Financial Daily from THE HINDU group of publications
Thursday, May 05, 2005
Financial Daily from THE HINDU group of publications Thursday, May 05, 2005 |
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Marketing
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Advertising Mid-Day Multimedia may raise ad rates of Mid-Day Our Bureau
Mumbai , May 4 MID-DAY Multimedia Ltd may raise advertisement rates of its evening newspaper Mid-Day next week, ahead of the slated entry of three other newspapers in Mumbai. "We would like to raise rates now before competition arrives. Once the new newspapers are launched there will be a downward pressure on advertising rates," Mr Tarique Ansari, Managing Director, Mid-Day Multimedia, said at the company's analysts' meet on Wednesday. The company, which is expected to launch Mid-Day in other cities, believes its alliance with Indian Express will be beneficial in areas such as distribution, advertisement and promotion. "The alliance with the Indian Express group gives us a combined readership strength of over two million. This would help us to get a larger share of advertisement revenue," Mr Ansari said. While Mid-Day has strength in appointments and retail advertisements, Indian Express has a 70-per cent share in tender advertisements. However, the alliance for advertisement would be extended, varying in each category of advertising. Mid-Day, which turned in a net profit of Rs 6.10 crore for the year ended March 2005, against Rs 9.06 crore in the earlier year, is expected to see margins under pressure. One of the main factors is the rising newsprint prices. They have risen from $430 a tonne to $540 and are expected to touch $600. Prices may edge down in the second half of the current fiscal, Mr Manajit Ghoshal, Chief Financial Officer and VP-Corporate Affairs, Mid-Day, said. Employee costs are also expected to go up because of the churn in the newspaper industry, Mr Ansari said. The current fiscal, according to Mr Ansari, is critical for Mid-Day as it will be a year of threats as well as opportunities. The company plans to increase circulation, leading to higher revenues.
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