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Hindustan Media Ventures FY15 net up 27%, rev up 15%

MUMBAI: A strong growth in revenue, aided by both advertising and circulation, has helped Hindustan Media Ventures (HMVL), the publisher of Hindi daily ‘Hindustan’, report a 27 per cent jump in its net profit for the financial year ended 31 March 2015.

The company has posted a net profit of Rs 140.9 crore (Rs 1.41 billion).

For the fiscal, HMVL saw its total revenue rise 15 per cent to Rs 875 crore (Rs 8.75 billion). While advertising revenue were up 12.5 per cent, circulation revenue saw an increase of 12.6 per cent.

HMVL FY15

The increase in advertising revenue to Rs 596.5 crore (Rs 5.96 billion) was due to an increase in both advertising yields and volumes, while the increase in circulation revenue to Rs 200.7 crore (Rs 2.01 billion) was led by both higher circulation and per-copy realisation.

Operating profit (EBITDA) and operating margins also improved to Rs 222.9 crore (Rs 2.23 billion) and 25.5 per cent respectively.

EBITDA was partially offset by a 12.3 per cent increase in the cost of raw materials (led by an increase in newsprint consumption and costs) and a 23.4 per cent increase in employee costs. This was due to the impact of new hiring, increments, and fees for regulatory compliance.

HMVL FY15 Q4

Meanwhile, despite revenue growing at 12 per cent, HMVL’s net profit for the fourth quarter saw an even higher increase at 43.1 per cent.

Net profit for the quarter stood at Rs 38.9 crore (Rs 389 million), up from Rs 27.2 crore (Rs 272 million) in the corresponding quarter of the previous fiscal.

Ad revenue was up 10.3 per cent and circulation revenue grew at 11.7 per cent over the year-ago period.

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HMVL chairperson Shobhana Bhartia said, “We are pleased to report that we grew faster than the industry in terms of both revenue and profits. We did this despite an increase in our structural costs and a difficult operating environment. The year also saw us cement our No 2 position in Uttar Pradesh and Delhi, even as we retained our leadership positions in Uttarakhand, Bihar, and Jharkhand by a wide margin. Our robust performance, coupled with expected improvement in the macroeconomic environment, gives us confidence that we will continue to outperform the market in the coming year. Our established brand, increasing readership, and a healthy balance sheet provide us with a strong grounding for the future.”

HMVL has a net cash of Rs 543.1 crore (Rs 5.43 billion) on books.

According to the company, its flagship Hindi daily ‘Hindustan’ is the second-largest Hindi daily with an all-India readership of 14.75 million. Uttar Pradesh (7.6 million) and Bihar (4.38 million) are its other strongholds.

Apart from ‘Hindustan’, HMVL also prints and publishes ‘Nandan’, a kids magazine, and ‘Kadambini’, a general-interest magazine.