The Broadcast Audience Research Council (BARC), India's official TV audience measurement body, reported a 44% drop in profit after tax for 2023-24 to Rs 20 crore, according to regulatory filings.
Revenue fell a marginal 0.6%, down to Rs 319 crore from Rs 321 crore in the previous fiscal.
BARC, a critical player in India's media industry, derives 75% of its revenue from broadcasters. It charges a fee based on a fixed percentage of advertising revenues, helping maintain stable cash flow as clients are billed quarterly in advance.
Three major industry associations support BARC: the Indian Broadcasting and Digital Foundation owns a 60% stake, while the Indian Society of Advertisers and the Advertising Agencies Association of India own 20% each.
BARC’s ratings serve as a benchmark for advertising decisions in the TV broadcasting industry. The firm employs advanced watermarking technology with a panel base of around 60,000 ' Bar-O meters' for data collection.
Meterology Data Pvt Ltd (MDPL), responsible for deploying and maintaining BARC’s Bar-O-meters, reported a 60% decline in net profit for 2023-24 to Rs 2 crore, with revenue falling 2% to Rs 105 crore.
MDPL, in which BARC holds a 51% stake, and TAM Media Research the remaining 49%, manages around 55,000 panels and 2,500 out-of-home meters, collecting data across urban and rural India.
The company uses locally manufactured Bar-O-meters that transmit data in real-time via GSM networks, supported by a robust IT infrastructure and field staff network.
CRISIL Ratings reaffirmed its stable rating on BARC's long-term bank facilities, projecting operating profit to be Rs 20-30 crore going forward. It withdrew its rating on MDPL’s long-term bank facilities at the company's request, following receipt of no-dues certificates.
The rating agency also withdrew its rating on a Rs 7.05 crore long-term loan, following repayment, and on proposed bank facilities of Rs 7.95 crore at BARC’s request.
The reaffirmed rating reflects BARC's strong business model, high revenue visibility, strategic importance to member entities and solid financial risk profile, tempered by weak operating profitability.
CRISIL highlighted the ongoing review of TV audience measurement guidelines by the information and broadcasting ministry based on the Telecom Regulatory Authority of India's recommendations from April 2020. Any changes impacting BARC’s status as the sole provider of TV viewership metrics could affect its rating outlook, it added.
However, CRISIL said high capital requirements and regulatory approvals create strong barriers to entry in this business.
As of September 30, 2024, BARC had cash reserves of Rs 100 crore against a debt of Rs 5 crore. Future capital expenditure needs will be funded through internal accruals, working capital limits and existing cash reserves.
Revenue fell a marginal 0.6%, down to Rs 319 crore from Rs 321 crore in the previous fiscal.
BARC, a critical player in India's media industry, derives 75% of its revenue from broadcasters. It charges a fee based on a fixed percentage of advertising revenues, helping maintain stable cash flow as clients are billed quarterly in advance.
Three major industry associations support BARC: the Indian Broadcasting and Digital Foundation owns a 60% stake, while the Indian Society of Advertisers and the Advertising Agencies Association of India own 20% each.
BARC’s ratings serve as a benchmark for advertising decisions in the TV broadcasting industry. The firm employs advanced watermarking technology with a panel base of around 60,000 ' Bar-O meters' for data collection.
Meterology Data Pvt Ltd (MDPL), responsible for deploying and maintaining BARC’s Bar-O-meters, reported a 60% decline in net profit for 2023-24 to Rs 2 crore, with revenue falling 2% to Rs 105 crore.
MDPL, in which BARC holds a 51% stake, and TAM Media Research the remaining 49%, manages around 55,000 panels and 2,500 out-of-home meters, collecting data across urban and rural India.
The company uses locally manufactured Bar-O-meters that transmit data in real-time via GSM networks, supported by a robust IT infrastructure and field staff network.
CRISIL Ratings reaffirmed its stable rating on BARC's long-term bank facilities, projecting operating profit to be Rs 20-30 crore going forward. It withdrew its rating on MDPL’s long-term bank facilities at the company's request, following receipt of no-dues certificates.
The rating agency also withdrew its rating on a Rs 7.05 crore long-term loan, following repayment, and on proposed bank facilities of Rs 7.95 crore at BARC’s request.
The reaffirmed rating reflects BARC's strong business model, high revenue visibility, strategic importance to member entities and solid financial risk profile, tempered by weak operating profitability.
CRISIL highlighted the ongoing review of TV audience measurement guidelines by the information and broadcasting ministry based on the Telecom Regulatory Authority of India's recommendations from April 2020. Any changes impacting BARC’s status as the sole provider of TV viewership metrics could affect its rating outlook, it added.
However, CRISIL said high capital requirements and regulatory approvals create strong barriers to entry in this business.
As of September 30, 2024, BARC had cash reserves of Rs 100 crore against a debt of Rs 5 crore. Future capital expenditure needs will be funded through internal accruals, working capital limits and existing cash reserves.
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