Raj Television Network Ltd Management Discussions

GLOBAL ECONOMY

The global economy in FY 2025-26 is being shaped by an unusual divergence between strong technology-led investment and persistent policy uncertainty, resulting in stable headline growth amid uneven underlying momentum. According to the International Monetary Fund (IMF), global GDP growth stood at 3.3% in FY 2024-25 and is expected to remain at 3.3% in FY 2025-26, reflecting resilience in economic activity across major regions. Advanced economies are projected to grow by 1.8% in FY 2025-26, supported by easing financial conditions in select markets and continued investment momentum, while emerging market and developing economies (EMDEs) are expected to expand by 4.2%, underlining the continued growth differential between regions.

Global inflation is expected to continue moderating, easing from 4.1% in 2025 to 3.8% in 2026, supporting a gradual improvement in consumer purchasing power and corporate sentiment. While most major economies are approaching their inflation targets, the pace of normalisation remains uneven, with services inflation proving sticky in some advanced economies. Central banks in key markets are expected to move cautiously on policy easing, balancing growth support with price stability considerations.

Trade policy uncertainty and geopolitical developments continue to influence global business confidence. Although trade tensions have stabilised following temporary tariff truces, policy uncertainty remains elevated, particularly in strategic sectors. Global supply chains have largely adapted to earlier disruptions; however, sector-specific restrictions and evolving trade frameworks continue to shape cross-border flows and corporate planning. Global merchandise trade growth is expected to moderate in 2026, with world trade volumes projected to expand by 2.6%, reflecting the fading impact of inventory restocking and continued policy-related frictions. Export-oriented economies in Asia remain relatively resilient, supported by technology-led exports, while growth in non-technology trade remains subdued.

Technology emerged as one of the most significant drivers of global economic growth during FY 2025 26. Investments in artificial intelligence (AI), cloud computing, semiconductor manufacturing, automation, cybersecurity and digital infrastructure accelerated across both developed and emerging markets. Governments and private enterprises continued to prioritise digital transformation and innovation-led growth strategies, thereby enhancing productivity, operational efficiency and long-term competitiveness across multiple sectors. These structural developments are expected to redefine business models and create sustainable opportunities across industries over the medium to long term. The global media and entertainment industry continued to evolve rapidly in response to changing consumer preferences, technological innovation and the increasing convergence of traditional and digital media platforms. Demand for premium content, regional language programming and personalised viewing experiences remained strong, while advertisers increasingly adopted integrated, data-driven marketing strategies spanning television, digital platforms and connected television (CTV). Although competition from digital streaming platforms continued to intensify, television broadcasting retained its significance through live events, news, sports and culturally relevant regional content, supported by its extensive reach and credibility among diverse audience segments.

Global advertising expenditure demonstrated gradual improvement during the year, supported by steady economic activity, rising consumer confidence and increased corporate spending across sectors such as consumer goods, automobiles, financial services, telecommunications and e-commerce. However, advertising budgets remained selective, with greater emphasis on measurable returns, audience analytics and cross-platform engagement. This trend has accelerated the adoption of integrated advertising models, encouraging media organisations to diversify revenue streams through digital expansion, content monetisation and strategic partnerships while maintaining operational efficiency.

OUTLOOK

The IMF projects global GDP growth to remain steady at 3.3% in 2026, moderating marginally to 3.2% in 2027, reflecting a stabilisation in the global growth cycle after successive years of macroeconomic volatility. Growth prospects remain anchored in domestic demand and selective investment recovery across key economies. While easing inflation is expected to support consumer and business sentiment, the outlook remains vulnerable to downside risks from renewed trade frictions, geopolitical developments and financial market volatility. The medium-term growth trajectory is likely to be increasingly influenced by the pace of technology diffusion and regulatory frameworks governing digital and AI adoption across major economies.

INDIAN ECONOMY

India continued to reinforce its position as the worlds fastest-growing major economy during FY 2025 26, demonstrating remarkable resilience amidst an increasingly volatile global economic environment. The economy remained firmly supported by robust domestic demand, sustained Government capital expenditure, resilient private consumption, healthy corporate balance sheets and a gradual recovery in private sector investments. According to the First Advance Estimates released by the National Statistics Office (NSO), real Gross Domestic Product (GDP) is estimated to grow by 7.4% during FY 2025 26, compared with 6.5% in the previous financial year, while nominal GDP is projected to expand by approximately 8.0%, reflecting the continued strength of Indias macroeconomic fundamentals.

Inflationary pressures moderated significantly during the financial year, supported by easing food prices, favourable agricultural output, lower fuel price volatility and prudent monetary management. Consumer Price Index (CPI) inflation averaged around 1.7% during April December 2025, one of the lowest levels witnessed in recent years, leading the Reserve Bank of India (RBI) to revise its FY 2025 26 inflation projection downward to approximately 2.0%.

The moderation in inflation has strengthened household purchasing power, improved consumer sentiment and created a conducive environment for investment, business expansion and sustainable economic growth.

The investment cycle continued to strengthen during the year, driven by the Governments sustained emphasis on infrastructure development, manufacturing expansion and logistics modernisation under various flagship initiatives. Capital expenditure on transport infrastructure, railways, highways, digital infrastructure, renewable energy and urban development continued to generate positive multiplier effects across the economy. Simultaneously, increasing capacity utilization, improved credit growth, stronger banking sector balance sheets and expanding formalisation of the economy encouraged higher private sector participation in capital formation, reinforcing Indias long-term growth trajectory.

The services sector remained the principal driver of economic activity, supported by continued expansion in financial services, information technology, telecommunications, tourism, logistics and media-related activities. Growth in digital infrastructure, rapid internet penetration, increasing smartphone adoption and widespread digital payments continued to accelerate Indias transition towards a digitally integrated economy. Simultaneously, manufacturing activity gained further momentum under the "Make in India" initiative and the Production Linked Incentive (PLI) schemes, while favourable monsoon conditions and improved agricultural productivity supported rural demand and overall economic stability.

Indias media and entertainment ecosystem continued to benefit from the countrys strong macroeconomic fundamentals. Rising disposable incomes, expanding middle-class consumption, increasing digital connectivity and higher advertising expenditure across sectors such as consumer goods, automobiles, financial services, healthcare, retail and e-commerce supported sustained growth in the advertising and broadcasting markets. The growing preference for regional language content, coupled with increasing integration of television broadcasting, digital platforms and Connected TV (CTV), continued to reshape audience engagement and create long-term opportunities for content creators, broadcasters and advertisers.

