Jagran Prakashan Limited · NSE:JAGRAN
Jagran Prakashan — Q2 FY2015 Earnings Presentation
23 slides from Jagran Prakashan's earnings presentation
Slide 1: Jagran Prakashan Limited (JPL) Result Update Presentation Q2 FY2015
Jagran Prakashan Limited (JPL) Result Update Presentation Q2 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: Q2 FY 2015 - Financial Highlights
Q2 FY 2015 - Financial Highlights Hindi Print Media – Sustainable Growth – Print Media, India - Growth Market – Hindi Print – well placed to sustain growth momentum – Digital – No visible impact on Hindi Print 3
Slide 4: Quarterly Highlights
Quarterly Highlights Consolidated Advertisement Revenue up by 8% to Rs 306.93 crores – Dainik Jagran Advertisement Revenue grew by 11.5% Consolidated Circulation Revenue up by 8.9% to Rs 96.49 crores Consolidated Operating Profit up by 15.7% to Rs 106.24 crores Consolidated Profit Before Tax
Slide 5: Consolidated Quarterly Profitability Statement
Consolidated Quarterly Profitability Statement Rs. in Crs Q2 FY15 Q2 FY14 YoY Overall Advertisement Growth of Revenues 436.3 412.4 6% 8% despite subdued activity in Advertisement Revenue 306.9 284.2 8% Advertising Circulation Revenue 96.5 88.6 9% Dainik Jagran Advertisement Others 32.9 39.6 Reve
Slide 6: Operating Margin break-up
Operating Margin break-up Publications (Rs. Crs) Q2 FY15 Q2 FY14 Q1 FY15 H1 FY15 H1 FY14 Continued Operating Losses in Dainik Jagran Other Publications : Operating Revenue 336.0 302.4 335.9 671.9 612.7 – Mainly due to Continued Investments in NaiDunia as a Operating Profit 110.3 99.6 114.2 224.5 2
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. in Crores Sept. ‘14 Mar. ‘14 Rs. in Crores Sept. ‘14 Mar. ‘14 Shareholder’s Fund 1,070.0 961.6 Non-current assets 989.5 1,095.4 Share capital 62.3 62.3 Fixed assets 645.1 672.5 Reserves & Surplus 1,007.7 899.4 Goodwill on consolidation 232.3 232.3 Minority Interest 0.9
Slide 8: Net Cash as on September 2014
Net Cash as on September 2014 Rs. Crs. Rs. Crs. Mar ’14 Sept’14 64.3 Cash & Bank Balance 32.5 139.5 Investments * 325.1 301.7 March '14 Sept. '14 Gross Cash Balance (A) 357.6 441.2 Rs. 196 crs Borrowings (B) 489.7 376.9 Net Cash (A-B) -132.0 64.3 * Investments includes Investment in Mutual Fund and
Slide 9: Q2 FY 2015 - Financial Highlights
Q2 FY 2015 - Financial Highlights Hindi Print Media – Sustainable Growth – Print Media, India - Growth Market – Hindi Print – well placed to sustain growth momentum – Digital – No visible impact on Hindi Print 9
Slide 10: Print Media, India – A Growth Market
Print Media, India – A Growth Market CAGR (2013 -18) : 9.0% Contrary to trend in CAGR (2008–13) : 7.2% Developing economies, Print Industry consistently growing in India 374 243 172 2008 2013 2018 P Source: FICCI-KPMG Indian Media and Entertainment Industry Report 2014, Newspaper Association of Am
Slide 11: Print Media - Key Growth Drivers
Print Media - Key Growth Drivers Low Print Media Penetration Rising Literacy More local than other media 80.0 74.0 64.8 platforms like Television 60.0 52.2 43.6 “Door to Door” Distribution 40.0 % Network 20.0 0.0 Higher ‘Attention Span’ makes it 1981 1991 2001 2011 Census attractive for adve
Slide 12: Q2 FY 2015 - Financial Highlights
Q2 FY 2015 - Financial Highlights Hindi Print Media – Sustainable Growth – Print Media, India - Growth Market – Hindi Print – well placed to sustain growth momentum – Digital – No visible impact on Hindi Print 12
Slide 13: Hindi Print - Gaining Market Share...
