Ind Ra gives stable outlook for print media, broadcasters and MSOs for FY22

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India Ratings and Research on Thursday gave print media, broadcasters and multisystem operators a stable outlook for FY22 on Thursday, largely on expectations of demand recovery as economic conditions improve.

The agency, a division of Fitch Ratings, maintained a negative outlook for the multiplex industry, given the late recovery curve and continued low footfall hampering theater operators. He anticipates a weak recovery in demand for cinema operators, who have been impacted by the pandemic.

Advertising revenue has increased for broadcasters and print media since the second half of FY21, which strengthens the near-term outlook, he said.

Print media will continue to face challenges from digital initiatives cannibalizing circulation, which would force businesses to invest in online businesses themselves, the agency said.

In the case of MSOs (Multi-System Operators), he said these companies are expected to experience stable revenue growth and improved operating profit generation as work-from-home initiatives have resulted in increased demand for broadband services. This should further strengthen the financial profiles of MSOs.

Over-the-top companies have been able to launch new films on their digital platforms and given the expected weak recovery in demand for multiplexes, exhibitors will likely have to contend with over-the-top platforms as producers and movie houses seek to maximize returns in a weak macroeconomic environment.

Exhibitors are also exploring shared rental models with mall developers, which could impact margins and scalability, the agency said, adding that if demand returns to pre-COVID levels, exhibitors will remain the preferred medium for watching films as well as the best option. generate the best box office returns.

The lockdown has led MSOs to largely shift to online fundraising models, which should reduce the use of fund-based limits and thereby improve credit profiles.

Given the threat from digital news companies, print media companies have invested in digital versions of their established publication to maintain their market share. However, these companies rely heavily on advertising revenue, which is closely tied to the macroeconomic environment, the agency said.

While advertising revenue certainly increased in S2FY21, any weakness in the operating environment during FY22 due to further bottlenecks or the slow resumption of vaccinations could lead to a deterioration in the financial profiles of print media companies. , he added.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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