FY25 to remain challenging)".
Overall, while certain segments like music and subscription revenues show promise, the media sector's performance in Q3FY25 is likely to remain muted, with hopes pinned on a recovery in FY26.
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