MAM
Madison revises ad forecast following dip in TV AdEx
MUMBAI: The Pitch Madison Advertising Outlook Report 2019 has revised its forecast for ADEX 2019 downwards, mainly due to a drop in TV Adex in Quarter1, 2019. According to the Original Report, released in February 2019 Adex was forecast to grow by 16. 4 per cent, but the agency has revised it downwards now to 13.4 per cent. By medium, the revised forecast stands as follows:
|
Original |
Revised  |
|||
|
Medium |
Original Growth Forecast 2019 (%) |
Original Share of Media (%) |
Revised Growth Forecast 2019 (%) |
Revised Share of Media (%) |
|
Television |
18.0 |
39.0 |
11.2 |
38.0 |
|
|
5.0 |
29.0 |
5.0 |
30.0 |
|
Digital |
33.4 |
22.0 |
33.4 |
23.0 |
|
Radio |
12.0 |
3.0 |
12.0 |
3.5 |
|
Outdoor |
11.4 |
5.0 |
5.0 |
5.0 |
|
Cinema |
30.0 |
1.5 |
30.0 |
1.5 |
|
TOTAL |
16.4 |
100.0 |
13.4 |
100.0 |
Whilst there is no change in the growth forecast for digital, radio and cinema, there is a downward revision for television and outdoor, which has led to an overall downward forecast of Adex for 2019.
The major reason for the drop in television Adex is the drop faced in the first quarter (January – March 2019), because of the NTO order, which caused chaos in the television market and led BARC to issue an advisory, not to use Ratings because of major changes in availability of channels.
Another major reason that resulted in the drop in television Adex was the ill-fated decision of major networks to remove their free-to-air (FTA) channels from DD Free Dish. This led to a loss of 275 GRPs per week in the Hindi GEC + movies market. New FTA channels that emerged could not make up the viewership enjoyed by the established FTA channels like Zee Anmol, Star Utsav, Star Bharat, Sony Pal, Colors Rishtey, etc. A few new FTA channels did emerge like Dangal, Enter 10, etc. but these could not make up the GRP loss.
As a result, for the first time in many years the first quarter of 2019 saw a de-growth of -5 per cent in television Adex. In quarter 2, TV Adex recovered on the back of Parliamentary Elections, IPL and World Cup. We expect quarter 3 also to be reasonably strong on the back of the festive season, but we expect a softening in quarter 4.
The Pitch Madison Advertising Outlook Revised Forecast by Media is as follows:
Rs in Crores
|
Medium |
Original Forecast 2019 |
Revised Forecast 2019 |
|
Television |
27649 |
26050 |
|
|
20429 |
20429 |
|
Digital |
15612 |
15612 |
|
Radio |
2401 |
2401 |
|
Outdoor |
3750 |
3533 |
|
Cinema |
1047 |
1047 |
|
TOTAL |
70888 |
69073 |
Madison World chairman Sam Balsara says, “It appears that the Consumer is looking for reasons to not spend or delay his spending. At a time like this Advertisers should not lose faith in Advertising, and use it aggressively but effectively to protect their Share.”
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
