JioStar Says Gaming Ad Ban, Middle East Conflict Hit Q1 Ad Market
JioStar said the gaming ad ban and Middle East conflict impacted Q1 advertising, while digital growth, AI initiatives and IPL engagement drove strong business performance.
SociapaHQ
JioStar's media business faced two key challenges during the first quarter of FY27, with the ban on real money gaming (RMG) advertising and geopolitical tensions in the Middle East weighing on the advertising market, according to Ishan Chatterjee, CEO – Sports, during Reliance Industries' Q1 FY27 earnings call.
The company reported strong growth despite the headwinds, driven by strong digital advertising performance and higher engagement across its entertainment and sports platforms.
Operating revenue of JioStar grew 14% on a year-on-year basis to ₹10,946 crore and profit before tax (PBT) also increased by 14% in the quarter.
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Digital Advertising Offsets Challenges:
Chatterjee said in the earnings call that the absence of real money gaming advertisements, which had been a significant contributor to the advertising base last year, and the impact of the US-Iran conflict on advertiser sentiment, put pressure on the overall market.
However, strong momentum in digital advertising, especially on entertainment content, helped offset both factors and drove overall revenue growth.
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Commerce Advertising Debut:
The quarter also witnessed JioStar’s entry into commerce advertising with a tie-up with Swiggy, enabling viewers to order food without leaving the content stream.
Chatterjee said the initiative saw a positive consumer response and feedback from partners, and described it as a potential blueprint for future monetisation through integrated commerce experiences.
