Media companies to log 8% revenue growth, reaching US$ 7.14 billion (Rs. 60,000 crore) by FY27: Crisil

Media companies are projected to achieve an 8% revenue growth, reaching US$ 7.14 billion (Rs. 60,000 crore) by FY27, driven by increasing contributions from the digital segment, according to a Crisil analysis of 20 companies that account for 55% of the media industry's revenue. This growth follows a compounded annual growth rate (CAGR) of 5% over the past 5 fiscal years, bringing total revenue to US$ 5.60 billion (Rs. 47,000 crore) in FY24. The combination of revenue growth and cost rationalization efforts is expected to expand operating margins by 500 basis points (bps), reaching 18% by FY27. The analysis covers various segments: broadcasting, print, out-of-home (OOH) advertising, radio, television, and digital platforms.

The shift toward digital consumption has resulted in slower annual growth of 5% between FY19 and FY24, driven by increased smartphone usage, rising internet penetration, and low data costs in India (approximately US$ 0.2 per 1 GB). Although media companies were initially slow to adapt, this trend is expected to change. Senior Director at CRISIL Ratings, Mr. Manish Gupta, noted that media companies increasingly focus on digital platforms like over-the-top (OTT) services and social media. As a result, the digital segment's share of media revenue is projected to rise from 12% in FY24 to over 18% by FY27. Rising ad revenue in traditional sectors such as print and online shopping is anticipated to support overall revenue growth. However, due to high initial costs and intense competition, the digital segment has faced profitability challenges.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.