Media companies do not have a choice but to pass on part of the increase in input costs to the advertising sector and part of it to consumers, that is the readers. HT Media believes continued focus on cost productivity, expense control and then some amount of media inflation will have to be pursued as a strategy if margins are to be protected.
"We thought Rs 110, which is 10 percent premium, would be a reasonably attractive premium," Rajiv Verma told CNBC-TV18 in an interview.
Rajiv Verma, chief executive officer, HT Media told CNBC-TV18 that the company grew 16-17% for the whole year aided by the Hindi business. "Hindi continues to grow at roughly about 17-18%," he added.
HT Media announced its second quarter FY12 results. Rajiv Verma, chief executive officer of the company expects sluggish ad environment to continue in the second half of FY12. Moreover, he told CNBC-TV18 in an interview that advertising appears stronger in vernacular markets than the metros.
Rajiv Verma, CEO, HT Media tells CNBC-TV18 in an exclusive interview that the company’s English and Hindi portfolios are doing well, but it may see a drop in advertising growth in the future.
In an interview with CNBC-TV18, Rajiv Verma, CEO, HT Media says, in Q4, earnings before interest, taxes, depreciation and amortization (EBITDA) margin was at 25%. For the year, he says, EBITDA margin was at 20%. “We hope to be able to maintain this kind of margin structure, if not improve by a percentage point or so,” he adds.