Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Q3 FY2020 Earnings Presentation
34 slides from Jagran Prakashan's earnings presentation, Jan 30, 2020
Slide 1: Jagran – Investor Presentation Intimation to Stock Exchange
T H E W O R LD 'S LA RG EST REA D DA ILY Jagran January 30, 2020 1) Manager-CRD, BSE Ltd., Re: Jagran Prakashan Limited Phiroze Jeejeebhoy Towers, Scrip Code: 532705 Dalal Street, ISIN No.: INE199G01027 Mumbai-400001 2) Listing Manager, National Stock Exchange oflndia Ltd., Re: Jagran Prakashan Limi
Slide 2: Jagran Prakashan Limited Q3FY20 Result Presentation
Jagran Prakashan Limited Q3FY20 Result Q1FY17Presentation Result Presentation 1
Slide 3: 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 4: Management Commentary
Management Commentary Comment from Chairman and Managing Director “Performance for Q3 was in line with overall economy in general and media & entertainment industry in particular. However, Company did report YoY growth in operating profit, PBT and PAT after two quarters. This could become possible d
Slide 5: Dainik Jagran continues to remain the most read daily
Dainik Jagran continues to remain the most read daily Dainik Jagran continues to be No. 1 newspaper in the Country since 2003 01 uninterruptedly and maintains / strengthen position in all core markets Despite expansion of digital media, TV, Radio and Print continues to hold their audience, Fall in r
Slide 6: Group USP: Focus on Cash Generation
Group USP: Focus on Cash Generation Print: Profitable Leadership Radio: Prudent Capital Allocation • Approved buyback of Rs. 102 Crores in December 2019 • Acquired MBL at discount as compared to building Radio business from scratch • Better translation of revenue to net operating cashflow • Phase 3
Slide 7: Group Key Highlights
Group Key Highlights Improved EBITDA Maintains EBITDA Strategic Focus on Double digit revenue Margin to 27% Margin at 30% Profitability playing out growth for this quarter • Q3 FY20 Operating profit • Festive season resulted • Event: Focus on • Significant reduction in improved 70% in a slight uptic
Slide 8: New Generation Business Performance
De-Risked Business Model Operating Revenue Operating Profit Revenue Breakup – Q3 FY20 -14% New Generation Business Performance 6% 383 -13% 331 78 2% 67 12% 9M FY19 9M FY20 9M FY19 9M FY20 CAGR: +12% CAGR: +22% 80% 509 107 289 40 Print Radio Digital Events & Outdoor FY14 FY19 FY14 FY19 Future ready w
Slide 9: Business Performance
Jagran Business © © gS ay) S| i & Si D al
Slide 10: Consolidated Operating Performance Q3FY20
Consolidated Operating Performance Q3FY20 Revenue EBITDA & Margins Profit Before Tax In Rs Crs. 21.6% 17.5% 26.6% +63% +87% +7% 614 147 112 106 +6% 553 -10% 133 +11% 515 90 60 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 9 In Rs. Crs
Slide 11: Print Business Performance
Print Business Performance ADVERTISMENT REVENUE OPERATING REVENUE • Ad-Revenue contribution from +9% +6% government and national 364 484 327 -10% 418 445 -8% 301 market remained subdued • Advertising remains sluggish due to uncertainty of demand and overall economic environment Q3FY19 Q2 FY20 Q3 FY2
Slide 12: Print Business Performance – Operating Highlights
Print Business Performance – Operating Highlights Operating Revenue Dainik Jagran continues to pull ahead of DAINIK JAGRAN OTHER PUBLICATION its peers according to the IRS 2019 Q3 +6% +9% 390 361 94 341 -7% 76 83 -11% Though there is rationalization in circulation however increase in cover prices ha
