HT Media Limited has posted a sharp decline in its net profit in the first quarter of FY19. The company reported a net profit of Rs 5.7 crore for the quarter ended June 30, 2018, down 86.2% from Rs 41.5 crore in the corresponding quarter of previous year, and down 92.4% from Rs 75 crore in the previous quarter. The decline in ad revenue had an impact on operating revenues for the quarter, which declined slightly, by 7% on a year-on-year (YoY) basis, to Rs 542 crore from Rs 583 crore.
In Q1 FY19, total expenses slightly decreased to Rs 560 crore on the y-o-y basis, but increased sequentially from Rs 523 crore in the previous quarter. However, employee benefit decreased to Rs 74.6 crore from Rs 97 crore in the previous quarter.
Commenting on the results and performance, Shobhana Bhartia, Chairperson and Editorial Director, HT Media Ltd and Hindustan Media Ventures Ltd, said, “Advertising budgets continued to shrink, affecting growth despite a favourable base effect. Our revenue growth was also hit by persisting macroeconomic challenges, although the impact of RERA and GST implementation are both waning, with businesses getting used to them. Our operating performance was also impacted by higher newsprint prices.
Amidst this, our radio business continued to grow in the double digits, and delivered yet another quarter of superior performance even as it improved its profitability. Our products are superior, brands strong and fundamentals of the business solid; but we do anticipate some short-term pressure on both growth and profitability.”