Jagran Prakashan's ad rate hike sees gains; absorbs 8%

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Jagran Prakashan's ad rate hike sees gains; absorbs 8%

Jagran Prakashan has seen strong gains as the ad rate hike the company had taken in March is absorbed by 7-8%. The company expects an ad growth of 17-18%. RK Agarwal, CFO of the company in an interview with CNBC-TV18 said the outlook for 2011 guidance will be maintained at 18% and would not change for now.

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Jagran Prakashan has seen strong gains as the ad rate hike the company had taken in March is absorbed by 7-8%. The company expects an ad growth of 17-18%.

RK Agarwal, CFO of the company in an interview with CNBC-TV18 said the outlook for 2011 guidance will be maintained at 18% and would not change for now.
 
Below is a verbatim transcript of his interview with CNBC-TV18's Sonia Shenoy and Ekta Batra. Also watch the accompanying video.

Q: Tell us how the add rates are panning out? In FY11 you have given us a guidance of about 18% growth in ad revenues. Do you think you could perhaps beat that guidance on the upside?

A: No I would not say that. We continue to maintain that guidance for the year 2011.

Q: You took an ad rate hike in March. Can you tell us how much absorption it's seen?

A: In the first half to the extent of about 7-8% has been absorbed.

Q: Any sort of traction you could see or any possibly hike in ad rates out of turn as well?

A: Normally we don't do that nor do we have any intention to do it. We take the rate hike once in a year which we have done in the month of March.

Q: What kind of expectations do you have from circulation revenues because of the kind of competition that the sector is facing currently? Do you think that they will continue to be muted of is there some sort of uptake that you are expecting?

A: There will be some growth but it may not be more than a couple of percentage for the year.

Q: How are the margins panning out and can you give us an outlook on how newsprint prices are panning out for you?

A: Newsprint prices have already started increasing but they are very much within their limits which we have factored in our business plan. That is not the worry.

Q: One final question then on the Midday merger. It was suppose to be completed in the next couple of months. What is the status on that and when would that be earnings per share (EPS) accretive?

A: We have to receive the last of the approvals from the High Court and I expect it to be received sometime in the month of November.

Q: And is that when the merger will be complete?

A: Yes.