Print publishers remain optimistic after mixed Q4FY23 results

The results declared by HT Media, DB Corp, Jagran Prakashan and Hindustan Media Ventures for the quarter and year ended March 31, 2023, present a mixed picture for the segment.

Overall, while some publications faced challenges and declines in profitability, others demonstrated growth and also witnessed promising trends in advertising revenue and circulation. The segment continues to hold its position as a trusted source of news, with advertisers showing confidence in print media, particularly in non-metro markets.

Jagran Prakashan, the publisher of the Hindi daily Dainik Jagran, witnessed a decline in its consolidated net profit for the fourth quarter, primarily attributed to the impairment of goodwill and investment. However, the company reported an increase in revenue from operations during the same period.

DB Corp, on the other hand, displayed a positive growth trajectory, with a notable increase in ad revenue, total revenue, EBITDA, and net profit for both the fiscal year and the fourth quarter. The company's advertising revenue, especially in print media, showed substantial growth, with a promising ad environment projected for the future.

HT Media reported improved total revenue for the quarter and the fiscal year, driven by enhanced performance in the print business as it witnessed growth in advertising revenue and circulation revenue. Meanwhile, Hindustan Media Ventures displayed growth in total income, net profit, and EBITDA for the period ended March 31, 2023, compared to the corresponding period of the previous year.

Jagran Prakashan reported a 55.86% decline in its consolidated net profit to Rs 23.27 crore for the fourth quarter ended March 2023. The company had posted a net profit of Rs 52.73 crore during the January-March quarter a year ago, Jagran Prakashan (JPL) said in a BSE filing.

Its revenue from operations increased 8.19% to Rs 459.38 crore during the quarter under review against Rs 424.58 crore in the year-ago period. This quarter also "includes impairment of goodwill and investment in associates of Rs 72.96 crore", the company said in its earning statement.

JPL's total expenses surged 28.85% to Rs 486.92 crore in Q4 FY23 compared to Rs 377.87 crore a year ago. Its total income in the March quarter was Rs 512.25 crore, up 16.13%.

For the fiscal ended March 2023, JPL's net profit was down 9.26% at Rs 196.78 crore against Rs 216.87 crore in FY22.

However, its consolidated revenue from operations rose 14.86% to Rs 1,856.17 crore in FY23.

JPL Chairman and Managing Director, Mahendra Mohan Gupta said, "The company performed satisfactorily, reporting growth twice of estimated growth in the economy during the year. As the numbers show, all the businesses recorded significant growth in revenues".

“Revenue of print business will take another a year or so to reach pre-pandemic revenue level but the profits will improve significantly with moderation in exceptionally high newsprint prices and normalisation of high inflation in other costs that impaired the profitability for the year under report,” he stated.

Meanwhile, DB Corp recorded a 25.4% year-on-year (YoY) increase in ad revenue to Rs 1482.7 crore in FY2023 as against Rs 1182.7 crore in FY2022. The company said that print advertising registered a strong growth of 27% YoY for FY2023 and 16% YoY for Q4FY23. 

Total revenue grew 21.2% to Rs 2168.2 crore in FY23 as against Rs 1788.5 crore, while circulation revenue grew around 1.5% to Rs 462.7 crore as against Rs 455.8 crore. 

In FY23, EBITDA grew 12% to Rs 361.1 crore as against Rs 322.8 crore, after considering forex loss of Rs 5.2 crore, aided by stringent cost control measures and despite high newsprint prices and large digital business investment for future growth, the company stated. Net Profit grew 19% to Rs 169.1 crore as against Rs 142.6 crore, after considering forex loss of Rs 6 crore.

As compared to Q4 of FY2022, DB Corp’s advertising revenue grew 14.2% to Rs 357.8 crore in Q4FY23. 

In Q4FY23, total revenue grew 13.5% at Rs 544.6 crore as against Rs 479.9 crore in the corresponding quarter of the previous year. Circulation revenue stood at Rs 115.3 crore as against Rs 115.2 crore in Q4FY22. EBITDA grew 34% to Rs 88.9 crore as against Rs 66.3 crore aided by stringent cost control measures, and more. Net Profit grew by 67% at Rs 41 crore as against Rs 24.5 crore. 

