HT Media Ltd has announced its financial results for the quarter and nine months ended December 31, 2008.
In comparison with Q3 of 2008, total revenues for Q3 of 2009 have increased by 5 per cent to Rs 337.1 crore. This increase is primarily due to a 5 per cent increase in advertisement revenues to Rs 286.6 crore.
Profit After Tax (PAT) decreased to Rs 7.8 crore from Rs 36.9 crore. The major reasons for this were higher newsprint prices, adverse foreign currency movements, lower advertising and exceptional items i.e. provision for diminution in value of long term investments and consultancy charges for drawing up of strategic plans for new areas of business.
Earnings Per Share (EPS) stood at Rs 0.33. HT Media has a strong balance sheet with a net debt of Rs 195.9 crore as on December 31, 2008 and a stable platform to execute its expansion plans.
Shobhana Bhartia, chairperson and editorial director, HT Media, said, “We are satisfied with our steady performance in a tough macro economic environment. HT is a leading media brand in the country and our position is being further augmented through multiple initiatives that we are implementing across our operating businesses.”
“Our focus on the radio and Internet business is a part of the long term growth strategy and expected to contribute as a significant value driver for HT in the future. While today’s operating environment is challenging, we believe that as our new initiatives start creating value and add to our traditional business the future looks promising and encouraging.” Shobhaba said.
During Q3, HT Media also forayed into mobile marketing services in collaboration with Velti plc, one of the world’s leading providers of mobile advertising solutions. The aim was to tap the world’s fast growing mobile market.
HT Media inaugurated its printing facilities at Meerut in October 2008. These facilities will enable better access to the key towns of Uttar Pradesh. Shobhaba explains, “The company intends to continue making investment in UP aggressively and complete its presence in UP by launching new printing facilities in Allahabad and few other key towns in the near future.”
The outlook of the company remains promising despite the economic slowdown. It is learnt that profitability is likely to be increased in the near future due to revenue generation and cost optimisation initiatives like increase in cover prices, reducing newsprint consumption through rationalisation of grammage and pagination, rationalisation of overheads and manpower