MAM
Sports to see degrowth in ad revenue: Joy
MUMBAI: Sports will see a degrowth in advertising revenue while Hindi general entertainment channels (GECs) will lose their pricing power this fiscal, said Zee Entertainment Enterprises Limited (Zeel) executive director revenue and niche channels Joy Chakraborthy.
Television will, however, grow faster at 12 per cent while print will crawl at 2-3 per cent as advertisers exercise caution in spending.
“Sports revenue will be under attack because of India‘s debacle against England. The cricket World Cup revenues were also captured in the last fiscal,” said Chakraborthy in an interview.
Sports broadcasters earned a combined ad revenue of Rs 15 billion in FY‘11, buoyed by the World Cup and the Indian Premier League (IPL).
“The India-West Indies series was affected as some of India‘s stars were not playing. The England series has been a setback. Seeing the performance of the Indian team, the Champions League Twenty20 is obviously facing the music,” said Chakraborthy.
The Hindi GECs will see growth but there will be redeployment of ad monies among the top four. “In a four-horse race, the pricing power will be somewhat muted and there will be revenue fragmentation. Media agencies will be in a better bargaining position,” averred Chakraborthy.
When queried about a possible ad slowdown, Chakraborthy admitted that advertisers have become “more cautious” and are entering into quarterly and shorter term deals.
“Not too many annual deals are happening. But India being an emotional country, a single strong wave can lead to a turnaround.”
How deep will the ad economy be hit with FMCGs hinting at slashing their promotional budgets? “There is a concern but at the same time many of the FMCG companies are launching variants. If HUL states that it is slashing its ad budget, frankly speaking it is no more a scare. But what could be disturbing is that we are seeing a drop in high-yielding inventories filled by telecom, banking and finance and real estate companies. We are hoping that like telecom which came in a big way a few years back, we will see a new category emerge,” said Chakraborthy.
The biggest problem in the television industry is that fragmentation is peaking. “A slowdown is good in a way as it will ensure that networks with sustaining power will gain. Costs will also get corrected as companies try to protect their bottom lines,” said Chakraborthy.
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.
