Jagran PrakashanQ1 FY18

Jagran Prakashan Q1 FY18 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹62.65P/E: 7.2Market Cap: ₹1.4K CrSector: Media

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • Digital revenue growth is expected to continue but at a moderated pace compared to previous quarters; around 20% growth during the current quarter, lower than last quarter’s 40-50% due to starting from a higher base.
  • Overall media consumption and revenues are growing; digital is the fastest-growing segment but competition limits Jagran’s share (~30% of total digital ad revenue).
  • Radio business shows promise, with increasing uptake via mobile platforms, supported by growing listenership through mobile and digital means.
  • On print, price reductions and competitive pressures have impacted short-term sales volumes, especially in core markets such as Uttar Pradesh and Bihar, but volume growth is targeted via regional expansions and market penetration.
  • Government advertising revenues may see slight growth with newly formed governments; however, certain states show subdued government ad spend.
  • Expect recovery from disruptions caused by GST rollout and demonetization in H2, alongside festival season boosts potentially driving sales and ad revenues up.

See what Jagran Prakashan management said on margin guidance — free account, 30 seconds.

Fundraise plans

Based on the provided transcript from the Jagran Prakashan Limited Q1 FY2018 earnings call: - The company reported that the group remains debt-free despite a share buyback of over Rs. 300 Crores. - There is no mention of any current or planned new fundraising through debt or equity in the discussion. - Debt related specifically to Radio City pertains only to existing bonds with scheduled repayments; no new debt issuance was indicated. - The management did not discuss any upcoming equity fundraising during the call. Hence, as of this call, Jagran Prakashan Limited has no stated plans for raising new capital through debt or equity channels.

See what Jagran Prakashan management said on order book — free account, 30 seconds.

Capex plans

Yes
The document does not explicitly mention any current or future capex, capital investments, or strategic investments by Jagran Prakashan Limited. However, some relevant strategic points discussed include: - Focus on prudent geographic expansion in radio business, with active sourcing of acquisitions aiming for EPS accretive deals. - Priority given to filling existing geographical gaps in radio (e.g., entering Kolkata and other cities without frequencies) before considering multiple frequencies in existing markets. - Digital growth plans include building content and video capabilities to monetize increased mobile traffic; a large video team producing approx. 300 videos daily. - No mention of immediate capital expenditure, but the radio business continues to invest strategically in expansion and content. - No details on investments relating to tie-ups such as with metro stations; these are currently marketing initiatives without revenue sharing. Overall, the approach appears focused on strategic, prudent expansion and digital content development rather than large new capex outlays.

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