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Media company HT Media has reported digital revenues of Rs 17.1 crore for the quarter ending June 30, 2013. The loss before tax was at Rs 17.04 crore for the quarter.

HT Media informed that the digital revenues for the current quarter includes the revenues of its job portal Shine.com, which has become a part of the company, following a restructuring arrangement sanctioned by the Delhi High Court on April 18, 2013. Hence, the digital revenues and results are not comparable with digital revenues of previous quarters and the corresponding quarter last year. In the previous quarter, HT Media had reported Rs 19.24 crore digital revenues and loss before tax of Rs 30.51 crore, however note that this includes Shine.com’s Rs 31.2 crore loss.

The company’s result presentation however suggests that the digital segment saw a 41% year-on-year (YoY) growth in revenues, with Shine.com registering a revenue growth of 81% YoY, HTCampus.com registering a 39% revenue growth YoY and HT Mobile registering a 22% revenue growth YoY. There is however no word on the exact revenue generated.

During the quarter, HT Mobile Solutions acquired digital marketing firm Webitude for an undisclosed amount. Following this acquisition, HT Mobile Solutions along with Webitude has launched an umbrella brand ‘Digital Quotient’ which intends to offer digital solutions.

Investments

During the quarter, HT Media made two investments in its subsidiaries. These include:

– Rs 11 crore in HT Digital through equity shares. Further, 76.54 lakh compulsorily convertible debentures worth Rs 100 each, held by the company was converted into 7.65 crore equity shares of HT Digital worth Rs 10 each, as per the said debenture issue terms.

– Rs 7.5 crore in India Education Services Private Limited, a joint venture between HT Media Ltd and Apollo Global.

During the quarter, Firefly, HT Mobile, HT Music, HT Burda and HT Learning have recognized deferred tax assets (net) of Rs 0.52 crore, Rs 0.12 crore, 0.01 crore, Rs 2.68 crore and Rs 0.87 crore respectively.

Share Buyback: In May 2013, the company board had approved a buyback of fully paid equity shares, having a face value of Rs 2, from existing shareholders other than promoters from the open market, at a maximum of Rs. 110 per share, up to an aggregate amount not exceeding Rs 25 crore. The company is planning to purchase a minimum of 5.68 lakh equity shares (5,68,182 shares) and a maximum of 22.72 lakh equity shares (22,72,727 shares), subject to the market price being equal or less than the maximum buy-back price.

The buyback commenced on June 3, 2013 and during the quarter ending June 30, 2013, the company has bought back 5.27 lakh shares (5,27,284 shares). It also extinguished 5.18 lakh shares (5,18,284 shares) for an aggregate consideration of Rs 5.28 crore.

Offloading 2.64% Stake In HMVL: HT Media has sold 19.39 lakh shares (19,39,027 shares) of value Rs 10 each, which accounts for 2.64% stake in its subsidiary company Hindustan Media Ventures Limited (HMVL) in the secondary market through the OFS (Offer For Sale) mechanism for Rs 23.26 crore. This sale was mandated due to an amendment to SEBI’s Securities Contracts (Regulation) Act in June 2010, which requires all public listed companies to maintain a minimum 25% stake in public holding.

Need To Know

– Readership of Hindustan Times was at 3.82 million while the readership of Hindustan stood at 12.25 million.
– Mint readership was at 0.22 million with 28% readership share in Delhi NCR, Mumbai, Bengaluru, Kolkata, Chennai and Hyderabad put together. HT Media claimed that 90% of the readers are exclusive to Mint, which are not reached by its competitors.
– Total revenue up 11% to Rs 568.5 crore from Rs 510.9 crore in the same quarter last year.
– Profit After Tax (PAT) increased by 17% to Rs 47.5 crore from Rs 40.7 crore in Q1-FY13.
– Print Advertising revenue: 10% increase to Rs 409.5 crore from Rs 372.5 crore in Q1-FY13 due to increase in ad volumes.
– Print Circulation revenue: 16% increase to Rs 60.8 crore from Rs 52.5 crore in Q1-FY13 due to increase in realization per copy.
– Radio Revenues: 15% increase to Rs 21.4 crore from Rs 18.6 crore in Q1-FY13.
– EBITDA: 20% increase to Rs 105.5 crore from Rs 87.8 crore in Q1-FY13.
– Raw materials costs declined by 3% to Rs 171.5 crore from Rs 176.2 crore in Q1-FY13, due to lower consumption. Other expenses declined by 4% to Rs 164.9 crore from Rs 172.7 crore in Q1-FY13 due to decrease in advertising and sales promotions expenses.
– Employee costs increased by 15% to Rs 105.5 crore from Rs 91.6 crore in Q1-FY13.
– Other expenses increased by 18% to Rs 181.8 crore from 153.7 crore in Q1-FY13 due to increase in ad and sales promotion expenses.

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