HT Media profitability dwindles in Q1FY16

HT Media (HTML) posted its June quarter result. The company's consolidated revenue increased by 7.46 per cent to Rs 587 crore in Q1FY16 on yearly basis. Its advertising revenue increased by 5 per cent to Rs. 467.5 crore in Q1FY16 compared to same period in previous fiscal year. HTML's circulation revenue increased by 6.3 per cent to Rs. 72.9 crore in Q1FY16 on yearly basis due to higher circulation well as higher net realization per copy.

HTML's total expenditure increased by 9.47 per cent to Rs 530 crore in Q1FY16 as compared to the same period of previous financial year. The total expenditure of the company increased mainly due to a 24.32 per cent increment in other expenses, a 10.21 per cent increment in employee cost during June 2015 quarter.

EBITDA of HTML declined by 8.24 per cent to Rs 56.88 crore in Q1FY16 compared to same period in previous fiscal year. The company's EBITDA margin contracted by 165 basis points to 9.69 per cent in Q1FY16 due to heavy operational expense on yearly basis. Its EBIT too decreased by 1.65 per cent to Rs 34.08 crore in Q1FY16 on yearly basis as its depreciation expense reduced by 16.61 per cent to Rs 22.8 crore during the quarter. HTML's PBT also declined by 11.11 per cent to Rs 52.73 crore in Q1FY16  because other income reduced by 28.8 per cent amounting to Rs 28.09 crore during the quarter on yearly basis. However, the interest expense of the company decreased by 36.13 per cent to Rs 9.44 crore in Q1FY16 on yearly basis. Its net profit decreased by 23.63 per cent to Rs 24.95 crore in Q1FY16 compared to same period in previous fiscal year. HTML's net profit margin contracted by 173 basis points to 4.25 per cent in Q1FY16 on yearly basis.

Considering segment wise revenue HTML mainly earns 90.02 per cent from the printing segment, 5.17 per cent from the digital segment, 4.15 per cent from the radio segment and remaining 0.67 per cent from others during Q1FY16. The company's digital segment grew by 28.84 per cent to Rs 30.56 crore in Q1FY16 on yearly basis. Its Shine.com registered revenue growth of 9 per cent in Q1FY16 as compared to same period in previous fiscal year. HT Mobile registered a revenue growth of 71 per cent in Q1FY16 on yearly basis.

In keeping with its future strategy, HTML is going to increase its Radio business in the current financial year. The company is also focusing on better profitability of digital segment during FY16. It has net cash of Rs 1199.1 crore as of FY15 and can use for the expansion of its business.

HTML is engaged printing & publishing of newspapers & periodicals. The company has business of radio broadcast and entertainment. It publishes Hindustan Times, an English daily, and Mint, a Business paper daily except on Sunday and undertakes commercial printing jobs. HTML has Radio Station operating under the brand name Fever 104 in cities of Delhi, Mumbai, Kolkata and Bangalore. The company has various portals such as HTCampus.com, shine.com, hindustantimes.com and livemint.com.