Good evening, ladies and gentlemen. This is Aaditya Mulani from the HT Media Group. I would like to welcome you all to our Quarter 2 Financial Year 2025-26 earnings webinar. As a reminder, all the participants will be in listen-only mode.
When we are through with the presentation, there will be an opportunity for you to ask questions. I now hand over to Ms. Anna Abraham, HT Media Group's Deputy CFO, Chief Financial Officer, HMVL, and Head Investor Relations. Thank you, and over to you, Anna.
Thank you, Aaditya. Good evening, everyone. Welcome you all to the earnings webinar for the second quarter results of financial year 2025-26. On the call today we have Mr. Piyush Gupta, Group CFO, Mr. Parvesh Bajan, Head Financial Controllership and Taxation, and members of our investor relations team. The financial results of Hindustan Media Ventures Limited were announced yesterday, and those of HT Media were released earlier this evening.
We will be discussing these results during the course of the call. Our discussion today will follow the presentation slides, which along with the financial statements are available on the stock exchanges and in the investor relations sections of our respective websites. As we go through this call, kindly keep in mind the cautionary statement on the slide. As per our usual practice, we would not be providing any specified guidance on revenue or earnings today.
This slide features a comment from our Chairperson on the company's performance on this instituted fiscal quarter, and I quote, "Building on the performance of the first quarter of the financial year, we are happy to bring you another quarter of solid performance with growth in both operating revenue and profitability on an annual and a very sequential base. Our overall revenue for the print business grew both annually and sequentially.
This growth, combined with our focus on costs, translates into a further expansion of operating margins. The radio business saw a sequential improvement in revenue and segment profitability this quarter. This came even as the core radio proposition across the industry remains under duress. We continue to deploy focused efforts to improve the business by enhancing our varied offerings within the segment.
The digital business too has posted another set of strong revenue numbers, demonstrating consistent growth on both an annual and sequential base. As we continue to scale this business, margins remain suppressed in the near term, which is aligned with our growth-oriented strategy. As we navigate the emerging media landscape, we are strategically adapting across all business verticals. We are driving our digital business through targeted content initiatives.
Simultaneously, we are reinforcing the value of our core print portfolio while sharpening the focus of our radio business on integrated immersive audience experience. Your continued confidence in our vision is fundamental to our progress. We remain unwavering in our commitment to inform, educate, and entertain our large and diverse audience." End of quote. Slide 4 gives the agenda for the day.
We will start with a discussion on the consolidated performance, followed by a discussion on device performance, after which we will open the floor for question and answer. With this, I hand over the call to Mr. Piyush Gupta, Group CFO.
Thanks, Anna. Thank you, Aaditya. Good evening, ladies and gentlemen. Thank you very much for taking the time to attend our Q2 FY 2026 earnings call, slightly later in the evening than usual. I would like to draw your attention to the screen, where we have a consolidated financial summary. As you can see, there is an improvement in EBITDA margins and there is a robust cash position.
I will just quickly take you through the numbers. If you look at a YOY performance, you can see that the total revenue is up 4% at INR 499 crore. EBITDA has a good improvement at 33% coming in at INR 44 crore, with the EBITDA margin expanding by 200 basis points at 9%. Our PAT margin is about a breakeven or negative 1% and net cash position remains healthy at INR 947 crore.
If we look at sequentially, again, there is a growth of 11% with revenue at INR 451 crore in the previous quarter and on a net cash basis, again, it was INR 936 crore in the previous quarter. Moving on to the business unit performance.
Let us go into print first. If you look at print, our ad revenues have grown by 10%, which is at INR 278 crore versus INR 252 crore same quarter last year with the total operating revenue coming in at about 7% growth.
Our operating EBITDA at INR 40 crore is nearly double of what it was the same period last year with the margins expanding by 500 basis points. Sequentially again, the growth is at 9% over the immediately preceding quarter.
