Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Media
According to the FICCI-KPMG 2010 report, the Indian media and entertainment sector is well-poised for a
recovery with the launch of more TV channels, digitisation and higher spend by the consumers going forward.
Consequently, we the sector post a CAGR of 13.3% to `1,09,400cr over CY2009-14.
Overall, FY2011 has been a positive year for the media and entertainment sector as expansion was witnessed in
the print and broadcasting sectors. Moreover, recovery in economy saw revival in advertisement revenues, which
helped the companies in our universe maintain margins despite higher material costs (newsprint and movie
distribution expenses). Digitisation is also taking place rapidly and set to increase 4x by 2014.
Among the key Budget expectations of the media sector includes increase of FDI limit for the cable, DTH and radio
sectors on account of being capital-intensive in nature. Increase in FDI limit would spur investments in these
segments.
The sector expects GST implementation, post which the companies would avail benefits like uniform, simplified and
single-point taxation across product categories and roll-out of Phase-III radio reforms and conditional access
system (CAS). Exemption of duty on the set-top boxes (currently at 5%) will reduce cost burden of the DTH and
cable industries and pave the way for rapid digitisation.
Budget Expectations
Head Current Status Wish List Potential Impact
FDI Varied limit for different
sectors
Raise FDI limit in radio, DTH
and cable
Positive for all media companies if the FDI limit is
raised as it would reduce the burden of the sector
Uniformity in taxes
Entertainment tax levied by
the various states at
Taxes levied to be uniform
thereby creating parity in the Positive for all companies if a uniform the tax structure
U o y a es e va ous s a es a i h d l i lti l t
different rates
e eby c ea g pa y e
sector is ushered replacing multiple taxes
Customs duty on set top
boxes
The set top boxes are
subject to a customs duty of
5%
Removal of customs duty also
recommended by TRAI
Rapid digitisation would result, removal of customs
duty on set top boxes would be a positive for DTH and
the cable industry
TOP PICK:
Jagran Prakashan
HT Media
DB Corp
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Media
According to the FICCI-KPMG 2010 report, the Indian media and entertainment sector is well-poised for a
recovery with the launch of more TV channels, digitisation and higher spend by the consumers going forward.
Consequently, we the sector post a CAGR of 13.3% to `1,09,400cr over CY2009-14.
Overall, FY2011 has been a positive year for the media and entertainment sector as expansion was witnessed in
the print and broadcasting sectors. Moreover, recovery in economy saw revival in advertisement revenues, which
helped the companies in our universe maintain margins despite higher material costs (newsprint and movie
distribution expenses). Digitisation is also taking place rapidly and set to increase 4x by 2014.
Among the key Budget expectations of the media sector includes increase of FDI limit for the cable, DTH and radio
sectors on account of being capital-intensive in nature. Increase in FDI limit would spur investments in these
segments.
The sector expects GST implementation, post which the companies would avail benefits like uniform, simplified and
single-point taxation across product categories and roll-out of Phase-III radio reforms and conditional access
system (CAS). Exemption of duty on the set-top boxes (currently at 5%) will reduce cost burden of the DTH and
cable industries and pave the way for rapid digitisation.
Budget Expectations
Head Current Status Wish List Potential Impact
FDI Varied limit for different
sectors
Raise FDI limit in radio, DTH
and cable
Positive for all media companies if the FDI limit is
raised as it would reduce the burden of the sector
Uniformity in taxes
Entertainment tax levied by
the various states at
Taxes levied to be uniform
thereby creating parity in the Positive for all companies if a uniform the tax structure
U o y a es e va ous s a es a i h d l i lti l t
different rates
e eby c ea g pa y e
sector is ushered replacing multiple taxes
Customs duty on set top
boxes
The set top boxes are
subject to a customs duty of
5%
Removal of customs duty also
recommended by TRAI
Rapid digitisation would result, removal of customs
duty on set top boxes would be a positive for DTH and
the cable industry
TOP PICK:
Jagran Prakashan
HT Media
DB Corp
No comments:
Post a Comment