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Tag: Midday

  • Q3-2015: Jagran Prakashan y-o-y revenue up 3.6 per cent; Radio City all numbers up

    Q3-2015: Jagran Prakashan y-o-y revenue up 3.6 per cent; Radio City all numbers up

    BENGALURU: Indian publishing group Jagran Prakashan Limited (JPL) recently signed a share purchase agreement subject to regulatory approvals for 100 per cent acquisition of Music Broadcast Private Limited (MBPL, Radio City) through an all cash deal that JPL says will get it into the high growth and profitable radio segment

     

    The company reported a 3.6 per cent y-o-y increase in revenue in Q3-2015 (current quarter, quarter ended 31 December, 2015) to Rs 470.46 crore from Rs 453.9 crore in Q3-2014 and 7.8 per cent more than the Rs 436.3 crore in trailing quarter Q2-2015. Profit after Tax (PAT) for the current quarter fell slightly by 1.5 per cent to Rs 66.7 crore (14.2 per cent of TIO) as compared to the Rs 67.7 crore reported for Q3-2014.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Radio City’s all numbers in Q3-2015 up

     

    As per JPL’s investor presentation, Radio City reported 38 per cent y-o-y growth in revenue to Rs 59.7 crore in the current quarter as compared to the Rs 42.5 crore in Q3-2014. Radio City’s expense was up 21 per cent in the current quarter at Rs 37.1 crore as compared to the Rs 30.5 crore in the corresponding quarter of last fiscal.

     

    Radio City reported more than double the PAT (up 2.49 times) in Q3-2015 at Rs 17.1 crore (29.1 per cent of Radio City’s revenue) as compared to the Rs 6.9 crore (16.1 per cent of Radio City’s revenue) in Q3-2014. Cash profit almost doubled (up 1.99 times) in Q3-2015 at Rs 21 crore (35.8 per cent of Radio City’s revenue) as compared to the Rs 10.6 crore (24.8 per cent of Radio City’s revenue) in the corresponding year ago quarter.

     

    Let’s look at the other Q3-2015 numbers reported by JPL:

     

    JPL’s advertising revenue in Q3-2015 at Rs 388.4 crore (71.9 per cent of revenue) was 5.6 per cent more than Rs 320.4 crore (70.6 per cent of revenue) in Q3-2014 and 10.3 per cent more than the Rs 306.9 crore (70.3 per cent of revenue) in Q2-2015.

     

    The company’s circulation revenue went up 8.2 per cent in Q3-2015 to Rs 100 crore (21.3 per cent of revenue) as compared to the Rs 92.4 crore (20.4 per cent of revenue) in Q3-2014 and was 3.6 per cent more than the Rs 96.5 crore (22.1 per cent of revenue) in Q2-2015.

     

    JPL’s major revenue comes from its publication Dainik Jagran (DJ). DJ reported 8.6 per cent higher revenue of Rs 361.12 crore in Q3-2015, as compared to the Rs 332.53 crore in Q3-2014 and 7.5 per cent more than the Rs 336 crore in Q2-2015. It has reported operating margin in Q3-2015 for DJ at Rs 129.12 crore, 18.9 per cent more than the Rs 108.62 crore in the corresponding quarter of last year and 17.1 per cent more than the Rs 336 crore in the immediate trailing quarter.

     

    JPL’s total expenditure in Q3-2015 was down 0.2 per cent at Rs 364.53 crores (77.5 per cent of JPL revenue) as compared to the Rs 365.09 crore (80.3 per cent of JPL revenue) in Q3-2014 but 10.6 per cent more than the Rs 329.5 crore (75.5 per cent of JPL revenue) in Q2-2015.

     

    A major component of total expenditure is raw materials consumption (RMC). JPL’s RMC in the current quarter fell 2.6 per cent to Rs 158.5 crore (33.7 per cent of JPL revenue) from Rs 162.7 crore (35.8 per cent of JPL revenue) in Q3-2014 and was 1.1 per cent lower than the Rs 160.3 crore (36.7 per cent of JPL revenue) in the previous quarter.