If you break down the print business between English and Hindi, for the second quarter we can see an 8% growth in the English revenues coming at INR 154 crore. If you look at sequentially, it is a 10% growth. On a circulation revenue, there is a marginal decline of 15%, but sequentially, there is a growth of 20%.
This is in sync with our circulation strategy whereby we are tapping and making our copies more robust in various markets and hence some pricing actions have been taken. This is all a part of our strategy. A quick look at the Hindi business. As we can see there is a 13% growth on a YOY basis and 7% on a quarterly basis. On circulation revenue again the numbers are flat both on YOY and QOQ basis. Radio.
Radio, as I've been speaking various calls, remains a bit under stress. We are trying to do our level best. There are various strategies in play. But the revenue came in at INR 22 crores, which is marginally lower than the same period last year. However, versus the immediately preceding quarter, there's a growth of 4%.
On our operating EBITDA, it was a negative 4 crores. Versus the immediately preceding quarter, there's a growth of 43%. A quick look at digital. Just to remind, this is not the digital business, this is the OTTplay business.
As you can see, the revenues have grown 10%, operating revenue has grown 10%, and operating EBITDA is at a negative 30 crores. On a sequential basis, the growth is at about 8%. With that, we come to the end of the presentation. I'll pass it on to my colleague.
Thank you, Piyush. We will now begin the Q&A session. You can click on the Raise Hand option, which will enable the moderator to unmute you for posing your query. Please introduce yourself before posing your query and restrict to a maximum of 2-3 questions per participant so that we may be able to address questions from all participants.
Also, as is the ambit of this call, please be mindful to pose questions pertaining to the listed entity, HT Media Limited, and those within its consolidated structure. We will wait for a few moments while the question queue assembles. The first question is from the line of Mr. Ranga Prasad. Please unmute yourself and ask your question. Mr. Prasad, you'll have to unmute yourself. Yes.
Am I unmuted now?
Yes, you are, sir.
Yes. Good evening, everyone. I have two questions. The first one relates to the standalone exceptional item loss of INR 57.76 crore for HT Media. Could you please elaborate as to why this loss has come about? The second one is pertaining to the high loss in that digital segment.
For some time it looked like the digital losses were coming down, but once again, the trend seems to have gone the other way with digital losses increasing to INR 30 crore from INR 21.7 crore. Could you please throw some light on this as to why the digital losses are increasing?
Yeah. Good evening, Ranga Prasad. I will just ask my colleague, Anna, to repeat the question. Anna, please.
Yeah. Are we audible?
Yes.
Okay, so taking the first question on the standalone result of the impairment, this is linked to the investment that is held in three entities actually. The two are radio entities of Next Radio Limited and Next Mediaworks Limited. The third is on account of our investment in Mosaic Digital business. So those are the three impairments which have happened.
Linked to a certain scenario, in the past, Next Radio Limited, for the operational requirements of Next Mediaworks Limited, had lent some money. Now, consequent to the operations being at what it is, it was evaluated that the money could not be returned, and therefore, there is an impairment taken on the debt position in this thing. Since NRL is also a subsidiary of HT Media Limited, there is a charge which is being taken in HTML books.
On account of Mosaic, there is a certain valuation of the business which was established vis-à-vis the extent of funding that has today happened, and therefore, there is a minor impairment that had to be taken on that. But the larger impairment is on account of radio, linked to the-
Thank you, Anna. Ranga Prasad, if I may just expand on this thing. I think 90% of this impairment that you are seeing in the standalone results of HT Media are consequent to the performance in our radio business.
Because that investment is tested for impairment at every balance sheet date, and September is a balance sheet time. Even 90% of this amount is being driven by that, and this is consequent to our radio performance, which obviously we have been at it, but right now we are facing a challenge. I hope that clarifies the question.
Yes, got you.
Yeah. Coming to the second part. Yes, there has been a, as we are scaling up revenue, the losses have also been reducing. However, in light with a certain unexpected scale-up that happened in OTT, which is good news for the business.
