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Print Media Sector Emkay
n Ad revenue growth is expected to remain strong, post festive season as well.
n We expect our coverage universe to report ad revenue of Rs 7.6bn, growing 18.7% YoY.
n Regional companies (DB Corp, Jagran Prakshan, Hindustan) are expected to post growth of 20.0% YoY to Rs 5.1 bn
while, their national counterpart (HT Media) would grow at 16.0% YoY to Rs 2.6 bn.
n Print media players are increasing the circulation to have an edge over competition. Jagran has increased circulation
across the markets, while Hindustan is aggressively expanding its presence in U.P. On the back of this, we expect
our coverage universe circulation revenue to grow by 3.9% YoY to Rs 1.5bn, led by 6% growth expected from Jagran.
n Coverage universe EBITDA margin is expected at 22% v/s 25.7% Q4FY10, declining due to higher operating cost.
However, PAT is expected to grow 19.3% YoY, driven by lower interest cost coupled with higher other income.
n The newsprint prices have remained stable from last couple of quarters. Price stood at $670/tonne in Q4FY11 v/s
$665/tonne in Q3FY11.
n We maintain our bullish stance on the regional print media space; nevertheless, with the increasing ad spend by
corporates, national players are also expected to post healthy returns.
n With the expansion by print players into Tier II and Tier III cities, we expect the growth in ad market to maintain its
momentum going forward. Stabilization in newsprint prices would also drive the EBITDA going forward
n We maintain our BUY rating on Jagran and HT Media and HOLD rating on DB Corp. Jagran remains our top pick in the
sector
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Print Media Sector Emkay
n Ad revenue growth is expected to remain strong, post festive season as well.
n We expect our coverage universe to report ad revenue of Rs 7.6bn, growing 18.7% YoY.
n Regional companies (DB Corp, Jagran Prakshan, Hindustan) are expected to post growth of 20.0% YoY to Rs 5.1 bn
while, their national counterpart (HT Media) would grow at 16.0% YoY to Rs 2.6 bn.
n Print media players are increasing the circulation to have an edge over competition. Jagran has increased circulation
across the markets, while Hindustan is aggressively expanding its presence in U.P. On the back of this, we expect
our coverage universe circulation revenue to grow by 3.9% YoY to Rs 1.5bn, led by 6% growth expected from Jagran.
n Coverage universe EBITDA margin is expected at 22% v/s 25.7% Q4FY10, declining due to higher operating cost.
However, PAT is expected to grow 19.3% YoY, driven by lower interest cost coupled with higher other income.
n The newsprint prices have remained stable from last couple of quarters. Price stood at $670/tonne in Q4FY11 v/s
$665/tonne in Q3FY11.
n We maintain our bullish stance on the regional print media space; nevertheless, with the increasing ad spend by
corporates, national players are also expected to post healthy returns.
n With the expansion by print players into Tier II and Tier III cities, we expect the growth in ad market to maintain its
momentum going forward. Stabilization in newsprint prices would also drive the EBITDA going forward
n We maintain our BUY rating on Jagran and HT Media and HOLD rating on DB Corp. Jagran remains our top pick in the
sector
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