earnings presentation [company update]

13
1 HT Media Ltd (NSE: HTMEDIA; BSE: 532662) Q1 FY2016 Earnings Presentation July 16, 2015

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Page 1: Earnings Presentation [Company Update]

1

HT

Med

ia L

td

(NS

E:

HT

ME

DIA

; B

SE

: 5

32

66

2)

Q1

FY

20

16 E

arn

ings

Pre

sen

tati

on

Ju

ly 1

6, 20

15

Page 2: Earnings Presentation [Company Update]

2

Pa

rtic

ula

rs

Sli

de

no

Fin

anci

al H

ighli

ghts

3

Op

erat

ion

al H

igh

ligh

ts

5

Fin

anci

al O

ver

vie

w

7

Ab

ou

t U

s 11

Co

nta

ct U

s 1

3

Tab

le o

f C

on

ten

ts

Co

nfe

ren

ce D

ial-

In N

um

ber

s (J

uly

16

, 2

01

5 a

t 11

:00am

IS

T)

Pri

mar

y N

um

ber

+

91

22

39

38

10

74

/ +

91

22

67

46

83

49

Lo

cal A

cces

s N

um

ber

6

00

0 1

22

1 /

39

40

39

77

Th

e n

um

ber

s li

sted

ab

ove

are

un

iver

sall

y a

cces

sib

le f

rom

all

net

wo

rks

an

d a

ll c

ou

ntr

ies

To

ll F

ree

Nu

mb

er

US

A:

1 8

66

74

6 2

13

3

UK

: 0

80

8 1

01

15

73

Sin

gap

ore

: 8

00

10

1 2

04

5

Ho

ng

Ko

ng

: 8

00

96

4 4

48

Page 3: Earnings Presentation [Company Update]

3

Fin

anci

al H

igh

lig

hts

§T

ota

l R

even

ue

incr

ease

d b

y 5

% t

o R

s. 6

,15

3 m

illi

on

§A

dv

erti

sin

g R

even

ue

gre

w b

y 5

%;

Cir

cula

tio

n R

even

ues

gre

w b

y 6

.3%

vs.

las

t yea

r

§E

BIT

DA

was

do

wn b

y (

16

.2%

) v

s. l

ast

yea

r at

Rs.

85

0 m

illi

on

; E

BIT

DA

mar

gin

s o

f 1

3.8

%

§PA

T w

as l

ow

er b

y (

15

.2%

) at

Rs.

35

7 m

illi

on

; PA

T m

arg

ins

of

5.8

%

§S

tro

ng

bal

ance

sh

eet

po

siti

on w

ith

Net

Cas

h o

f R

s. 1

1,9

91

Mil

lio

n

§E

PS

fo

r th

e q

uar

ter

sto

od

at

Rs.

1.0

7 a

s co

mp

ared

to

Rs.

1.4

0 i

n t

he

last

yea

r

Ma

na

gem

ent

Co

mm

enta

ry

Hig

hli

gh

ts –

Q1

FY

20

16

vs.

Q1

FY

20

15

“ T

he

ye

ar

sta

rte

d w

ell

fo

r u

s a

lth

ou

gh

eco

no

mic

gro

wth

is

stil

l sl

ow

an

d t

he

re a

re m

ixe

d s

ign

als

on

acc

ou

nt

of

glo

ba

l m

acr

oe

con

om

ic c

on

cern

s.

Ou

r E

ng

lish

d

ail

ies

saw

vo

lum

e-l

ed

g

row

th

acr

oss

m

ark

ets

. H

ind

ust

an

m

ain

tain

ed

it

s u

pw

ard

g

row

th

tra

ject

ory

, d

rive

n b

y o

ur

inve

stm

en

ts i

n b

oth

UP

an

d B

iha

r. O

ur

dig

ita

l a

sse

ts a

re i

ncr

ea

sin

gly

ga

inin

g a

foo

tho

ld i

n t

he

ir m

ark

ets

. T

he

Ra

dio

bu

sin

ess

co

nti

nu

es

to b

e p

rofi

tab

le a

nd

we

aim

to

ad

d t

o o

ur

po

rtfo

lio

of

sta

tio

ns

in P

ha

se-

III

au

ctio

ns.

