Print media companies set to turn around next fiscal

Aggregate operating profit of print media companies likely to increase in fiscal 2020 after a lacklustre fiscal 2019 on hike in government ad rates and upcoming general elections, as per a report by Crisil Ratings.

500 basis points – expected rise in operating profit of print media companies

Costs rise too

35% – increase in newsprint prices estimated this fiscal

The boosters

25% – increase in the card rates for government advertisements

10% – of the advertising revenues of print media companies comes from advertising linked to DAVP rates

10-25% – Gap with commercial rates narrowed to after the hike, from 30-40% earlier

Rs 1,800-2,000 cr – Estimated advertisement revenue linked to DAVP rates 

Rs 631 crore – was spent on DAVP directly in fiscal 2018

The balance is estimated to have come from state governments and public sector undertakings