Hindustan Media
Q1 FY23 Earnings Call Analysis
Media
fundraise: No informationcapex: Yesrevenue: Category 3margin: Category 1orderbook: No information
💰fundraise
Any current/future new fundraising through debt or equity?
Based on the transcript on page 19 and surrounding pages of the document:
- There is no explicit mention of any current or planned new fundraising through debt or equity.
- The focus appears to be on investing in the OTTPlay platform as a major business initiative.
- Investments behind OTTPlay will step up going forward, but specific numbers or funding plans are not disclosed.
- They do not provide forward guidance on expenditure or fundraising related to OTTPlay or other business segments.
- Piyush Gupta and Anna Abraham emphasize investments in future growth but refrain from discussing new capital raising.
In summary, no clear indication of new fundraising through debt or equity was provided in the discussed transcript.
🏗️capex
Any current/future capex/capital investment/strategic investment?
- The company is making significant investments behind the OTTPlay platform, which is their major current and strategic business focus. OTTPlay has been in a beta stage for 6-9 months and is now being taken to market.
- Investments in OTTPlay are expected to increase going forward, with revenue growth anticipated to follow shortly after the increased spending.
- While exact capital expenditure numbers are not disclosed, they indicate that the OTTPlay investment is substantial and considered "investment of the future."
- Experiments related to NFTs and similar ventures are currently small and not being pursued as core business segments; the primary strategic investment remains OTTPlay.
- The company plans to continue investing behind OTTPlay as a growth engine but does not provide forward guidance on specific expenditure amounts.
📊revenue
Future growth expectations in sales/revenue/volumes?
- The company aims for a conservative revenue growth of around 10% in the coming year, driven by building back copies and improving advertising yields.
- Efforts are underway to restore print advertising yields to pre-Covid levels, which are currently 20-25% below in key markets like Delhi and Bombay.
- Newsprint prices are expected to decrease by 7-8%, aiding cost reduction and improving EBITDA.
- The newly launched OTTPlay platform targets revenue monetization in the coming year, representing a significant digital growth opportunity.
- Radio business has shown a 40% growth this year and is expected to have a "stupendous and profitable" year next year.
- Overall, the management anticipates more favorable quarters ahead with improving business levers leading to robust revenue and profitability growth.
📈margin
Future growth expectations in earnings/operating earnings/profits/EPS?
- The company expects much more favorable quarters ahead, indicating improvement in earnings (Piyush Gupta, Page 19).
- A major focus is on rebuilding newspaper circulation to pre-Covid levels, which is a slow but steady process (Page 16).
- Advertising yields are being targeted for improvement to boost revenues and profitability (Pages 16, 7).
- Newsprint price decline will benefit cost structures and improve EBITDA, PBT, and PAT (Page 7).
- Radio segment shows strong revenue growth (40%+) and is expected to be profitable in the next year (Pages 8, 5).
- Digital business is investing heavily (e.g., OTTPlay), revenues will grow as monetization plans mature (Pages 9, 6).
- Conservative 10% growth guidance was mentioned but actual yield improvements may vary (Page 17).
- Profitability recovery hinges on capturing better yields and increased advertising revenue (Pages 7, 16).
Overall, the company aims to restore pre-Covid profitability through circulation growth, yield improvement, cost control, and successful digital monetization.
📋orderbook
Current/ Expected Orderbook/ Pending Orders?
The provided transcript and document pages do not mention any information regarding current or expected order books or pending orders for Hindustan Media Ventures Limited (HMVL) or HT Media. The discussion primarily focuses on:
- Financial performance for Q4 and FY23
- Print, Radio, and Digital business updates
- Revenue growth and challenges due to input costs (newsprint, shipping)
- Subscription models and yields
- Investments in digital initiatives like OTTPlay platform
- Cost management and outlook on advertising and circulation
No specific details on order books or pending orders are disclosed in the transcript.
