HT Media Limited (HTMEDIA) Q4 05/06 earnings summary

Executive summary

• FY06 marked a successful Mumbai launch, continued leadership in Delhi, Chandigarh, Bihar and Jharkhand, and listing on Indian stock exchanges in August 2005.

• Standalone revenue rose 31.68% to Rs 838.74 crore; EBITDA margin expanded to 16.23% from 13.16%, and PBT before exceptional items increased 54% to Rs 84.06 crore.

Financial highlights

• Standalone ad revenue rose 31.80% to Rs 654.84 crore; publication sales increased 8.95% to Rs 136.83 crore.

• Standalone EBITDA increased 62.24% to Rs 136.13 crore; PBT before exceptional items was Rs 84.06 crore, and reported PAT was Rs 37.27 crore.

• Excluding exceptional items, standalone PAT increased 52.94% to Rs 52 crore and EPS rose 33.83% to Rs 11.67; reported EPS after exceptional items was Rs 8.27.

• Consolidated revenue was Rs 838.29 crore, EBITDA Rs 135.85 crore, PBT Rs 58.37 crore, PAT Rs 34.38 crore and EPS Rs 7.90.

• Standalone total expenditure rose 27.03% to Rs 702.61 crore, below revenue growth; newsprint costs increased 19.13% to Rs 341.71 crore.

Outlook and guidance

• Mumbai operations were expected to break even sooner than previously anticipated; management anticipated margin and earnings improvement as the edition gained momentum.

• Higher ad revenue after the Mumbai launch, circulation revenue following Delhi cover-price increases, and stronger market share in newer editions were expected to support profitability.

• Newsprint-price normalization was expected to benefit earnings; plans included expanding Hindi editions and evaluating a business or financial daily.

• FM radio operations in Delhi, Mumbai, Bangalore and Kolkata were expected to start during FY07 and complement print and digital offerings.