NDTV, part of the beleaguered Adani Group, reported a 97.6% drop in quarterly earnings on Monday owing to sluggish advertising demand.
Businesses worldwide are cutting expenditures like advertising to weather an economic slump driven by chronically high inflation and aggressive interest rate rises.
For the quarter that ended March 31, NDTV reported a consolidated net profit of 5.9 million rupees ($72,206.58) compared to 241.6 million rupees a year earlier.
Due to a “slowdown in global advertisement spend,” the media firm reported a 35.5% drop in revenue to 669.6 million rupees. On the other hand, production and service expenditures raised total expenses by 5.9%.
Since U.S. short-seller Hindenburg Research raised concerns about the conglomerate’s debt and tax havens on January 24, NDTV and other Adani Group companies’ share prices have fallen. Adani denies the claims.
Since then, NDTV shares have plunged 33%, and the Nifty Media index (.NIFTYMED) has fallen 9.69%.
After a yearlong dispute, ports-to-energy giant Adani Group owns 64.7% of NDTV through RRPR Holding and Vishvapradhan Commercial.
Last month, competitor TV18 Broadcast Ltd (TVEB.NS), owned by Reliance Industries Ltd (RELI.NS), announced a quarterly earnings drop due to decreased advertising income.
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