HMVL PROFIT RISES 12.3% TO ₹49.2 CRORE IN OCTDEC
NEWDELHI: Hindustan Media Ventures Ltd (HMVL), publisher of the Hindi-language daily Hindustan, on Thursday reported a 12.3% year-on-year increase in consolidated net profit for the quarter ended December 31, helped by higher advertising revenue.
Net profit rose to ₹49.2 crore in the three months from ₹43.8 crore in the same period a year earlier, HMVL said in a statement.
HMVL also benefited from the sale of its entire investment (42.83%) in HT Digital Streams Ltd, the company’s content creation and management subsidiary, formed as a part of its efforts to become more relevant in the digital world, to HT Digital Ventures, resulting in a gain of ₹15.3 crore.
Revenue remained flat at ₹251.5 crore. Advertising revenue increased by 5% to ₹177 crore, driven by increase in yield and volume. Circulation revenue declined 14% to ₹48 crore.
Ebitda—earnings before interest, tax, depreciation and amortisation, a measure of operating profitability—increased 27.5% to ₹79.6 crore in the December quarter from ₹62.4 crore a year ago.
“The quarter witnessed overall revenue growth with advertising revenue picking up sharply towards the end of the period. The growth, however, comes over a base impacted by both an early festive season and demonetisation,” Hindustan Media Ventures chairperson Shobhana Bhartia said in a statement.
“We continue to reap the benefits of company wide cost rationalisation initiative which is visible in the expansion of our profit margins,” Bhartia said.
“With the teething issues around GST (goods and services tax) resolved, we see a potential upside—a faster growth in advertising revenue in the next financial year,” she added.
The board of directors approved the appointment of Sandeep Gulati as chief financial officer.
Priyavrat Bhartia, MD at HMVL, was designated wholetime key managerial personnel in the absence of a CEO.
The company, which publishes Nandan and Kadambini magazines besides Hindustan, is an affiliate of HT Media Ltd, publisher of Hindustan Times and Mint.