HT Media posts strong performance in FY 2012 and Q4 2012

Total revenues in FY2012 are up 15% at Rs 20,780 million from Rs 18,102 million in FY2011. The company has shown 11% growth in ad revenues in print segment to Rs 15,358 million

BestMediaInfo Bureau | Delhi | May 21, 2012

HT Media has posted a strong financial performance in FY2012 and also Q4 ending March 31, 2012. Total revenues in FY2012 are up 15 per cent at Rs 20,780 million from Rs 18,102 million in FY2011.

The company has shown 11 per cent growth in advertisement revenues in print segment to Rs 15,358 million from Rs 13,888 million, primarily driven by advertising yield improvements.

Circulation revenues have gone up by 8 per cent to Rs. 1,977 million from Rs 1,828 million on account of higher circulation.

Radio revenues are up 6 per cent to Rs 742 million from Rs 699 million.

However, the EBITDA declined to Rs 3,619 million from Rs 3,660 million, primarily because of 16 per cent increase in cost of raw material to Rs 7,257 million from Rs. 6,230 million due to higher newsprint prices and higher circulation; 22 per cent increase in other expenses to Rs 6,368 million from Rs 5,233 million on account of increase in scale of operations, foreign exchange loss of Rs. 150 million, and a provision of Rs 232 million for diminution in value of investments relating to 'Partnership for growth' business.

PAT declined by 9 per cent to Rs 1,655 million from Rs 1,809 million. The EPS (annualised) stood at Rs 7.04. The board has recommended a dividend of 20 per cent.

In Q4 of FY 2012, total revenues were up 6 per cent at Rs 5,120 million from Rs 4,811 million, pushed by 3 per cent increase in advertising revenues in print segment to Rs 3,736 million from Rs. 3,620 million driven primarily by increase in advertising volumes.

There was a 3 per cent increase in circulation revenues of print segment to Rs 483 million from Rs. 469 million.

The EBITDA declined to Rs 660 million from Rs 1,000 million, primarily owing to 13 per cent increase in cost of raw material to Rs 1,857 million from Rs. 1,638 million. PAT declined steeply by 58 per cent to Rs 220 million from Rs 529 million for the reasons stated above.

Commenting on the performance for Q4 and FY2012, Shobhana Bhartia, Chairperson and Editorial Director, HT Media, said: “We are pleased at ending the year with a financial and operational performance that's encouraging, especially since this has been achieved in an environment that continues to be challenging in terms of high input costs and amid a slowdown in advertisement growth. This clearly shows that, as the macro-economic environment improves, we are poised to leverage our strong fundamentals to create significant shareholder value. HT Media's performance is the result of a product investment strategy that has helped strengthen brand equity and salience. We have further consolidated our position in the print business by expanding our reach across geographies in English, business and Hindi dailies, which is borne out by the latest India Readership Survey findings. In addition, our radio and digital businesses continue to perform according to plans and gain traction. The company's focused strategic approach and strong business model will allow it to successfully navigate these tough times.”

Among key highlights, IRS Q4 2011 has validated HT Media's growth strategy:

• Hindustan Times readership grows to 3.7 million; 4 per cent growth over IRS Q4 2010

• Retains its leadership position in Delhi NCR

• Consolidates its No. 2 position in Mumbai while continuing to be the fastest growing daily

• Readership increased to 0.8 million, a growth of 27 per cent over IRS Q4 2010

• Hindustan continues to consolidate its position with an all India average readership of 12.05 million, a growth of 5.2 per cent over IRS IRS Q4 2010

• Maintains its leadership position in Bihar with a readership share of 74 per cent; readership grows to 4.8 million; continues to be the leader in Jharkhand market with a readership of 1.73 million, reflecting a readership share of 49 per cent

• Fastest growing daily in Uttar Pradesh & Uttarakhand with a growth of 14.4 per cent over Q4 & FY2012

• Continues to be second largest in Delhi NCR with a readership of 1.24 million

• Mint consolidates its No. 2 position in business daily segment with a readership of 0.26 million, a growth of 30 per cent over IRS Q4 2010

• Readership share of 29 per cent in key markets of Delhi, Mumbai, Bengaluru, Kolkata, Chennai & Ahmadabad put together

Hindustan Media Ventures

HT Media's sister company, Hindustan Media Ventures Ltd (HMVL), posted 17 per cent higher annual revenues in FY2012 at Rs 6,173 million from Rs 5,259 million in the previous fiscal. Advertising revenues were also up 17 per cent at Rs 4,392 million from Rs. 3,741 million. There was a 10 per cent increase in circulation revenues to Rs 1,348 million from Rs 1,223 million.

The EBITDA margin expanded to 19 per cent from 18 per cent and the EBITDA increased to Rs 1,145 million from Rs 971 million. The board has recommended a dividend of 12 per cent.

In Q4 FY2012, HMVL's total revenue was up 20 per cent at Rs 1,601 million from Rs 1,337 million. Ad revenue went up 22 per cent to Rs 1,136 million from Rs 933 million. The EBITDA increased by 9 per cent to Rs 258 million from Rs 237 million. PAT increased by 7 per cent to Rs 137 million from Rs 129 million

Info@BestMediaInfo.com

Info@BestMediaInfo.com