     

    Operating profit for the current quarter at Rs 132.5 crore (28.2 per cent of JPL revenue) was 20.6 per cent more than the Rs 109.9 crore (24.2 per cent of JPL revenue) in the corresponding year ago quarter and was 24.8 per cent more than the Rs 106.2 crore (24.3 per cent of JPL revenue) in Q2-2015.

     

    The group is engaged primarily in printing and publication of newspaper and magazines in India. The other activities of the company comprise outdoor advertising, event management services and digital business. Among JPL’s subsidiaries include Midday Infomedia Limited, Suvi Info Management (Indore) Private Limited, Nai Dunia Media Limited, Shabda-Shikar Prakashan- Firm, Leet OOH Media Private Limited and X-pert Publicity Private Limited.

  • Q1-2015: Jagran Prakashan reports q-o-q revenue up 4.7 per cent, flat PAT

    Q1-2015: Jagran Prakashan reports q-o-q revenue up 4.7 per cent, flat PAT

    BENGALURU: Indian publishing group Jagran Prakashan Limited (JPL) reported a 4.7 per cent q-o-q increase in revenue in Q1-2015 to Rs 440.3 crore from Rs 420.7 crore in Q4-2014 and 6.8 per cent more than the Rs 412.2 crore in the year ago quarter Q1-2014.

     

    Note: 100,00,000=100 lakh = 1 crore = 10 million

     

    JPL reported almost flat PAT (lower by 0.2 per cent) at Rs 55.1 crore (12.5 per cent of revenue) in Q1-2015 as compared to the Rs 55.2 crore (13.1 per cent of revenue) in Q4-2014 and 4.7 per cent lower than the Rs 57.8 crore (14 per cent of revenue) in Q1-2014.

     

    Let us look at the other Q1-2015 numbers reported by JPL

     

    JPL’s advertising revenue in Q1-2015 at Rs 308.9 crore (70.2 per cent of revenue) was 5.9 per cent more than the Rs 291.7 crore (69.3 per cent of revenue) in Q4-2014 and 6.6 per cent more than the Rs 289.8 crore (70.3 per cent of revenue) in Q1-2014.

     

    The company’s circulation revenue went up 7.9 per cent in Q1-2015 to Rs 95.7 crore (21.7 per cent of revenue) as compared to the Rs 88.7 crore (21.1 per cent of revenue) in Q4-2014 and 11.9 per cent more than the Rs 85.5 crore (20.7 per cent of revenue) in Q1-2014.

     

    JPL’s major revenue comes from its publication Dainik Jagran (DJ). DJ reported revenue of Rs 335.9 crore in Q1-2015, as compared to the Rs 310.3 crore in Q4-2014 and Rs.312.7 crore in Q1-2014. It has reported operating margin of DJ at 34 per cent for the current quarter. The company reported Digital Advertising Revenue Growth of 57 per cent.

     

    JPL reported total expense of Rs 357.05 crore (81.1 per cent of revenue) in Q1-2015, which was 1.9 per cent lower than the Rs 363.79 crore (86.5 per cent of revenue) in Q4-2014and 8.7 per cent more than Rs 328.38 crore (79.7 per cent of revenue) in Q1-2014. A major component of JPL’s total expenditure is raw materials. The company spent Rs 162.7 crore (37 per cent of revenue) in Q1-2015 towards raw materials, which was 3.6 per cent more than the Rs 157.1 crore (37.3 per cent of revenue) in Q4-2014 and 14.9 per cent more than the Rs 141.6 crore (34.4 per cent of revenue) in Q1-2014.

     

    Sharing its strategy the company says that it plans to leverage credible news content of Jagran to strengthen digital presence and capitalising on the growing mobile traffic, building video content. The company intends to focus on user generated content. JPL says that it wants to increase its foot hold in non Jagran markets. It also plans on covering all major events and will focus on content acquisition, distribution and alliances.

