Jagran Prakashan Ltd (JPL), publishers of Dainik Jagran, has reported a 25.47 per cent rise in net profit at Rs 22 crore in the quarter ended September 30, 2007 from Rs 17.54 crore in the corresponding quarter of the previous fiscal. The company’s Q2 net operating revenues stood at Rs 177.17 crore, up 23.40 per cent. The EPS for the quarter was at Rs 3.65 as against Rs 2.91 in the corresponding quarter of FY07.
Advertising and circulation revenues from the publishing business have registered a growth of 24.77 per cent and 8.35 per cent, respectively. Increase in advertisement revenue was driven by higher rates and increase in total space sold, while the increase in circulation revenue was mainly driven by increase in circulation, said a statement issued by the publishing house.
Meanwhile, the Board of Directors recommended sub division of equity share of face value of Rs 10 each into five equity shares of face value of Rs 2 each. This will increase the number of shares of the company to 30.10 crore from the current 6.02 after the shareholders’ approval. Further, the Board of Directors has also announced payment of an interim dividend of 50 per cent on equity share of the face value of Rs 10 to existing shareholders.
Commenting on the results, Mahendra Mohan Gupta, CMD, Jagran Prakashan Ltd, said, “We are delighted to announce interim dividend at Rs 5 per share and stock split in the ratio 1:5 for our shareholders. The split will make our stock more attractive to a broader investor base.”
“The overall business has continued to progress as planned. We expect significant contributions from our various non-publishing initiatives in top as well as bottom line in times to come, with growth momentum remaining intact in publishing business in the foreseeable future. The success of I-Next is heartening and demonstrates once again the high credibility and acceptability of the work of the company amongst the readers, hawkers and advertisers alike,” added Gupta.
I-Next, a newspaper brand launched in the third quarter of last fiscal in Kanpur and Lucknow, made a rapid stride in the current quarter both in terms of newspaper sales and advertisement revenue. City Plus, another newspaper brand launched in the NCR the in second quarter of the previous fiscal, has been expanded to New Delhi and Bangalore, and has continued to progress well.
OOH advertising and event management activity continued to scale up JPL’s operations. J9, a newly created and dedicated arm of JPL to pursue its initiatives in mobile and web space, has got stabilised and started generating good revenues, with plans to add a few more services such as classified vertical in web space to its basket in near future.