As

the

ye

ar

pro

gre

sse

s, w

e b

elie

ve

th

at

we

wil

l co

nti

nu

e o

n t

he

gro

wth

pa

th a

nd

de

live

r p

osi

tive

re

sult

s e

ve

n

as

the

eco

no

mic

en

vir

on

me

nt im

proves”

Co

mm

enti

ng

on

th

e re

sult

s an

d p

erfo

rman

ce,

Mrs

. S

ho

bh

an

a B

ha

rtia

, C

hair

per

son

an

d E

dit

ori

al

Dir

ecto

r,

HT

Med

ia s

aid

:

Page 4: Earnings Presentation [Company Update]

4

Fin

anci

al H

ighli

gh

ts

Q1

FY

16

(y

-o-y

an

d q

-o-q

)

y-o-y

Q

1Q

4q-o

-q

Rs.

mil

lio

nF

Y2

01

6F

Y2

01

5G

row

th

(%)

FY

20

16

FY

20

15

Gro

wth

(%)

Ad

ver

tisi

ng R

even

ues

4,6

75

4,4

54

5.0

%4,6

75

4,6

53

0.5

%

Cir

cula

tio

n R

even

ues

729

686

6.3

%729

711

2.5

%

Oth

er R

even

ues

748

719

4.0

%748

903

-17

.2%

To

tal

Reven

ues

6,1

53

5,8

59

5.0

%6,1

53

6,2

67

-1.8

%

Co

nsu

mp

tio

n o

f R

aw M

ater

ials

1,7

71

1,8

57

-4.6

%1,7

71

1,7

43

1.6

%

Em

plo

yee

Co

st

1,3

79

1,2

52

10

.2%

1,3

79

1,2

18

13

.2%

EB

ITD

A850

1,0

14

-16

.2%

850

981

-13

.4%

Ma

rgin

(%

)1

3.8

%1

7.3

%1

3.8

%1

5.7

%

Pro

fit

aft

er

Ta

x (

PA

T)

357

421

-15

.2%

357

493

-27

.7%

Ma

rgin

(%

)5

.8%

7.2

%5

.8%

7.9

%

Ba

sic E

PS

(R

s.)

1.0

71.4

0-2

3.6

%1.0

71.6

9-3

6.7

%

Q1

Page 5: Earnings Presentation [Company Update]

5

Oper

atio

nal

Hig

hli

gh

ts

HT

ML

ha

s th

e se

con

d l

arg

est

rea

d n

ewsp

ap

ers

in E

ng

lish

, H

ind

i a

nd

Bu

sin

ess

Da

ily

seg

men

ts

- 2

01

4 I

RS

Res

ult

s

2014 I

RS

Rea

der

ship

Min

t2

0.3

0 m

illion

Hin

du

sta

n (

HH

)

- A

ll I

ndia

14.7

5 m

illion

HT D

elh

i N

CR

2.3

0 m

illion

HH

UP &

UT

8.0

9 m

illion

HT

1 -

All I

ndia

4.5

2 m

illion

HT M

um

bai

1.4

4 m

illion

HH

Bih

ar

4.3

8 m

illion

HH

Jh

ark

han

d

1.3

1 m

illion

HH

Delh

i N

CR

1.0

7 m

illion

1Hindustan Times; 2Mint:Business Daily

201

3 I

RS

Rea

der

ship

0.2

7 m

illion

14.2

5 m

illion

2.2

7 m

illion

7.6

3 m

illion

4.3

4 m

illion

1.3

6 m

illion

4.2

7 m

illion

1.4

0 m

illion

1.0

6 m

illion

Page 6: Earnings Presentation [Company Update]

6

Oper

atio

nal

Hig

hli

gh

ts

Dig

ita

l b

usi

nes

s co

nti

nu

es t

o g

row

ro

bu

stly

Ra

dio

bu

sin

ess

pro

gre

ssin

g a

t a

ste

ad

y p

ace

•29%

in

cre

ase in

re

ven

ue fr

om

D

igit

al

segm

en

t to

R

s.

306 m

illion

fr

om

R

s.

237

million

in

th

e s

am

e q

uart

er

last

year.

•S

hin

e.c

om

regis

tere

d r

even

ue g

row

th o

f ~9%

in

Q1’FY

16 v

s. Q

1 last

year.

•H

T M

obile r

egis

tere

d a

reven

ue g

row

th o

f 71%

in

Q1’FY

16 v

s. Q

1 last

year.

•2.3

% in

cre

ase in

reven

ue t

o R

s.2

45 m

illion

in

Q1’FY

16 f

rom

Rs.

240 m

illion

in

Q1

last

year

dri

ven

by a

dvert

isin

g r

even

ue g

row

th.

•E

BIT

DA

gre

w b

y 2

.7%

to R

s.

