Print media stocks shine as government hikes ad rates

The Ministry of Information and Broadcasting gave a New Year gift to print media companies by revising the advertisement rates for the sector. The ministry declared an upward revision of almost 25 per cent in the current rate structure for print advertisement which will remain in effect for a period of three years. 

This move comes ahead of the general election scheduled in the second half of 2019 when most of the political parties are bound to issue print advertisements to reach the masses. 

This rate hike is definitely a big trigger for print media players as they were facing headwinds such as higher print cost, processing charges, etc. 

This development brought cheers among investors which led to a sharp jump in the price of print media stocks. HT Media’s stock on Wednesday’s spiked almost 16 per cent in the early morning trade while Jagran Prakashan surged almost 10 per cent.