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14
On HT Media's performance in FY 12
Shri Rajiv Verma, CEO
It's no secret that the global economy is experiencing the
worst downturn in recent history. The Indian markets have
been hit hard by a combination of global uncertainty and
an ambiguous internal regulatory environment. Our GDP
growth of 6.5 percent is the lowest in the last nine years,
reflecting the extent of how difficult the past year has been
for various constituents and sectors of our economy.
Revenue growth has been severely impacted by a drop in
business investment and consumer demand. Profitability
took a significant hit due to the spiraling cost of inputs,
including that of borrowing, and the steep appreciation of
the US dollar. These are the hard truths of the world today.
The facts that we cannot change, we must accept. We are
constantly striving to find, create, and capitalize on
opportunities, in spite of the industry slowdown.
In spite of a tough global and national economic
environment, the Company has successfully posted a
commendable 15 percent growth. Advertising revenues
are up by 11 percent, circulation revenues by 8 percent,
digital revenues by 38 percent and radio & entertainment
revenues by 6 percent, suggesting the underlying strengths
of our businesses across the board. Our net profits,
however, did record a contraction of 9 percent during the
year. We have demonstrated extremely prudent cost and
fiscal management and the fall in net profits is a result of
the steep escalation in input costs and scaling up of current
operations, which will serve to be engines for our future
growth. The Company is successfully preparing for future
while consolidating its footprint today. We have
successfully managed to restrict the constriction of net
profits to an extremely manageable level when compared
to our peers in the media industry.
We have continued investing in future growth engines over
the last 5-6 years and our ministration are beginning to
reap results. I can also affirm that we find ourselves in a
relatively stable financial condition based upon the
strength of our balance sheet. We will continue to build for
the future through innovation, fostering talent and prudent
financial decision-making.
On operational high points for the year
The story at HT Media has been one of sowing and reaping
growth simultaneously. At one end, we continue the
optimal monetization of our mature businesses, brands and
markets. Yet at the other, we consistently invest in new,
nascent, and young businesses, brands and markets. FY 12
has been a shining example of the success of our strategy in
the face of severe challenges.
Readership gains all around
When we compare the IRS Q1 2012 results with the
IRS Q1 2011 we can clearly estimate the annual readership
growth recorded by HT Media Limited’s publications during
calendar year 2011. Hindustan Times has recorded a
3 percent growth in national readership which has surged
to 3.8 million readers. It has retained its leadership position
in Delhi & NCR for the ninth consecutive times. In Mumbai,
HT remained the fastest growing broadsheet English daily
where its readership increased to 7.91 Lac, recording a
year-on-year growth of 15 percent. More than 5.5 Lac
readers of Hindustan Times are exclusive in Mumbai, which
means they are not reached by the competition. Hindustan
continues to consolidate its position with a readership of
38.5 million readers (IRS Q1 2012 TR). Hindustan maintains
its leadership position in Bihar & Jharkhand with handsome
gains. In addition, it has emerged as the fastest growing
daily in Uttar Pradesh & Uttarakhand with a readership
growth of 11.7 percent year-on-year. It continues to be
second largest read Hindi daily in Delhi & NCR with a