HTMEDIA

HT MEDIA LIMITED Regd. Office : Hindustan Times House 18-20, Kasturba Gandhi Marg New Delhi - 110001 Tel.: 66561234 Fax: 66561270 www .hindustantimes.com E-mail : corporatedept@hindustantimes.com CIN: L22121DL2002PLC117874 Ref: HTML/CS/02/2019 To, The Listing Department The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Dalal Street Plot No. C/1, G Block MUMBAI - 400 001 Bandra-Kurla Complex Bandra (East) MUMBAI - 400 051 · Scrip Code: 532662 Trading Symbol: HTML Dear Sirs, Sub: Presentation on the Audited Financial Results of the Company for the quarter and financial year ended on 31st March, 2019 Please find enclosed a presentation on the Audited Financial Results of HT Media Limited for the quarter and financial year ended on 31st March, 2019. This is for your information and record. Thanking you, Yours faithfully, Encl: As above HT MEDIA GROUP Q4 FY 2018-19 Consolidated Financial Results 1 Cautionary Statements Certain statements in this presentation may be forward-looking statements. Such forward looking statements are subject to risks and uncertainties like regulatory changes, local political and economic developments, technological risks and many other factors that could cause our actual results to differ materially from those contained in the relevant forward- looking statements. HT Media Group will not, in any way, be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. This is a quarterly webcast presentation, combining information for the public listed companies “HT Media Limited” and its subsidiary “Hindustan Media Ventures Limited”. Key objective of this presentation is to facilitate a unified platform for quarterly performance discussion pertaining to both the companies. It is neither intended to be an exhaustive review nor to provide any trading, financial, legal advice or outlook. 2 Table of Contents PARTICULARS SLIDE NO. Consolidated Performance 5 Business Unit Performance 8 Print 9 Print – English 11 Print – Hindi (HMVL) 13 Radio 15 Other Update 17 Annexures 21 3 Chairperson’s Message Commenting on the results and performance, Mrs. Shobhana Bhartia, Chairperson and Editorial Director, HT Media Ltd and Hindustan Media Ventures Ltd said: “The sluggishness in the broader advertising environment due to muted ad spends by large corporate advertisers, coupled with high commodity prices weighed down our performance for the quarter, although we did see some positive impact on the back of recent changes in pricing policy for government ads and an increase in local advertising. Our English business continues to be soft but our Hindi business posted robust growth in advertising revenue indicating a resurgence in regional language markets. Raw material prices have started to moderate from their historically high levels, and should provide some relief going forward, resulting in an improvement in profitability. Our radio business continues to report growth in revenue and robust profits. With the acquisition of a majority stake in Next Mediaworks (Radio One), we now have a formidable network across all metro markets. As we enter the next fiscal, we are confident of a better performance on account of higher yields from government advertising, lower newsprint prices, and prospects of a more conducive advertising environment.” 