HT Media::Takeaways Motilal Oswal Annual Global Investor Conferences

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Key Takeaways
Ad revenue growth relatively strong, despite weakness in education sector
 HT Media is witnessing relatively strong ad revenue growth. The company has not
seen deceleration in growth v/s 1QFY12 levels (~17% YoY).
 Print ad revenue has faced some pressure this year largely due to weak education
sector; growth in education has declined from 25-30% last year to ~12%.
 All major print genres like Hindi, English (NCR), and English (Mumbai) are doing
well and could grow 16-25% in terms of ad revenue.
 There is room for yield improvement in markets like Mumbai, UP, and Bihar.
Newsprint prices have likely peaked-out
 Newsprint price inflation has been a cause of concern for the print companies.
 However, there are early indications of softening newsprint prices, given some
reduction in scrap paper prices.
Other highlights
 The radio segment remains strong and could witness revenue growth of 25-30% in
FY12.
 EBITDA losses for digital business (mainly shine.com) are expected to continue;
EBITDA breakeven likely only in FY13.
Valuation and view
The stock trades at P/E of 16.7x FY12E and 13.1x FY13E EPS. Neutral.