Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Q3 FY2015 Earnings Presentation
26 slides from Jagran Prakashan's earnings presentation
Slide 1: Jagran Prakashan Limited Result Update Presentation Q3 FY2015
Jagran Prakashan Limited (JPL) Result Update Presentation Q3 FY2015
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jagran Prakashan Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Q3 FY 2015 - Financial Highlights
Q3 FY 2015 - Financial Highlights Radio – An Attractive Opportunity Annexure: Radio Industry 3
Slide 4: Quarterly Highlights
Quarterly Highlights Foray into high growth Radio Segment with acquisition of “Radio City 91.1 FM” – Share Purchase Agreement signed; subject to Regulatory Approvals – Radio City is a leader in the Radio industry with a presence in top 14 of top 16 Advertising Revenue generating markets of India
Slide 5: Consolidated Financial Highlights
Consolidated Financial Highlights Quarter Operating Revenue EBITDA PBT +4% +21% +12% 453.9 470.5 132.5 99.0 109.9 88.1 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 YTD Operating Revenue EBITDA PBT +5% +14% +18% 1,278.6 1,347.0 345.8 262.3 303.7 223.1 9m FY14 9m FY15 9m FY14 9m FY15 9m FY14 9m FY1
Slide 6: Dainik Jagran Financial Highlights
Dainik Jagran Financial Highlights Quarter Operating Revenue Operating Profit Margin +9% +19% +309 bps 332.5 361.1 129.1 32.67% 35.75% 108.6 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 YTD Operating Revenue Operating Profit Margin +9% +10% +13 bps 945.3 1,033.1 322.3 353.6 34.10% 34.23% 9m FY14
Slide 7: Publication Business Financial Highlights
Publication Business* Financial Highlights Quarter Operating Revenue Operating Profit Margin +6% +23% +418 bps 421.5 448.6 136.3 30.39% 110.5 26.21% Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 YTD Operating Revenue Operating Profit Margin +7% +15% +186 bps 1,188.5 1,273.4 350.8 25.69% 27.55% 305
Slide 8: Revenue Break-up
Revenue Break-up Quarter 3 (Rs. in Crores) Quarter 3 (% wise) 453.9 470.5 453.9 470.5 32.1 9.1% 6.8% Others 41.1 8% 100.0 20.4% 21.3% Circulation 92.4 6% Advertising 320.4 338.4 70.6% 71.9% Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Ad Revenue grew inspite of higher base of comparable quarter last year – MPC
Slide 9: Revenue Break-up
Revenue Break-up YTD (Rs. in Crores) YTD (% wise) 1,347.0 1,278.6 1,347.0 1,278.6 100.7 9.2% 7.5% Others 117.7 10% 292.2 20.8% 21.7% Circulation 266.5 7% Advertising 894.4 954.2 70.0% 70.8% 9m FY14 9m FY15 9m FY14 9m FY15 Dainik Jagran Revenue grew by 9.3% – Ad. Revenue grew by 8.8% 9
Slide 10: Consolidated Quarterly Profitability Statement
Consolidated Quarterly Profitability Statement Rs. in Crores Q3 FY15 Q3 FY14 YoY Circulation Revenue grew due to Revenues 470.5 453.9 4% growth in no. of copies and Advertisement Revenue 338.4 320.4 6% improvement in per copy realization across all brands Circulation Revenue 100.0 92.4 8% Others 3
Slide 11: Consolidated 9m Profitability Statement
Consolidated 9m Profitability Statement Rs. in Crores 9m FY15 9m FY14 YoY Circulation Revenue grew due to Revenues 1,347.0 1,278.6 5% growth in no. of copies and Advertisement Revenue 954.2 894.4 7% improvement in per copy realization across all brands . Circulation Revenue 292.2 266.5 10% Others
Slide 12: Adjusted PBT & PAT
Adjusted PBT & PAT Rs. in Crores Q3 FY15 Q3 FY14 Growth 9m FY15 9m FY14 Growth Profit Before Tax 99.0 88.1 12% 262.3 223.1 18% Add Additional Depreciation 6.3 0.0 16.1 0.0 Adjusted PBT 105.3 88.1 20% 278.5 223.1 25% Less Tax @ 32.6% 34.3 28.7 90.8 72.7 Adjusted PAT 71.0 59.4 20% 187.7 150.4 25% 12
Slide 13: Operating Margin break-up
Operating Margin break-up Publications (Rs. in Improved Operating Profit in Other Q3 FY15 Q3 FY14 Q2 FY15 9m FY15 9m FY14 Crores) Publications : Dainik Jagran – Rs. 7.2 crores in Q3 FY15 from Operating Revenue 361.12 332.53 336.00 1,033.06 945.26 Rs. 1.9 crores in Q3 FY14 Operating Profit 129.12 1
