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Media company HT Media has reported digital revenues of Rs 17.81 crore for the quarter ended September 30, 2013. The loss before tax was at Rs 10.29 crore for the quarter. In comparison, it had reported digital revenues of Rs 17.1 crore and a loss before tax of Rs 17.04 in the previous 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 the corresponding quarter last year. It had reported Rs 13.31 crore digital revenues and a loss before tax of Rs 9.97 crore in the same quarter last year.

The company’s result presentation however suggests that the digital segment saw a 34% year-on-year (YoY) growth in revenues, with Shine.com registering a revenue growth of 78% YoY. There is however no word on the exact revenue generated by Shine.com.

Investments

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

– Rs 3.5 crore in HT Digital Media Holdings Limited through equity share application money.
– Rs 5.17 crore in HT Education Limited through equity shares.
– Rs 0.05 crore in Topmovies Entertainment Limited through equity shares.

During the quarter, Firefly, HT Mobile, HT Music, HT Burda and HT Learning have also recognized deferred tax assets (net) of Rs 0.39 crore, Rs 0.02 crore, Rs 0.04 crore, Rs 0.75 crore and Rs 0.54 crore respectively.

Share Buyback: During the quarter, the company bought back 8,911 equity shares of Rs 2 each and extinguished 17,911 equity shares through a buyback offer made by the company in the previous quarter, for an aggregate consideration of Rs 0.17 crore.

HT Media also sold 19.39 lakh shares (19,39,027 shares) of value Rs 10 each, in its subsidiary company Hindustan Media Ventures Limited (HMVL) in the secondary market through the OFS (Offer For Sale) mechanism for Rs 23.12 crore. The profit on the sale of this investment was Rs 21.17 crore which has been included in the company’s other income.

Divesting 51% Stake in HT Burda Media: After receiving an ‘in-principle’ approval from the company’s board in March 2013, HT Media sold its entire holding of 5.15 crore equity shares (5,15,09,990 shares) of Rs 10 each to Burda Druck GmBH, for an aggregate consideration of Rs 60 crore. The company made a profit of Rs 8.41 crore through the sale of this investment.

Need To Know

– Readership of Hindustan Times was at 3.82 million while the readership of Hindustan is 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 591.6 crore from Rs 535.3 crore in the same quarter last year.
– Profit After Tax (PAT) increased by 75% to Rs 58.2 crore from Rs 33.3 crore in Q2-FY13.
– Print Advertising revenue: 6% increase to Rs 386.8 crore from Rs 364 crore in Q2-FY13 due to increase in advertising yields and ad volumes.
– Print Circulation revenue: 14% increase to Rs 64.2 crore from Rs 56.3 crore in Q2-FY13 due to increase in realization per copy.
– Radio Revenues: 28% increase to Rs 20.5 crore from Rs 16 crore in Q2-FY13, EBITDA is up 72% to Rs 5.9 crore from Rs 3.5 crore.
– EBITDA: 50% increase to Rs 121.3 crore from Rs 80.9 crore in Q2-FY13, driven by HT Burda stake sale, improved advertising and circulation revenues and decline in raw material costs.
– Raw materials costs declined by 3% to Rs 189.4 crore from Rs 195.3 crore in Q2-FY13, due to lower consumption.
– Employee costs increased by 3% to Rs 106.5 crore from Rs 103.4 crore in Q2-FY13.
– Other expenses also increased by 16% to Rs 180.3 crore from Rs 156 crore in Q2-FY13 due to an increase in advertising and sales promotions expenses.

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