4 Highlights of the Quarter and Full Year  Consolidated Operating Revenue for Q4’19 at Rs 536 Cr (decline of 2% from Rs 549 Cr in Q4’18) and FY’19 at Rs 2,194 Cr (decline of 5% from Rs 2,299 Cr in FY’18)  EBITDA* for Q4’19 at Rs 38 Cr (margin of 6%) and FY’19 at Rs 220 Cr (margin of 9%)  Other developments - Softening of newsprint prices - Effective January 2019, DAVP rates increased by 25% - In Apr’19 completed acquisition of majority stake in Next Mediaworks - Scheme for demerger of “Entertainment and Digital Innovation” business with Digicontent Ltd has become effective *before exceptional 6 Consolidated Financial Summary 7 Q 6 1 2 1 4 4 6 6 8 4 ’ 1 5 9 % 8 % 8 Q 4 ’ 1 6 2 1 3 8 6 % - 2 1 - 3 % 9 C h - - a - 2 1 1 n 4 3 0 1 9 g e - - 1 - 7 % 4 8 2 % 4 % % P T E E P P a o B B A A r t I I T T t a T T i c l D D m u R A A a l a e v * m r g r s e a i n n ( R u r g ( s e i n % C ) ( r % ) ) F 2 Y , 6 2 3 1 ' 5 4 5 5 4 1 8 6 % 2 % 8 1 F 2 Y ' , 4 2 2 9 % - 2 - 1 1 3 0 7 % 9 6 C h - - - a 1 4 3 n 4 2 7 5 6 9 g e - - 1 - 6 % 6 0 6 % 8 % % *before exceptional PRINT PRINT – ENGLISH PRINT – HINDI RADIO 9 Print FINANCIAL PERFORMANCE KEY DRIVERS + Improvement in market share across key markets in both Hindi and English newspapers during the year - Profitability impacted on account of high newsprint prices and softness in revenue - Ad Yields remained under pressure during the year - Circulation revenue remained flat during the year due to high competitive intensity 10 Q 4 4 1 4 1 6 9 7 6 ’ 1 7 6 6 8 % 8 Q 4 3 6 4 1 3 ’ 9 2 6 3 % 1 4 7 9 C h a - 2 - - 2 - 6 n 3 4 9 5 g e - - - - 8 % 5 6 6 3 % % % % P A C O O O a d i r p p p r t i R c u e r e r E c e l a a B u l v e a t t i t i I T a n i o n n D r s u n g g A ( R e R R e E B m s e v I a C v e T r r e n D g ) n u A i n u e e ( % ) F 1 2 Y , 2 , 4 2 ’ 6 7 0 1 0 1 9 4 3 6 % 8 4 7 F 1 1 Y , 2 , 1 5 ’ 5 7 9 0 % 1 8 3 2 5 9 7 1 C h - - - a 1 - 1 3 n 0 1 1 1 g 6 6 1 e - % - 6 % 0 % - 6 % 7 5 % PRINT PRINT – ENGLISH PRINT – HINDI RADIO 11 Print – English AD REVENUE (RS CR) CIRCULATION REVENUE (RS CR) -8% -14% -11% 268 232 17 15 Q4’18 Q4’19 Q4’18 Q4’19 REVENUE DRIVERS + Traction in Government, Entertainment and BFSI categories during the quarter + Revival of Local advertising spends in the year which has been largely yield driven - Sluggish National advertising due to Muted Ad spends by corporates - Circulation revenue impacted by mix 12 1 F ,0 Y ' 3 1 3 8 F 9 Y 4 6 '1 9 -7% 72 67 FY'18 FY'19 PRINT PRINT – ENGLISH PRINT – HINDI RADIO 13 Q 4 4 9 ’ 1 8 Q 4 4 7 ’ 1 9 Print – Hindi AD REVENUE (RS CR) CIRCULATION REVENUE (RS CR) -4% 149 162 Q4’18 Q4’19 REVENUE DRIVERS + In the quarter, Government advertising saw growth on account of higher volumes and DAVP price increase. Categories such as FMCG and BFSI also witnessed growth. + Ad revenue growth led by strong performance in local advertising driven by both yield and volume growth + Circulation revenue growth in FY’19 with focus on improvement in realization + Maintained market share during the year - Muted circulation revenue in the quarter due to heightened competitive intensity - Softness in Ad spend during the quarter in key categories such as Auto, Education, Industrials and Durables 14 F 6 Y 6 ' 0 1 8 F 6 Y 4 2 '1 9 -3% F 2 Y 0 2 '1 8 F 2 Y 0 ' 6 1 9 2% 9% PRINT PRINT – ENGLISH PRINT – HINDI RADIO 15 Radio FINANCIAL PERFORMANCE Q4’18 Q4’19 Change % Particulars (Rs Cr) FY’18 FY’19 Change % 45 47 2 5% Operating Revenue 176 194 18 10% 28 16 -12 -43% Operating EBITDA 71 66 -5 -7% 62% 33% Op EBITDA margin (%) 40% 34% 19 7 -12 -64% EBIT 36 31 -5 -14% 43% 15% EBIT margin (%) 20% 16% PERFORMANCE DRIVERS + Double digit Operating revenue growth during the year + EBITDA impacted by transaction cost. Operating EBITDA continues to be around 40% + Yield growth across core, new metro and UP stations + Strong growth in BFSI, Government and Telecom categories for the quarter 16 Acquisition of Majority Stake in Next Mediaworks Ltd (NMW) Company Brands Presence 15 stations in 13 cities (8 stations in 6 metros) 7 stations in 7 cities (all stations in metros)  Acquisition of majority