It gives me an immense pleasure to share with you an update on the overall performanceof your Company in 2016-17. As you must aware of the fact that the Government of India hasmade lots of reform in the year gone by in different sectors including M&E Industry totransform the Indian market; that will play a crucial role in creating Indian history. Oneof the significant changes was from the Government of India of demonetization of the 500& 1000 notes of Indian currency at the mid night of 08th November 2016.Implementation of Goods and Service Tax was also one. It is expected that these willbenefit the economy in long run.
Among these some are favorable to the industry in which your company operates. In2016 the Indian M&E industry grew at 9.1% on the back of advertising growth of 11.2%.Television industry's growth in F.Y.16-17 saw a temporary blip because of demonetizationand delay in digitization of analogue cable subscriber base. I want you to notice that theGST rate on our cable operations has decided to be 18% which will reduce the tax burden onthe final consumers.
During the F.Y.16-17 your company has earned Rs. 1410 lakh from its main operations ofBroadcasting cable operations and advertisements which declined by around 12% compared toprevious year & your company has incurred losses of Rs. 9 Crore during the year.Demonetization shaved off 150 to 250 basis points in terms of growth across all subsegments at the end of the year resulting to which there was loss during the financialyear which is of temporary in nature and hopefully in coming financial year this loss willbe recovered and company will earn profits for their valuable shareholders.
Moreover despite sluggish growth Sea TV's operating EBITDA was at 29.65% whichcontinues to be the higher compared to previous year.
I can see there is very bright future for M&E Industry in the years to come. TheTelecom Regulatory Authority's (TRAI's) guidelines on Tariff and interconnect in 2016(draft) and 2017 (final) are expected to alter the operating dynamics betweenstakeholders. The implementation of these guidelines in a form acceptable to allstakeholders would be a key to Average Revenue per user uptick and to improve industryprofitability. At the end I owe my sincere thanks to our customers dealers vendors andemployees who have always done their utmost for your Company; and specially you all foryour continued support.
With best regards