Television remains one of the most influential mass media platforms in India, particularly for news, general entertainment, live events and regional programming, thereby maintaining its strategic importance within the evolving media landscape.

Looking ahead, Indias medium-term economic outlook remains favourable, supported by sound macroeconomic fundamentals, prudent fiscal and monetary policies, structural reforms, digital transformation and sustained infrastructure investments.

While global geopolitical developments, trade uncertainties and financial market volatility continue to pose external risks, Indias strong domestic consumption, favourable demographic profile, expanding digital economy and resilient services sector are expected to sustain growth momentum. These structural strengths are anticipated to further reinforce Indias position as one of the worlds most attractive investment destinations while creating significant opportunities across sectors, including media, entertainment, broadcasting and digital content industries.

UNION BUDGET 2026-27

The Union Budget 2026-27 outlines a strategic shift towards sustaining growth through productivity enhancement, supply-side reforms and capacity building, while maintaining fiscal discipline. Public capital expenditure has been increased to Rs. 12.2 lakh crore, reinforcing the governments continued focus on infrastructure development, logistics, urban connectivity and industrial corridors, which are expected to crowd-in private investment and support medium-term growth. The Budget places strong emphasis on manufacturing competitiveness, MSME development and critical sectors such as bio pharma, clean energy, electronics and advanced manufacturing. The proposed Rs. 10,000 crore SME Growth Fund and targeted measures to strengthen MSME credit access are expected to support entrepreneurship, employment creation and regional economic development, particularly in tier-2 and tier-3 cities. For the digital and media ecosystem, measures supporting the IT services sector, safe harbour reforms, incentives for global cloud service providers operating from India, and investments in digital infrastructure are expected to strengthen Indias position as a global technology and services hub.

The proposed expansion of AVGC infrastructure through content creator labs and creative technology initiatives aligns with the growing convergence of media, technology and digital content creation, creating long-term opportunities for the media and entertainment sector.

Tourism, creative industries, sports and skill development have also received targeted support, which is expected to stimulate consumption, advertising activity and content demand across platforms. Simplification of customs processes, digitisation of trade clearances and ease of doing- business measures are likely to improve logistics efficiency and cross-border commerce, benefiting export-oriented and digital service-driven businesses.

OUTLOOK FOR FY 2026-27

Indias economic outlook for FY 2026 27 remains robust and favourable, underpinned by strong macroeconomic fundamentals, resilient domestic consumption, and sustained Government-led infrastructure investments and a gradual recovery in private capital expenditure. Real Gross Domestic Product (GDP) growth is projected to remain in the range of 6.8% to 7.2%, reflecting the continued resilience of the Indian economy amidst an evolving global economic landscape. Domestic demand is expected to remain the principal driver of growth, supported by stable employment conditions, improving consumer confidence, rising urban consumption and continued policy support for infrastructure development. Furthermore, the Governments sustained emphasis on capital expenditure, coupled with improving corporate balance sheets and favourable credit conditions, is expected to strengthen the investment cycle and reinforce medium-term economic growth.

The services sector is expected to continue serving as the primary engine of economic expansion, supported by robust performance across financial services, information technology, telecommunications, logistics, tourism and other knowledge-driven industries. Simultaneously, the manufacturing sector is anticipated to witness stronger growth momentum as investments under the Production Linked Incentive (PLI) Schemes translate into higher industrial output, improved capacity utilisation, enhanced export competitiveness and greater integration of India into global value chains. Continued progress in digital transformation, technological innovation and infrastructure modernisation is also expected to improve productivity and support sustainable long-term economic development.

Notwithstanding the positive domestic outlook, the global geopolitical and financial environment continues to remain characterised by elevated uncertainty and heightened volatility. Ongoing geopolitical developments, disruptions to global supply chains, evolving trade policies and financial market fluctuations continue to present challenges for the global economy. In particular, the recent escalation of geopolitical tensions in West Asia has exerted upward pressure on global energy prices, thereby increasing input costs and affecting economic activity across both advanced and emerging economies. A prolonged continuation of these geopolitical disruptions may result in second-order inflationary pressures during FY 2026 27, potentially influencing production costs, consumer prices and overall business sentiment.

Inflationary conditions within the domestic economy have, thus far, remained relatively well anchored despite external challenges. Preliminary economic indicators reveal that the Consumer Price Index (CPI) headline inflation increased marginally to 3.5% (Year-on-Year) in April 2026, indicating that underlying consumer price pressures remain broadly contained and continue to remain within the Reserve Bank of Indias tolerance band. However, inflationary risks warrant continued monitoring, particularly in light of persistent geopolitical uncertainties and commodity price movements.

The Reserve Bank of India (RBI), in its May 2026 Bulletin, highlighted that the Wholesale Price Index (WPI) inflation accelerated sharply from 3.9% in March 2026 to 8.3% in April 2026, representing the highest level recorded in the preceding 42 months. The increase was primarily attributable to rising fuel and power prices, reflecting the pass-through effect of higher global energy costs. Although the divergence between CPI and WPI inflation suggests that wholesale price pressures have not yet fully translated into retail inflation, sustained increases in input costs could pose inflationary risks over the medium term if geopolitical tensions persist.

Looking ahead, Indias growth trajectory is expected to remain fundamentally resilient; however, the outlook continues to be subject to several external and domestic risk factors. Global trade policy uncertainty, geopolitical developments, financial market volatility, fluctuations in commodity prices and changing capital flow dynamics may influence export performance, foreign investment inflows and overall economic activity. At the domestic level, the pace of private sector capital expenditure, rural demand recovery, agricultural performance, employment generation and the effectiveness of ongoing structural reforms will remain critical determinants of near-term growth momentum.

Continued policy support, macroeconomic stability and prudent fiscal and monetary management are therefore expected to play a pivotal role in sustaining Indias long-term growth prospects while reinforcing its position as one of the worlds fastest-growing major economies.

