JAGRAN PRAKASHAN Key takeaways 􀁠::Kotak Sec Consumer Congerence,

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JAGRAN PRAKASHAN
Key takeaways
􀁠 Advertising revenues. Regional print media receives around 55-60% of its advertising
from local/regional advertisers and 40-45% from national advertisers. The uncertainty in
national advertising market continues to be accentuated by the 50 bps rate hike by the
RBI recently, resulting in likely weak advertising spends in FY2012E.
􀁠 Advertising rates. Jagran has stood firm as regards the advertising rate hikes in its markets,
which have been driven by robust consumer response in the market. It has fine-tuned its
strategy in the past few months given the uncertainty in the national advertising market.
However, Jagran will not go after volumes at the cost of yields though niche brands such
as I-Next can follow a differentiated strategy.
􀁠 Mid-Day strategy. The first focus of the company would be to strengthen the Mid-Day
brand in the Mumbai market. FY2012E would be a year of investment in Mid-Day English
and Gujarati; however, financial performance would yet improve since 80% of the cost
synergies envisaged (newsprint, content) have already been achieved. However, FY2013E
would be the turnaround year for Mid-Day when revenue synergies would come through
and cost structure would have stabilized.