Dainik Jagran - Jagran Prakashan

Jagran Prakashan Limited (JPL)
Result Update Presentation
Q1 FY2015
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“Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation
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document containing detailed information about the Company
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and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market
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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
* Source: ComScore
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Consolidated Quarterly Profitability Statement
Rs. in Crs
Revenues
Q1 FY15 Q1 FY14
YoY
Q4 FY14
QoQ
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
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
Tax
26.7
17.7
Profit After Tax
55.1
57.8
5%
8%
79.0
82.6
55.2
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
36%
-1%
27.4
-5%

0%
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Operating Margin break-up
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%
Operating Revenue
76.1
73.6
76.2
320.8
279.2
Operating Profit
-7.6
-12.1
-12.7
-29.67
-36.2
-10.0%
-16.4%
-16.6%
-9.3%
-13.0%
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
Other publications
Operating margin
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
2.8%
1.8%
1.7%
1.7%
-9.1%
Operating margin
* Other Publications: Naidunia, Midday, I-Next, City Plus, Punjabi Jagran & magazines
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Reduction in Net Debt Position
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
Net Debt - Equity
Rs. Crs.
775
681
0.35
0.08
* Investments includes Investment in Mutual Fund and ICDs
- Net Debt includes Rs. 95 Crs. of NCDs from Holding
Company redeemable in 2017 at a Premium of 6.5% pa
Rs. Crs.
132.0
61.4
132.0
61.4
March '14
Networth*
March '14
June '14
June '14
Net debt
* Networth excluding intangible assets and Goodwill
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Consolidated Financials Highlights
Digital Business Overview
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Why we are bullish for Digital Business
FY 13 - 18 India Internet Connection CAGR: 21.6 %
Wireline connection: 14.4 %
392
331
213
174
2013 E

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
47
41
36
31
416
27
351
24
150
India is 3rd largest Internet
Market with 137 mn Urban
and 68 mn Rural Users
463
Wireless connection: 22.6 %
268

295
186
2014 P
237
2015 P
Wireless Connection
2016 P
2017 P
Wireline Connection
2018 P
Million Connections
Source: FICCI-KPMG Indian Media & Entertainment Industry Report 2014
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Translating in Advertising Revenue Growth
FY 13 - 18 Advertising Revenue CAGR: 27.7 %

Desktop Internet Advertising : 25.5 %
Mobile Advertising : 41.2 %
69.7
55.1
41.2
30.1
26.7
2013e
36.1
2014p
15.1
Share of Digital Advertising
Revenue to increase from
3.7% of Total Advertising
73.0
2015p
Telecom (14%)

7.4
47.7
BFSI (12%), Travel (12%) and
19.1
10.7
5.1
3.4
during FY 2013 – Auto (13%),
102.3
88.1
Top Digital spenders sectors
83.2
Revenue in 2013 to 5.5 % in
2018
59.0
2016p
2017p
2018p
Rs. Billion
Source: FICCI-KPMG Indian Media & Entertainment Industry Report 2014
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Jagran – Well prepared to capitalize opportunity
JAGRAN NEW MEDIA
11
62 mn Unique Visitors
Source: Google Analytics May 2014 data
Google Analytics includes Traffic coming from India, International - Web and Mobile Users
12
Sites with Maximum Unique Visitors
11
10
10
8
8
8
7
6
5
4
3
Unique Visitors (in million)
Source: ComScore Data - Average of 3 months - April 2014 to June 2014
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
13
Jagran.com - No. 1 Hindi News Portal
4,639
Maximum Number of Unique Visitors
on Hindi News Portal
3,105
2,563
55
Jagran.com
Bhaskar.com
Navbharat Times
Aajtak.in
Unique Visitors (‘000)
Source: ComScore Data - Average of 3 months - April 2014 to June 2014
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
14
Higher Unique Visitors across category
Education Portal
Health Portal
5,419
2,264
1,938
2,021
682
1,288
855
104
Unique Visitors (‘000)
Source: ComScore Data - Average of 3 months - April 2014 to June 2014
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
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Initiatives to further Strengthen Mobile Platform
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
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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 …
… READY FOR
FUTURE
OPPORTUNITIES
Source: ComScore - June 14
ComScore covers India only web traffic (Doesn’t include Mobile & International Traffic)
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For further information, please contact:
Company :
Investor Relations Advisors :
Jagran Prakashan Ltd.
CIN: L22219UP1975PLC004147
Strategic Growth Advisors Pvt. Ltd.
CIN: U74140MH2010PTC204285
Mr. Amit Jaiswal
[email protected]
Mr. Gaurang Vasani / Mr. Jigar Kavaiya
[email protected] / [email protected]
www.jplcorp.in
www.sgapl.net
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