INDUSTRY OVERVIEW

GLOBAL MEDIA OVERVIEW

The global media and journalism industry continues to undergo a profound structural transformation, driven by rapid technological advancements, changing consumer preferences and the accelerating shift towards digital-first content consumption. The industry operates at an unprecedented scale, supported by increasing internet penetration, widespread smartphone adoption, expanding broadband connectivity and the growing influence of digital ecosystems across news, entertainment and advertising. According to industry estimates, the global media market was valued at approximately USD 2.58 trillion in 2025, with growth primarily fuelled by robust expansion in digital advertising, online video consumption, subscription-based services and Over-the-Top (OTT) streaming platforms. While traditional print media and linear television continue to face structural headwinds in several developed markets, they remain significant mediums for credible news dissemination, live programming and mass audience engagement across numerous regions. The global newspaper and news publishing industry continued to demonstrate resilience despite evolving consumption patterns and competitive digital disruption.

The sector generated approximately USD 230 billion in revenues during 2025, with digital subscriptions, online advertising and premium content offerings accounting for an increasing proportion of total industry revenues. Publishers across global markets continued to diversify their revenue streams through subscription models, digital memberships, branded content, events, licensing arrangements and strategic partnerships, thereby reducing dependence on conventional print circulation and traditional advertising income. The increasing emphasis on digital transformation has enabled media organisations to enhance audience engagement while improving operational efficiencies and long-term business sustainability.

Advertising continues to remain the principal monetisation engine for the global media ecosystem. Global advertising expenditure was estimated at approximately USD 963 billion in 2024 and is projected to remain in the range of USD 950 970 billion during 2025, with internet, mobile and digital advertising accounting for the largest share of incremental growth. Advertisers are increasingly allocating marketing budgets towards data-driven, measurable and personalised campaigns across digital platforms, social media, connected television (CTV), online video and programmatic advertising.

At the same time, television continues to retain a strategically important position within the advertising ecosystem owing to its extensive reach, premium content environment and ability to deliver large-scale audience engagement, particularly during live events, news broadcasts and regional programming.

Consumer news consumption patterns continue to evolve rapidly towards platform-led and video-centric formats. Digital platforms such as YouTube and TikTok, together with private messaging applications including WhatsApp, have emerged as key channels for news discovery, content distribution and audience engagement, particularly among younger demographics. The increasing preference for short-form video, personalised content recommendations and mobile-first experiences is reshaping traditional news consumption behaviour, compelling media organisations to adopt integrated, multi-platform distribution strategies while maintaining editorial credibility, content authenticity and audience trust.

Artificial Intelligence (AI) is emerging as a transformative force within the global media and journalism landscape. The early-stage deployment of generative AI technologies is beginning to enhance productivity across newsroom operations by supporting content research, multilingual translation, automated transcription, editorial workflows, audience analytics, meta data generation and personalised content recommendations. While AI presents significant opportunities to improve operational efficiency, accelerate content production and optimise distribution strategies, it also necessitates robust governance frameworks, editorial oversight and ethical safeguards to preserve journalistic integrity, combat misinformation and ensure responsible deployment of emerging technologies.

Looking ahead, the global media and journalism industry is expected to remain on a trajectory of sustained digital transformation, supported by continued innovation in artificial intelligence, cloud-based content management, data analytics, immersive media technologies and evolving digital advertising models. Although structural challenges such as platform competition, changing consumer behaviour, regulatory developments and monetisation pressures are expected to persist, organisations that successfully integrate digital capabilities with trusted journalism, diversified revenue models and technology-driven operational excellence will be well positioned to achieve sustainable growth and long-term value creation within the evolving global media ecosystem.

OUTLOOK

The outlook for the global media and journalism industry remains positive, supported by sustained digital transformation, evolving consumer consumption patterns and continued advancements in technology. The global media market is projected to expand further and reach approximately USD 2.76 trillion by 2026, primarily driven by robust growth in digital advertising, online video consumption, connected television (CTV) and Over-the-Top (OTT) streaming platforms. Although traditional print media and linear television are expected to continue experiencing structural challenges in several mature markets, their relevance in delivering credible news, live events, regional programming and premium content is expected to remain significant, particularly across emerging economies and diverse demographic segments.

Digital advertising is expected to remain the principal catalyst for industry growth over the medium term. Global advertising expenditure is projected to surpass USD 1 trillion by 2026, reflecting continued investments by advertisers in data-driven, performance-oriented and personalised marketing strategies. Internet advertising is further expected to account for more than 75% of total global advertising expenditure by 2028, underscoring the accelerating migration of advertising budgets towards digital ecosystems, social media platforms, online video, mobile applications and programmatic advertising. While these developments present substantial growth opportunities for digital media, they are also expected to intensify competition for digital advertising inventory and place downward pressure on advertising yields for undifferentiated or commoditised news content.

Digital news monetisation is expected to witness sustained expansion, with global revenues projected to exceed USD 30 billion by 2026. This growth is anticipated to be supported by the continued adoption of subscription-based business models, premium digital memberships, paywalls, bundled content offerings and diversified revenue strategies. Publishers are increasingly focusing on strengthening direct consumer relationships, enhancing user engagement and delivering differentiated, high-quality content in order to improve subscriber retention and reduce reliance on conventional advertising revenues. The continued evolution of digital monetisation models is expected to play a critical role in strengthening the long-term financial sustainability of media organisations.

At the same time, the economic landscape for publishers is expected to become increasingly complex as technological disruption continues to reshape content discovery and distribution. Artificial Intelligence (AI)-enabled search engines, generative AI applications and evolving digital distribution models are expected to reduce referral traffic from traditional search platforms to publisher-owned websites, thereby increasing the importance of direct audience acquisition, first-party data strategies, customer loyalty programmes and proprietary digital ecosystems. These developments are likely to require publishers to continuously adapt their business models, strengthen brand trust and invest in differentiated editorial capabilities to maintain audience engagement and revenue growth.

The adoption of generative Artificial Intelligence is expected to accelerate across the global media and journalism industry, creating significant opportunities to improve newsroom productivity, optimise editorial workflows, enhance multilingual content creation, automate repetitive processes and strengthen audience analytics. Simultaneously, AI is expected to intensify competition within the digital content ecosystem by lowering barriers to content production, increasing the volume of AI-generated information and accelerating the pace of content distribution across digital platforms. Consequently, editorial integrity, factual accuracy, intellectual property protection, transparency and responsible AI governance are expected to become increasingly important differentiating factors for media organisations operating in an increasingly competitive environment.

