Aggregate operating profit of print media companies likely to increase in fiscal 2020 after a lacklustre fiscal 2019 on hike in government ad rates and upcoming general elections, as per a report by Crisil Ratings.
500 basis points – expected rise in operating profit of print media companies
Costs rise too
35% – increase in newsprint prices estimated this fiscal
The boosters
25% – increase in the card rates for government advertisements
10% – of the advertising revenues of print media companies comes from advertising linked to DAVP rates
10-25% – Gap with commercial rates narrowed to after the hike, from 30-40% earlier
Rs 1,800-2,000 cr – Estimated advertisement revenue linked to DAVP rates
Rs 631 crore – was spent on DAVP directly in fiscal 2018
The balance is estimated to have come from state governments and public sector undertakings