95 m

illion

fro

m R

s.

93 m

illion

; M

arg

ins i

mpro

ved t

o

35.9

% fro

m 3

5.6

% d

uri

ng s

am

e p

eri

od last

year.

Page 7: Earnings Presentation [Company Update]

7

35

7

42

1

Q1

F

Y1

6Q

1 F

Y1

5

85

0

1,0

14

Q1

F

Y1

6Q

1 F

Y1

5

Rev

enu

e 1

oT

ota

l re

ven

ue

up

5%

at

Rs.

6,1

53

mil

lio

n f

rom

Rs.

5,8

59

mil

lio

n :

•5

% i

ncr

ease

in

adv

erti

sing

rev

enu

e to

Rs.

4,6

75

mil

lion

fro

m R

s. 4

,454

mil

lio

n p

rim

aril

y d

ue

to i

ncr

ease

in

ad

ver

tisi

ng

vo

lum

es.

•6

.3%

in

crea

se i

n c

ircu

lati

on

rev

enu

e to

Rs.

729

mil

lion

fro

m R

s. 6

86

mil

lio

n d

ue

to h

igh

er c

ircu

lati

on

wel

l as

hig

her

net

rea

liza

tion

per

co

py.

EB

ITD

A M

arg

in

2

oE

BIT

DA

(16

.2%

) lo

wer

th

an l

ast

yea

r at

Rs.

850

m

illi

on

fro

m R

s. 1

,01

4

mil

lio

n p

rim

aril

y d

ue

to :

•(3

6.4

%)

incr

ease

in

ad

ver

tisi

ng

& S

ales

Pro

mo

tio

n e

xp

ense

s an

d (

20

.8%

)

incr

ease

in

gen

eral

an

d a

dm

in c

ost

s co

up

led

wit

h,

•(1

0.2

%)

incr

ease

in e

mp

loyee

co

sts

to R

s. 1

,379

mil

lio

n f

rom

Rs.

1,2

52

mil

lio

n d

ue

to i

mp

act

of

new

hir

ing, in

crem

ents

bei

ng

par

tial

ly o

ff-s

et b

y,

•D

ecli

ne

in r

aw m

ater

ial

cost

s b

y 4

.6%

(d

ue

to d

rop

in

new

spri

nt

cost

s)

5%

* R

s. M

illi

on

Pro

fit

Aft

er T

ax

3

oPA

T d

ow

n b

y (

15

.2%

) at

Rs.

35

7 m

illi

on

fro

m R

s. 4

21

mil

lio

n o

win

g t

o

low

er E

BIT

DA

bei

ng

par

tial

ly o

ff-s

et b

y l

ow

er d

epre

ciat

ion

an

d i

nte

rest

char

ge.

(16

.2%

)

(15

.2%

)

Fin

anci

al O

ver

vie

w –

All

com

par

isons

are

y-o

-y

6,1

53

5,8

59

Q1

F

Y1

6Q

1 F

Y1

5

Page 8: Earnings Presentation [Company Update]

8

Fin

anci

al O

ver

vie

w –

Quar

terl

y

Rev

enu

e (R

s. M

illi

on

) a

nd

Gro

wth

(%

)

EB

ITD

A (

Rs.

Mil

lio

n)

an

d M

arg

in (

%)

PA

T (

Rs.

Mil

lio

n)

an

d M

arg

in (

%)

Rev

enu

e B

rea

kd

ow

n (

%)

5,8

59

5

,94

8

6,4

99

6,2

67

6,1

53

1.5

%

9.3

%

-3.6

%

-1.8

%

-10

.0%

-5.0

%

0.0

%

5.0

%

10

.0%

15

.0%

20

.0%

Q1

FY

15

Q2

FY

15

Q3

FY

15

Q4

FY

15

Q1

FY

16

1,0

14

1

,06

0

1,3

06

98

1

85

0

17

.3%

1

7.8

%

20

.1%

15

.7%

1

3.8

%

Q1

FY

15

Q2

FY

15

Q3

FY

15

Q4

FY

15

Q1

FY

16

42

1

52

6

73

9

49

3

35

7

7.2

%

8.8

%

11

.4%

7.9

%

5.8

%

Q1

FY

15

Q2

FY

15

Q3

FY

15

Q4

FY

15

Q1

FY

16

72

%

71

%

72

%

70

%

72

%

4%

4

%

4%

4

%

4%

1

2%

1

2%

1

1%

1

1%

1

2%

12

%

13

%

12

%

14

%

12

%

Q1

FY

15

Q2

FY

15

Q3

FY

15

Q4

FY

15

Q1

FY

16

Ad

ver

tisi

ng

- P

rin

tA

dv

erti

sin

g -

Rad

ioC

ircu

lati

on

Oth

er R

even

ue

Page 9: Earnings Presentation [Company Update]

