Media Sector Braces for Subdued Q3FY25 Performance

The media industry is anticipated to report a lackluster Q3FY25 performance, per Nuvama. Despite growth in specific areas, mixed influences hinder overall results. Noteworthy is PVR INOX's rising revenues, though footfalls dip. Saregama excels with strong revenue hikes, while broadcasters face headwinds in ad revenues.

According to a report by Nuvama, the upcoming Q3FY25 results for media companies are expected to show subdued performance. While there are segments poised for growth, industry-wide results may be dampened by various influencing factors.

The report forecasts multiplex operator PVR INOX to witness an 8 percent year-on-year and 3 percent quarter-on-quarter revenue increase, driven by higher average ticket prices, advertising revenue, and other operational income. Despite these gains, footfalls are anticipated to fall 4 percent quarter-on-quarter, totaling 37.2 million, partly due to a lackluster October.

On a positive note, music company Saregama is expected to shine, with projections of a 52 percent year-on-year and 28 percent quarter-on-quarter revenue surge. This is attributed to robust growth in live events and a significant 18 percent rise in music licensing revenue. Meanwhile, broadcasters are likely to continue facing challenges as ad revenues remain depressed year-on-year due to muted spending by FMCG companies.

The report suggests a potential rebound in advertising revenues for broadcasters by FY26, with expectations of consumer companies regaining pricing power and a possible ending of the urban economic slowdown in the latter half of 2025. However, Q4FY25 may continue to be challenging for multiplexes with few major film releases and scheduling gaps caused by the exam season.

Despite bright spots in music and subscription revenues, overall media sector performance in Q3FY25 is anticipated to remain muted, with hopes for a revival in FY26.

(With inputs from agencies.)