Profit of Adani's NDTV more than halves on advertising drop
Business
Decline caused by reduced consumption of ad inventory across all news genres, says NDTV
BANGALURU (Web Desk) - The struggling Adani Group's Indian broadcaster New Delhi Television Ltd. said on Tuesday that the third quarter's profit had more than halved due to sluggish advertising demand.
In order to deal with an economic slowdown brought on by persistent inflation and increasing interest rates businesses throughout the world are keeping a tight control on expenditures like advertising.
The broadcaster's consolidated net profit declined from 276.4 million Indian rupees a year earlier to 129.1 million rupees ($1.56 million) in the third quarter that concluded on December 31.
The decline was mostly caused by reduced consumption of ad inventory across all news genres, according to a press statement from NDTV.
Since US short-seller Hindenburg Research on January 24 expressed worries about the conglomerate's debt levels and usage of tax havens—allegations that the company has denied—NDTV and other listed Adani-owned firms have seen their shares suffer.
In FY24, Adani Total anticipates receiving 2.2 million T at the Dhamra LNG facility.
Since then, shares of NDTV have dropped by 23.6%, while those of Adani Enterprises Ltd., the group's flagship firm, have dropped by 47.7%.
After a protracted struggle in the second half of last year, Adani now owns a 64.71% interest in NDTV. This is viewed as the demise of one of India's very few editorially independent media outlets.
While overall expenses increased by about 5%, driven mostly by production and staff benefits costs, NDTV's revenue declined 9.5% to 1.05 billion rupees.
Its outcomes were comparable to those of TV18 Broadcast Ltd, which is controlled by Reliance Industries, and TV Today Network Ltd, which operates the news stations India Today and Aaj Tak.
