HTMEDIA - HT Media Ltd Share Price

Management's outlook for HT Media Limited is cautiously optimistic, reflecting stable operational progress in Q3 of FY26. Key highlights include:

1. Topline Performance: The overall revenue stood at INR 532 crore, flat year-on-year but showing a 7% sequential growth. This stability highlights the resilience of the Print segment, which saw growth primarily due to increased advertising, especially in English titles.

2. Profitability: The company achieved an EBITDA of INR 51 crore with a margin of 10%, a 9% increase compared to the previous year. The profit after tax (PAT) before exceptional items was INR 17 crore, equating to a 3% margin. The net cash position remained robust at INR 945 crore, consistent with the previous quarter.

3. Print Segment: Advertising revenue increased to INR 301 crore (an 8% sequential growth) despite a marginal year-on-year decline attributed to a shift in festive sales timing. The Print business' overall operating EBITDA was INR 60 crore, with a margin improvement to 15% compared to 11% the previous year.

4. Radio Business: This segment faces ongoing challenges, with revenues of INR 34 crore reflecting a significant drop year-on-year, linked to a high base effect from the prior year. However, sequentially there was a 5% revenue growth, though it incurred an operating EBITDA loss of INR 5 crore.

5. Digital Growth: The Digital segment reported strong performance, achieving revenues of INR 67 crore, marking a 30% growth year-on-year and a 9% sequential increase. Although operating losses were reported at INR 23 crore, margins have improved over both comparisons.

6. Future Focus: Management emphasized a commitment to leveraging strengths in Print, recalibrating the Radio offerings, and scaling up digital platforms to continue delivering quality content and journalism.

Overall, management remains focused on sustaining momentum across its business segments, especially with ongoing digital initiatives, while facing external challenges in the radio landscape.

1. Question: "Now, there seems on a consolidated basis for the Print segment, there has been an uptick in other operating income because circulation and your advertising revenues are relatively flat. What has happened over there for both English and there seems to be an uptick in HMVL as well?"

Answer: "We have seen an uptick in other operating revenue despite flat ad and circulation revenues. This includes components like job work and scrap sale, plus some consistent forfeitures from our AFE business. Both outside printing and forfeiture contributed to this increase, with the latter being a standard part of our operating arrangement."

2. Question: "So, what has led to the operating profit increase for HT English, given the revenue increase of around INR 7 cr?"

Answer: "The operating profit increase for HT English came from pricing growth which improved margins, alongside lower newsprint costs than last year. We've also been stringent on discretionary spending, tightening costs on marketing, administrative, and event expenses."

3. Question: "Can you provide insight into how AI is being used across HT Media businesses and its potential impact?"

Answer: "AI is enhancing operational efficiency and productivity across our businesses, particularly in content creation. Its use can bolster our credibility as a trusted news source. As regulations potentially evolve, they may require AI partners to compensate original content creators, benefiting us as well."

4. Question: "Is it reasonable to expect that the exceptional item of about INR 41.4 cr booked due to the new labor code will adjust in our CTC next year?"

Answer: "The labor code introduces a true-up of carrying liability; however, the recent exceptional cost does not indicate an ongoing increase in future costs. It reflects historical adjustments rather than a forecast of regular expenses moving forward."

5. Question: "Are you seeing an uptick in pricing for advertisement versus the previous year, and how have circulation revenues fared?"

Answer: "We are seeing an uptick in ad pricing both year-on-year and sequentially. Slight changes in circulation revenue occurred, with marginal improvements in English circulation, while Hindi had a flat performance due to competitive market dynamics last year."