Mumbai: The Broadcast Audience Research Council (BARC) India revenues stand at Rs 251 crore for FY 2021, according to a Crisil report. Its profit after tax stands at Rs 44 crore. 

The TV rating agency’s financials for FY 2020 stood at Rs 317 crore in revenues and net loss of Rs five crore. The agency also has a debt obligation of around Rs 38 crore for FY 2022. Crisil reaffirmed its rating of ‘Crisil A/Stable’ for the agency.

“TV advertisements, the major factor driving revenue for the company, have a high correlation with economic activity. The lockdown imposed to contain the Covid-19 pandemic and weak economic activity in the first half of fiscal 2021 led to a significant drop in ad revenue for television broadcasters, which led to decline in revenue for BARC. However, with an uptick in economic activity in the latter half of the fiscal, revenues have been gradually recovering. Furthermore, the cost-rationalisation measures undertaken by the company ensured better operating profit in fiscal 2021," said the report.

Crisil's report indicates that downward factors such as weakening support from member entities of promoter bodies, change in status as the sole provider of TV viewership measurement in India, and larger than expected debt may impact ratings for the company in the future.  

80 per cent of BARC India’s revenue comes from broadcasters. It levies a fixed percentage of the ad revenue of broadcasters (0.8 per cent for fiscals 2017 to 2021). As the sole provider of independent TV viewership estimates, BARC India is highly strategic to broadcasters which ensures stickiness and good visibility.

The agency is promoted by three industry associations, the Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA), and the Advertising Agencies Association of India (AAAI) with a shareholding of 60:20:20. BARC uses audio watermarking technology and deploys around 46,000 BAR-O-meters. “The company is venturing into viewership estimation for digital platforms, and is increasing the number of BAR-O-meters deployed," said the report.