As per company’s financial announcement, its profit before interest lease depreciation and tax (PBILDT) dropped 29.63% to Rs 66.3 crore as against Rs 94.22 crore. PBILDT level has declined y-o-y mainly on account of increase in investment in sales promotion, content expenses mainly on account of six state elections and digital properties.
Its total operating income increased 3.5% to Rs 482.65 crore from Rs 466.20 crore. The company’s ad revenue has registered a lower y-o-y growth of 3.5% in FY19 compared to 7.1% in FY18. The company’s major source of income is through advertisements contributing around 99% of the total revenues in FY19 as against 98% in FY18.
News channel’s operating income and profitability improved in Q1FY20 in view of the increase in advertisement revenue due to the Lok Sabha elections coupled with the increase in advertisement rates for all the channels.