HT Media Limited (HTMEDIA) Q4 14/15 earnings summary

Executive summary

• FY15 was a transition year: consolidated income grew 4%, while digital revenue rose 36% amid a difficult, slow-growth environment.

• Print leadership strengthened across key markets; digital transformation became the main strategic priority, backed by a strong balance sheet.

Financial highlights

• Consolidated total income was ₹2,457.3 crore vs ₹2,363.0 crore in FY14; consolidated net profit was ₹179.8 crore vs ₹207.5 crore.

• Consolidated EBITDA before exceptional items was ₹436.1 crore, down 8% YoY; FY14 included ₹46.8 crore profit on sale of subsidiary investments.

• Consolidated EPS was ₹7.7 vs ₹8.9; the Board recommended a ₹0.40/share dividend, equal to 20% of face value.

• Advertising revenue grew 5% and circulation revenue 11%; print advertising revenue reached ₹1,751 crore.

Outlook and guidance

• FY16 priorities include accelerating digital transformation; management expects the integrated digital newsroom to become functional by 2016 and results to emerge by 2020.

• Near-term investment priorities include digital, FM radio footprint expansion and Hindi newspaper expansion; policy reforms may affect activity from H2 FY16 with a lag.

• Industry forecasts cited indicate 2014–19 growth of 8% for print, 18.1% for radio and 30.2% for digital advertising.