Press Release
VIS Assigns Initial Entity Rating to GEO Entertainment Television (Pvt) Limited
Karachi, May 21, 2025: VIS Credit Rating Company Limited (VIS) has assigned an initial entity rating of ‘A/A2’ (Single A/A two) to GEO Entertainment Television (Pvt) Limited. Medium to long term rating of ‘A’ indicates good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is Stable.
Geo Entertainment Television (Private) Limited’s (‘GETL’ or ‘the Company’) established position within Pakistan’s television entertainment sector as well as the fact that it is part of the country’s largest media conglomerate. GETL has consistently maintained stable operational performance, underpinned by strong brand equity and continuous content investment.
Benefiting from a loyal viewership and extensive nationwide distribution, GETL has continuously ranked among the top two entertainment channels by audience share over the past few years. The ratings also incorporate the strategic and operational support derived from being part of the Jang Group, allowing the Company to leverage group synergies and industry experience. Despite competitive pressures in the media industry, in light of shifting viewer preferences, rising digital content penetration, and fluctuations in domestic advertising spends, GETL has effectively retained its viewership through sustained investment in high-quality content. Its ongoing collaboration with 7th Sky Entertainment, a prominent production house, further enhances its capabilities in content development.
The ratings reflect GETL’s consistent revenue growth, driven by strong performance in international and digital segments. Despite pressure on domestic ad revenue, profitability margins have improved, supported by cost rationalization measures that have expanded net margins through enhanced operational efficiency. The ratings factor in the Company’s zero gearing to date; however, maintaining projected gearing within reasonable levels will be important going forward. Equity size remains constrained, as accumulated losses from previous years continue to impact the capital base. Additionally, liquidity challenges persist due to the extended working capital cycle and ongoing intercompany cash flows.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf