Detailed Narrative
Strong Consolidated Performance Driven by Profitability
Hindustan Media Ventures Limited delivered a robust Q4 and full FY25, with consolidated revenue growing 12% in Q4 and 7% for the full year. Profitability saw significant improvement, with Q4 PAT increasing 88% from INR 30 crores to INR 57 crores, and FY25 PAT turning positive at INR 20 crores. The company also reported a 58% growth in full-year EBITDA and maintained a strong net cash position exceeding INR 1,000 crores as of March 31, 2025.
Print Business Profitability Boosted by Cost and Yield Management
Despite muted advertising and declining circulation revenues, the Print segment demonstrated strong profitability. Q4 EBITDA stood at INR 61 crores, contributing to a full-year EBITDA of INR 121 crores, a 67% increase year-over-year, with approximately 400 basis points of margin expansion. This improvement was primarily attributed to significant savings from softer newsprint prices and conscious efforts in advertising yield improvement, which allowed for better pricing even as print volumes declined.
Digital Segment Shows Strong Revenue Traction with Reduced Losses
The Digital business, spearheaded by OTTplay and Shine, continued its strong growth trajectory, with Q4 revenue increasing 35% to INR 58 crores and full-year revenue growing 38% to INR 212 crores. Importantly, segment losses for the full year were reduced from INR 114 crores to INR 102 crores, indicating improved cost control. Management expressed optimism about reaching a break-even situation for the digital business by the end of the current financial year, contingent on continued scaling.
Radio Segment Revenue Growth Amidst Margin Pressure
The Radio segment experienced significant top-line growth, with Q4 revenue up 72% to INR 82 crores and full-year revenue increasing 30% to INR 204 crores. However, margins for the segment remained soft. This was attributed to higher costs associated with 'on-ground' events, which have different cost structures compared to core Fixed Commercial Time (FCT) revenue. The company aims to bring the Radio business back to break-even or positive sooner, focusing on non-FCT initiatives for future growth.
Strategic Ad-for-Equity Investments and Treasury Gains
The company clarified its investment in an electric mobility company was an Ad-for-Equity (AFE) investment, meaning no cash was deployed, highlighting a strategy to participate in new growth areas without direct cash outflow. Additionally, the increase in other income was largely driven by treasury gains, as the company was strategically positioned to benefit from 'favourable yield movement in line of rate actions,' contributing significantly to non-operating income.