     

    The group is engaged primarily in printing and publication of newspaper and magazines in India. The other activities of the Company comprise outdoor advertising, event management services and digital business. Among JPL’s subsidiaries include Midday Infomedia Limited, Suvi Info Management (Indore) Private Limited, Nai Dunia Media Limited, Shabda-Shikar Prakashan- Firm, Leet OOH Media Private Limited and X-pert Publicity Private Limited.

     

    Click here to read the result update presentation

    Click here to read the standalone financial report

  • Q3-2014: Higher Ad & circulation revenue, forex gain ramp up Jagran Prakashan’s profit numbers

    Q3-2014: Higher Ad & circulation revenue, forex gain ramp up Jagran Prakashan’s profit numbers

    BENGALURU: Indian media and communications group Jagran Prakashan (JPL) reported growth in all numbers, including the bottom line, which propped/ramped up in advertising and circulation revenue during Q3-2014.

     

    JPL reported a 12.71 per cent jump in standalone operating revenue during Q3-2014 to Rs 427.44 crore as compared to the Rs 379.24 crore during the corresponding quarter of last year and 10.92 per cent higher than the Rs 385.35 crore during Q2-2014. The company reported a 6.81 per cent growth in PAT during Q3-2014 to Rs 68.57 crore from Rs 64.2 crore y-o-y.

     

    The company reported growth in standalone advertisement revenue by 14.71 per cent during Q3-2014 to Rs 300.04 crore from Rs 261.56 crore in Q3-2013. Circulation revenue rose by 13.91 per cent y-o-y to Rs 86.11 crore during Q3-2014 from Rs 75.94 crore.

     

    Higher cost of raw materials consumed dampened the bottom line of JPL. During Q3-2014, JPL reported a consolidated foreign exchange gain of Rs 2.41 crore as compared to a loss of Rs 5.85 crore during Q3-2013.

     

    Let us look at the other figures for Q3-2014 reported by JPL

     

    JPL has three revenue streams: the flagship publication Dainik Jagran, other publications such as Naidunia, Midday, etc., and also outdoor, events, mobile solutions, online, etc., with Dainik Jagran being the major contributor on all fronts.

     

    On a consolidated basis, JPL’s operating revenue at Rs 455.20 crore grew 11.05 per cent in Q3-2014 from Rs 409.09 crore in Q3-2013. Consolidated advertising revenue during Q3-2014 grew by 12.18 per cent to Rs 320.42 crore from Rs 285.64 crore in Q3-2013. Consolidated circulation revenue grew by 13.72 per cent to Rs 93.68 crore in Q3-2014 from Rs 82.38 crore in Q3-2013.

     

    Consolidated PAT in Q3-2014 grew 7.76 per cent to Rs 67.67 crore in Q3-2014 from Rs 62.8 crore in Q3-2013.

     

    JPL reported a growth of 11.29 per cent of operating revenue from Dainik Jagran in Q3-2014 to Rs 332.53 crore from Rs 298.79 crore in Q3-2013 and a 9.96 per cent growth from the immediate trailing quarter’s revenue of Rs 302.42 crore. Dainik Jagran’s operating profit in Q3-2014 grew 13.89 per cent to Rs 108.62 crore from Rs 95.37 crore in Q3-2013 and improved by 9.03 per cent from the Rs 99.62 crore reported in Q2-2014.

     

    Operating revenue from other publications grew by 15.15 per cent to Rs 90.23 crore in Q3-2014 from Rs 78.36 crore in Q3-2013 and grew by 9.56 per cent from Rs 80.67 crore in the preceding quarter. Operating profit from this stream was a positive Rs 1.17 crore as compared to the operating loss of Rs (-3.58) crore in Q3-2013 and the loss of Rs (-6.83) crore in Q2-2014.

     

    Outdoor and events operating revenue at Rs 32.89 crore during Q3-2014 showed a growth of 3.85 per cent as compared to the Rs 31.67 per cent in Q3-2013 and a growth of 10.04 per cent as compared to the Rs 29.89 crore in Q2-2014. This stream reported 27.19 per cent fall in operating profit to Rs 0.83 crore in Q3-2014 as compared to the Rs 1.14 crore in Q3-2013, but was almost quadruple (3.95 times) the Rs 0.21 crores during Q2-2014.