Slide 14: Net Cash as on December 31, 2014
Net Cash as on December 31, 2014 Rs. in Crores Mar ’14 Dec’14 External Net Debt Gross Cash Balance (A) 357.6 763.9 Net Debt of Rs. 37.1 crs External Borrowings (B) 394.7 560.3 240.7 Crs External Net Debt (A-B) = C 37.1 -203.6 Borrowings from Holding 95.0 124.3 Company (D) Net Cash of Rs. 203.6 crs N
Slide 15: Radio – An Attractive Opportunity
Q3 FY 2015 - Financial Highlights Radio – An Attractive Opportunity Radio City Acquisition About Radio City Financial Information Way Forward: Migration & Phase-III auction Annexure: Radio Industry 15
Slide 16: Radio City Acquisition
Radio City Acquisition 100% acquisition of Radio City Presence across Geographies Value Accretive through All Cash Deal & Media Verticals – High operating margins – Management team retained Entry into Newer Geographies (~30%) will contribute positively Phase III Migration Fees & Value Accr
Slide 17: About Radio City
About Radio City Presence Position People One of India’s leading Amongst largest player by Strong Professional private FM Radio Operator reach & airtime revenue management team 20 stations across 7 states – ~66 mn people across 20 – Average experience of ~15 cities; Covering ~51% of years –
Slide 18: Radio City – Strong Financial Performance
Radio City – Strong Financial Performance Quarter (Rs. in Crores) Revenue EBITDA PAT* +38% +80% +149% 58.7 21.6 17.1 42.5 12.0 6.9 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 YTD (Rs. in Crores) Revenue EBITDA PAT* +35% +80% +209% 155.8 48.5 34.5 115.9 27.0 11.2 9m FY14 9m FY15 9m FY14 9m FY15 9
Slide 19: Financials of Radio City
Financials of Radio City Rs. in Crores Q3 FY15 Q3 FY14 YoY 9m FY15 9m FY14 YoY Revenues 58.7 42.5 38% 155.8 115.9 35% Expenses 37.1 30.5 21% 107.4 88.9 21% Operating Profit 21.6 12.0 80% 48.5 27.0 80% Operating Profit Margin 36.8% 28.2% 31.1% 23.3% Depreciation & Amortisation 3.9 3.7 7% 11.8 11.5 3%
Slide 20: Migration & Phase-III auction
Migration & Phase-III auction Uncertainty regarding Migration ended as Government notified Migration based on TRAI recommendations which are reasonable Phase-III auction – FM Phase-III Policy extends FM radio services to about 227 new cities, in addition to the present 86 cities, with a total of
Slide 21: Annexure: Radio Industry
Q3 FY 2015 - Financial Highlights Radio – An Attractive Opportunity Annexure: Radio Industry 21
Slide 22: Media & Entertainment (M&E) Industry Overview
Media & Entertainment (M&E) Industry Overview Favorable economic and demographic factors in India, will lead to increase in disposable income thereby leading to higher consumption of M&E content Media industry to grow at a CAGR of 14% from 2013 to 2018 Current per capita media spends in India
Slide 23: Radio Industry Overview (1/2)
Radio Industry Overview (1/2) IRS Q2 2012 data: Radio reaches ~158 mn people across India versus ~42 mn in 2007, Expected to reach ~182 mn people in 2020 After 15 years, Industry has now become Profitable, justifying investments in the sector Similar to Internet Advertising/TV Advertising, the
Slide 24: Radio Industry Overview (2/2)
Radio Industry Overview (2/2) Radio in India is dominated by National Advertising. Local Advertisers embracing the medium will unleash huge potential – Radio acts as a complimentary media platform to all other mediums, more so to print – Most cost-effective solution for ‘local’ & ‘national’ advert
Slide 25: Growth in Radio Advertising
Growth in Radio Advertising Radio revenues are estimated at INR 1,660 Cr and are expected to reach INR 3,360 Cr by 2018 Radio Industry has grown faster than traditional media (15% CAGR, 2009-2013) and is expected to grow at a CAGR of 18% (2013-2018) Radio Industry expected to increase its shar
Slide 26: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L22219UP1975PLC004147 CIN: U74140MH2010PTC204285 Mr. Amit Jaiswal Ms. Payal Dave / Mr. Jigar Kavaiya amitjaiswal@jagran.com dpayal@sgapl.net / kjigar@sgapl.