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The cinema players’ revenues are expected to contract by 80-85 per cent in FY 2021 due to pendemic, according to estimates by ICRA. While revenues of the print and TV broadcasting segments are estimated to contract in the current financial year, the rating agency stated that the credit metrics of entities involved in these segments will see a moderate impact.
ICRA said that the pronounced revenue decline will lead to operating losses for the film exhibitors. But added that, “the multiplex industry’s monthly cash burn will reduce from ₹57 crore in first half of FY2021 to ₹25-30 crore in second half of FY2021 supported by a sequential uptick in revenues and increased cost rationalisation.”
Sakshi Suneja, Assistant Vice-President, ICRA , “ While cinema operations have started in most States with 50 per cent of their capacities, the occupancy levels at multiplexes are at present very low, at mid-single digit percentage levels.”
Print media
As per ICRA estimates, revenues of the print media are expected to witness a decline of 30 per cent year-on-year in current financial year. However, it noted that since July, there has been a month-on-month recovery in newspaper circulation which is expected to touch the pre-Covid levels by the fourth quarter of the current fiscal year.
“Overall, the advertisement revenue will improve sequentially, though will be lower by 7-8 per cent on a Y-o-Y basis in H2 FY2021. ICRA expects the operating profit margins of print media entities to be supported by savings in newsprint costs, thus witnessing a lower contraction by up to 200 bps Y-o-Y in FY2021,”it stated in its report.
Kinjal Shah, Vice-President, ICRA, “Subscription revenues for TV broadcasters will hold steady in H2 FY2021 as consumers are likely to continue. Overall, subscription revenues are expected to witness mid-single digit revenue growth in FY2021. Advertisement revenues witnessed a good traction during the festive season and will witness a strong recovery in H2 FY2021 (vis-a-vis H1 FY2021), as economic activity and growth improves; however, the same will be lower by 5 per cent on a Y-o-Y basis.”
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