Emkay Global Financial Services has come with its June quarterly earning estimates for print media sector. Research firm expect further deterioration in the ad growth, due to slowdown in macro economy. Consolidated revenue of our coverage companies is expected to grow by 6.0% YoY to Rs12.3bn.
Ad revenue is expected to register growth of 2.8% YoY (slowest in last 12 quarters) to Rs8.8bn. English ad revenue is expected to remain under pressure with 3.5% YoY decline while vernacular ad revenue is expected
to grow 5.7% YoY. HT Media is expected to be worst hit in the print media space due tough macro economic conditions and rupee depreciation.
Circulation revenue is expected to grow by 7.5% YoY to Rs1.8bn for coverage companies, driven by higher circulation and cover price increase in selected markets during last quarter.
EBITDA for coverage universe is expected to decline 11.4% YoY with margin contraction of 389bps YoY to 19.7%, due to weak revenue growth. Both international and domestic newsprint cost remained stable during the quarter but rupee depreciation and higher consumption of newsprint would escalate raw material cost, which is expected to
increase by 13.5% YoY for our coverage companies.
Consolidated PAT for coverage universe is expected to decline 18% YoY to Rs1.3bn.
We maintain HOLD on Jagran, DB Corp and HT Media.
| Company Name | Net Sales (Rs mn) | APAT (Rs mn) | ||||
| Q1FY13 | Q1FY12 | Growth % | Q1FY13 | Q1FY12 | Growth % | |
| DB Corp | 3896 | 3606 | 8% | 556 | 454 | 22% |
| HT Media | 5158 | 4941 | 4% | 380 | 220 | 73% |
| Jagran Prakashan | 3206 | 3104 | 3% | 392 | 428 | -9% |
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
