HT Media Q4 FY16 revenues up 9.2%; radio, digital biz show strong growth

HT Media has reported a 9.2 per cent growth in its total revenue to Rs 6,844 million for the fourth quarter ended March 31, 2016, compared to Rs 6,267 million in the corresponding period of the last fiscal.

Advertising revenues were up 8.5 per cent at Rs 4,967 million from Rs
4,579 million in Q4 FY15 primarily due to increase in advertising volumes as well as yields.

Circulation revenue was reported at Rs 757 million in Q4 FY16, an increase of 6.4 per cent from Rs 711 million due to higher circulation as well net realisation rate per copy.

EBITDA at 25.6 per cent was higher than last year at Rs 1,232 million from Rs 981 million in Q4 FY15 primarily due to increase in topline and no increase in raw material costs, being partially offset by 7.2 per cent increase in employee costs to Rs 1,306 million on account of new hiring and increments impact.

Profit after Tax (PAT) was marginally up by 0.8 per cent to Rs 497 million in Q4 FY16 from Rs 493 million primarily due to higher EBITDA being more than offset by higher interest costs on radio related borrowings and higher tax charge.

Digital business continues to grow robustly

A 35 per cent increase in revenue was reported from the digital segment to Rs 1,403 million from Rs 1,039 million over last year. Shine.com registered revenue growth of 29 per cent in FY16 vis-à-vis last year. HT Mobile registered a revenue growth of 63 per cent in FY16 compared to last year.

Radio business progressing at a steady pace

17.7 per cent increase in reported revenue to Rs 1,170 million in FY16 from Rs 994 million last year was driven by advertising revenue growth as well as the Chennai launch.

EBITDA was down by 11.6 per cent to Rs 405 million from Rs 458 million last year due to the Chennai launch; margins were at 31.4 per cent vis-à-vis 41.4 per cent during same period last year.

In FY16, the total revenue was up 8.1 per cent at Rs 26,551 million from Rs 24,573 million. Advertising revenue witnessed a 7.5 per cent increase in advertising revenue to Rs 19,809 million from Rs 18,436 million primarily due to increase in advertising volumes and yields. A 5.6 per cent increase in circulation revenue was reported at Rs 3,009 million from Rs 2,848 million due to higher circulation as well net realisation per copy.

EBITDA was 6.0 per cent higher than last year at Rs 4,622 million from Rs 4,361 million primarily due to increase in topline and decline in raw material costs by 2.6 per cent, being partially offset by 15 per cent increase in employee costs to Rs 5,560 million on account of new hiring and increments impact.

Profit after Tax was lower by 1.7 per cent to Rs 2,142 million from Rs 2,179 million primarily as higher EBITDA was more than offset by higher interest costs on radio related borrowings and higher tax charge.

Commenting on the results and performance, Shobhana Bhartia, Chairperson and Editorial Director, HT Media, said, “All our businesses grew in the quarter and we are happy to close the year on a positive note. The Hindi business outperformed the market and we witnessed the return of growth in the English business. Our new businesses are doing well. HT Mumbai has established itself as a clear alternative in India’s commercial capital. We launched Radio Nasha 107.2 in Delhi, becoming the only radio business in the region with two stations. Our digital business showed significant revenue growth and has reduced its losses. This year is rich with opportunities to expand our reach and offerings. We believe we are well placed to tap these and that our innovative strategies, prudent and timely investments, and world-class execution will continue to differentiate us from the competition.”

Going forward, HT Media’s strategic focus would be to operationalise new radio stations acquired in Phase-III auctions. The group would also focus on improving profitability of digital segment by focusing on growing revenue exponentially. The strong balance sheet (net cash of Rs 8,907 million) would be leveraged to fund expansion.

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