15 February 2020 Slowing ad spends and a high base for movie revenue led to a decline in revenue and EBITDA. OTT segment profitability though was comforting. Economic weakness has slowed down ad spends and the TRAIs latest bouquet norms bring in uncertainty over subscription revenue growth. Revenue declined 10% YoY to INR8.1b (16% miss) in 3QFY20, majorly due to falling ad revenue (-12% YoY). Also, the base effect came into play as the year-ago period had high revenue of INR1b from blockbuster movie distribution, which declined to INR150m in 3QFY20. Production cost was down 10% YoY which led to flat opex and provided some cushion to EBITDA (-13% YoY to INR5.8b; 13% miss). Excluding the base effect, overall revenue was up 1.5% YoY in 3QFY20, PBT would have been higher by INR135m and PAT growth was 12% YoY. Nxt subscribers stood at 15m, and the OTT segment has turned profitable.