H T Media

HT Media reported a strong Q3 FY25 with total revenue increasing 9% year-on-year and 11% sequentially. The company achieved a positive EBITDA of INR 46 crores, marking a 64% improvement YoY and 42% QoQ. Despite a negative PAT of INR 3 crores, this represented a substantial 50% sequential improvement. The cash balance remained robust at INR 920 crores as of December 2024, consistent with the previous quarter.

The Print segment's revenue grew 9% year-on-year, with operating EBITDA at INR 42 crores and operating margins improving by 400 basis points. English advertising revenue rose 14% to INR 181 crores YoY, while Hindi advertising revenue increased 3% YoY. However, circulation revenue for English declined 22% to INR 13 crores, and Hindi circulation revenue saw a 6% negative growth YoY. Management is using Ad-for-Equity (AFE) deals and strategic pricing to counter the broader industry decline.

The Radio business demonstrated strong top-line growth of 29% year-on-year and 46% sequentially, achieving a breakeven performance on the bottom line. Despite this, margins continue to be under pressure, and yields remain below pre-Covid levels. The company is implementing new initiatives, including off-air properties and events, and exploring digital platforms to improve profitability, acknowledging it as a 'marathon, not a sprint'.

The Digital business, including OTTplay, grew its top line by 32% year-on-year to INR 51 crores. While still operating at a negative 26% margin, the loss position improved marginally by 24% year-on-year. The company views OTTplay as a key investment for future growth, with expenses expected to decrease. Management agrees with analyst projections of achieving INR 200-250 crores in annual revenue from OTTplay within a couple of years, targeting over 1% market share of India's 125 million paying OTT viewers.

The company maintains a strong cash position of INR 920 crores, which it intends to deploy strategically into future-looking businesses like OTTplay and other digital properties. However, an analyst raised significant concerns regarding INR 700 crores of net worth erosion over the past five years and the absence of dividends, questioning the company's Return on Capital Employed (ROCE). Management acknowledged these as serious points, deferring a detailed discussion to the upcoming AGM.

HT Media is actively diversifying its revenue streams beyond traditional print, investing in digital news, various languages, and platforms like OTTplay, Shine, and Mosaic Ventures. The company's AFE business, which involves taking deposits from advertisers for investment positions, is a key part of its strategy to extend the life of Print. Management also acknowledged the complexities of having two listed entities (HT Media and HMVL) in the Indian environment, expressing a desire for simplification.