     

    JPL reported a 22.76 per cent increase in total expense to Rs 336.83 crore in Q3-2014 as compared to the Rs 274.37 crore in Q3-2013 and 8.4 per cent more than the Rs 311.76 crore in 2-2014. Cost of raw materials consumed went up a whopping 29.73 per cent in Q3-2014 to Rs 152.88 crore as compared to the Rs 117.84 crore in Q3-2013 and was higher by 10.49 per cent as compared to the Rs 138.36 crore in Q2-2014. As mentioned above, the higher cost of raw materials consumed dampened the profits reported by the company.

     

    Depreciation and amortisation increased in Q2-2014 by 10.88 per cent to Rs 18.38 crore from Rs 16.57 crore in Q3-2013 and increased by 5.10 per cent as compared to the 17.49 crore for Q2-2014. The company reported 16.36 per cent higher ‘Other Expense’ for Q3-2014 at Rs 112.56 crore as compared to the Rs 96.74 crore in Q3-2013 and 8.47 per cent more than the Rs 103.79 crore in Q2-2014.

     

    JPL Chairman and Managing Director Mahendra Mohan Gupta said, “The highlights of the quarter are the growth of advertising revenue and further improvement in per copy realisation. This has made it possible for the company to report the highest ever operating profit in spite of the steep hike in the cost of newsprint cost. The increase in cover price has not impacted the planned growth of circulation and all the publications including Naidunia registered a healthy growth.”

     

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  • ‘Ad pie shifting towards Indian language newspapers’ : Dainik Jagran Shailesh Gupta

    ‘Ad pie shifting towards Indian language newspapers’ : Dainik Jagran Shailesh Gupta

    Shailesh Gupta, director of Dainik Jagran, has been in the print media industry for more than 18 years. He was recently elected chairman of the Audit Bureau of Circulations (ABC), which provides audited newspaper sales figures every six months, replacing Madison World CEO Sam Balsara. Gupta is also a member of The Indian Newspaper Society (INS).

     

    Gupta has been a director at Jagran since 1994 driving the newspaper group‘s advertisement and marketing functions.

     

    In conversation with Indiantelevision.com, Gupta says Tier 2 and 3 towns are now the new volume drivers for newspapers and we now see the advertising pie shift in proportionate terms in favour of Indian language newspapers.

    Excerpts:

     

    As there is a shift from newspapers to online, the reading habits are changing. What does this mean for the newspapers?
    As a group, we already have a presence in Mumbai with MidDay, MidDay Gujarati,Inquilab and City Plus. There‘s a sizeable presence that we have in the city, and all these brands are growing and doing well. The decision on Dainik Jagran entering Mumbai in the future would depend upon the market forces and many other considerations.

     

    Any plan of expanding in southern market through an acquisition?
    We currently have a presence in South through City Plus in Bangalore and Hyderabad. Once again the question of acquisition would depend upon the opportunity in question and the prevalent market environment. It would not be fair to conjecture on that as of now.

     

    The difficult economic conditions have continued in 2012-2013. How do you see the next six months?
    Yes, it‘s been a difficult year in terms of advertising revenue growth. The market sentiment is muted, but there is growth. With the policy level changes taking place, and the festive season coming up, the outlook is more positive for the rest of the year.

     

    Last year competition drove cover prices down. Do you see the pressure continuing?
    In our markets, we‘ve steadied and increased cover prices instead of reducing. Circulation growth too has happened.

     

    ‘Our digital portfolio consists of over 12 sites across genres and with over 8.5 million unique visitors, it‘s one of the leaders in the space. And this is just the beginning‘

     

    The advertisers in Hindi and other Indian language newspapers have still not fully recognised the improved demography of their readership and are not prepared to give advertisement rates that English newspapers command. Why?
    The fact that the market is rapidly shifting to the Tier 2 and Tier 3 towns is a reality. Marketers have increasingly started looking at these markets very seriously for both volumes and growth. From a marketer‘s point of view, it‘s a market that‘s most important, and if the market is sizeable enough, investment flow is commensurate. Historically, the metros provided small geographies with a high concentration of target audiences and the resultant sales volumes. English dailies dominated these metro geographies and at times earned a premium versus the other languages. However, with Tier 2 and 3 towns now being the new volume drivers, the situation has changed completely and we now see the advertising pie shift in proportionate terms.
     