Looking ahead, the global media and journalism industry is expected to remain on a trajectory of sustained transformation, underpinned by continuous technological innovation, expanding digital consumption and evolving audience preferences. While structural challenges arising from platform competition, changing advertising dynamics, regulatory developments, technological disruption and shifting consumer behaviour are expected to persist, media organisations that successfully integrate digital innovation, diversified revenue models, trusted journalism, operational excellence and responsible deployment of emerging technologies are expected to be well positioned to strengthen long-term competitiveness, enhance stakeholder value and achieve sustainable growth in the evolving global media landscape.

INDIAN ADVERTISING SECTOR

The Indian advertising industry continued to demonstrate strong and sustainable growth, driven by expanding formal advertising expenditure, favourable macroeconomic fundamentals and the rapid evolution of media consumption patterns. The increasing convergence of traditional and digital media, coupled with rising consumer engagement across multiple platforms, has significantly transformed the advertising landscape. According to industry estimates, the Indian advertising market was valued at approximately 908.6 billion in 2024 and is projected to reach approximately 2.11 trillion by 2033, registering a Compound Annual Growth Rate (CAGR) of 9.37% during the period 2025 2033. This sustained growth reflects the increasing importance of advertising as a strategic business tool for enhancing brand visibility, customer engagement and market competitiveness across industries.

Advertising expenditure in India continues to be diversified across multiple media platforms, including television, print, radio, internet/online, mobile and outdoor advertising. Television continues to remain one of the largest and most influential advertising mediums owing to its extensive reach, strong audience engagement and ability to deliver large-scale brand visibility, particularly during news broadcasts, live events and regional entertainment programming. Simultaneously, digital advertising has emerged as the fastest-growing segment, supported by increasing internet penetration, widespread smartphone adoption, expanding social media usage, growth in connected television (CTV) and the accelerating shift towards mobile-first consumer engagement. Consequently, advertisers are increasingly adopting integrated, multi-platform marketing strategies to optimise audience reach and improve campaign effectiveness.

The industrys growth continues to be supported by several structural and demographic factors. Businesses across sectors are increasingly recognising advertising as a critical component of customer acquisition, brand differentiation and long-term value creation. Rising disposable incomes, expanding digital connectivity, favourable demographic trends and increasing consumer aspirations have significantly enhanced the effectiveness of targeted advertising campaigns. Furthermore, the growing availability of data analytics, artificial intelligence (AI), and programmatic advertising and performance measurement tools has enabled advertisers to implement more cost-effective, personalised and measurable marketing strategies, thereby improving return on advertising investments. The rapid expansion of Indias digital ecosystem has further accelerated the evolution of the advertising industry. Increasing smartphone penetration, affordable internet access, and widespread adoption of digital payment systems and higher consumption of online content have substantially expanded the addressable advertising market. Businesses are increasingly leveraging digital platforms, social media, and search engines, online video and mobile applications to engage consumers through data-driven and highly targeted campaigns. At the same time, traditional media platforms continue to play a complementary role by providing extensive reach, brand credibility and mass-market visibility, particularly across regional and vernacular markets.

Advertising demand continues to be broad-based across multiple sectors of the Indian economy. Industries such as Fast-Moving Consumer Goods (FMCG), E-commerce, Banking, Financial Services and Insurance (BFSI), consumer services, automobiles, telecommunications, healthcare and retail continue to allocate a significant proportion of their marketing budgets towards advertising initiatives to strengthen market presence and enhance consumer engagement. The increasing participation of emerging businesses, start-ups and digitally native enterprises has further diversified the advertiser base and contributed to the sustained expansion of industry revenues.

The industry has also benefited from heightened advertising activity associated with major sporting tournaments, entertainment programmes, festivals and cultural events, which continue to attract substantial audience viewership across both traditional and digital platforms. These high-engagement events provide advertisers with valuable opportunities to strengthen brand recall, improve consumer outreach and maximise campaign effectiveness. As media consumption habits continue to evolve and advertisers increasingly prioritise integrated, measurable and technology-enabled marketing solutions, the Indian advertising industry is expected to remain on a robust long-term growth trajectory, supported by continued digital transformation, innovation and expanding consumer markets.

OUTLOOK

The Indian advertising market is expected to sustain growth over the medium term, driven by continued expansion of digital channels, greater media consumption across demographic segments, and increasing participation of regional and small-medium enterprises. The transition toward data-driven advertising, enhanced audience measurement, and performance-oriented investment is anticipated to support deeper advertiser engagement and efficiency. Overall, the sector is positioned for extended growth in line with broader trends in consumption and media evolution in India.

THE INDIAN TELEVISION ADVERTISING SECTOR

The Indian television advertising industry witnessed a transitional phase during FY 2025 26, characterised by moderation in traditional advertising expenditure amid evolving media consumption patterns and the increasing adoption of digital platforms. According to industry reports, linear television advertising volumes declined by approximately 10 11% during 2025, reflecting cautious advertising allocations, changing consumer viewing preferences and the gradual reallocation of marketing budgets towards digital and performance-driven media channels.

Despite the moderation in advertising volumes, television continued to maintain its position as one of Indias most influential mass media platforms, supported by its extensive reach and strong audience engagement across news, entertainment, sports and regional content. However, the distribution landscape continued to evolve, with Pay TV subscriptions declining by approximately 11 million during

2025, while Free TV added around 4.5 million subscriptions and Connected TV (CTV) expanded by nearly 10 million households, highlighting the growing preference for hybrid and internet-enabled content consumption.

The industry also witnessed continued consolidation within the distribution ecosystem, with the number of Multi-System Operators (MSOs) declining as smaller operators merged or consolidated their operations in response to the shrinking Pay TV subscriber base and evolving market dynamics.

While these structural shifts continue to reshape the television advertising ecosystem, the industrys long-term outlook remains supported by strong television reach, increasing demand for regional content, technological advancements in broadcasting and the growing integration of television with digital advertising platforms.

Further, Linear Television advertising revenue declined by 10.3% during 2025, primarily driven by an 11.5% reduction in advertising volumes, as advertisers increasingly redirected marketing budgets towards point-of-sale advertising and the regulatory restrictions on real-money gaming adversely impacted advertising spend, particularly across sports programming. In contrast, Connected TV (CTV) advertising revenues recorded robust growth of 42%, reaching approximately 99 billion, reflecting the increasing adoption of internet-enabled television platforms. Consequently, the combined advertising revenues of Linear Television and Connected TV remained broadly stable at approximately 362 billion, highlighting the ongoing shift in advertising expenditure rather than an overall contraction in the television advertising market. The subscription revenue landscape also experienced structural changes during the year. Linear Television subscription revenues declined by 8.3% in 2025, despite a 2.4% increase in Average Revenue Per User (ARPU), which reached an average of 288 (gross of taxes) at end-customer prices. The decline was primarily attributable to the continuing migration of subscribers towards Free Television and Connected TV platforms, reflecting evolving consumer viewing preferences and changing content consumption patterns.

