Regional Print Media Set for Revenue Boost in 2024-25

A report projects an 8-9% revenue growth for regional print media in 2024-25, aided by higher advertising revenues and a decline in newsprint prices. This growth is anticipated to exceed the 6-7% achieved in FY24. The report also highlights expanding operating profit margins amid volatile newsprint costs.

Higher ad revenues are poised to propel regional print media entities to an 8-9 per cent revenue growth in 2024-25, as per a recent report.

This surge surpasses the 6-7 per cent growth estimated for FY24, bolstered by elevated government advertising ahead of the national elections.

Domestic rating agency Crisil predicts that reduced newsprint prices, which make up nearly 40 per cent of costs, will further enhance operating profit by an additional 2 percentage points, reaching 20-22 per cent. The previous fiscal year saw a 4 percentage point increase in operating profit margins, driven by lower newsprint prices.

According to the report, the predicted revenue growth will primarily stem from advertising, contributing two-thirds of the total revenue for these players. Crisil's Deputy Chief Ratings Officer, Manish Gupta, forecasts a moderation in government advertising but notes that sectors like automobiles, FMCG, education, e-commerce, real estate, and services will continue to drive a 9-10 per cent growth in ad revenues.

Subscription revenues, which form about a quarter of the topline, are expected to increase by up to 4 per cent in FY25. Regional print media entities are actively pushing subscriptions in neighboring areas, although past efforts were cautious due to insufficient cover prices to offset newsprint costs.

Crisil Director Ankit Kedia remarked that despite volatility since October 2023 due to shipping issues around the Red Sea, newsprint prices remain below FY24's average levels and are expected to stay stable, thanks to muted global demand and ample supply. The agency advises vigilance regarding any major economic changes, shifts in consumer preferences, or a rise in newsprint prices driven by global factors.