Ht Media Limited · NSE:HTMEDIA
Ht Media — Q2 FY2018 Earnings Presentation
28 slides from Ht Media's earnings presentation, November 2017
Slide 1: HT Media Group Q2 FY 2017-18 Consolidated Financial Results
HT MEDIA GROUP Q2 FY 2017-18 Consolidated Financial Results 1
Slide 2: Cautionary Statements
Cautionary Statements Certain statements in this presentation may be forward-looking statements. Such forward looking statements are subject to risks and uncertainties like regulatory changes, local political and economic developments, technological risks and many other factors that could cause our
Slide 3: Table of Contents
Table of Contents PARTICULAR SLIDE NO. Consolidated Performance 5 Business Unit Performance 9 Update on Corporate Actions 18 Outlook 20 Annexures 24 3
Slide 4: Chairperson's Message
Chairperson’s Message Commenting on the results and performance, Mrs. Shobhana Bhartia, Chairperson and Editorial Director, HT Media said: “Advertising revenue growth continues to be a challenge in our core Print business, with this quarter witnessing high level of uncertainty across industries on a
Slide 5: Consolidated Performance
CONSOLIDATED PERFORMANCE ENHT
Slide 6: Highlights of the Quarter
Highlights of the Quarter Delivered growth in profits with margin expansion on the back of, cost restructuring, cost optimization initiatives and favourable forex and commodity rates scenario Yield improvement strategy bearing fruit in both Hindi and English newspapers Radio business continues robus
Slide 7: Financial Summary
Financial Summary (Rs Cr) Q2’17 Q2’18 Change % Operating Revenue 602 561 (42) -7% Operating EBITDA 50 105 54 107% Op EBITDA margin (%) 8% 19% PAT 31 66 35 114% PAT margin (%) 5% 11% EPS (Rs per Share) 1.33 2.85 1.52 114% Net Cash* 918 1,205 287 31% *As at 30th Sep Delivered growth in operating profi
Slide 8: Key Drivers
Key Drivers + Ad spend growth led by Auto, Banking & - Muted ad spend in Government, Finance, Entertainment, Luxury, and E- Education, Health & Fitness, FMCG and commerce sectors Travel sectors + Radio continued on high revenue growth - RERA impact in Real Estate trajectory - Cover price realisation
Slide 9: Business Unit Performance
BUSINESS UNIT PERFORMANCE ENHT
Slide 10: Print
1 Print FINANCIAL PERFORMANCE (Rs Cr) Q2’17 Q2’18 Change % Revenue 526 495 (31) -6% EBIT 47 105 58 124% EBIT margin (%) 9% 21% REVENUE BREAKUP (Rs Cr) Advertisement Revenue Circulation Revenue 430 395 76 69 Q2’17 Q2’18 Q2’17 Q2’18 Delivered growth in operational profitability on account of efficient
Slide 11: Print – English
1 (a) Print – English (Rs Cr) Advertisement Revenue Circulation Revenue 260 238 22 19 Q2’17 Q2’18 Q2’17 Q2’18 REVENUE DRIVERS + Strengthened our “West offering” through launch of Pune edition + Improvement in yield across sectors - Ad volumes impacted across market on account of RERA and GST - Muted
Slide 12: Print – English: Key Business Priorities
1 (a) Print – English KEY BUSINESS PRIORITIES – HINDUSTAN TIMES Maintain copy leadership Target higher wallet share in key markets Continue to offer superior product offerings Customized customer centric solutions Stature building through large brand initiatives and salience KEY BUSINESS PRIORITIES
Slide 13: Print – Hindi
1 (b) Print – Hindi FINANCIAL PERFORMANCE (Rs Cr) Q2’17 Q2’18 Change % Operating Revenue 230 211 (19) -8% Operating EBITDA 50 45 (5) -10% Operating EBITDA margin 22% 22% (%) PAT 55 41 (14) -25% PAT margin (%) 21% 18% EPS (Rs per Share) 7.5 5.6 (1.9) -25% Net Cash* 700 868 168 24% *As of 30th Sep 13
Slide 14: Print – Hindi
