ASIA-PACIFIC BROADCASTING

The International Association of Broadcasting Manufacturers (IABM) recently released its industry index that showed members feeling the pinch of the global economic crisis.

“While 78% of companies tracked in this analysis are in profit, the level of profitability is in decline. Global market profitability has improved by only 4.3% year-on-year, the lowest rate of improvement since index tracking started [in 2006],” the report stated.

By geographic region, European vendors have seen their profitability drop more than their North American counterparts.

Companies included in the recent report had sales turnover of over US$10.7 billion in the past 12 months, while the global index for profit-to-sales ratio stands at 11.7% supported by the North American firms.

However, Roger Crumpton, a director of IABM, clarified what these figures mean.

“These figures should be seen in context: financial statements published up to the end of March largely reflect the business trends for 2008, so not only are they just beginning to be affected by the recession, they cover a particularly big year for the broadcast industry,” said Crumpton.

“That said, it does show that this is a healthy industry, as ready as any to face the difficult times ahead.”

He also expressed confidence that IABM members are making sure that they would not be too badly affected by the crisis.

“Looking at the qualitative statements made by companies, it is clear that most have already taken appropriate action to protect margins,” Crumpton continued. “They are also taking advantage of the global nature of the industry, with sales performance in the Far East, the Middle East, India and Australia reported to have held up better than North America and Western Europe.”

 

 

 

 

 

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