HT Media Ltd — Investor Presentation 2020

Jul 28, 2020

I

Ref: HTML/CS/02/2020

HT MEDIA LIMITED Regd. Office: Hindustan Times House 18·20. Kasturba Gandhi Mar9 New Delhl • 110001 Tel.: 66561234 Fax: 66561270 www .hlndustanlime's.com E•msil : c.::rpor.atedept@hlndustantlmes.eom CIN: L22121DL2002PLC117874

28 July, 2020

BSE Limited

Phiroze Jeejeebhoy Tovve,�, Dalal Street, MUJVIBAl - 400 001

Scrip Code: 532662

The National Stock Exchange oflndia Limited Exchange Plaza, C/1, Block G, Bandra Kurla Complex, Bandra(E}· MUMBAI - 400 051 Trading Symbol: HTMEDIA

Dear Sirs,

Sub: Presentation on the Un-audited Financial Results of the Comp ny for the quarter ended on 30th Ju11e, 2020

Please find enclosed a presentation on the Un-audited Financial Results of HT Media Limited for the quarter ended on 30th June, 2020.

This is for your information and records.

Thanking you,

· ia Limited

Digitally signed by DINESH MITTAL DN: c=IN, o=Personal, postalCode=110092, st=Delhi, 2.5.4.20=f0a517aae31821f7d1c6c4bae72f3bff 850f57048ce049c2a76579ceb11a166f, 2.5.4.45=0321000308B2CC3C842532FD05530 89FA7931AB23C6F4B5CD231EC5BAE7EA4F60 CA3B8, serialNumber=3b8ea030aca58b5c895290ff37 76eeba38495f2277e5ca28bf49cc98813d4ad3, cn=DINESH MITTAL Date: 2020.07.28 14:09:06 +05'30'

DINESH MITTAL

Encl: As above

HT MEDIA GROUP Q1 FY 2020-21 Consolidated Financial Results

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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 forwardlooking 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.

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Chairperson’s Message

“The quarter started amidst the nationwide lockdown imposed to combat the spread of the Covid-19 pandemic that severely impacted businesses across sectors. This went on to last till the end of May, although many restrictions, especially for business activities, remain in place. The result was a sharp decline in advertising spends, which impacted revenues across our Print and Radio businesses. The impact was higher in the initial period of the quarter, followed by gradual recovery in May and June. We observed a similar trend in circulation revenue, even as we undertook awareness initiatives to educate consumers about the safety and hygiene standards in the newspaper supply chain. Although we undertook immediate cost rationalisation measures, these could not fully counter the sharp decline in revenues. Consequently, operating profitability for the quarter has been adversely affected, although it has been mitigated to some extent by income from treasury operations.

It is difficult to estimate the extent and timeline of recovery as this will depend on how the impact of Covid19 on the economy is contained. However, the company still has more than adequate liquidity to be able to ensure the smooth functioning of operations. Our prime objective is to deliver a quality product to our customers and consumers. We expect financial performance to improve progressively, but gradually, in the coming quarters as the situation normalizes and demand revives. We remain committed to serving our readers, listeners, and advertisers and will remain agile in managing operations in the appropriate manner given the changing environment.”

Mrs. Shobhana Bhartia

Chairperson and Editorial Director HT Media Ltd & Hindustan Media Ventures Ltd

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Table of Contents

Table of Contents
PARTICULARS	SLIDE NO.
Consolidated Performance 5
Business Unit Performance 7
Print 8
Print – English 10
Print – Hindi (HMVL) 12
Radio 14
Annexures 18

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CONSOLIDATED PERFORMANCE

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Consolidated Financial Summary

CONSOLIDATED PERFORMANCE

FINANCIAL HIGHLIGHTS

Particulars (Rs Cr)	Q1'20		Q1'21	Change		%	•	Total Revenue down by 59% YoY –
								decline was witnessed across busin
Total Revenue	588		240	(348)		-59%		mainly led by Volume drops
EBITDA	89		(28)	(117)		-132%
							•	Sharp focus on cost control amidst
EBITDA margin (%)	15%		-12%					revenue environment
PAT	28		(56)	(84)		-297%	•	EBITDA loss at Rs 28 Cr, margin at -
PAT margin (%)	5%		-23%					(Vs. 15% in Q1’20)
Net Cash1	1,120		1,011	(108)		-10%	•	Continue to be backed with strong
								liquidity position