Sudhir Agarwal, Managing Director, DB Corp, said, "While other major economies around the world faced a tough year, the Indian economy, especially the non-metro centres, showed great resilience in fiscal 2023. GST collections in tier-II and beyond cities have increased by 15-25% underscoring the strong potential of these markets. Advertisers continue to repose their trust in print media, especially in these markets, with new-age advertisers also seeing tremendous value in using hyperlocal ad campaigns."

The company said that print media has once again demonstrated that it is the most trusted source of news. This trend is underscored by the strong growth in advertising revenues in print, while other traditional media is reporting a slowdown. “Print in general and Dainik Bhaskar in particular, retain their well-respected and credible brand equity. This momentum on both the advertising and circulation fronts has helped us deliver strong results.”

“On the advertising front, traditional advertisers such as real estate, education, white goods and jewellery etc. continue to use print as their preferred medium. Advertisers from the BFSI sector have also seen growth, especially in the last quarter, and the auto segment is starting to see some movement. Government advertising looks promising. New-age digital sectors continue to see value in the print media, and in this quarter too, digital, app-based companies and start-ups have increased their advertising spends. We are bullish on the ad environment going forward, in all our key markets,” DB Corp stated. 

Meanwhile, HT Media's total revenue stood at Rs 494 crore in Q4FY23; up 8% versus Q4FY22's Rs 456 crore. On a full-year basis, total revenue was up by 11% on the back of improved print and radio business performance, the company stated.

The print business of HT Media generated Rs 269 crore in advertising revenue in Q4FY23 in comparison to Rs 249 crore in Q4 of FY22. The ad revenue of the print business also rose by 8% from last year’s Q4. 

The improvement in ad revenue on a full-year basis is primarily led by ad volume, and there’s growth in both English and Hindi businesses, the company said. 

The company’s circulation revenue is up by 12% to Rs 60 crore from Rs 53 crore in the corresponding quarter of last year. Circulation revenue for the fiscal year also showed strength owing to higher copies and realisation per copy, the company stated. 

HT Media's total revenue stood at Rs 494 crore in Q4FY23; up by 8% versus Q4FY22's Rs 456 crore. On a full-year basis, total revenue is up by 11% on the back of improved print and radio business performance, the company stated.

The print business of HT Media generated Rs 269 crore in advertising revenue in Q4FY23 in comparison to Rs 249 crore in Q4 of FY22. The ad revenue of the print business also rose by 8% from last year’s Q4. 

The improvement in ad revenue on a full-year basis is primarily led by ad volume, and there’s growth in both English and Hindi business, the company said. 

Shobhana Bhartia, Chairperson and Editorial Director, HT Media and Hindustan Media Ventures, said, "On a full year basis, our print business posted revenue growth on the back of an improvement in advertising as well as circulation revenue.”

Hindustan Media Ventures also reported consolidated financial results for the period ended March 31, 2023. The company reported total income of Rs 217.11 crore during the period ended March 31, 2023 as compared to Rs 207.46 crore during the period ended December 31, 2022.

The quarterly net profit stood at Rs 12.08 crore in March 2023, up 483.57% from Rs 2.07 crore in March 2022. EBITDA stood at Rs 19.08 crore in March 2023 up 5.82% from Rs 18.03 crore in March 2022. 

The company's consolidated net profit increased to Rs 11.96 crore for the period ended March 31, 2023, as against a loss of -0.69 crore in the period ended December 31, 2022.

As per the EY Report, print segment can grow to Rs 279 billion by 2025. Print will reach a steady state with a loyal reader base in the next three to five years, most of which will probably come from the growing base of educated people entering the workforce who need news and information to build their careers. 

"We expect the print segment to grow at 3.7% CAGR till 2025. Advertising will grow at a 5.3% CAGR, driven by access to increasingly elusive NCCS A audiences," the report stated. 

The increased cost of raw materials, the Russia-Ukraine war, along with the depreciation in the value of the rupee have put pressure on newsprint prices, and this will continue to impact print businesses. Overall circulation is only at 75-80% as compared to pre-COVID-19, although some leading publications are faring better. 

On a positive note, several state elections are due and so is the General election next year, which should give the segment ample opportunity to bounce back in the months ahead. 

Info@BestMediaInfo.com