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Business Scenario
As per IMF, Asia will grow at 7.1% and world economy could grow at 6.8% this year. As per Finance Minister the Indian economy is likely to pick up full steam and clock a growth of about 8.5% in FY 11 as against 7.2% in the pervious year. The real challenge will be to curb the rising inflation along with the desired growth.
Media & Entertainment
Industry (M & E Industry)
The M & E Industry is expected to achieve a decent CAGR growth of 13% over next 5 years. Print media is expected to grow at 9%, Radio at 16% and Internet by 30% over next 5 years. Print will continue to be at 2nd slot after Television and will reach at Rs. 269 billion in 2014. Over all Print industry will register a CAGR growth of 9% for next 5 years. For the same period Print Advertisement will register a CAGR growth of 11.6% and the circulation revenue will be at 5% CAGR. (Source: FICCI Frames 2010).
Management Analysis
Standalone financials
As the Publishing business of the company has been transferred to Midday Infomedia Limited w.e.f July 1, 2008, there are no operating revenues and expenses for the reporting quarter. The quarter numbers represent income & expense from financial and investment activities.
Other income of Rs 84 Lakh mainly represents interest income on loan given to Radio Mid-Day West (India) Limited it was Rs 157 Lakh during last year for the same quarter under review.
Other Administrative expenses are negative at Rs 51 Lakh due to reversal of ESOP cost during the quarter under review and it was negative Rs 79 Lakh during Q4 FY 2008-09
The interest and finance cost for the quarter is at Rs 29 Lakh as against Rs 16 Lakh during Q4 FY 2008-09.
As a result, the Company has recorded a Net Profit after Tax of Rs 99 Lakh for Q4 FY 2009-10 as against Rs 142 Lakh during Last year for the same quarter.
Group
Financials
Q4 Results Analysis
At Group level, the Net Income from the operations is at Rs 3,174 Lakh as against Rs 2,693 Lakh of Q4 FY 2008-09 registering a growth of 18%.
The Cost of Printing has shown a substantially decline of 57% from Rs 1,334 Lakh in Q4 FY 2008-09 to Rs 569 Lakh in Q4 FY 2009-10 mainly due to lower newsprint prices.
Other Expenditures are at Rs 303 Lakh in Q4 FY 2009-10 as compared to Rs 193 Lakh in Q4 FY 2008-09.
As a result, Gross Profit has shown an improvement of 97% in the current quarter under review and is at Rs 2,302 as compared to Rs 1,166 Lakh in Q4 FY 2008-09.
General Administrative expenses have shown a decreased of 10% from Rs 1,753 Lakh in Q4 FY 2008-09 to Rs 1,585 Lakh in Q4 FY 2009-10 due to rationalisation of fixed cost across both the business segments.
Selling & Distribution expenses are lower by 23% from Rs 312 Lakh in Q4 FY 2008-09 to Rs 240 Lakh in Q4 FY 2009-10; mainly due to lower advertising spend in Radio segment.
Depreciation (including amortisation) cost has remained flat at Rs 355 Lakh in Q4 FY 2009-10 as compared to Rs 352 Lakh in Q4 FY 2008-09.
As a result, the Operating Profit before Interest and Taxes has turned positive and is at Rs 123 Lakh in the current quarter as compared to an Operating Loss before Interest and Tax of Rs 1,251 Lakh for Q4 FY 2008-09. Operating Profitability has shown a significant improvement of 110% in the quarter under review as compared to the Q4 FY 2008-09.
Interest and Finance charges are reduced by 14% at Rs 242 Lakh in Q4 FY 2009-10 as compared to Rs 282 Lakh in Q4 FY 2008-09 due to the lower debt exposure.
In the current quarter, the group has recorded Other Income of Rs 33 Lakh as compared to Rs 9 Lakh in Q4 FY 2008-09.
There are no extraordinary items in the current quarter as against Rs 1 Lakh in Q4 FY 2008-09.
Loss after tax and extra ordinary items is at Rs 139 Lakh as compared to a loss of Rs 992 Lakh in the corresponding quarter in FY 2008-09.
Snap short of Annual Results
In FY 2009-10 Group level revenues are down by 4% at Rs 12,492 Lakh as compared to Rs 12,996 Lakh in FY 2008-09.
Net Loss at Group Level is down by 90% from Rs 4,011 Lakh to Rs 393 Lakh as compared to FY 2008-09
Segment
Performance:
Group has two business segments viz. Radio and Publishing
Publishing
Segment:
Q4 Results Snap Short
Revenues have registered a growth of 13% from Rs 2,114 Lakh in Q4 of FY 2008-09 to Rs 2,393 Lakh mainly due to higher advertising revenue.
Profit before Interest & Tax has increased by 146% and is at Rs 341 Lakh as against a loss of Rs 740 Lakh in Q4 FY 2008-09.
Snap short of Annual Results
In FY 2009-10 Revenues are down by 7% and are at Rs 9,485 Lakh as compared to Rs. 10,196 Lakh in FY 2008-09.
Profit before interest & tax has turned positive and improved by 229% in FY 2009-10 and is at Rs 1,686 Lakh as compared to a negative Profit before interest & tax of Rs 1,307 Lakh in FY 2008-09.
Radio Segment
Q4 Results Snap Short
Revenues are up by 36% from Rs 580 Lakh in Q4 of FY 2008-09 to Rs 791 Lakh in current quarter.
Loss before interest and tax for Q4 FY 2009-10 is at Rs 299 Lakh as against Rs 596 Lakh in Q4 FY 2008-09.
Snap short of Annual Results
Revenues for FY 2009-10 are at Rs 3,031 Lakh as compared to Rs 2,803 Lakh in FY 2008-09 shown an increase of 8%.
Loss before interest and tax for year ended FY 2009-10 is at Rs 1,327 Lakh as against Rs 1,613 Lakh for the same period in FY 2008-09 registering and improvement of 18%
Key milestones achieved:
- Group PAT turned Positive in dull advertising market is at Rs. 65 Lakh as against Loss of Rs. 3,449 Lakh
- MiD DAY launched QR Code – First Indian Print Brand to launch this technology
- Awards and Recognition
MiD DAY
- Won “Silver” at the Indian Digital Media Awards 2010 Category: Best News Site of the Year.
- Bagged the highest number of Awards for Marketing Campaigns (6) across the world at the prestigious INMA (International News Media Marketing Association) Awards 2010
- MiD DAY is recognized as the No.1 Innovative Brand- Pitch Survey
Radio One
- As per Media Brand Barometer Study Radio One is the No.1 Radio Brand and No.7 among the top 50 media brands
- Radio One is recognized as Top Favorite Radio station among Media Planners and Buyers – Pitch survey
Going Forward
Publishing
The Board of Directors has approved the merger of its publishing business with Jagran Prakashan Limited. The Board of Directors of both the companies has passed the scheme of arrangement to demerg the publishing business and transfers it to Jagaran Prakashan Limited. For Demerged publication business shareholders of the company will receive 2 shares of Jagaran Prakashan Limited for every 7 shares held on the record date.
The focus would be to take all the statutory approvals in the coming months.
Radio
To increase the listernership and to generate revenues will continue to remain as priority area for the Radio business along with constant focus on keeping cost under control. |