• Total Revenue down by 59% YoY – decline was witnessed across businesses mainly led by Volume drops

• Sharp focus on cost control amidst tough revenue environment • EBITDA loss at Rs 28 Cr, margin at -12% (Vs. 15% in Q1’20)

Note : EBITDA and PAT before Exceptional items[1] As on 30[th] Jun of respective period

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BUSINESS UNIT PERFORMANCE

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7

PRINT

PRINT – ENGLISH

PRINT – HINDI

RADIO

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8

Print

FINANCIAL PERFORMANCE

Particulars (Rs Cr) Q1'20	Q1'21	Change	%
Ad Revenue 362	85	-277	-77%
Circulation Revenue 64	41	-24	-37%
Operating Revenue 454	144	-309	-68%
Operating EBITDA 55	-61	-115	-211%
Op EBITDA margin (%) 12%	-42%

KEY DRIVERS

• Decline in both Commercial and Government Ad revenue streams

• Impact on newspaper distribution affected circulation revenue; gradually got better over May-June

• • Hindi impacted lesser than English due to regions with lower impact of lockdown restrictions
• • Cost rationalisation to the extent feasible across line items

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PRINT

PRINT – ENGLISH

PRINT – HINDI

RADIO

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10

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Print – English

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AD REVENUE (RS CR)

CIRCULATION REVENUE (RS CR)

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-82%
198
36
Q1'20 Q1'21
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-85%
15
2
Q1'20 Q1'21
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REVENUE DRIVERS

• • Significant improvement in Ad Volume market share
• • Impact on Local advertising higher than National

• Ad revenue de-growth largely led by lower volumes on account of COVID-19

• All advertising categories witnessed softness, led by Education, Automobiles, Real Estate,

• Entertainment and Retail

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11

PRINT

PRINT – ENGLISH

PRINT – HINDI

RADIO

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12

Print – Hindi

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CIRCULATION REVENUE (RS CR)
-70% -23%
164
50 39
49
Q1'20 Q1'21 Q1'20 Q1'21
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AD REVENUE (RS CR)

REVENUE DRIVERS

• • Improved Ad volume market share across key geographies
• • Improvement in cover price realisation despite a challenging environment

• Decline in Ad volumes as economic activity halted during lockdown

• Muted Ad revenue across categories – higher decline in Education, Automobiles and Retail

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PRINT

PRINT – ENGLISH

PRINT – HINDI

RADIO

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14

Radio

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FINANCIAL PERFORMANCE

FINANCIAL PERFORMANCE
Particulars (Rs Cr) Q1'20	Q1'21	Change	%
Operating Revenue 64	8	-56	-88%
Operating EBITDA 16	-31	-47	-292%
Op EBITDA margin (%) 25%	-389%

PERFORMANCE DRIVERS

• Weak Operating revenue primarily led by sector-wide volume decline post COVID-19

• Decline led by Real Estate, FMCG and Automobile categories

• • Decline in revenue offset to some extent by costs. Benefits of costs actions will be seen more in future quarters. Limitations on cost savings on account of extent of statutory costs

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15

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Q&A

1. To ask a question, Click on “Raise Hand”

2. On your turn, click on “Unmute Myself”

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1. Ask your question

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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

Saket Somani Ravi Gothwal htmedia@churchgatepartners.com

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17

ANNEXURES

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Consolidated P&L – HT Media Ltd

Particulars(Rs Cr)	Q1'20 Q1'21 YoY(%)
Total Revenue	588 240 -59%
Raw Materials & change in inventory Employee Cost Other expenses	159 49 -69% 105 93 -12% 235 127 -46%
EBITDA1	89 -28 -132%
Margin (%) 1	15% -12%
PAT1	28 -56 -297%
Margin (%) 1	5% -23%

• 1Before Exceptional items

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P&L – Hindustan Media Ventures Ltd

Particulars(Rs Cr)	Q1'20 Q1'21 YoY(%)
Operating Revenue Other Income Total Revenue	218 90 -59% 21 49 134% 239 139 -42%
Raw Materials & change in inventory Employee Cost Other expenses	83 34 -59% 28 37 30% 73 46 -37%
EBITDA	55 22 -60%
Margin (%)	23% 16%
PAT	39 10 -74%
Margin (%)	16% 7%

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