Revenues from print business grow by 8.16 per cent to 291.14 crores; ad revenue grows by 8.03 per cent to Rs 220.66 crores
BestMediaInfo Bureau | Delhi | July 30, 2012
Jagran Prakashan Limited (JPL), publishers of ‘Dainik Jagran’, India’s largest read newspaper (Source: Indian Readership Survey 2012 – Quarter 1), has reported total operating revenues of Rs.317.52 crores for Q1 FY13. Jagran Prakashan’s ad revenue growth has been higher than comparable peers for the past three quarters. This growth has been achieved by a surge in ad volumes, attained by innovative offerings to national and local advertisers.
EBIDTA margin (excluding other income) was a healthy 24.82%, which was higher by 3.60% in comparison with Q4 2012 due to higher revenues and stringent cost control. The net profit was at Rs 55.73 crores and the EPS for the quarter was at Rs 1.76 as against Rs 49.72 crores and Rs 1.57 respectively for Q1FY12. The net profit is after accounting for the impact of FOREX loss of Rs. 13.78 crores, out of which Rs. 9.16 crores relate to borrowings raised for acquisition of fixed assets. The company had an option to capitalise this loss like many others but chose to charge it off to profit & loss account following its conservative accounting policy.
Dainik Jagran Group is a publisher of 12 brands of newspapers and magazines and has 100 editions and 250 plus sub-editions, printed from 35 different facilities across 15 states in 5 diffrent languages. With an Average issue readership (AIR) of 20.72 million and a total readership (TR) of 69.01 million for all its publication brands, the Group is the largest print media group of the country.(Source: IRS 2012 Q1).
Financial highlights Q1FY13 (all comparisons with Q1FY12)
Commenting on the performance of the company for the quarter ended 30th June 2012, Mahendra Mohan Gupta, Chairman and Managing Director, JPL said, “I am happy to place the first quarter’s report card before you while continuing to be more cautious than ever on outlook for the remaining year. Team Jagran has given an outstanding performance in these adverse market conditions and this gives me the confidence that the company will keep on delivering and will live up to the expectations of all the stakeholders; come what may. I would have been still happier, had there not been wild currency fluctuations that has resulted in FOREX losses charged off to the profit & loss account.
I am also glad to note that total readership of Dainik Jagran in SEC A is the highest amongst all dailies of the country.
The seamless integration of JPL and Nai Dunia has helped Nai Dunia cut down their losses significantly in less than three months. This is remarkable and I expect the trend to continue despite an uncertain environment.
Midday Gujarati becomes the No.2 Gujarati newspaper of Mumbai ahead of our expectations, which augurs well for the growth in advertisement revenue in the future. Growth in readership of Midday English in Mumbai over past one year justifies ongoing investment in this incredible brand.
Our response to the current extremely tough business climate is to stick to the basics, improve the efficiency and service to our customers, and save cost without compromising the quality.”