From a content perspective, General Entertainment Channels (GECs) and News Channels continued to dominate the television advertising landscape, collectively accounting for 56% of total television advertising volumes during 2025. Advertiser participation remained broad-based, with sectors such as Food & Beverages, Personal Care and Services continuing to represent the largest contributors to television advertising expenditure, reaffirming televisions enduring relevance as a highly effective mass-reach advertising medium despite the evolving media landscape.

MARKET OUTLOOK

The outlook for the Indian television industry remains positive, supported by rising disposable incomes, increasing digital connectivity and evolving consumer viewing preferences. Indias per capita income is projected to increase from approximately US$2,820 in 2025 to US$3,640 by 2028, strengthening household purchasing power and enabling greater television ownership across the country.

The adoption of Connected TV (CTV) is expected to accelerate significantly, with active CTV households projected to reach approximately 67 million by 2028, driven by the steady expansion of broadband connectivity, which is expected to exceed 90 million households during the same period. Improved digital infrastructure and increasing availability of high-speed internet are anticipated to further support the convergence of traditional television and internet-based content consumption. At the same time,

Free Television (Free TV) is expected to expand to approximately 54 million households, supported by rising income levels and the continued growth of Indias middle-class population. Conversely, the Pay TV segment is expected to witness a gradual decline as an increasing proportion of large-screen content consumption shifts towards Connected TV platforms. This transition is further supported by local cable operators, who derive two to three times higher per-subscriber monthly revenue from broadband services compared to traditional Pay TV subscriptions, thereby accelerating investments in broadband-led content distribution.

Linear Television Advertising:

The outlook for the Linear Television advertising segment remains challenging over the medium term. Linear TV advertising revenues are projected to decline at a Compound Annual Growth Rate (CAGR) of approximately 6.8% over the next three years, primarily driven by an estimated 3.6% annual decline in Linear TV households and the continued migration of affluent Pay TV audiences towards Connected TV (CTV) platforms. This structural shift is expected to influence advertisers media allocation strategies, with consumer goods companies progressively reducing advertising budgets on Linear Television while increasing investments in e-commerce, digital media and point-of-sale advertising. Although Indias economic growth and election-related advertising expenditure in 2028 are expected to provide temporary support, Linear Television advertising revenues are anticipated to remain under pressure over the forecast period.

Linear Pay TV Distribution:

Linear Pay TV distribution revenues are expected to decline at a CAGR of approximately 3% through 2028, reflecting the continued reduction in Pay TV households as large-screen content consumption increasingly transitions to Connected TV platforms. The expanding broadband ecosystem, supported by a large network of Local Cable Operators (LCOs) providing broadband services, is expected to accelerate the growth of wired broadband connectivity across the country. At the same time, rising Pay TV subscription costs are likely to encourage price-sensitive consumers to migrate towards more economical alternatives, including Free Television (Free TV), YouTube and other internet-enabled connected devices, further reshaping the television distribution landscape.

News TV will continue to evolve its business model

As news consumption continues to shift towards digital and social media platforms, particularly among younger audiences, news broadcasters are expected to progressively redefine their content strategies, monetisation models and audience measurement frameworks. Content offerings are likely to evolve into multi-format, multi-platform ecosystems, enabling broadcasters to deliver differentiated experiences tailored to diverse audience segments and demographic cohorts.

Premium and mass-market audiences are expected to be served through distinct content propositions, pricing strategies and distribution models, complemented by an increasing emphasis on intellectual property (IP)-led formats, branded content, live events and exclusive offerings to strengthen audience engagement and diversify revenue streams. The transition towards a "News+" model is expected to gain further momentum, extending beyond conventional news programming into adjacent content categories to enhance viewer reach, engagement and monetisation opportunities. In parallel, continued innovation in Connected TV (CTV) news offerings is expected to deliver more personalised viewing experiences through enhanced customisation, interactive features and platform-specific optimisation.

These developments are anticipated to strengthen audience retention, improve content discoverability and reinforce the long-term competitiveness of news broadcasters in an increasingly digital and technology-driven media landscape.

THE INDIAN MEDIA AND ENTERTAINMENT (M&E) SECTOR

The Indian Media & Entertainment (M&E) industry continued to demonstrate strong growth during 2025, with total industry revenues increasing by approximately 232 billion to reach 2.78 trillion (US$32 billion), representing a healthy year-on-year growth of approximately 9.1%. The industrys growth was primarily driven by expanding digital consumption, increasing advertising expenditure, rising demand for regional content and the continued evolution of media distribution platforms. Excluding the online gaming and video gaming segment, which was adversely affected by the temporary four-month ban on real-money gaming during the year, the Media & Entertainment sector recorded an even stronger growth of approximately 11.8%, highlighting the resilience and broad-based expansion of the core media segments.

The sector continues to play a significant role in Indias economic development, contributing approximately 0.8% to the countrys Gross Domestic Product (GDP). In addition to its economic contribution, the industry remains a major source of employment, supporting approximately 2.75 million direct jobs and over 10 million indirect jobs across broadcasting, television, print, digital media, film production, music, advertising, animation, gaming and allied creative industries, thereby reinforcing its importance as a key pillar of Indias services economy.

Growth in 2025 was primarily driven by advertising-led digital expansion and strong demand for live experiences. Advertising revenues grew by approximately 13.5%, significantly outpacing nominal GDP per-capita growth of 7.7%, while digital media continued to strengthen its dominance within the sector. Digital advertising alone grew by approximately 26% to reach Rs. 947 billion and accounted for nearly 63% of total advertising revenues across the M&E industry. Digital media remained the largest segment within the Indian M&E landscape, with revenues reaching approximately Rs. 1.11 trillion in 2025. Growth was supported by rising consumption across OTT platforms, connected television, social media, e-commerce advertising and increasing spends by SMEs and long-tail advertisers. Digital subscription revenues also recorded robust growth of approximately 60%, driven by premium sports and entertainment content moving behind paywalls and increasing adoption of paid music subscriptions.

