The group’s profit before interest lease depreciation and tax (PBILDT) was also lower at Rs 201.86 crore as against Rs 213.94 crore. The company’s total operating income dropped to Rs 3666.75 crore compared to Rs 3687.25 crore a year ago.
The experts feel that the growth in the Hindi GEC segment was mainly on account of higher pricing power enjoyed by the company on account of it being a dominant player in the Hindi GEC market.
The profitability margins in FY19 have declined marginally in FY19 owing to continued investments in Voot and new initiatives.
The margin has also been dragged by New Tariff Order (NTO) / DD Free Dish shift impact wherein the viewership has been impacted as the process of consumers choosing channels/packs and on-ground realignments in distribution value-chain are still underway.
As per rating agency CARE, the margin is expected to improve in the medium term led by increased marketing intensity by the company, content at a value price-point and improved distribution tie-ups. The rating agency has reaffirmed the bank facilities as well as the commercial paper issue of Viacom18 worth Rs 1275 crore and Rs 500 crore respectively.