Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- HT Media Ltd (BOM:532662, Financial) maintained a robust net cash position of INR858 crore.
- The digital business saw a considerable upside in revenue on a YoY and QoQ basis, with better sequential profitability.
- Radio segment posted growth in revenue over the previous year.
- The company is focusing on improving profitability in core businesses by driving top-line growth.
- HT Media Ltd (BOM:532662) has a strong market presence across media platforms and robust liquidity position.
Negative Points
- Overall revenue declined by 4% compared to the same period last year, impacting profitability.
- Print advertising and circulation revenue saw a measured decline, affecting profitability.
- The print segment's operating revenue dipped due to a decline in both advertising and circulation revenue.
- The company reported a negative PBT of INR36 crore.
- Ongoing investments in OTT play continue to contribute to losses in the digital segment.
Q & A Highlights
Q: D B Corp has reported significant profits and increased advertisement revenue. HT Media's net worth has declined significantly over the years. Is there an internal strategy to address this decline and prevent further losses?
A: (Piyush Gupta, Group CFO) The company is focusing on creating sustainable long-term value through investments in new businesses like OTT play. While the print business faces competitive challenges, the company remains adequately capitalized and is optimistic about future profitability. (Anna Abraham, CFO) The net worth remains around INR2,000 crores, and the company has performed well in its competitive markets.
Q: Can you clarify how subscription revenue for OTT play is recognized?
A: (Piyush Gupta, Group CFO) Subscription revenue is recognized on a pro-rata basis. For example, a one-year subscription of INR1,000 would reflect INR250 in the current quarter. (Anna Abraham, CFO) This applies to various subscription periods, not just annual ones.
Q: Why has the company reported a decline in ad revenue due to elections, whereas previously elections increased ad revenue?
A: (Piyush Gupta, Group CFO) The model code of conduct during elections halted government ad revenue, and unlike previous years, political ad revenue did not compensate for this loss. (Anna Abraham, CFO) The benefits of election-related ad revenue were mostly realized in the previous quarter.
Q: What measures are being taken to increase ad revenue and improve profitability?
A: (Piyush Gupta, Group CFO) The company is aggressively working on improving ad pricing, which directly impacts the bottom line. Early success has been seen in the first quarter, and the focus remains on increasing ad revenue in the coming quarters.
Q: Can the technology behind OTT play be out-licensed to other countries?
A: (Piyush Gupta, Group CFO) While the technology can be out-licensed, the content rights are restricted to India. The company cannot air the content outside the Republic of India.
Q: How is the newsprint cost trajectory looking, and what is the impact on ad revenue?
A: (Anna Abraham, CFO) The average newsprint cost is around INR48,000 per metric ton. Prices are expected to remain stable with a slight increase due to global supply chain disruptions. (Piyush Gupta, Group CFO) The competitive position and market dynamics significantly impact ad revenue, and the company is working on improving ad pricing.
Q: When can we expect the digital business to break even?
A: (Anna Abraham, CFO) The losses in the digital business are primarily due to OTT play. While other digital segments are near break-even or marginally profitable, OTT play is still in its early stages and is not expected to be profitable this year.
Q: Are there any updates on NOTIF guidelines for radio?
A: (Piyush Gupta, Group CFO) The industry is awaiting notification of the guidelines, which are expected to be beneficial once implemented. The company is actively engaging with the ministry through industry representations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
