Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hindustan Media Ventures Ltd (BOM:533217, Financial) reported a 12% year-over-year growth in revenue, indicating strong financial performance.
- The print business showed improved operating revenue, driven by advertising growth, resulting in enhanced profitability.
- The digital segment, particularly OTTplay, experienced significant revenue growth on both a yearly and quarterly basis.
- The company is strategically focusing on tier two and three towns for its OTTplay platform, differentiating its market approach from competitors.
- Hindustan Media Ventures Ltd (BOM:533217) is committed to enhancing audience experience and providing innovative solutions to advertisers, aiming for sustained growth.
Negative Points
- The radio segment's operating revenue remained flat, with a slight drop in operating margins.
- There was a marginal decline in advertising revenue for the Hindi segment on a year-over-year basis.
- Circulation revenue for the Hindi segment declined both sequentially and annually.
- The company continues to face challenges in the government revenue segment, impacting overall growth in the Hindi market.
- Concerns were raised about financial engineering and the optics of buybacks, which some investors perceive as not being healthy.
Q & A Highlights
Q: With the launch of Jio TV Plus, do you see a threat to your OTT strategy?
A: Piyush Gupta, Group CFO, explained that they do not see a direct threat as their strategy targets tier two and three towns where broadband is less prevalent. They also have a Jio feed on their OTT platform, and their pricing is competitive for these markets. The content delivery and target audience differ significantly from Jio TV Plus.
Q: Why is HT Digital Streams buying back its own shares if it is a 100% subsidiary of Digicontent?
A: Piyush Gupta clarified that the buyback is aimed at reducing debt on Digicontent's balance sheet, improving return ratios. Anna Abraham, Head of Investor Relations, added that the buyback allows cash to be transferred to the parent company to repay loans, benefiting overall financials.
Q: Can you explain the strategic objective of the new investments noted in the HMVL quarterly report?
A: Piyush Gupta stated that these are ads-for-equity (AFE) investments, which are cash-neutral and involve providing advertising in exchange for equity stakes in companies. This is part of their business strategy and is a profitable segment.
Q: Why has there been a decline in circulation revenue, particularly in the Hindi segment?
A: Anna Abraham noted that while English circulation revenue has grown sequentially, Hindi has seen a decline due to industry-wide corrections in copy numbers. Piyush Gupta added that they are optimizing copies market by market to maintain ad revenue and circulation revenue.
Q: How do you see the future of ad rates and print advertising growth for both Hindi and English segments?
A: Anna Abraham mentioned that they have been successful in improving pricing in print advertising over the last two quarters. The festive season has started well, and they aim to maintain momentum, although economic indicators suggest some potential fluctuations in consumption patterns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
