Post on 05-Apr-2020
Jagran Prakashan Limited (JPL)
Result Update Presentation
Q1 FY2015
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jagran Prakashan Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company
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Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Consolidated Financials Highlights
Digital Business Overview
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Key Highlights
Revenue for the Quarter Rs. 440 Crs., 7% Growth
EBITDA for the Quarter Rs. 107 Crs., 5% Growth
Operating Margin of “Dainik Jagran” at 34%
Dainik Jagran – Most Circulated Newspaper of Patna
Digital Advertising Revenue Growth of 57%
Jagran sites ranked at # 19* amongst all Indian Internet sites and # 4* amongst
all media company’s internet sites
Dainik Jagran – Only Indian Newspaper amongst 6 Newspapers in the world that
has won two 1st place awards at INMA in 2014
4 * Source: ComScore
Consolidated Quarterly Profitability Statement
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Rs. in Crs Q1 FY15 Q1 FY14 YoY Q4 FY14 QoQ
Revenues 440.3 412.2 7% 420.7 5%
Advertisement Revenue 308.9 289.8 7% 291.7 6%
Circulation Revenue 95.7 85.5 12% 88.7 8%
Others 35.7 37.0 40.3
Raw Material 162.7 141.6 157.1
Manpower Cost 64.8 60.0 58.5
Other Operating Expenses 105.8 108.7 126.2
Operating Profit 107.0 101.9 5% 79.0 36%
Operating Profit Margin 24.3% 24.7% 18.8%
Other Income 6.9 -1.2 45.8
Depreciation & Amortisation 23.8 18.1 22.0
Interest 8.4 7.1 10.1
Exceptional Items -- -- 10.1
Profit Before Tax 81.8 75.6 8% 82.6 -1%
Tax 26.7 17.7 27.4
Profit After Tax 55.1 57.8 -5% 55.2 0%
Advertisement Growth of
7% despite subdued activity
in Advertising during
election period
Circulation Revenue growth
is mainly driven by
improvement in Per Copy
Realization
Achieved growth in
Operating Profit despite
increase in Newsprint cost
over 12%
Additional Depreciation of
Rs. 4.95 Crs provided on
account of new Company’s
Act accounting guideline
Effective Tax rate in Q1
FY14 was lower due to
benefit of accumulated
losses of Naidunia print
business
Operating Margin break-up
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* Other Publications: Naidunia, Midday, I-Next, City Plus, Punjabi Jagran & magazines
Publications (Rs. Crs) Q1 FY15 Q1 FY14 Q4 FY14 FY14 FY13
Dainik Jagran
Operating Revenue 335.9 310.3 312.7 1,258.0 1,127.6
Operating Profit 114.2 114.1 91.1 413.4 345.6
Operating margin 34.0% 36.8% 29.1% 32.9% 30.7%
Other publications
Operating Revenue 76.1 73.6 76.2 320.8 279.2
Operating Profit -7.6 -12.1 -12.7 -29.67 -36.2
Operating margin -10.0% -16.4% -16.6% -9.3% -13.0%
Outdoor and Activation business
Operating Revenue 25.8 27.8 29.9 120.48 116.5
Operating Profit 0.7 0.5 0.5 2.05 -10.6
Operating margin 2.8% 1.8% 1.7% 1.7% -9.1%
Continued Operating
Losses in Other
Publications :
– Mainly due to
Continued
Investments in
NaiDunia as a part of
strategy to increase
the Circulation
– I-Next reported profit
due to strong
Advertising Revenue
growth and improved
per copy realization
– Operating result of
NaiDunia, Mid-day
and Punjabi Jagran
improved
Reduction in Net Debt Position
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Rs. Crs. Mar ’14 Jun’14
Cash & Bank Balance 32.5 35.3
Investments * 325.1 298.8
Gross Cash Balance 357.6 334.1
Borrowings 489.7 395.5
Net Debt 132.0 61.4
* Investments includes Investment in Mutual Fund and ICDs
March '14 June '14
681
775
132.0
61.4
Networth* Net debt
Net Debt - Equity
0.35 0.08
- Net Debt includes Rs. 95 Crs. of NCDs from Holding
Company redeemable in 2017 at a Premium of 6.5% pa
March '14 June '14
132.0
61.4
* Networth excluding intangible assets and Goodwill
Rs. Crs.
