The prolonged impact of a consumer slowdown has hit the print and broadcasters' earnings but multiplexes have done well, courtesy strong movie content, according to an Edelweiss Securities report.

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The brokerage house said that the September quarter faced pressure on advertisement revenues due to cuts by FMCG and real estate sectors and an overall economic slowdown in the industry.

On the bright side, multiplexes had a stellar quarter as PVR and Inox outperformed due to strong movie content, higher occupancy levels and footfalls.

The sluggish ad environment had a big impact on both Zee Entertainment and SUN TV. However, overall growth was driven by higher subscription revenues.

The new tariff order by TRAI which was implemented early this year also had a negative impact on ad revenues.

Multiplexes had a robust second quarter as they did well on all parameters.

The healthy box office collection backed by strong movie content increased occupancy levels and footfalls.

Meanwhile the print media industry remains under a lot of pressure due to higher newsprint costs and ad revenue failing to pick up which declined mainly due to weakness in government business.

Going ahead, Edelweiss Securities expects that TRAI's tariff order will continue to boost subscription revenues but ad revenue growth may remain challenging given the overall economic slowdown.

"SUN TV is already struggling to sustain their market share, however, they regained their market share from 38.5% to 44% in the last few months. But it is still below their peak levels of 67% in FY17," the brokerage firm said.

Zee Entertainment continues to gain market shares in Hindi and in regional markets, but High pledge of promoter shares to remain an overhang and the company is in process of further stake sale to pare its promoter level debts, it added.

First Published:Nov 18, 2019 11:00 AM IST