Slide 13: Mid-Day Operating Performance
Mid-Day Operating Performance OPERATING REVENUE* -13% +8% 28 82 -21% 71 Fall in profit was much sharper due to 22 21 higher interest and depreciation charge for purchase of new office in addition to rent paid till possession which was received in December 2019 Q3FY19 Q2 FY20 Q3 FY20 9MFY19 9MFY20 Ad
Slide 14: Mid-Day – Initiatives so far
Mid-Day – Initiatives so far Cover Price Hike ✓ Cover price hike across 3 brands - Sunday Midday, Inquilab (Mumbai) & Midday Gujarati resulted in circulation profit ✓ Re-affirming our belief that content has value and contrary to the common perception that readers are price sensitive and are not wil
Slide 15: MBL: Operating Performance
MBL: Operating Performance REVENUE EBITDA & Margin PBT 30% 31% Q3 Festive season +11% +16% +17% resulted in ad volumes 70 22 14 improvement 63 19 12 Q2FY20 Q3FY20 Q2FY20 Q3FY20 Q2FY20 Q3FY20 Efficient cost control measures helped protect REVENUE EBITDA PROFIT AFTER TAX EBITDA margins to 30%+ range C
Slide 16: MBL: Efficient cost control measures helped reduce slowdown impact
MBL: Efficient cost control measures helped reduce slowdown impact Nine Month Revenue -41 243 202 More than 50% of the revenue de-growth arrested by prudent cost 9M FY19 9M FY20 optimization at operating profits (EBIDTA) Operating -22 • Recruitment freeze 162 Cost 140 • Salary rationalisations • Sta
Slide 17: Business Vertical demonstrates turnaround
Business Vertical* demonstrates turnaround OPERATING REVENUE +1% +19% 62 60 172 174 -4% 50 Turnaround from operating loss of Rs. 11 Q3FY19 Q2 FY20 Q3 FY20 9MFY19 9MFY20 Crores in 9MFY19 to operating profit of Rs 9 OPERATING PROFIT & MARGIN -1.3% 0.0% 10.9% -6.2% 5.4% Crores in 9MFY20 7 9 0 -1 -11 Q3
Slide 18: Outdoor and Events Business Performance
Outdoor and Events Business Performance OPERATING REVENUE -11% +14% 39 109 33 -15% 97 29 Strategically targeted profitable revenue Q3FY19 Q2 FY20 Q3 FY20 9MFY19 9MFY20 OPERATING PROFIT & MARGIN Rationalization Exercise taken up by the management 5.1% 3.5% 5.2% 1.9% 5.8% to improve profitability +168
Slide 19: Digital Business Performance
Digital Business Performance OPERATING REVENUE +4% 31 33 Double digit revenue growth for Consolidated position amongst Q3 on YoY as well as on QoQ basis and the top 10 news and info 4% growth for 9M on YoY basis publishers in India which will augur well for monetization 9MFY19 9MFY20 OPERATING PROFI
Slide 20: Soft Newsprint Prices and Prudent cost measures led to Improved Profitability
Soft Newsprint Prices and Prudent cost measures led to Improved Profitability Cost of Raw Material Other Expense 195 180 181 176 158 171 143 160 162 158 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 No compromise made Prudent cost measures Impact of softening of newsprint pri
Slide 21: Prudent cost measures
Prudent cost measures Sustained Cost Savings One-time Cost Savings • Print business optimised circulation through cover price increase without compromising market position • Pagination, efficiency in production related costs • Savings in discretionary items such as promotion and publicity • Improvin
Slide 22: Digital – Investing to Build leadership
