HTMEDIA - HT Media Ltd Share Price

In the conference call held on August 5, 2025, management provided an optimistic outlook for HT Media Group, highlighting a strong start to FY 2025-26 with positive growth trends in operating revenue and profitability compared to the previous year. Key points from management included:

1. Financial Performance: For Q1 FY 2025-26, total revenues increased by 6% year-on-year to INR 451 crore, while the Profit After Tax (PAT) showed a significant improvement of 59%, resulting in a PAT of negative INR 11 crore. However, revenues declined sequentially by 23% and PAT dropped by 120%, but net cash remains robust at INR 976 crore.

2. Print Segment: The print business reported a notable 8% year-on-year growth in operating revenue of INR 324 crore, driven by a 17% increase in advertising revenue, totaling INR 255 crore. In the English segment, ad revenues reached INR 140 crore, a 19% growth year-on-year, though it saw a 12% decline quarterly. Hindi advertisement revenues stood at INR 116 crore, with 14% growth year-on-year.

3. Radio Segment: The radio business faced challenges with revenues declining to INR 31 crore from INR 36 crore in the previous year, reflecting a margin of -21%. Management acknowledged these difficulties but indicated efforts to pivot the business toward growing non-free commercial time revenue.

4. Digital Segment: Digital revenues climbed by 21% year-on-year to INR 56 crore, supported by momentum in various digital properties, including Mosaic, Shine, and OTTplay, though operating margins remain at -38%.

5. Future Strategy: Management is prioritizing growth in the digital sector while reimagining the radio business with integrated formats. They are focused on quality journalism and immersive entertainment, aiming to create richer experiences for their diverse audiences.

Overall, management remains committed to accelerating digital growth and strengthening print offerings despite facing challenges in the radio segment.

Questions and Answers from the Q&A Section of the Earnings Transcript

1. Question by Gaurav Agarwal:
"Hi, Piyush. Hi, Anna. I am a private investor. I believe there you all have diluted a large part of the equity as RSUs. So, what's the impact on the P&L?"

Answer:
"We have no separate adjustment. It's part of employee cost in the P&L. For the last quarterly numbers, there's hardly any impact, as the RSUs were issued only in the last month."
"” Anna Abraham

2. Question by Yash R:
"Could you please let us know the verticals that helped achieve growth in the Print segment, particularly the English part?"

Answer:
"Indeed, government revenue has improved this year due to no restrictions, unlike last year during the elections. The education sector has significantly contributed, along with Real Estate and BFSI among others."
"” Anna Abraham

3. Question by Deepak Sharma:
"We see an uptick in revenue due to AFE agreements. Can you give a segmentation between AFE revenue growth vs normal revenue growth?"

Answer:
"We can't provide specific numbers, but suffice to say that AFE revenue has significantly contributed to overall Print revenue, while existing agreements also remain impactful since they have a duration."
"” Piyush Gupta

4. Question by Yash R (follow-up):
"How long do you plan to continue the discounts on the circulation front?"

Answer:
"We're monitoring it monthly and continuing the discounts in selective markets to build readership. The strategy is initially costly but aims for long-term gains. We'll reassess next month."
"” Piyush Gupta

5. Question by Yash R (follow-up):
"What about newsprint prices?"

Answer:
"Newsprint prices have been stable for the last two quarters, currently around USD 500 per metric ton, and we don't foresee a spike due to geopolitical concerns."
"” Piyush Gupta