stake (51%) in NMW makes HT Media Ltd (HTML) the strongest radio company in metro markets  HT Group will now have 22 stations and a national footprint covering 15 cities STRATEGIC RATIONALE  Strengthening HT Media Radio business and network  Radio One’s strong presence in English genre will allow HT Media to segment the listenership even more sharply in the metro markets  Addition of total 7 stations in metro cities  Provides entry into new markets of Pune and Ahmedabad 18 18 Q&A Dial-in number for Q&A +91 22 7115 8103 +91 22 6280 1202 19 HT Media Group Hindustan Times House, 2nd Floor, 18-20, Kasturba Gandhi Marg New Delhi – 110001, India Anna Abraham Amit Madaan Sankalp Raghuvanshi IR@hindustantimes.com +91 11 6656 1605 Saket Somani Ravi Gothwal htmedia@churchgatepartners.com +91 22 6169 5988 20 Consolidated P&L – HT Media Ltd Q4’18 Q4’19 YoY (%) Q3'19 Seq (%) Particulars (Rs Cr) FY'18 FY'19 YoY (%) 549 536 -2% 594 -10% Operating Revenue 2,299 2,194 -5% 161 184 15% 217 -15% Raw Materials & change in inventory 653 776 19% 97 104 7% 104 0% Employee Cost 370 382 3% 218 295 35% 264 12% Other expenses 912 1,058 16% 96 85 -11% 76 12% Other Income 281 242 -14% 169 38 -78% 85 -55% EBITDA 646 220 -66% 26% 6% -20% 13% -7% Margin (%) 25% 9% -16% 88 -21 -124% 34 -162% PAT 352 -27 -108% 14% -3% -17% 5% -8% Margin (%) 14% -1% -15% 22 Balance Sheet – HT Media Ltd As at 31 Mar'18 Particulars (Rs Cr) As at 31 Mar'19 ASSETS Non- current assets 1,920 Financial assets 1,151 538 Property, plant and equipment 548 981 Others 1,003 3,439 Total non-current assets 2,702 Current assets 1 25 Inventories 1 63 1,303 Financial assets 2,013 77 Other current assets 84 1,505 Total current assets 2,261 4,944 Total assets 4,963 EQUITY AND LIABILITIES Equity 46 Equity share capital 46 2,498 Other equity 2,429 2,544 Total equity 2,475 3 42 Non-controlling Interest 3 57 Liabilities Non-current liabilities 6 Financial liabilities 307 4 Deferred tax liabilities (Net) 10 22 Others 22 32 Total non-current liabilities 339 Current liabilities 1,881 Financial liabilities 1,640 1 45 Others 152 2,026 Total current liabilities 1,792 4,944 Total equity and liabilities 4,963 23 P&L – Hindustan Media Ventures Ltd 24 Q 2 1 2 4 8 2 6 2 5 3 4 8 0 ’ 1 2 7 4 4 6 2 % 0 % 8 Q 1 4 2 9 2 8 2 3 6 1 7 ’ 1 1 3 2 7 5 8 8 % 6 % 9 Y o Y ( 5 % 5 % 1 0 % 3 2 % 1 0 % - 2 7 % - 7 % - 5 9 % - 1 1 % % ) Q 1 1 2 1 3 2 7 3 4 8 2 2 2 0 ' 1 1 5 9 3 2 5 % 9 % 9 S e q ( % - 3 % - 1 3 % - 6 % 1 6 % - 1 2 % - 1 6 % - 2 % - 4 3 % - 5 % ) P O R E O O E M P M a p a m t t B A r t i c u e r a t w M p l o y h e r e h e r I I T D A a r g i n T a r g i n l a r i n g a t e e e x p n c o ( % ( % s ( R s C R e v e r i a l s & C o s t e n s e s m e ) ) n r ) u c e h a n g e i n i n v e n t o r y F 2 1 Y 8 3 9 2 7 2 7 1 8 ' 1 8 0 5 8 4 4 7 9 6 1 % 7 1 % 8 F 1 Y 8 4 1 3 9 1 5 7 8 ' 1 6 6 0 2 1 1 0 2 0 4 1 % 2 % 9 Y o - 1 1 2 1 - 4 - 1 - 5 - 1 Y 2 2 9 2 3 6 2 8 0 ( % % % % % % % % % % ) Balance Sheet – Hindustan Media Ventures Ltd As at 31 Mar'18 Particulars (Rs Cr) As at 31 Mar'19 ASSETS Non- current assets 683 Financial assets 583 156 Property, plant and equipment 200 97 Others 118 936 Total non-current assets 901 Current assets 49 Inventories 44 653 Financial assets 769 12 Other current assets 24 714 Total current assets 838 1,650 Total assets 1,739 EQUITY AND LIABILITIES Equity 73 Equity share capital 73 1,258 Other equity 1,317 1,332 Total equity 1,390 Liabilities Non-current liabilities - Financial liabilities 63 26 Deferred tax liabilities (Net) 32 Others 26 Total non-current liabilities 95 Current liabilities 262 Financial liabilities 226 30 Others 28 292 Total current liabilities 254 1,650 Total equity and liabilities 1,739 25