HT Media Limited (HTMEDIA) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated revenue rose 15% to ₹2,078 crore amid a difficult economic and advertising environment; net profit fell 9% to ₹165 crore as input and financing costs increased.

• Advertising, circulation and digital revenue grew 11%, 8% and 38%, respectively; investments in digital, education and expanded print reach continued.

Financial highlights

• Consolidated revenue was ₹2,078 crore versus ₹1,810 crore YoY; EBITDA was ₹362 crore, down 1%, and PBT was ₹234 crore, down 9%.

• Consolidated PAT after minority interest was ₹165 crore, down 9%; EPS was ₹7.04 versus ₹7.70 YoY.

• Print advertising revenue rose 11% to ₹1,544 crore; circulation revenue rose 8% to ₹198 crore; radio and entertainment revenue increased 6% to ₹74 crore.

• Raw material costs increased 16% to ₹723 crore and personnel costs rose 18% to ₹356 crore; treasury income rose from ₹29 crore to ₹62 crore.

• Standalone income was ₹1,387 crore, EBITDA ₹307 crore and PAT ₹160 crore; versus FY11, income rose from ₹1,253 crore while EBITDA and PAT declined from ₹325 crore and ₹178 crore.

Outlook and guidance

• Strategy focused on consolidating print markets and monetizing recent investments while expanding digital, radio and education businesses; no numerical FY13 guidance was stated.

• Industry projections for 2011–16 indicated CAGRs of 9% for print, 21% for radio and 30% for digital advertising.

• Hindustan’s Uttar Pradesh and Uttarakhand expansion was complete; improved realizations were expected from consolidation, while HT Burda anticipated better profitability as scale improved.

• Shine.com was positioned for further growth, and radio expansion was tied to the next FM licensing phase; education initiatives were expected to develop as additional growth engines.