In a troubling report for Georgia’s media industry, the country’s six major broadcasting companies have collectively reported a significant loss of GEL 145 million for 2023. This marks a 73% increase in losses compared to the previous year, primarily driven by a steep 16% decline in advertising revenue.
Breakdown of Financial Losses Across Major TV Stations
The financial reports from Georgia’s top broadcasters provide a stark picture of the industry’s struggles. Imedi TV, one of the largest networks, reported a GEL 53.2 million loss, with a total revenue of GEL 32.2 million. However, its expenses far outweighed its income, including a massive GEL 34 million in salaries and GEL 22 million in financial costs. The total liabilities for Imedi TV have reached a concerning GEL 388 million.
Rustavi 2, another key player in Georgia’s television landscape, also saw significant losses, reporting a GEL 31 million loss on GEL 14.3 million in revenue. Payroll costs accounted for GEL 26.2 million, while the station’s total liabilities amounted to GEL 80.6 million.
Formula TV, which has been facing financial strain for some time, suffered a massive 98% increase in losses, reporting a GEL 42.1 million loss despite a modest revenue of just GEL 4.8 million.
The Impact of Declining Advertising Revenue
The drop in advertising revenue is the main culprit behind these mounting losses. With a 16% year-on-year decline, the broadcasting companies have been unable to secure the same level of revenue from advertisers as in previous years. The reduced advertising spending, particularly in the wake of a challenging economic environment, has heavily impacted the viability of these stations.
Other stations like TV Pirveli, Mtavari, and PosTV have similarly faced considerable losses, each citing the advertising revenue downturn as a key factor in their financial struggles.
The collective losses reported by these broadcasters highlight the difficult position of Georgia’s television industry, which continues to grapple with a challenging financial landscape.
