[ad_1]
A Globo announced to the advertising market on its Upfront, two weeks ago, that it will be launched in 2024 “the biggest growth in advertising revenue in 12 years”. Manzar Feres, the broadcaster’s commercial director, did not reveal any numbers, but whatever it may be, it is unlikely to recover a substantial part of the market that the country’s largest communications company has been losing for ten years. In real terms, today’s Globo earns just over half of 2014’s Globo.
The accounting balance sheets that Globo publishes annually only report total revenue, without specifying advertising and subscriptions. Historically, revenue from advertising represents around 60% of this. The remaining 40% comes mainly from pay TV and streaming/Globoplay, according to well-placed sources.
In a historical series, Globo’s best year was 2014. Ten years ago, the broadcaster recorded R$16.244 billion in its cash flow. The following year, it was still above R$16 billion, but it never surpassed that mark again. It dropped to R$12.5 billion in 2020, affected by the pandemic, and has been recovering since then. It closed last year with revenue of R$15.134 billion.
In real terms, considering the inflation of the period, Globo’s revenue in 2023 was 44.6% lower than in 2014, as shown in the table that illustrates this text, prepared for this journalist’s master’s project. Collected directly from Globo’s official balance sheets, the revenue and profit data were updated by the IPCA (Broad National Consumer Price Index) accumulated until December 31st of last year, when the last balance sheet ended.
This means that Globo entered 2024 with almost half the size it had ten years ago, in terms of net revenue. Ignoring the pandemic, the broadcaster went into decline basically for two reasons: the economic recession from 2015 to 2017 and the growth in competition from digital platforms, which surpassed open TV in revenue in the second quarter of this year.
Globo’s profit falls by more than 70% after crisis
As can be seen from the unprecedented and exclusive table, Globo was also much more profitable. In updated values, it jumped from an annual profit of R$4.8 billion between 2010 and 2015 to R$1.3 billion in the last eight years. This occurred because costs increased, while revenues stagnated in nominal values and fell in real terms.
Analyzing Globo’s numbers in perspective allows us to deduce that the transformation process that the broadcaster has been going through, integrating areas and obsessively seeking to reduce costs, was imperative to keep the company healthy — Globo has R$15 billion in cash and investments.
If it hadn’t let go of actors and authors who built its hegemony, perhaps the broadcaster would be in financial difficulties today, without the capacity to invest in technology to face competition from big tech.
How much will Globo earn in 2024?
Based on the 2024 numbers released so far, Globo will have its best year at least since the pandemic. She closed the first semester with a net revenue of R$7.06 billion, an increase of 8% compared to the same period last year.
The good performance was driven by advertising space sales, which grew 13%. Subscription revenues grew just 1%.
[ad_2]
Source link