9

Fin

anci

al O

ver

vie

w (

Conso

lid

ated

Inco

me

stat

emen

t)

Pa

rtic

ula

rs

30.0

6.2

015

30.0

6.2

014

Sh

ift

(%)

(Un

- a

ud

ite

d)

(Un

- a

ud

ite

d)

Net

Sale

s /

Incom

e fro

m o

pera

tions

5,8

26

5,4

05

7.8

%

Oth

er

Opera

ting Incom

e46

59

-2

2.9

%

To

tal

Inco

me

fro

m o

pe

rati

on

s5,8

72

5,4

64

7.5

%

Oth

er

incom

e281

395

-28.8

%

To

tal

Inco

me

6,1

53

5,8

59

5.0

%

(Incre

ase)/

Decre

ase in Inve

nto

ry(6

)

(1

)

Consum

ption o

f R

aw

Mate

rials

1,7

71

1,8

57

-4

.6%

Em

plo

yees C

ost

1,3

79

1,2

52

10.2

%

Oth

er

Expenditure

2,1

59

1,7

37

24.3

%

To

tal

Ex

pe

nd

itu

re5,3

03

4,8

44

9.5

%

EB

ITD

A850

1,0

14

-1

6.2

%

Ma

rgin

(%

)1

4%

17

%

Depre

cia

tion

228

273

-16.6

%

Inte

rest

& fin

ance c

harg

es

94

148

-36.1

%

Pro

fit

be

fore

ta

x527

593

-11.1

%

Ma

rgin

(%

)9

%1

0%

Exceptional Item

s-

-

Tax E

xpense

171

173

-1.1

%

Pro

fit

aft

er

tax

357

421

-15.2

%

Ma

rgin

(%

)6

%7

%

Share

of pro

fit/

(loss)

of associa

tes

-

(7)

Min

ority

inte

rest

- (P

rofit

) /

Loss

(107)

(87)

Ne

t In

co

me

250

327

-23.6

%

Ma

rgin

(%

)4

%6

%

EP

S (

no

n a

nn

ua

lise

d)

1.0

71.4

01

.40

Th

ree

mo

nth

s e

nd

ed

(Rs.

in

mil

lio

ns,

exce

pt

EP

S d

ata

)

Page 10: Earnings Presentation [Company Update]

10

Fin

anci

al O

ver

vie

w

Str

ate

gic

Fo

cus

Nea

r

Ter

m

Ou

tlo

ok

•In

crea

se f

oo

tpri

nt

in R

adio

bu

sin

ess.

•Im

pro

ve

pro

fita

bil

ity o

f D

igit

al s

egm

ent

by f

ocu

sin

g o

n g

row

ing

rev

enu

e ex

po

nen

tial

ly.

•L

ever

age

the

stro

ng

bal

ance

sh

eet

(net

cas

h o

f R

s. 1

1,9

91 m

illi

on

) to

fu

nd

ex

pan

sio

n.

Page 11: Earnings Presentation [Company Update]

11

HT

Med

ia: A

t a

Gla

nce

oH

TM

L is

on

e o

f th

e le

adin

g pri

nt

med

ia

com

pan

ies

eng

aged

in

th

e pri

nti

ng

an

d

publi

shin

g

of

‘Hin

dust

an

Times’,

‘Hindustan’

(thru

it

s su

bsi

dia

ry)

and

‘Mint’,

the

seco

nd

larg

est

new

spap

er

dai

lies

of

India

bas

ed o

n t

ota

l re

ader

ship

in

Eng

lish

, H

indi

and

Bu

sin

ess

seg

men

ts

resp

ecti

vel

y.

o‘Hindustan

Times’

was

sta

rted

in

1924

and

has

a m

ore

th

an 8

5-y

ear

his

tory

as

on

e o

f

India’s

lea

din

g n

ewsp

aper

s.

oT

he

Co

mp

any

also

h

as

four

FM

ra

dio

stat

ion

s - “Fever

104” i

n D

elh

i, M

um

bai

,

Ben

gal

uru

and

Kolk

ata.

Th

e C

om

pan

y a

lso

op

erat

es a

job

port

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