Siti Networks' ad income drops 20.3 percent to Rs 115.8 crore

Siti Networks Ltd slashed its advertisement and publicity expenses by 19.4 percent in fiscal year 2024. The TV broadcasting and software production company's ad expenditure stood at Rs 2.9 crore in FY 24 compared to Rs 3.6 crore in the previous fiscal year.

Siti's advertising income also witnessed a drop of 20.3 percent to Rs 115.8 crore in FY 2024 compared to Rs 145.3 crore in FY 2023.

The revenue from operations declined to Rs 866 crore from Rs 918 crore in FY 23. The digital cable provider said it had narrowed its consolidated loss to Rs 204.5 crore in FY24 from Rs 314.5 crore in FY 23.

The Essel Group company has been undergoing insolvency proceedings since 2023 after IndusInd Bank petitioned the National Company Law Tribunal (NCLT) court over an alleged default of Rs 148 crore.

However, in October this year, the NCLT ordered creditors of the bankrupt firm to repay Rs 143 crore to Siti following the petition by the Asset Reconstruction Company. The ARC, one of the creditors, alleged that some of the creditors have unlawfully withdrawn funds from Siti despite the stay on insolvency proceedings.

Further, Siti mentioned that there’s a significant risk of subscribers migrating from traditional cable to non-linear content options, due to technological advancement.

Siti Networks said it is well-positioned to adapt to evolving conditions, identifying potential growth opportunities in OTT and broadband services.

In 2023, 70 percent of the Media & Entertainment sector's growth was driven by new media, including digital platforms and online gaming. The share of traditional media (television, print, filmed entertainment, live events, OOH, music, radio) stood at 57 percent of M&E sector revenues in 2023, down from 76 percent in 2019.

Television Active paid subscriptions continued to reduce in 2023. Pay TV homes (including under-declared and pirated subscriptions) decreased to 11.8 crore in 2023. This decline is largely attributed to cord-cutting, a shift towards connected TVs, the growth of alternative entertainment options and digital platforms, and the availability of a sizeable content offering for Hindi-speaking audiences on free television.