HT Media beats expectations with 3 per cent growth

HT Media Ltd, publishers of the Hindustan Times, Mint, and other papers, posted net income of Rs32.4 crore for the quarter ended 30 June, down 14 per cent from the year-ago period, on flat ad revenue growth. However, the results beat market expectations.

Net sales grew one per cent year-on-year to Rs328 crore. Circulation revenue went up 24 per cent to Rs44 crore due to greater realisations and increased cover prices. A sum of Rs8.8 crore has been booked as revenue from the merger of the radio business.

Total expenditure grew 3 per cent over the last year period to Rs266 crore, thanks to a 34 per cent cut decrease in advertising and sales promotion expenses. Employee cost went up by 27 per cent, indicating that organisation hasn't gone for major staff cuts. The company maintained an EBITDA margin of 22 per cent.

Rajiv Verma, chief executive of HT Media, expressed satisfaction with the results. In an interview with CNBC-TV18, he said, "The total revenue for the company has been up by about 3 per cent. The media industry is still passing through an unprecedented slowdown, so in that environment where we see media de-growing by almost anything between 5-7 per cent, we are quite pleased about it."

Asked when he expected to break even on radio, the internet and business publication Mint, Verma said: "Radio has almost broken even. We have lost about Rs1 crore, which is as good as a breakeven. You should be able to see radio in the black during the next quarter. On Mint, we have been doing extremely well. I am very happy with the way Mint has been performing. Mint, as you know, has gone national now; it is available in all metros.

The company has booked an exceptional item of Rs4.5 crore as dimunition in the value of Metropolitan Media, HT's joint venture with Bennett, Coleman & Co that used to publish Metro Now as a daily. The title has since become a weekly.