Rs. Crs.
Consolidated Financials Highlights
Digital Business Overview
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2013 E 2014 P 2015 P 2016 P 2017 P 2018 P
150 186
237 295
351
416
24
27
31
36
41
47
Wireless Connection Wireline Connection
Why we are bullish for Digital Business
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FY 13 - 18 India Internet Connection CAGR: 21.6 %
Wireline connection: 14.4 %
Wireless connection: 22.6 %
India is 3rd largest Internet
Market with 137 mn Urban
and 68 mn Rural Users
Growth in Internet
connections mainly due to
higher penetration of Internet
enabled mobile devices and
Growing adoption of 3G
Internet user population in
2018 expected to increase to
~53% of total number of TV
viewers from 27% in 2013
Digital Media presents an
opportunity to engage
specific target audience in
cost effective way
Source: FICCI-KPMG Indian Media & Entertainment Industry Report 2014
213
268
331
392
463
174
Million Connections
Translating in Advertising Revenue Growth
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2013e 2014p 2015p 2016p 2017p 2018p
26.7 36.1
47.7 59.0
73.0 83.2
3.4
5.1
7.4
10.7
15.1
19.1
FY 13 - 18 Advertising Revenue CAGR: 27.7 %
Desktop Internet Advertising : 25.5 %
Mobile Advertising : 41.2 %
Top Digital spenders sectors
during FY 2013 – Auto (13%),
BFSI (12%), Travel (12%) and
Telecom (14%)
Share of Digital Advertising
Revenue to increase from
3.7% of Total Advertising
Revenue in 2013 to 5.5 % in
2018
Source: FICCI-KPMG Indian Media & Entertainment Industry Report 2014
Rs. Billion
41.2
55.1
69.7
88.1
102.3
30.1
Jagran – Well prepared to capitalize opportunity
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JAGRAN NEW MEDIA
62 mn Unique Visitors
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Source: Google Analytics May 2014 data
Google Analytics includes Traffic coming from India, International - Web and Mobile Users
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10 10
8 8 8 7
6 5
4 3
Sites with Maximum Unique Visitors
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Source: ComScore Data - Average of 3 months - April 2014 to June 2014
Unique Visitors (in million)
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
Jagran.com - No. 1 Hindi News Portal
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Jagran.com Bhaskar.com Navbharat Times Aajtak.in
4,639
3,105
2,563
55
Unique Visitors (‘000)
Maximum Number of Unique Visitors on Hindi News Portal
Source: ComScore Data - Average of 3 months - April 2014 to June 2014
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
Higher Unique Visitors across category
15
2,264
1,938
682
104
5,419
2,021
1,288 855
Unique Visitors (‘000)
Education Portal Health Portal
Source: ComScore Data - Average of 3 months - April 2014 to June 2014
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
Initiatives to further Strengthen Mobile Platform
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CROSS PLATFORM MOBILE AND WEB
PUBLISHING PLATFORM FOR E-PAPERS
JAGRAN POST LAUNCHED ON THE AWARD WINNING PULSE NEWS APP
JAGRAN HINDI NEWS APP AND BBM
CHANNEL INTEGRATION
LAUNCHED FIRST NEWS CHANNEL ON THE
POPULAR MESSAGING APP
The Strategy…
Leverage Credible News Content of JAGRAN to strengthen DIGITAL
presence
Capitalizing on Growing Mobile Traffic
Building Video Content
Focus on User Generated Content
Increase Foot hold in Non JAGRAN Markets
Covering all major events
Focus on Content Acquisition, Distribution & Alliances
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JAGRAN NEW MEDIA …
18 Source: ComScore - June 14
… READY FOR
FUTURE
OPPORTUNITIES
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
For further information, please contact:
Company : Investor Relations Advisors :
Jagran Prakashan Ltd. CIN: L22219UP1975PLC004147 Mr. Amit Jaiswal amitjaiswal@jagran.com www.jplcorp.in
Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Gaurang Vasani / Mr. Jigar Kavaiya vgaurang@sgapl.net / kjigar@sgapl.net www.sgapl.net
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