The live events segment emerged as the fastest-growing segment within the industry, registering growth of approximately 44% in 2025. Growth was led by higher spending on ticketed entertainment events, weddings, exhibitions, large government-led events and religious gatherings, including the Maha Kumbh Mela. Out-of-home (OOH) media recorded growth of approximately 13%, supported by premium inventory, high-traffic locations and rising adoption of digital OOH formats, which now contribute a growing share of segment revenues. The music segment also witnessed healthy growth of approximately 10%, supported by licensing revenues, event-linked monetisation and expansion into adjacent businesses such as branded content and talent management. The filmed entertainment segment reached record revenues of approximately Rs. 205 billion during the year. More than 1,900 films were released in 2025, while theatrical revenues increased by approximately 14%, supported largely by higher ticket prices and stronger performance of select blockbuster titles. However, digital and satellite rights values moderated as buyers rationalized content acquisition strategies and aligned valuations more closely with theatrical performance.

Traditional media segments continued to face structural headwinds during the year. Television revenues declined by approximately 9%, impacted by lower linear television consumption and a continued reduction in pay-TV households. Radio revenues declined by approximately 7% due to pressure on advertising yields, while the print segment remained relatively stable with modest growth of approximately 1%, supported by premium print formats and event-led monetisation initiatives.

OUTLOOK

The Indian Media & Entertainment (M&E) industry is expected to maintain its positive growth momentum over the medium term, with total industry revenues projected to reach approximately 2.86 trillion in 2026. Excluding the online gaming segment, the industry is anticipated to register a healthy growth of approximately 8% during 2026, reflecting the continued resilience of the core media and entertainment segments despite evolving market dynamics.

Over the longer term, the Indian M&E sector is projected to expand at a Compound Annual Growth Rate (CAGR) of over 7%, reaching approximately 3.3 trillion (US$37.9 billion) by 2028. This growth is expected to be driven by sustained digital transformation, increasing consumer engagement, expanding regional content consumption and the continued evolution of technology-enabled media platforms. Digital media is expected to remain the primary growth engine of the industry, supported by increasing digital content consumption, the rapid expansion of Connected Television (CTV) ecosystems, rising adoption of premium digital subscriptions, performance-driven advertising models and continued growth in advertising expenditure by e-commerce companies and Small and Medium Enterprises (SMEs).

The increasing integration of digital technologies across content creation, distribution and audience engagement is expected to further strengthen the sectors long-term growth prospects.

Advertising-led revenues are expected to continue as the dominant contributor to industry growth, supported by rising digital adoption, enhanced audience targeting capabilities, data-driven marketing strategies and increasing consumption among premium and affluent audience segments. In addition, live experiences, premium Out-of-Home (OOH) advertising inventory and digitally integrated content ecosystems are expected to witness sustained demand, creating new opportunities for advertisers and media businesses to diversify revenue streams and strengthen consumer engagement.

Conversely, traditional media formats such as Linear Television and Radio are expected to continue facing structural challenges arising from changing consumer preferences and the gradual migration of audiences towards digital platforms. Similarly, content services and animation-related businesses may remain sensitive to global demand conditions, international production trends and evolving client spending patterns, necessitating continued focus on operational efficiency, innovation and business diversification.Overall, the Indian Media & Entertainment industry remains structurally well-positioned for long-term growth, supported by rising digital penetration, favourable demographic trends, increasing consumer engagement, expanding broadband connectivity and the continued development of Indias digital economy. These structural fundamentals are expected to reinforce the industrys resilience and sustain its growth trajectory while creating significant opportunities across the evolving media and entertainment value chain.

INDUSTRY SWOT ANALYSIS

STRENGTHS	WEAKNESSES	OPPORTUNITIES	THREATS
-Strong digital ecosystem across television, digital media, audio, gaming and social media.	-High dependence on advertising revenues with limited monetisation across certain digital segments.	-Growth of Connected TV (CTV), digital video and premium advertising formats.	-Dependence on dominant digital platforms reducing bargaining power.
-Diverse multilingual and regional content driving wider audience reach.	-Fragmented audience attention across multiple platforms and formats.	-Rising demand for regional, vernacular and hyperlocal content.	-Evolving regulatory, data privacy and content governance requirements.
-Consumer data and analytics enabling targeted advertising and personalised content.	-Cross-platform audience measurement challenges affecting ROI assessment.	-AI-led content creation, localisation, analytics and advertising optimisation.	-Advertising saturation and pressure on marketing effectiveness.
-Performance-driven and interactive advertising strengthening monetisation.	-Rising content production costs and changing consumer preferences.	-Commerce-led content, branded content and strategic partnerships.	-Content piracy and intense competition from global digital platforms.
-Growing creator economy supporting innovation and engagement.	-Limited willingness to pay for news and audio subscriptions.	-Collaborations with telecom operators, ISPs and digital platforms.	-Stricter environmental regulations.

COMPANY OVERVIEW

Raj Television Network Limited (Raj TV) is one of Indias largest entertainment content companies. Starting with the launch of Indias Second Tamil satellite channel, RAJTV, in

1994, RAJTV has evolved into an integrated entertainment content company over the last three decades. The Company incorporated in 1994, broadcasts thirteen channels presently in various southern languages. Raj TV, its flagship television channel launched in 1994 was the first general entertainment channel of the Company. The

Company caters to the entire spectrum of customers entertainment needs with production of content across different formats and platforms, such as fiction and reality shows for television, movies, music, digital, plays and live events. Over the years, the Company has built strong a content library of 100,000+ hours reaching over a billion viewers globally.

The Company has built a strong content creation capability, over the last three decades and built strong in-house content creation expertise and developed an ecosystem that seamlessly delivers engaging content at a competitive cost. We have long-standing partnership with the artist fraternity and our leadership position makes us their preferred partner. While we work with multiple creative partners, with an in-house TV studio, movie production and Distribution Company and a music label, we are uniquely positioned to offer a range of content for diverse audience. Raj TV currently operates 14 television channels in five languages including Tamil, Telugu, Kannada, Malayalam and Hindi. The company earns its revenue from following main segments: A. Advertisement

B. Air Time Charges

C. Pay Channel Distribution Revenue D. Subscription Revenue,

E. Sale of Rights

F. Sales export Revenue

Raj TV content offerings span across the globe. Today, we have a footprint across more than 172 countries with a portfolio of channels catering to the Indian and south Asian Diaspora as well as local audiences of the 14 channels in the international markets, 1 Channel is dedicated to non- Indian audience, offering them entertainment content in their native languages. Our network covers USA, EUROPE, MENAP, AFRICA and APAC regions.

