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HT Media Q409 Call: Mint To Launch In Kolkata, Chennai; Internet Forecast – Rs. 35 Cr Loss

Updated (Rewritten) On the outset, Rajiv Verma, CEO, HT Media Ltd suggested that the company is "coming out of a commodity bubble, and such breakage of bubbles are always tumultous." They've seen turbulence on the raw material and cost side, and the business environment during the last two quarters has been tough, with advertisers trying to conserve spends. The print industry has been declining: "During the last five years, the CAGR of the print industry was around 8%, with hypergrowth in the first three years at around 15%. During the last year, we saw the print industry decline by 2%." Ads for Equity "We've been signing deals in 'Participation for Growth' model." The total investment figure for 2008-09 is about Rs. 200 crores. The revenue booked in Q4 is about Rs. 19 crores. "We've taken a hit on that of around Rs. 6 crores as an extraordinary item." Cost cutting -- Pages: HT Media's Chief Financial Strategist Vinay Mittal said that the company has cut pagination in both English and Hindi segments, in Delhi, Mumbai...across the board. This was done in Q3, and carried on in Q4. Pagination will not be rolled back unless advertising picks up or competition picks up. The Ad-Edit ratio is around 55% in Delhi, and in Bombay it is around 45%. -- Newsprint Credit Period: "We've ensured that the credit period avaialble to us for the purchase of newsprint has been extended.  -- Overheads and Workforce: The overheads have been tightened, and lowered expenses. We've rationalized ourworkforce. The effect of…

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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