HT Media Q2 Results: Advertising revenue growth continues to be a challenge in our core print business: Shobhana Bhartia, Chairperson, HT Media
Advertising revenue during the quarter fell by 8.14 per cent to Rs 395 cr compared to Rs 430 in Q2 2016-2017
HT Media Ltd (HTML), publisher of the Hindustan Times and Mint newspapers, on Tuesday recorded a 52 percent growth year-on-year in consolidated profit at Rs 77.8 crore for the quarter ended September 2017, backed by strong operational performance. Profit in year-ago quarter stood at Rs 51.2 crore.
Consolidated revenue during the quarter fell 6.9 percent to Rs 560.6 crore compared with Rs 602.2 crore in same quarter last fiscal. Advertising revenue during the quarter fell by 8.14 per cent to Rs 395 cr compared to Rs 430 in Q2 2016-2017.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 107.3 percent year-on-year to Rs 104.5 crore and margin expanded sharply by 1,020 basis points to 18.6 percent in July-September quarter.
Commenting on the results and performance, Shobhana Bhartia, Chairperson and Editorial Director, HT Media said, “Advertising revenue growth continues to be a challenge in our core Print business, with this quarter witnessing high level of uncertainty across industries on account of GST implementation. Our radio business continues to do well. New radio stations are generating revenue and the entire radio business witnessed an increase in operating profits. While advertising revenue in print has been soft, operating profits continue to grow steadily on the back of strong cost management and aided by favourable currency and commodity rates. GST is expected to stabilise soon which should lead to better macroeconomic environment and result in higher advertising spends. With growth coming back to core business, we hope to deliver better results to our shareholders.”
Margin was aided by decline in finance cost that fell 21 percent to Rs 121 crore YoY.
Cost of materials, employee cost and other expenses were also down 11 percent, 20 percent and 22 percent during the quarter YoY.
The quarter results report stated that the growth was driven by a growth in ad spend growth mainly from the Auto, Banking & Finance, Entertainment, Luxury, and Ecommerce sectors.
The revenue growth of the Hindi print publication - Hindustan was driven by a strong performance in automobile segment along with expanding foothold in growing categories like e-commerce and luxury, the report stated.
On last count, the stock price was quoting at Rs 102.00, up Rs 6.60, or 6.89 percent amid high volumes on the BSE.
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