The company undertakes several production projects with the right mix of self-produced and outsourced productions, to mitigate financial risk and obtain large revenues. With self-produced content, the company gets complete right over the content, and can build its own intellectual property base. Raj TV has an advantage of being a mass channel with its extensive line up of attractive programming to cater the entire family.

The channels of the network reach a wide variety of audiences as it satisfies people of all ages, The Channel offers a right mix of movies, serials, debates, cultural, educational, cookery, handicrafts and religious programmes satisfying the needs of the entire community ranging from Urban to the rural audience.

REGIONAL ENTERTAINMENT CHANNELS

RAJTV is one of the largest providers of regional entertainment in India, with a bouquet of 14 channels of 3 GECs (Tamil, Telugu & Hindi), 4 News channels (Tamil, Telugu, Kannada & Malayalam) 1 movie channel (Tamil) and 4 music Channels (Tamil, Telugu, Malayalam & Kannada) channels, Raj Kids in pipeline. The regional portfolio is spread across 5 languages Tamil, Telugu, Malayalam; Kannada & Hindi are leaders in their segments. RAJ TVs regional channels uniquely position it as a pan- India provider of high-quality entertainment content, appealing to a wide variety of audiences.

TAMIL MOVIE CLUSTER

RAJTV has a portfolio of 1 SD channel (Raj digital plus) catering to different segments of audiences and genres. The flagship channel, Raj Digital Plus, is a family entertainer, with movies that appeal to all age-groups & pictures caters.

SEGMENT

Raj Television Network Limiteds operations predominantly relate to a single segment "Media and Entertainment".

OUTLOOK

The television segment has witnessed some interesting, yet dichotomous developments in recent times. Although the number of pay TV subscribers continue to decline, the overall number of TV viewers continues to grow. While advertising shrunk, the number of TV screens is growing and the overall segment is expected to have a positive outlook in the coming times. Viewership of connected TVs would continue to grow and proliferate with the increase in broadband and 5G.

Overall, while the coming times would provide many growth opportunities, the segment would also face competition from other avenues, such as social media, gaming and short videos.

M&E sector is at an important point in its growth journey, with Digital taking over television as the largest medium in terms of revenue. This transition is driven by the unleashing of smartphone and internet revolution, which has equipped consumers around the world to have seamless and round the clock access to content on their screens. Coupled with the inherent need for consumers to stay informed and be entertained, the M&E sector is poised for long-term growth.

Additionally, the sector is also expected to benefit from

Indias projected economic growth and rising disposable incomes over the medium to long term. As ever, quality content remains at the center of this industry, with wide availability and seamless viewing experience serving as two critical factors for attracting and retaining consumers.

With democratization of content creation, the sheer volume of content being created is reaching a new high every day. While this brings opportunities, it also presents various challenges. The issue of content discovery, factual accuracy and a safe environment for brands to advertise in are some of the challenges that are becoming critical. Raj Television Network Limited views these challenges as avenues for enhancing its credibility and accelerating growth. Leveraging its robust infrastructure for news gathering and efficient systems that ensure accuracy, the Company provides trustworthy, high-quality content that resonates with the audiences, fortifying its market position and fostering consumer trust.

Our goal is to consistently engage with our audience through content that resonates with them. While digital will drive future growth for the Company, we are seeing improvement in viewership across several regional television markets, highlighting their potential as drivers of growth.

Aligned with our strategy for long-term growth, we are making sustained investments to fortify our current position while continuously building capabilities for the future. Raj Television Network Limited delivers a steady flow of highly popular programs and a dominant share of audience viewership which has given the network tremendous pricing power vis-a-vis competitors. The presence of Raj Television Network Limited across genres and with a dominant market share in the five southern states of India (Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana) ensures continued and sustained viewership and prominent role in the Media and Entertainment Industry.

RISKS AND CONCERNS

The Board of Directors gives due care and diligently employs risk mitigating ideas reinforced by internal controls, to ensure that the Company achieves its strategic objectives and remains safeguarded against unforeseen circumstances. The Company focuses on becoming a sustainable business entity by acknowledging potential risks and establishing robust risk management policies. The effectiveness of our strategy directly correlates with the

Companys ability to withstand unforeseen incidents.

Consistency is a key aspect of our risk management approach, prioritizing long term business sustainability over short-term profitability in our corporate strategy. This ensures a clear understanding of feasible and non-feasible actions within our operational framework, involving all shareholders.

The Company confirms that there is an extensive risk mitigation framework to help the Company review organizational risks. The thoroughness of the process has improved corporate sustainability. Hence, risk mitigation framework plays an important part of our corporate management The Risk factors of the Company are discussed below:

