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Even as advertisement revenue during the second quarter of the year was affected mainly owing to a few one-offs, Network is expecting its ad income to grow in lower double digits in the second half of the current fiscal. The company has said that it would take a couple of quarters to see better growth in its (GEC) channel Sun Life, which was recently rejigged to tackle the decline in market share due to the entry of new players like Zee and Colors.
Is also in the process of beefing up its OTT channel Sun Next, with exclusive content and is in talks with some of the major telecos to improve its reach. The estimated ad revenue growth is around eight per cent year-on-year for the company, according to analysts.
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The growth during the quarter was impacted by the Kerala floods, which took place close to the Onam festival affecting Rs 70 million in ad revenue. Shift of Dussehra festival to the third quarter, which impacted another Rs 70 million, and broadcasting two prime-time slots without ads for two days continuosly following the death of Dravida Munnetra Kazhagam (DMK) supreme leader M Karunanidhi. The ad revenues could have seen a growth of 10 per cent, if these one-offs were not there, analysts said. The company management, in a recent earnings call with analysts, said it expects ad revenues to grow in the 'early teens' during the last six months of this fiscal. Ad revenue in the industry is expected to grow by 10-12 per cent, they added.
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