Hindi Print - Gaining Market Share... 2009 2013 2018 OIL* OIL* OIL* 27% 31% 34% Hindi English Hindi Hindi English English 28% 45% 31% 38% 36% 30% Hindi Advertising to grow at ~14% CAGR – Share of Hindi Print expected to increase from 31% in 2013 to 36% in 2018 – Advertisers expected to enhance rea
Slide 14: Hindi Belt, covers nearly half of Indian …
Hindi Belt, covers nearly half of Indian … … Population … Literate Population … Consumer Spend Non- Non- Non- Hindi Hindi Hindi States States States 50% 54% 56% Hindi Hindi States Hindi States States 50% 44% 46% Hindi States Annual 50% of population lives 46% of total literate Consumer Spend o
Slide 15: Hindi Print, Gaining Importance for Advertisers
Hindi Print, Gaining Importance for Advertisers Surge in purchasing power of Tier II & III JPL Hindi Publication Presence in Cities 32 out of 62 Tier II Cities of India – Changing demographic dynamics – Consumption of consumer durables, automobiles and financial products Others growing rapidly 48%
Slide 16: Q2 FY 2015 - Financial Highlights
Q2 FY 2015 - Financial Highlights Hindi Print Media – Sustainable Growth – Print Media, India - Growth Market – Hindi Print – well placed to sustain growth momentum – Digital – No visible impact on Hindi Print 16
Slide 17: Digital… No visible impact on Hindi Print Media
Digital… No visible impact on Hindi Print Media Digital – No visible impact on Hindi Print Media despite high growth in terms of number of internet connection – Lacks quality in terms of internet connection speed – Consumer spends very little time on News Sites – Very limited content in Hindi / Lo
Slide 18: Internet Connections growing with Low Quality
Internet Connections growing with Low Quality 463 Challenges in Growth 47 392 Inadequate network coverage 41 331 because of limited 3G towers 36 268 Limited spectrum availability 31 213 416 High Price of data services 174 27 351 24 295 Lack of affordable of 3G handsets 237 186 Patchy conne
Slide 19: However, Lowest Internet Connection Speed…
However, Lowest Internet Connection Speed… Avg. Connection Speed (mbps) Broadband Connectivity (% above 4 mbps) 13.3 83% 82% 75% 9.8 8.8 2.9 20% 20% 2.4 1.4 3% Brazil China India Japan USA Canada Brazil China India Japan USA Canada Source: FICCI-KPMG Indian Media & Entertainment Industry Report 2014
Slide 20: ... & lacks quality of experience
... & lacks quality of experience Users by device split Internet enables Mobile Handset Prices (% market share) 1% 9% 11% 84 39% 57% 130 22% 61% Rs. <10,000 Rs. 10,001 - 14,000 Laptop/Desktop Mobile Rs. 14,001-18,000 Rs. 18,001-30,000 Rs. >30,000 61% of Internet Connection through 57% of uses en
Slide 21: Hindi Belt …. Very low internet penetration
Hindi Belt …. Very low internet penetration Total Population # Internet Subscribers India 1,211 210 17.3 % Uttar Pradesh 200 21* 10.5 % Bihar 104 10^ 9.6 % MP & CG 98 11 11.2 % 33% of Total 20% of Internet India’s Subscriber Population Base [in Million] Source: TRAI, Services Performance Indicators,
Slide 22: Jagran Digital Business continues to grow
Jagran Digital Business continues to grow Jagran sites in Sept 2014 were ranked No.29 by In News & Information companies, Jagran sites are COMSCORE amongst all internet sites in India, with 12 placed at No.5 million unique users Mobile traffic contributes to 36% of the overall traffic Compan
Slide 23: 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.