	RISKS	RISK MITIGATION
CONTENT AND BRAND RISK	Success in the media business, both news and entertainment, is primarily dependent upon the choice of subject matter and its treatment. Consumer preferences keep evolving continually, with changes clearly visible only over a long term, making it difficult to accurately predict the probability of future success. Revenues from any content are directly linked to viewership and audience interest and hence, there is a risk of revenue loss in case the majority of viewers in the target group do not sample the content or reject the content. Also, consumers associate the different channels of Raj Television Network Limited, with certain types of content and if an event harms any brand of Raj TV, it can lead to an undesirable impact on its business.	To mitigate these risks, the group actively tracks the salience of its content through on ground studies, analysis of viewership and online traffic data, feedback on social media platforms and gathering feedback on brand perception. The Company has a diversified presence in multiple languages and genres, making the probability of simultaneous failure across all markets a low probability event. The strength of Raj TVs Channels is one of its biggest assets and the Companys success depends upon the popularity, recognition, and salience of its brands.
TECHNOLOGY RISK	The pace of technological development has accelerated over the past few years across all businesses, especially in the media sector, as new business models have evolved, changing the shape and form of viewing habits. The entire content value chain content gathering solutions, production techniques, and distribution platforms, are being increasingly driven or heavily influenced by technology, thereby creating a direct impact on content presentation, working efficiencies and operational costs. The pace of change of technology creates a challenge for the business to remain abreast with the latest advancements and identify the most suitable technical solutions for the business.	The Company has been continually investing in upgrading its systems, both consumer interface as well as internal portals, in line with the latest developments. It is also recruiting technically proficient personnel, engaging leading technology vendors, and continually training its workforce to keep up with the changes.
FINANCING RISKS	Most of the Companys debt is in the form of short-term debt from capital markets. This exposes the Company to the risk of non- availability of external capital due to macro factors such as liquidity, volatility in interest rates, and general economic environment.	The Company continually monitors funding requirements, evaluates market conditions, and engages with multiple financial institutions to mitigate the risk of capital inadequacy.
COMPETITION RISK	The Company operates in a highly competitive environment and faces competition from both domestic as well as international players in all its businesses. While the competitive intensity in the broadcasting space is largely stable with no new major entrants, most of the markets have multiple players competing for a higher share of the viewership pie. In the digital space, there are over two dozen players vying for consumers time. Similarly, in the other business also the Company competes with established and new players. Any new competition in the space can have an impact on the Companys revenues.	The Company has taking continues efforts to stand in this strong competitive environment and also launched two new channels with a view aligned with the companys strategic objectives to expand its market footprint.
CYBER SECURITY RISK	The pace of growth of the digital economy in the current decade has enabled cyber criminals across the globe to hack into sensitive IT infrastructure through phishing and other malpractices. Geopolitical conflicts have escalated cyber threats, positioning cyberspace as a critical battleground for disrupting businesses.	The Company regularly undertakes improvement programs to ensure that digital transformation incorporates next-generation cyber security architecture with prevention, detection, and correction capabilities to protect against invasive threats and best practices to remain safe, competitive, efficient, and responsive. Additionally, with the increasing integration of AI, safeguarding data integrity and privacy remains a top priority to mitigate emerging threats. Periodic audits and assessments by both internal and external teams help to plug any gaps.
REGULATORY AND COMPLIANCE RISK	The Indian regulatory landscape for the media industry is constantly evolving across various areas, including distribution, taxation, and content censorship. Further, reporting requirements under SEBI, MCA and Taxation laws have increased manifold over the past few years. Any change in regulation by the industry regulator, Telecom Regulatory Authority of India (TRAI) or the Ministry of Information and Broadcasting (MIB) requires a proactive alignment of corporate performance objectives while ensuring compliance with new requirements.	The Company has a well-qualified and experienced team of professionals across the compliance landscape who have helped the Company successfully navigate the challenges presented by regulatory changes.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested by Statutory as well as Internal Auditors and cover key business areas. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of the

Companys internal control processes and monitors the implementation of audit recommendations, including those relating to strengthening of the Companys risk management policies and systems. Further the Audit Committee has directed stringent controls for mitigating any potential risk implications while issuing letter of comfort by the Company or its subsidiary in the course of the business.

Our internal control systems consist of the following main elements:

-Delegation of authority

-Standard Operating Procedures & Policies -Effective IT systems aligned with business needs -An internal audit framework -An ethics framework -Adequate segregation of duties Our robust internal control systems have demonstrated efficacy and have not undergone significant changes during the year.

FINANCIAL&OPERATIONAL PERFORMANCE OVERVIEW

SHARE CAPITAL

The Company has an authorized capital of 30 Crores divided into 6 crores Equity shares of 5/- each. The Company has only one class of issued share capital i.e., Equity Share Capital of 25.96 Crores divided into 5,19,13,344 Equity Shares of 5/- each. There has been no change in the share capital of the Company during the Financial Year under review.

REVENUE

During the Financial Year under review, the Company recorded Revenue from Operations of 700,452.07 thousand, as compared to 1,258,205.63 thousand during the previous Financial Year 2024-25. The Company reported Other Income of 5,979.08 thousand for the Financial Year ended March 31, 2026, as against 2,430.52 thousand in the previous Financial Year. Accordingly, the Total Income of the Company stood at 706,431.15 thousand during the Financial Year 2025-26, compared to 1,260,636.14 thousand in the preceding Financial Year.

EBIDTA MARGIN

The Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of the Company for the Financial Year ended March 31, 2026 stood at 41,122.26 thousand, representing 5.87% of Revenue from Operations, as compared to a negative EBITDA of 197,129.58 thousand during the previous Financial Year ended March 31, 2025.

DEPRECIATION

During the Financial Year under review, the depreciation and amortisation expense amounted to 7,979.53 thousand, as compared to 15,039.29 thousand during the previous Financial Year ended March 31, 2025.

HUMAN RESOURCES

The Company emphasises creating an inclusive work environment for its sustainable growth and success. Its workforce management strategy is built on regular employee engagement, effective dispute resolution mechanisms, and initiatives that encourage employee participation.

By equipping employees with relevant skills and a progressive mindset, the Company ensures its workforce is prepared to meet future challenges. The Company is also focused on advancing womens leadership, inclusive employment practices, and policies that promote non-discrimination and equality.

The Companys policies and practices shape a fair, inclusive and empowering environment. By integrating human rights principles into our operations, we create a responsible and supportive ecosystem for all. A continuous review of the monitoring process is underway & procedures and systems are being institutionalized across the organization.

MOVEMENT IN THE KEY FINANCIAL RATIOS

Particulars	FY ended March 31, 2026	FY ended March 31, 2025	Changes between Current FY & Previous FY (%)	Explanation
Debtors Turnover	2.34	2.75	(14.91%)	Decrease due to higher receivables during the year.
Inventory Turnover	NA	NA	N.A.	Not applicable to broadcasting operations.
Interest Coverage Ratio	1.42	(5.54)	125.63%	Improved due to higher operating profitability.
Current Ratio	1.17	1.12	4.46%	Marginal improvement in current asset position.
Debt Equity Ratio	0.37	0.53	(30.19%)	Improved due to reduction in debt.
Operating Profit Margin (%)	39.21	8.51	360.75%	Improved significantly due to higher operating profits.
Net Profit Margin (%)	1.13	(16.70)	106.77%	Improved due to turnaround from loss to profit.
Return on Net Worth (%)	0.99	(26.49)	103.74%	Improved due to higher profitability.
Basic EPS ( )	0.15	(4.05)	103.70%	Improved due to the Company turning profitable.

FORWARD-LOOKING STATEMENTS

Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. We have tried wherever possible to identify such statements by using words such as anticipate, estimate, expect, project, intend, plan, believe and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions.

Should known or unknown risks or uncertainties materialise or should underlying assumptions prove inaccurate, our actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

SAFE HARBOR

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.