Media & entertainment sector records 15% growth

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Mumbai, May 11: Despite a slowdown in the economy, the media and entertainment (M&E) industry continues to outperform the country’s growth rate. For the quarter January to March, 2008, it is estimated that the industry registered a growth of 14.86% in revenues compared to the corresponding quarter of previous year.

This is mainly due to the increase in revenues that came from advertising and television. The print media and the music industry also contributed significantly to the total revenues of the industry.

The net profit margin (NPM) for the quarter improved from 18.88% to 23.95%. The operating profit jumped from Rs 559.94 crore to Rs 668.03 crore, which is almost 19.30% more than the previous year. The operating profit margin increased from 33.86% of last year to 35.17%.

Cygnus Business Consultant, a Hyderabad-based research firm, estimates that the domestic entertainment and media industry will record a cumulative annual growth of 18% over the next four years to reach a size of Rs 1,15,700 crore.

CD Mitra, president, Mudra MAX, says, “There are a couple of things that impacted revenues in the last quarter. First, some clients who pushed back the budgets last year due to Indian Broadcasting Federation’s (IBF) suggested surcharge, spent the money in Q4. Similarly, some clients held back the budget because of the Indian Premier League (IPL).”