H T Media Q1 FY26 earnings call

H T Media reported a 6% year-on-year growth in total revenues, reaching INR 451 crores for Q1 FY26. Despite this growth, the company recorded a negative PAT of INR 11 crores, although this represents a 59% improvement compared to the previous year. On a sequential basis, however, revenues saw a 23% decline, and PAT experienced a 120% decline. The company maintains a healthy net cash position of INR 976 crores.

The Print business demonstrated resilience, with operating revenues improving 8% year-on-year to INR 324 crores. This growth was primarily fueled by a significant 17% year-on-year increase in advertising revenues, which stood at INR 255 crores. Specifically, English advertising revenue grew 19% year-on-year to INR 140 crores, while Hindi advertising revenue saw a 14% year-on-year increase to INR 116 crores, with Education, Real Estate, and BFSI identified as key contributing sectors.

While Print advertising performed well, circulation revenue, particularly for the English segment, declined 22% year-on-year. This was attributed to pricing adjustments and an ongoing strategy of offering discounts to recruit new readers. Management noted that while copies remained relatively flat sequentially, the realization per copy was impacted. The company is reviewing this discounting strategy on a monthly basis, anticipating long-term benefits despite short-term revenue pressure.

The Radio business experienced a challenging quarter, with revenues dipping to INR 31 crores, down from INR 36 crores in the prior year. This decline resulted in a negative operating margin of 21%. Management acknowledged that the larger industry is facing challenges and that the segment's performance was impacted by a high base effect from significant events in the previous quarter. Efforts are underway to address pricing pressures and improve the situation.

The Digital segment recorded robust growth in operating revenues, increasing 21% year-on-year to INR 56 crores. This growth was driven by the traction gained by platforms such as Mosaic, Shine, and OTTplay, coupled with business investment rationalization. However, the segment's operating margins remained negative at 38%, reflecting the company's continued investment in this new-age business to accelerate its growth and offerings.

The company employs a strategic approach to investments, often utilizing warrants as a risk mitigation tool rather than direct equity. Conversion of these warrants into equity is contingent upon the invested company demonstrating substantial upside potential and strong financial performance. This selective conversion strategy is based on continuous monitoring of the company's performance and information rights, ensuring capital is deployed where conviction for growth is highest.