1 (b) Print – Hindi (Rs Cr) Advertisement Revenue Circulation Revenue 170 157 54 50 Q2’17 Q2’18 Q2’17 Q2’18 REVENUE DRIVERS + Improvement in yield + Strong performance in Automobile segment along with expanding foothold in growing categories like e-commerce and luxury + Continued investment in copie
Slide 15: Print – Hindi: Key Business Priorities
1 (b) Print – Hindi KEY BUSINESS PRIORITIES Better monetization of copies through higher yield Product excellence to drive differentiation and build loyalty and adoption Persistent investment into copies in core markets Continue focus on cost management 15
Slide 16: Radio
2 Radio (Rs Cr) Q2’17 Q2’18 Change % Revenue 36 43 7 18% EBITDA 7 12 5 68% EBITDA margin (%) 19% 27% EBIT (0) 3 3 EBIT margin (%) -1% 6% PERFORMANCE DRIVERS + Revenue growth in core stations + New stations continue to perform adding to top line in a profitable manner + Synergies in costs bringing in
Slide 17: Digital
3 Digital 37 34 Q2'17 Q2'18 Revenue (Rs Cr) PERFORMANCE DRIVERS + While overall decline in revenue, digital content business continues to grow + Page views showing good traction versus last year across digital properties - Shine Revenues have been soft - Restructuring in mobile and HT Campus busines
Slide 18: Update on Corporate Actions
UPDATE ON CORPORATE ACTIONS 18
Slide 19: Business Restructuring
Business Restructuring DEMERGER OF HTDVL Other Group Hindustan properties in Hindustan Times Digital digital Times Digital Streams Ltd innovation Ventures Ltd business Business has different set of risk, competition and challenges Attract right set of investors, employees and strategic Partners
Slide 20: Outlook
ENHT OUTLOOK 20
Slide 21: Outlook
OUTLOOK With impact of GST receding and better market sentiments, advertising spends should pick up. Better growth expectations, therefore, in second half of the financial year . NEAR TERM PRIORITIES Market Position • Improve leadership position in core markets • Better monetization of copies; yield
Slide 22: Q&A
Q&A Dial-in number for Q&A : +91 22 3960 0894 22
Slide 23: HT Media Ltd contact details
HT Media Ltd (CIN: L22121DL2002PLC117874) Hindustan Times House, 2nd Floor, 18-20, Kasturba Gandhi Marg New Delhi – 110001, India Anna Abraham Amit Madaan Sankalp Raghuvanshi IR@hindustantimes.com +91 11 6656 1605 Saket Somani Ankul Adlakha htmedia@churchgatepartners.com +91 22 6169 5988 23
Slide 24: Annexures
ENHT ANNEXURES 24
Slide 25: The HT Story – Enriching and Empowering India
The HT Story – Enriching and Empowering India 2007 2000 2015 1924 5 new editions Radio license 2010 acquisition in inaugurated by launched with Business newspaper localization focus phase 3 spectrum Mahatma Gandhi launched along with auction livemint.com and foray into 1960 hindustantimes.com educat
Slide 26: Content: Strong Brand Portfolio across Segments
Strong Brand Portfolio across Segments Content Pan-India content distribution footprint across traditional and new age channels 26
Slide 27: Consolidated P&L – HT Media Ltd
Consolidated P&L – HT Media Ltd Rs Crs (Except for EPS) Q2 17 Q2 18 Growth (%) Operating Revenue 602 561 -6.9% Raw Materials & change in inventory 178 161 -9.4% Employee Cost 153 122 -20.2% Other expenses 221 173 -21.7% Operating EBITDA 50 105 107.1% Margin (%) 8.4% 18.6% 10.3% Other Incomne 78 44 -
Slide 28: Consolidated Balance sheet – HT Media Ltd
Consolidated Balance sheet – HT Media Ltd (Rs Cr) (Rs Cr) Particulars As at 30.09.2017 Particulars As at 30.09.2017 A ASSETS B EQUITY AND LIABILITIES 1 Non- current assets 1 Equity Property, plant and equipment 578 Equity share capital 46 Capital work in progress 38 Other equity 2,283 Investment pro