While demonetisation dampened the financial results of various media companies, the annual results of Jagran Prakashan Limited for the fiscal year ended March 31, 2017, largely defy the trend. In FY17, the print giant’s consolidated total income rose by 9.16% from Rs 2,129.09 crore to Rs 2,324.13 crore. On the other hand, the profit before tax (PBT) went up by 11.39% to Rs 516.80 crore from Rs 463.93 crore.
Of the total income of Rs 2,324.13 crore, Jagran roped in Rs 2,282.95 crore from operating revenues. Advertisement revenues continued to be the biggest contributor to the same. The combined share of advertisement revenues across Jagran’s print, radio, and digital business stood at Rs 1,686.59 crore. Though demonetisation led to the sucking out of cash from the market which had an adverse effect on the ad spends of companies, Jagran’s total advertisement revenues increased by almost double-digit percentage points at 9.96%. In FY16, the company generated Rs 1,533.82 crore from advertisement revenues across mediums.
Having toppled Bhaskar as the highest circulated daily newspaper in the country, Jagran, with a circulation of 39,21,267 copies (Audit Bureau of Circulation – July – December 2016), also managed a decent growth in circulation revenues. The income from circulation revenues moved upwards by 5.86% with the figure going up to Rs 432.52 crore from Rs 408.54 crore. Apart from these, other operating revenues went up by 19.67% from Rs 136.89 crore to Rs 163.82 crore. However, other income besides operating revenues fell to Rs 41.18 crore from Rs 49.85 crore.
In the case of print, advertisement revenues shot up at an annual growth rate of 5.13%. Inching closer to the mark of Rs 1,400 crore, Jagran’s print ad revenues went from Rs 1,324 crore to Rs 1,392 crore. Simultaneously, operating revenues improved by 5.16% to Rs 1,874 crore from Rs 1,782 crore. Over 80% of the operating revenues came from Dainik Jagran, the group’s flagship Hindi-language newspaper.
Improving its operating revenues by 4.95%, Dainik Jagran alone brought in Rs 1,531.1 crore. During the fiscal before, the newspaper raked in Rs 1,458.8 crore. Other publications including Inext, Josh, Midday, Naidunia, Punjab Jagran and Sakhi accumulated Rs 342.4 crore in operating revenues. As far as the top line is concerned, these publications bested FY16’s showing of Rs 322.9 crore by 6.03%. But their operating profits slipped from Rs 32 crore to Rs 30 crore. Nevertheless, Dainik Jagran heightened its operating profit to Rs 529 crore from Rs 505 crore earlier. When analyzed together, print delivered Rs 559 crore and Rs 493 crore in operating profits and PBT, respectively. While the former grew by 4%, the latter managed a 14% increase.
Other businesses and consolidated costs
At Music Broadcast Limited, the radio arm of Jagran, the top line or revenues increased by 20.35% from Rs 225.5 crore to Rs 271.4 crore. Meanwhile, PBT reflected a jump of almost Rs 16 crore as it moved to Rs 57 crore from Rs 41.9 crore. MBL spent Rs 19.2 crore on licence fees whereas employee expenses rose by Rs 14 crore to Rs 65.1 crore. With ten media portals forming a part of its online offering, Jagran also witnessed the rise of its digital revenues by an estimated 52.3% to Rs 29.40 crore. The figure was previously pegged at Rs 19.30 crore.
The multimedia group shelled the highest amount of money on materials consumed wherein expenditure increased to Rs 652.44 crore from Rs 628.68 crore. Besides that, expenses related to employee benefits reflected a marginal hike on the balance sheet. The costs incurred herein enlarged to Rs 373.99 crore from Rs 322.68 crore. Other expenses concerning activations, corporate social responsibility (CSR) and online expenditure also expanded to Rs 616.95 crore from Rs 537.40 crore. The company, however, decreased its finance costs by nearly Rs 20 crore to Rs 35.03 crore.