Adani-owned NDTV profit plunges about 98% on weak advertising demand

New Delhi Television

01/05/2023 15:38

BENGALURU, May 1 (Reuters) - Indian broadcaster New
Delhi Television Ltd (NDTV)  NDTV.NS , part of the embattled
Adani Group, posted a 97.6% plunge in quarterly profit on Monday
due to weak advertising demand.
    The results come as businesses worldwide look to rein in
costs such as advertising to ride out an economic downturn
caused by persistently high inflation and aggressive interest
rate hikes.
    NDTV reported a consolidated net profit of 5.9 million
rupees ($72,206.58) for the quarter ended March 31, compared
with 241.6 million rupees a year earlier.
    Revenue from operations fell 35.5% to 669.6 million rupees
due to a "slowdown in global advertisement spend," the media
company said. Total expenses rose 5.9%, driven by production and
services costs.
    NDTV and other Adani Group-owned companies have seen their
share prices take a beating since U.S. short-seller Hindenburg
Research on Jan. 24 raised concerns about the conglomerate's
debt levels and use of tax havens. Adani Group has denied the
allegations.
    Shares of NDTV have fallen about 33% since then, while the
Nifty Media index  .NIFTYMED  has declined 9.69% during the same
period. 
    Ports-to-energy conglomerate Adani Group holds an about
64.7% stake in NDTV through RRPR Holding and Vishvapradhan
Commercial after a contentious battle last year.
    Last month, rival TV18 Broadcast Ltd  TVEB.NS , owned by
Reliance Industries Ltd  RELI.NS , also reported a slump in
quarterly profit, citing lower-than-expected advertising
revenue.

($1 = 81.7100 Indian rupees)

 (Reporting by Anuran Sadhu in Bengaluru; Editing by Subhranshu
Sahu)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))