HTMEDIA - HT Media Ltd Share Price

Management provided an optimistic outlook, emphasizing consistent growth in revenue and profitability, particularly in the latter half of FY2024-25. Key highlights include a 12% growth in quarterly revenue and an 88% increase in PAT from INR 30 crores to INR 57 crores. For the full year, total revenue grew by 7%, with PAT reaching INR 20 crores, marking a significant improvement. EBITDA surged by 58%, and the company reported a healthy cash position exceeding INR 1,000 crores as of March 31, 2025.

Management focused on leveraging gains from the Digital segment, particularly through OTTplay, which posted a 35% revenue increase to INR 58 crores in Q4 and 38% growth to INR 212 crores for the fiscal year. The Print business remained stable with a remarkable profitability rise despite flat advertising revenues. Print EBITDA reached INR 61 crores for Q4 and INR 121 crores for the full year, reflecting a 67% year-over-year increase.

The Radio segment demonstrated a 72% revenue increase in Q4 to INR 82 crores, driven by on-ground events, though profit margins faced pressures due to increased costs associated with these events. Looking forward, management expressed confidence in maintaining momentum across the Digital business while improving the gains from Print and addressing operational efficiencies within the Radio segment. Overall, they aim to deliver sustainable growth and shareholder value through strategic investments and cost rationalization in future-oriented business areas.

Here are the major questions and detailed answers from the Q&A section of the earnings transcript.

Question 1: "In this quarter, we have done about INR 20 cr of revenue and we are losing about INR 1.30 for every INR 1 of sale, approximately. What rate of growth do you expect in the coming year in revenue? And when do you expect to break even?"

Answer: We do not provide specific guidance, but we have shown positive growth quarter-on-quarter. We're hopeful to reach break-even by the end of this year, depending on how quickly we scale. However, we may invest more if we're scaling rapidly, making it hard to predict.

Question 2: "Last call, we agreed that 1% of paying subscribers in India is a baseline, around INR 200-250 cr revenue. When do you expect to reach this?"

Answer: While we don't give precise timelines, we're focusing on efficient growth. This year is much better than the last, and our plans are designed to drive efficiency. However, projecting a specific timeframe for reaching that 1:1 unit is complex.

Question 3: "The revenue from the Print segment is flat, but HT English is performing better. What worked well on the cost side?"

Answer: The operating profit has improved due to significant savings on newsprint prices. Last year's heightened costs did not carry over, allowing us to expand our margins, despite volumes being negative.

Question 4: "In the Radio segment, there's improvement in top-line but losses have increased. Can you explain?"

Answer: The increase in top-line revenue is due to "˜on-ground' events. These events incur additional costs, impacting profitability. While revenue is growing, these costs have reduced the overall earnings, making future profitability dependent on cost management.

Question 5: "On the digital segment, can you clarify how much investment is going into OTT?"

Answer: The investments are substantial as we scale the OTT business. In the previous year, we reported INR 212 cr in revenue, with loss reduction. We're aiming to scale revenues while continuing investments in OTT.

Question 6: "Would HMVL's other income include profits from AFE investments?"

Answer: Yes, it does include some profits from AFE investments, but a larger portion this year comes from treasury activities. The favorable yield movements have significantly contributed to this growth.

These questions reflect critical concerns regarding revenue growth, costs, and investment strategies for the company's future outlook.