HT Media’s revenue growth in Q2 FY17 remains flat; PAT dips by 0.8%
HT Media has reported a 5.2 per cent growth its total revenue for the second quarter ended September 30, 2016 at Rs 6,802 million from Rs 6,468 million in the corresponding quarter of the previous fiscal.
However, there was a 2 per cent decrease in advertising revenue to Rs 4,660 million from Rs 4,755 million in Q2 FY2016 primarily due to de-growth in print ad revenues, partially offset by growth in radio ad revenues. Circulation revenue reported a 2.4 per cent increase to Rs 756 million in Q2 FY2017 from Rs 738 million in Q2 FY2016. There was 42.2 per cent increase in other income due to MTM gains from fair valuation of investments and increase in Shine revenue.
EBITDA was up by 15.1 per cent at Rs 1,285 million from Rs 1,116 million primarily due to increase in other income and 0.5 per cent decrease in raw material costs (on account of decrease in number of copies) being off-set by (7.1 per cent) increase in employee costs (impact of new hiring & increments) and (3.6 per cent) increase in other expenses. EBITDA margins for Q2 FY2017 stood at 18.9 per cent vis-a-vis 17.3 per cent last year.
Profit after tax de-grew by 0.8 per cent to Rs 512 million in Q2 FY2017 from Rs 516 million primarily due to higher EBITDA being off-set by higher amortisation and interest costs for new radio stations. PAT margins stood at 7.5 per cent.
HT Media reported a strong balance sheet position with net cash of Rs 8,576 million. Earnings per share for the quarter stood at Rs 1.33, compared to Rs 1.58 in the same period last year.
Digital business continues to grow
The media group saw 9.8 per cent increase in revenue from the Digital segment to Rs 373 million from Rs 339 million in the same quarter last year. Shine.com registered revenue growth of ~40 per cent in Q2 FY2017 vis-a-vis the same period last year.
HT Mobile Solutions witnessed a soft quarter registering a revenue de-growth of ~25 per cent in Q2 FY2017 vs. same period last year.
New stations give a boost to radio business
The radio business reported a 23.1 per cent increase in reported revenue to Rs 361 million in Q2 FY2017 from Rs 293 million in same period last year, driven by new radio station launches.
Radio EBITDA stood at Rs 68 million, with margins at 18.8 per cent vs. 28.1 per cent during same period last year. Dilution in margins attributed to new radio stations launch related expenses and impact of higher license fee costs.
Commenting on the results and performance, Shobhana Bhartia, Chairperson and Editorial Director, HT Media, “Our revenue growth in the quarter was flat, reflecting overall weakness in print media, especially English language publications. The high base effect of 2015’s Bihar elections on the Hindi business further depressed revenue growth. We are looking forward to a better second half, powered by the festive season, a good monsoon, implementation of the Seventh Pay Commission’s recommendations, and the upcoming elections in Uttar Pradesh.”
She further said, “Our radio business continues to outperform; we have completed the rollout of our Phase III stations, which have all gotten off to a good start. Our digital businesses continue to grow and reduce losses.”