HT Media Ltd has reported strong revenues in the first quarter of fiscal year 2010-2011. Total revenues of the company were up 20 per cent at Rs 4,042 million this quarter, as compared to Rs 3,366 million in the same quarter last year. Also, low newsprint prices and impact of cost optimisation measures improved HT Media’s EBIDTA margins from to 21 per cent from 19 per cent. Net profit for the quarter stood at Rs 414 million from Rs 287 million in Q1 FY10.
Revenue increase of HT Media was primarily driven by a strong 22 per cent growth YoY in advertising revenues, out of which the English print business grew by 21per cent YoY, while the Hindi print business grew by 24 per cent YoY. Circulation revenues of the company increased by 6 per cent to Rs 468 million from Rs 444 million in the same quarter last year.
Commenting on the Q1 FY11 performance, Shobhana Bhartia, Chairperson and Editorial Director, HT Media Ltd, said, “We are encouraged by a strong start to FY2011. Our revenues have grown on the back of expanding readership base, strong product innovation and visible improvement in the advertising environment.”
The radio (Fever 104 FM) revenues saw a jump of 39 per cent at Rs 123 million from Rs 88 million last year. The radio business reported a positive EBITDA of Rs 11 million for the quarter as compared to negative EBITDA of Rs 12 million last year.
During the quarter, HT Media also launched the Ahmedabad edition of its financial daily Mint. For its job portal Shine.com, the company saw increased traction to over five million registered users.
Anand Shah, Senior Research Analyst - FMCG & Media, Angel Securities, noted in his results update: “Owing to significant improvement in profitability of its growing businesses, incremental revenue traction from its Hindi business (Hindustan Media Ventures) due to ramp up in Uttar Pradesh and bounce back of its English print business, we maintain a Buy for the stock.”