Tuesday, January 6, 2009

Q3FY2009 Media earnings preview: January 06, 2009

Q3FY2009 Media earnings preview 

  • We expect Q3FY2009 to be a bad quarter for most media companies as we expect the rate of the year-on-year (y-o-y) growth in their revenues to taper off substantially in the wake of a significant cut in the advertising spends in the key sectors, such as banking, financial services and insurance (BFSI), real estate and automobiles. Also, a general sense of rational advertisement spend (bang for the buck) and fragmentation across media verticals due to an increase in competition would lead to a slower revenue growth. Consequently, as the revenue growth lags behind the increase in costs, we expect media and entertainment companies to report subdued earnings for the quarter.
  • Overall, we believe the media and entertainment industry is in for tough times as advertisers tighten their advertisement spends in a bid to control costs. Also, fragmentation across media verticals has led advertisers to evaluate "bang for the buck spent". We believe alternate media such as radio and out-of-home advertising are likely to face higher pressure compared with the other verticals. We maintain Zee News as our preferred pick in the sector.

Click here to read report:  Sharekhan Special 

Much more than email – don't miss out on the rest of the Windows Live™. Much more than email

No comments:

Blog Archive

Life Insurance | Health Insurance | Auto Insurance

Investors Please Listen !

More than 100 kinds of Insurance products from more than
20 companies under one roof.

Call: 9818269396 



Safe Harbor:

The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
Powered by Olark
Advertising Learn to Invest