HT Media Limited (HTMEDIA) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated EBITDA rose 22.2% to ₹645 crore and PAT after minority interest and JV share increased 80.4% to ₹307 crore, despite revenue declining 3.4% to ₹2,592 crore.

• Cost rationalization drove margin expansion; raw material, employee and other expenses declined 6.3%, 12.1% and 11.7%, respectively.

• Print remained the largest business; radio revenue grew, while digital and multimedia content management revenues declined YoY.

Financial highlights

• Consolidated revenue fell from ₹2,682 crore in FY17 to ₹2,592 crore in FY18, reflecting GST disruption and lingering demonetization effects, partly offset by national ad growth and higher yields.

• EBITDA increased 22.2% to ₹645 crore from ₹528 crore; EBITDA margin expanded 521 bps to 24.9% from 19.7%.

• PAT after minority interest and share of JV rose 80.4% to ₹307 crore from ₹170 crore.

• Consolidated EPS was ₹13.20, versus ₹7.31 in FY17; net worth increased 13.4% to ₹2,531 crore.

Outlook and guidance

• FY18-19 performance was expected to improve as GST and demonetization effects eased, ad spends recovered, corporate earnings revived and election-related spending increased.

• Strategic priorities include expansion in key geographies, deeper penetration and increased value for advertisers; lower competitive intensity was also expected to support growth.

• Newsprint prices were expected to remain volatile; internal mitigation measures and hybrid sourcing from domestic and imported markets were planned.