Digital – Investing to Build leadership Indian website in overall Our Digital Media Portfolio Healthcare Industry with 4.7 Mn Unique Users • Digital Advertisement Revenue growth for 24.5 Mn Unique Q3FY20 User in Education #1 category #9 in news ✓ Print Digital Revenue was Rs. 11.73 and info 75.2 Cro
Slide 23: Financial Performance
Jagran Financial ® oO q w & rs & a ® Oy q a
Slide 24: Mid-day Financial Performance
Mid-day Financial Performance Particulars (Rs. in Crs) Q3 FY20 Q2 FY20 Q3 FY19 Operating Revenue* 22.36 20.77 28.21 Advertisement 16.90 15.46 21.21 Circulation 4.50 4.48 6.19 Other Operating Income 0.96 0.83 0.81 Expenses 21.99 19.59 25.98 Operating Profit 0.37 1.18 2.23 Operating Profit Margin 1.65
Slide 25: MBL Financial Performance
MBL Financial Performance Particulars (Rs. in Crs) Q3 FY20 Q2 FY20 Q3 FY19 Operating Revenue 69.64 62.53 87.02 Expenses 48.08 44.02 58.43 Operating Profit 21.56 18.51 28.59 Operating Profit Margin 30.96% 29.59% 32.85% Other Income 4.16 4.99 4.46 Depreciation 8.90 8.67 6.75 Interest 2.48 2.65 1.37 Pr
Slide 26: Operating Margin Break-up
Operating Margin Break-up Particulars (Rs. in Crs) Q3 FY20 Q2 FY20 Q3 FY19 Dainik Jagran* Operating Revenue 361.37 341.48 390.38 Operating Profit 112.99 72.94 98.81 Operating Margin 31.27% 21.36% 25.31% Other Publications* Operating Revenue 82.61 75.48 93.13 Operating Profit 9.18 -1.14 5.28 Operatin
Slide 27: Consolidated Profitability Statement
Consolidated Profitability Statement Particulars (Rs. in Crs) Q3FY20 Q3 FY19 YoY Q2 FY20 QoQ 9MFY20 9MFY19 YoY Revenues 553.0 613.8 -10% 514.5 7% 1,651.8 1,769.8 -7% Advertisement Revenue * 403.3 459.6 370.6 1,205.2 1303.4 Circulation Revenue 107.5 108.0 107.2 323.3 328.1 Others 42.2 46.3 36.7 123.3
Slide 28: Group Introduction
Group Introduction Group Introduction
Slide 29: Value Proposition
Value Proposition PRINT RADIO DIGITAL Print Non Print Undisputed LEADER: Strong GROWTH FASTEST growing RIGHT mix of stability Potential: media: and scalability: ✓ Dainik Jagran leads the IRS 2019 ✓ Achieved Operating Profit for Q3 rankings with a total ✓ Print Business continues to ✓ Reaping benefit
Slide 30: Jagran Today
Jagran Today Print Digital Radio Jagran Prakashan Limited holds 73.09% of Music Broadcast Limited Activation OOH (RadioCity) 29
Slide 31: Multi Media Conglomerate – Width, Depth and Heritage
Multi Media Conglomerate – Width, Depth and Heritage Two #1* Print India’s Largest* 90+ mn* Dailies, Dainik Jagran Readers (Hindi) and Inquilab read daily- Dainik (Urdu) #9 News / Jagran Information Category 10 with over 75.2 Mn Publications 14 Digital unique visitors Media Portals 5 Business No 1 w
Slide 32: Brand Strength – Stability, Consistency and Trust
Brand Strength – Stability, Consistency and Trust PRINT BUSINESS DIGITAL BUSINESS RADIO BUSINESS 31
Slide 33: Awards & Certifications
Awards & Certifications Recognizing Group’s leadership position in different fields of operations, various distinguished bodies have bestowed 12 Awards upon the Group during the quarter MBL - Great Places to Work Women 2019 9 awards for Dainik Jagran 1 award for Jagran Production Team 1 award for Ja
Slide 34: Contact Us
Contact Us Jagran Prakashan Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L22219UP1975PLC004147 CIN: U74140MH2010PTC204285 Mr. Amit Jaiswal Ms. Payal Dave amitjaiswal@jagran.com Contact: +91 9819916314, Email: payal.dave@sgapl.net Ms. Jigar Kavaiya Contact: +91 9920602034, Email: jigar.kavaiya@sgapl