There is some cost which has come in the quarter where the benefits will actually start showing up in the next quarter. So there is a bit of a timing difference in terms of the revenue gone vis-à-vis the cost incurred, and that is why the losses are showing a little increase as of now. Otherwise, going forward, we should continue to see a drop in loss.
I can only hope that, in the coming years to come, our digital business will turn profitable and will contribute to the bottom line for our company. Thank you.
Thank you very much for your good wishes. We are at it. What I can assure you all, and this is primarily an OTTplay proposition, I think from a business point of view, the kind of subscription that we received in this quarter, consequent to various things including Cricket, et cetera, is very good from a business perspective. Of course, it's given rise to a slightly enhanced level of losses, but I think from a long-term perspective, this will all go well. Thank you very much for your good wishes. Thank you very much.
Thank you. The next call is from the line of Mr. Yash R. Please unmute yourself and ask your question.
Hi. Good evening.
Good evening.
My first question is with regards to the circulation revenue. I can see that there has been a sequential growth in English particularly, but year-on-year it has been down, right? That is by a huge number, like 15%. If I remember correctly, that was around 22% in Q1 in the previous quarter.
Yeah.
What are we doing about that, and what about the copies? You have mentioned that we have increased the cover price in a few regions, right? In a few markets.
Yeah.
But what about the circulation per se?
I will request my team to fill you on this, but let me just give you a slightly high-level perspective here.
Okay.
We are in the midst of recruiting more readers and hence, optimizing our circulation. When I say optimizing, I mean scaling up our circulation. But this we are not doing carte blanche. This we are doing market by market, looking at the market potential and the competition activity there.
Right where you have to ramp up circulation, somewhere you have to let go of pricing in the short term to get those circulations sticky for the long term, and that is what really it is. I would request my team to kind of just fill you in on the details on this one.
Okay.
Yash, to add on to what Piyush said, there is growth in copies both YOY and sequentially. However, there are certain pricing now. When you look at in English specifically, unlike in Hindi, the circulation revenue is a much smaller number in the proportion. Therefore, a 1 to gross change also translates to a 15%-22% in percentage terms.
But in absolute INR terms, you will see that it is only about a 2 crore variation on our English business portfolio that we are seeing. That is linked to when copies move, there is a combination of mix also when copies move from line to Line is where you pay by cover price versus subscription copies.
That mix also impacts pricing. Then there are, if any kind of pricing discounts is adopted or a gifting is adopted by the industry, that also impacts. Otherwise, copies have grown both sequentially and on a YOY basis.
Is that for both English and language as well?
That is correct.
What is the percentage-
We would not be able to share that.
particularly in English?
We would not be able to share that number. Both have grown.
But approximately?
Yeah.
Is it double digits? Is it single digits?
That is too competitively sensitive.
I just would like to.
Okay. Which are the verticals that have contributed to this ad growth, which is around 8%, right?
As was mentioned in our deck as well, mostly all commercial categories are fired. There has been festive ads coming early, and that has kind of helped in ensuring that all commercial categories are fired. This is true for both English and Hindi. In Hindi, there is growth in the government segment also.
Has the growth come in from the volume or has there been some play of pricing as well?
Both. There is volume growth and pricing growth for us.
Okay. One thing that I noted in the results is that the staff costs or the employee expenses have reduced sequentially in HMVL and in HT Content Studio as well versus previous quarter sequentially.
Yeah.
That would be on account of?
We have a certain variable component to all salaries. When subsequent to the variable components, because it is benchmarked to a certain parameter, there would be a provision which is carried in the year. Subsequent to payout, there will be a reversal if there is any change. The quarter 1 had some reversals and that is the reason why.
Quarter 1 had a reversal, but what about Q2 ?
Yes. Q1 had a reversal in salary and therefore Q 2 is not comparable.
No. In fact quarter 1 should be lesser, right?
There is a reversal in Q 2 which is impacting the comparison as a point, Yash.
