HT Media Limited (HTMEDIA) Q4 06/07 earnings summary

Executive summary

• FY2007 delivered strong growth while investment continued in new print, radio, digital and tabloid initiatives. Revenue rose 28% and EBITDA 69% YoY on a standalone basis.

• Existing print operations strengthened, while new ventures broadened geographic reach and media formats; management viewed the outlook as promising.

Financial highlights

• Standalone total income rose to Rs 1,079.57 crore from Rs 841.47 crore; turnover was Rs 1,039.29 crore, up from Rs 823.73 crore.

• Standalone EBITDA increased 69% to Rs 230.73 crore; profit before exceptional items and tax was Rs 176.77 crore, versus Rs 84.06 crore.

• Standalone PAT rose to Rs 115.06 crore from Rs 37.27 crore; reported EPS was Rs 4.91 versus Rs 1.65, with prior-year EPS restated for the share split.

• Advertising revenue grew 33% to Rs 876.72 crore; publication sales were flat at Rs 136.16 crore as circulation gains were offset by lower Mumbai realization.

• Standalone total expenditure increased 20% to Rs 848.83 crore and declined to 79% of sales from 84%; raw-material costs rose 27% to Rs 432.01 crore.

Outlook and guidance

• Management expected existing operations and recent launches to mature and support continued growth; no numerical FY2008 guidance was stated.

• Planned to expand Hindustan Times and Hindustan into more regions, while increasing market share through supplements and improved offerings.

• Fever 104 was planned to enter Kolkata in the next year; radio’s share of advertising was expected to rise from ~3% as new stations and younger audiences expand the market.