Sluggish Q3FY25, ad revenues to improve in FY26, say broadcasters

Broadcasters are likely to report subdued ad revenues in the third quarter on a year-on-year basis, as per analysts. At the same time, multiplex companies are expected to report expansion in revenues on the back of hits such as Pushpa 2, Singham Again and Bhool Bhulaiyaa 3 in the December quarter. This was even as October was a washout month due to lack of any big releases.

Abneesh Roy, Executive Director, Nuvama Institutional Equities, in a report said media companies are likely to report a muted Q3FY25. “Broadcasters shall continue to suffer a year-on-year dip in ad revenues due to muted ad spends by FMCG companies. However, their subscription revenues are likely to improve year on year aided by price hikes and an increase in subscriber base,” he added. He said that ad revenues are expected to improve in FY26 as pricing power comes back for consumer companies and due to a likely reversal in urban slowdown in the second half of 2025.

Karan Taurani, Senior Vice-President, Elara Capital, said in a report that FMCG sector’s share of TV ads is estimated at about 47 per cent. He added that slowdown in FMCG sector has led them to cut back on spending which has hit traditional broadcast players. Echoing a similar sentiment, he said that broadcasters are likely to report drop in ad revenues, but growth momentum in subscription revenues.

Box-office results
Meanwhile, multiplex players, which have been facing a volatile FY25, are expected to ride on a healthy box-office performance during December quarter to report expansion in revenues year on year.

Elara Capital’s Taurani said that overall net Hindi box-office collections jumped nearly 40 per cent quarter on quarter and 7 per cent year on year to ₹1,510 crore. “Sequentially, key metrics such as average ticket price, spend per head may script a strong comeback for the multiplex industry,” he added.

Roy said that while October was a washout, November and December were decent for the domestic box-office performance. However, analysts believe that multiplex players may report flattish occupancy numbers due to the adverse impact of October. The Hindu BusinessLine