Okay. There is a reversal in Q 2, not in Q1 .
Yeah.
Okay. What are the rates?
May we request you to please call back in queue for any follow-ups?
Sure. Thank you.
The next question is from the line of Mehul Parikh. Please unmute yourself and ask your question. Yes.
Yes. Can you hear me?
Yeah. We can hear you. How are you doing?
I'm fine. How are you all?
Very good, thank you.
Okay. I have two questions. One is that, are we actually seeing a significant reduction in our subscriber acquisitions for the digital business, OTTplay specifically? Because, are we seeing a substantial reduction compared to the past few quarters, or is it quite similar?
Mehul, can you repeat your question? The substantial reduction came through, but not clear what the reduction here.
No, the per-subscriber acquisition cost that we are spending to acquire our OTTplay customer-
Yes.
Are we seeing a significant reduction there or is it similar levels like the past quarters?
Yeah. Mehul, so let me take that. I think month of September, we have seen a significant reduction in the acquisition cost or CAC as it is called. Now whether it is structural, time will tell. But the good news is that we are adding more subscribers and some of them are sticky subscribers, so the renewal rates are also good.
Once you have a sizable base and you don't have to spend acquisition costs, then the economics absolutely work in your favor. The simple answer is yes, we saw a reduction in September on acquisition costs, and we got a lot of subscribers and the renewal rates are good. Now in the next quarter, we'll validate whether this is sustaining itself or they are.
Okay, great. Regarding the Hindi print revenue, is this quarter's profitability up because of the festival and the Bihar elections or is it a structural change?
Well, tough to say, but definitely those two things are playing a role here. The Bihar elections will definitely play a role and now that the Bihar elections, when you see the results of the next quarter when the code of conduct has come into being, it will play a negative role also.
Right.
But I think some part of this is structural, but we will have to see as we go into the next quarter. Right now, our best estimate is half and half.
Okay. Thank you very much.
Thank you.
Thank you. The next question is from the line of Mehul Pathak. Please unmute yourself and ask your question.
Good evening, Gupta, Anna. Congratulations on a fairly good set of numbers for the last quarter.
Thank you, Mehul. Thank you. Appreciate it.
I have two questions. The first is, Digicontent Limited reported a higher other expenses by 40%, HMVL by about 15%, 16%. When I look at all the numbers, these two are the numbers that hit your eye in terms of what has impacted the performance of those businesses.
The notes that are given at the end of the results are not showing what are these other expenses and why they are higher. While from a regulatory perspective, you need not perhaps put it as part of the notes of account. I would suggest that in terms of transparency and fairness, businesses should proactively give some statement on why these numbers are higher.
Yeah. Mehul, let me try to take that. First of all, I won't be answering the question on Digicontent Limited because this is a HT Media Group and Digicontent Limited is not consolidated into HT Media financials. Coming on to the HMVL and other expenses, as we've been discussing on the prior calls and I think with one of the earlier callers I discussed the OTTplay.
Most of the expenses which are coming slightly higher are consequent to our investment in OTTplay. As I was just saying, the readings on OTTplay subscription base, the renewal rates, and the CACs for September have been very good, exceptionally good I would say. Some of these expenses are getting consolidated into those lines. But generally these are OTTplay expenses which are getting consolidated.
And though we are not required by law to put it into the notes to accounts, but you would appreciate that we've been religiously doing the earnings call and giving all the clarity and hence we are here. Whatever other questions, we'll be absolutely happy to put the same.
Clarity. OTT is getting expense in both HT Media as well as HMVL?
Yes. Mehul, OTT is a division of Hindustan Media Ventures Limited, and since Hindustan Media Ventures Limited is 75% owned by HT Media, it will get consolidated in HT Media as well.
Okay. So it is entirely therefore in HMVL only?
Well, I would say entirely, of course, the bulk of the part is coming from OTTplay. There will be other reasons. I gave you some bulk of the reasons.
