“The decline was higher for English print media
players than Hindi print media
players. Given that advertising revenue remains a key profitability driver, the players reported EBITDA losses during this period,” it said.
There is a bounce expected next year, but it is because of a lower base in the current year (see chart 2).
“Structural changes such as focus towards digital mode of advertisement by...(companies)...could restrict the recoverability and growth, and the same remains..key...for the sector,” it said.
The major sectors which advertise in print media include fast moving consumer goods and the automobile segment. The top two account for a bulk of the advertising (see chart 3).
The rating agency maintained that the credit profile remains healthy because of the liquidity position and strength of balance sheets of key players.
“...sway towards the digital platform could restrict the full restoration of profitability,” it added.