Detailed Narrative
Strong Consolidated Performance and Positive Full-Year PAT
HT Media delivered a robust Q4 FY25, with consolidated total revenue growing 12% quarter-on-quarter and 7% for the full year. PAT saw a significant 88% increase quarter-on-quarter, rising from INR 30 crore to INR 57 crore, and turned positive for the full year at INR 20 crore. The company's full-year EBITDA also grew by 58%, reflecting overall improved profitability. A strong liquidity position was maintained, with net cash exceeding INR 1,000 crore as of March 31st, 2025.
Print Business Profitability Driven by Cost Control and Yield Improvement
Despite flat to marginally declining ad revenues across both English (-1% QoQ, 3% FY) and Hindi (-5% QoQ, -4% FY) print segments, the Print business saw a considerable rise in profitability. Full-year operating EBITDA grew 67% to INR 121 crore, with a margin expansion of approximately 400 basis points. This improvement was primarily attributed to softer newsprint prices and conscious yield improvement in advertising, which helped offset volume declines and reduced government spending, particularly impacting Hindi print revenue.
Digital Segment Shows Strong Revenue Traction with Reduced Losses
The Digital business, spearheaded by OTTplay and Shine, demonstrated strong growth, with quarterly revenue increasing 35% to INR 58 crore and full-year revenue growing 38% to INR 212 crore. Concurrently, segment losses were reduced from INR 114 crore in the previous year to INR 102 crore for FY25. Management expressed optimism about continuing this growth momentum and aims for OTTplay to reach a break-even situation by the end of the current fiscal year, though further investment may be required for scaling.
Radio Business Revenue Growth with Persistent Margin Pressure
The Radio segment experienced significant quarterly revenue growth of 72% to INR 82 crore, contributing to a 30% full-year revenue increase to INR 204 crore. However, margins remained soft, and losses increased. This was primarily due to a focus on 'on-ground' events, which, unlike core FCT revenue, incur higher associated costs. The company plans to streamline this business and aims to bring it back to break-even or positive in the near term through non-FCT initiatives.
Strategic Ad-for-Equity Investments and Other Income Drivers
The company clarified its investment in an electric mobility-related company was an Ad-for-Equity (AFE) investment, not a cash deployment, which triggered disclosure requirements. Management noted that a substantial part of their AFE deals are on the HMVL balance sheet, with the overall investment position on a fully diluted basis being north of INR 1,000 crore. Other income saw an increase, largely driven by substantial treasury gains from favorable yield movements in the market, alongside profits from the sale of AFE investments.