Yes. That is for the increase in cost in Hindustan Media Ventures Limited.
Yeah, I know.
That is the 15%.
Yeah, but Hindustan Media Ventures is consolidated into HT Media Limited.
Okay. Thanks. Second question is that, when I look at all the three companies, though you specifically say Digicontent is not part of this discussion, but all three companies, there is no mutual fund holding at all for many years now.
Do you get approached by mutual fund investors or AUMs, and what do they seek from us? Is there any intent on the part of the management to be part of mutual fund portfolios? You see AUMs are growing, SIPs are growing, but our company is not part of that party at all. Some thoughts from you on this?
Well, I can only conjecture because I would like to comment on the investment thesis of various investment platforms, including mutual funds and AIFs and various other investors. But two or three things which I know for a fact. One, as far as traditional media is concerned, I do not think it is finding the same place that it was, let us say, about five, seven years ago.
So that might be one of the reasons. We are not talking about any sectoral funds here, which are dedicated to legacy media and stuff like that. On the market, why are investors not investing? I would not like to hazard a guess. I can tell you for a fact, we are happy to engage with any investors.
We actually have been engaging with a lot of investors on a periodic basis. We will absolutely love to have some of these fund houses, through their various schemes, invest in our stocks. But why they are not investing, I cannot with credibility answer that. Would we love investment?
In that case, Piyush, why are we not approaching them? As to what do they want from us?
We approach them. See, what did I just say? We do engage with them on a periodic basis, and we approach them. Now, what are their options, what is their investment thesis? I would not hazard a guess. We can conjecture, but I would like to hazard a guess on that one.
We ask them, then what they want from us, so that we get listed with them.
Of course. What makes you believe we don't? We engaged with them last quarter. Have we not done any-
Then I'm interested in knowing what are they telling you, and what are you doing and how are you working off that feedback?
Mehul, I don't think this call-
Yeah. I think we can take that offline. This is about discussing the earnings and the stock price performance, Mehul, I won't be able to comment too much here.
It has to do with earnings only, Piyush. No, it's okay.
Yeah. Maybe it is, but what I'm only saying is if it's earnings, we are already speaking to them about earnings. Now it's up to them whether they like that or not.
Thanks, Piyush. Thank you.
Thank you.
Thank you.
Ladies and gentlemen, a reminder to all participants that you may use the raise hand option on your screen if you have any further questions. The next question is from the line of Mr. Yash R. Please unmute yourself and ask your question.
Hi. I had this question, which I couldn't ask the last time. What about the newsprint prices? What have we anticipated to be in the coming quarters?
Well, Yash R, though we don't give a forward guidance, let me tell you this. At this point in time, on the commodity cycle of newsprint prices, I think we are in the lowest quartile what we have seen, because this is a technical commodity, as you know, which is not traded on any commodity exchange.
Yeah.
The prices that we are seeing, and I'm talking about the dollar prices, which effectively are the base for the rupee prices for domestic inventory, are on their lower sides. What I know for a fact is RISI's estimate, RISI, which publishes a forward-looking estimate, is talking about slightly rising prices, but not sharply, but very gradually.
At this point in time, we are discussing with various suppliers in terms of the forward buying that we have to do. Right now, we have sufficient inventory, but the trend is that we have bottomed out on the lower end of the prices, but we'll see as we go forward.
Okay. All right. Thank you.
Thank you.
Thank you.
Thank you all. With this, we come to the end of the Q&A session. If you have any further queries, please reach out to the investor relations team. Our contact details are given in the investor presentation and are also mentioned on our websites. I now hand over to Piyush for closing remarks.
Thank you, friends, for making the time to join our earnings call. I really appreciate that. As you can see, we have got a good set of numbers. We will always strive to bring in the best performance and the best numbers. At this point in time, what looks like that we will be able to repeat the performance and look forward to seeing you in the next quarter's call. With that, thank you so much and have a great day.