Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
H T Media Ltd
| Q2 FY26 Earnings Conference Call
Summary : HT Media reported solid Q2 FY26 performance with revenue and EBITDA growth in Print and Digital, but faces challenges in Radio and rising Digital losses.
Management Perspective positive : Management expressed happiness with solid performance and growth. They are confident in repeating good numbers next quarter. They appreciate investor confidence and are committed to informing and entertaining their audience.
Concall Report Analysis & Insights
Business Overview
- Total revenue increased 4% YoY to INR 499 cr, with EBITDA up 33% to INR 44 cr.
- Print ad revenues grew 10% YoY, with operating EBITDA nearly doubling to INR 40 cr.
- Radio business saw sequential revenue improvement, but operating EBITDA was negative INR 4 cr.
- Digital business revenue grew 10% YoY, but operating EBITDA was negative INR 30 cr.
- Company maintains a healthy net cash position of INR 947 cr.
Future Growth Prospects
- Scaling the Digital business through targeted content initiatives for consistent growth.
- Reinforcing the value of the core Print portfolio.
- Sharpening the focus of the Radio business on integrated formats and immersive experiences.
- Optimizing Print circulation market by market to recruit more readers.
- Anticipate a drop in Digital losses as revenue booking aligns with incurred costs.
Management Insights
- Reported another quarter of solid performance with growth in revenue and profitability.
- Focused efforts are deployed to improve the Radio business offerings.
- Digital business shows consistent growth, with margins suppressed for scaling.
- Strategically adapting across all business verticals in the emerging media landscape.
- Q2 FY26 saw significant reduction in OTTplay subscriber acquisition cost.
Signs of Skepticism
- Management did not disclose specific circulation growth percentages due to competitive sensitivity.
- Did not provide a detailed breakdown of 'other expenses' beyond OTTplay consolidation.
- Uncertainty if reduction in subscriber acquisition cost is structural or an oddity.
- Unclear if Hindi Print profitability is structural or due to temporary factors like elections.
Risk Factors
- Radio business remains under stress across the industry.
- Digital business margins are suppressed in the near term due to growth-oriented strategy.
- Digital losses increased this quarter due to unexpected OTT scale-up costs.
- Newsprint prices, currently low, are estimated to rise gradually in the coming quarters.
- Significant impairment loss of INR 37.76 cr, mainly from Radio business investments.
Good To Know
- Standalone exceptional item loss of INR 37.76 cr is due to impairment of investments.
- Impairment primarily relates to Next Radio Limited and Next Media Works Limited.
- Minor impairment also taken on Mosaic Digital business valuation.
- Employee expenses reduced sequentially due to Q2 salary reversals.
- OTTplay expenses are consolidated into HT Media and Hindustan Media Ventures Limited.
Key Drivers
- Digital business scaling up.
- Print ad revenue growth.
- Improved EBITDA margins.
- Strong net cash position.
Key Analyst Discussions
Market Trends & Consumer Behavior
- Asked about the strategy for circulation revenue decline YoY in English Print.
- Inquired about subscriber acquisition cost reduction for OTTplay.
- Questioned the impact of newsprint prices on future quarters.
- Asked about the verticals contributing to 8% ad growth.
Financial Highlights
- Questioned the standalone exceptional item loss of INR 37.76 cr.
- Asked about the increasing losses in the Digital segment.
- Inquired about the sequential reduction in staff costs/employee expenses.
- Asked if Hindi Print revenue profitability is structural or event-driven.
- Questioned the higher 'other expenses' in HMVL.
Strategic Considerations
- Asked why the company is not part of mutual fund portfolios.
- Inquired about management's engagement with institutional investors.