Print media revenue to rise 13-15% in FY24 due to higher ad spends: CRISIL

This will increase the profitability of print media by 10% to 14.5% this year

The revenue of print media is expected to jump 13 to 15 per cent this year on the back of higher spending on advertisement by corporates as well as the government due to upcoming elections, CRISIL said on Tuesday.

The revenue of print media is expected to touch Rs 30,000 crore this year. This will increase the profitability of the sector by 10 per cent to 14.5 per cent, CRISIL said.

The print media's revenue is split in the ratio of 70:30 between advertisements and subscriptions. It saw a fall of 40 per cent in FY21 due to the Covid-19 pandemic. In the following two years, FY22 and FY23, the sector saw its revenue rise by 25 per cent and 15 per cent respectively.

"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 at 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. Therefore, we expect ad revenue to grow 15-17 per cent, almost reaching the pre-pandemic level this fiscal."

CRISIL further said that customers in India continue to prefer print media. In the last two years, physical newspapers saw 8 to 10 per cent growth in subscription revenue. This year, it is expected to jump 5 to 7 per cent, largely driven by moderation in prices.

"Over the medium term, margins should remain healthy but below the steady-state margins of over 20 per cent seen in the past," said Rounak Agarwal, team leader at CRISIL Ratings.