HT Media has reported an 11 per cent growth in total revenues in Q2 FY14 at Rs 5,916 million from Rs 5,353 million in the corresponding quarter of the previous fiscal.
Profit after tax was up 75 per cent at Rs 582 million, as compared to Rs 333 million in Q2 FY13.
This growth was due to a 6 per cent increase in advertising revenues of print segment to Rs 3,868 million in Q2 FY from Rs 3,640 million, primarily driven by increase in advertising yields and volumes. The growth was also supported by 14 per cent increase in circulation revenues of print segment to Rs 642 million from Rs 563 million in the same quarter in FY13, driven by increase in realisation per copy.
EBITDA higher by 50 per cent to Rs 1,213 million in Q2 FY14 from Rs 809 million, primarily driven by growth in advertising and circulation revenues, and increase in other income mainly due to Burda stake sale (Rs 382 million) and Hindustan Media Ventures stake sale (Rs 86 million).
Commenting on the Q2 FY2014 performance, Shobhana Bhartia, Chairperson and Editorial Director, HT Media said, “We are glad to report a stable growth in revenue and profit this quarter, despite continued uncertainty in the macroeconomic environment, both in India, and elsewhere. Our growth initiatives in Mumbai and Uttar Pradesh continue to deliver results, and all our digital businesses have shown robust growth.”
She further said, “We are confident that our diversified business model, established brands and sustained focus on cost reduction will continue to create value for all stakeholders and also show better results as the macroeconomic environment improves.”
There was 3 per cent decrease in cost of raw material consumed to Rs 1,894 million from Rs 1,953 million due to decrease in newsprint consumption.
However, growth was partially offset by 16 per cent increase in other expenses to Rs 1,803 million from Rs 1,560 million due to increase in promotion expenses for advertising and sales.
HT Media’s digital business continued to report buoyant performance for the Q2 FY14, with 34 per cent increase in revenues from the digital segment to Rs 178 million from Rs 133 million in Q2 FY13. Shine.com registered revenue growth of 78 per cent in Q2 FY14 over Q2 FY13.
Radio business too reported growth of 11 per cent in total revenue and robust improvement in EBITDA. There was 28 per cent increase in core radio revenue to Rs 205 million from Rs 160 million in Q2 FY13, while EBITDA was up 72 per cent at Rs 59 million from Rs 35 million in the corresponding quarter of the previous fiscal.
During the second quarter, HT Media offloaded its 51 per cent stake in HT Burda Media, a joint venture with Burda Druck GmbH, completed on September 30, 2013. The resultant gain on divestment stood at Rs 382 million for HT Media at a consolidated level.