    Is it possible that Hindi language newspaper publishers will agree not to lower their cover price till ad rates are on par with English newspapers?
    The business environment for English in metros and Hindi papers differ significantly as far as the cost structures are concerned. An English paper sells for example at a price of Rs 4 in the metro markets with an average pagination of 40 pages, and the cost structures of the metro notwithstanding. Contrast that with a Hindi newspaper, with an average pagination of 22-24 pages and priced at Rs 3, with a very different cost structure. The differences are all too apparent. The factors behind cover price determination are very different from the factors behind ad rate pricing. Having said that, the model of the Indian newspaper industry is based fundamentally on lower cover prices, high circulation and a higher dependence on ad revenues – and this is true across the board for all languages including English. At the same time, Indian language newspapers have a sizeable part of the revenue coming in from the local markets, which normally are not greatly impacted by macro-economic changes – either positive or negative. Ad rates are a function of position in the market, importance of the market, the prevailing competitive environment and the individual cost structures apart from a lot of other factors.

     

    What helped Jagran to beat the industry trend and grow at a faster pace?
    We‘ve always believed in realistic planning and extremely focused implementation – these probably are the two central pillars of our work ethic which have yielded results. Other key factors are quick response times, empowered teams, the ability to provide customised solutions, and above all transparency in our working. Innovation is another key driving factor. We study ongoing trends in the market, anticipate a scenario and are able to innovate accordingly.

     

    What are the plans for Dainik Jagran‘s digital platform? What kind of investments are you planning to make in the digital space?
    We‘ve been very serious about our digital delivery platforms and had taken a lead in investing in this platform as early as year 2000. We have a dedicated digital team that‘s working to distribute the Jagran content across multiple digital platforms and devices. Our digital portfolio consists of over 12 sites across genres and with over 8.5 million unique visitors, it‘s one of the leaders in the space. And this is just the beginning.

     

    Last year Mid Day and Mid Day Gujarati did well. What is the trend in the current year?
    MidDay is on a growth path – both on the circulation and readership level as well as at the product level. Over the last 3 years, MidDay has seen a good growth – this has come on the back of an improved product. Same goes for MidDay Gujarati – it‘s now the No.2 Gujarati paper in Mumbai and has grown on all counts.

     

    Last year you were not able to meet the ad revenue target, how do you see things this year?
    We‘ve been realistic with our planning and our expectations. We have a plan for the ongoing year, and we‘re progressing as per the plan.

     

    Which medium are you banking upon to promote Jagran?
    The biggest platform that we use to promote Jagran is our own existing platform – there‘s no bigger platform that reaches out to almost 70 mn readers and an 8.5mn+ unique digital audience. Add to this our OOH reach pan India. Additionally, we use Radio, TV and some targeted trade and business mediums.

     

    What is your agenda as the head of Audit Bureau of Circulation?
    The priority at ABC is to bring about a more transparent system, evolve the ABC as a currency and make it a powerful decision making tool for the industry.

     

    What are the drawbacks that ABC faces?
    There are no drawbacks as such. But clearly we will need to march ahead, look at the changes in the environment, and be able to evolve the currency to reflect the changes. For this, we will need to have all publishers on the same page. It will be important to consider suggestions and opinions of all stakeholders to create a robust and transparent currency – one that truly reflects what‘s happening in the marketplace.

     

    Will you increase the frequency of audit of circulation figures from six months to quarterly?
    This again is a decision that needs to be taken by the body in consensus with all the stakeholders. As I said, the first priority above all else is to evolve the ABC as a currency and make it a powerful decision making tool for the industry.