MAM
US ad revenues for Q1 seem flat
MUMBAI: Total advertising spending in the US in the first quarter fell 0.1 per cent from the year-ago period, at $30.1 billion, according to the latest figures from Kantar Media.
Cable expenditures were up by 5.2 per cent, thanks to an increase in the volume of ad time and stronger demand from restaurants and auto manufacturers. Spanish-language TV spending was up 13.5 per cent, marking its seventh consecutive quarter of double-digit growth. However, this is lower than the 15 per cent annual growth rate seen in 2012. The Spanish-language segment continues to be led by gains among national broadcast networks.
There was a 5.2 per cent decline in network TV spending, primarily due to weaker prime-time ratings. The Q1 comparisons were also hurt by the fact that ad money for NCAA Final Four Games has been shifted to April. Overall, sports programming did produce ad revenue gains for the broadcast networks though.
Spot TV spending was down, by 2.4 per cent. However, if you exclude cyclical political advertising, this area was essentially flat versus last year. Spending on syndication was down 1.1 per cent.
“It has been a lackluster start for 2013, with flat year-over-year results due in part to strong 2012 growth caused by political and Olympic ad spending,” said Kantar Media North America chief research officer Jon Swallen. “Data from the early second quarter are mixed, suggesting marketers are still being cautious and conservative with ad budgets. However, there are some bright spots, including healthy growth for Hispanic media and outdoor.”
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.
