Jagran Prakashan EBITDA up 66.6% YoY even as print ad rev dips 10.7% in Q4FY21
Cost control measures and softened newsprint prices helped EBITDA despite weak revenues
Jagran Prakashan’s Q4 numbers reflect the taxing times the print industry is going through.
Their operating revenue (consolidated) declined 8.8% YoY to Rs 406.4 crore as print ad revenue was down 10.7% YoY to Rs 234 crore. Subscription and radio revenue also registered de-growth of 12.1% YoY and 7.4% YoY, respectively on a depressed base. EBITDA, however, was up 66.6% YoY to Rs 89.9 crore. Cost control measures and softened newsprint prices helped EBITDA despite weak revenues. Consequently, PAT at Rs 37.6 crore grew more than 3x year on year due to strong performance at EBITDA level and also higher other income.
According to ICICI Direct Research, FY23 could bring in a sharp recovery for the publication. It adds that one of the primary reasons for a halt in recovery was the outbreak of the second wave of the pandemic.
“Print ad revenue was down 10.7% YoY, despite a favourable base (24.3% YoY decline), on account of the outbreak of second Covid wave. We note that in the base quarter, the impact was severe due to fear psychosis of newspaper carrying virus, which was later dismissed by the Health Ministry. Circulation also improved to 80% of pre-Covid level now from the trough of 40% in the past. Going forward, we believe that gradual economic recovery due to possible accelerated vaccination drive and resumption of spending by some key sectors like auto, real estate and tailwind from UP election would help print advertisement,” the research report said.
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