X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
HT Media: A complete package - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Apr 3, 2008

    HT Media: A complete package

    Like its peer Jagran Prakashan, HT Media too has a diversified business model. While its newspaper business continues to be the mainstay, in order to face the increasing competition and to diversify its revenues, the company has moved into newer verticals. In this article, we shall give an insight into the company’s diversified business model.

    The company is following a three- step strategy, namely to increase geographical presence of the existing brands, to enter new segments and to scale up presence into new businesses. As we have seen in the previous articles, the company has increased its presence in different states in the English and Hindi newspaper categories. Also, it has entered into the business newspaper segment and has started a tabloid with Times of India.

    A look at the new verticals...
    To diversify from its exposure to print revenues alone, HTML ventured into the Internet and radio businesses. The move is to offer its existing clients a complete package in advertising, catering to local needs and hence have synergies with current operations.

    Internet: Globally, with print media losing its share to the Internet, most of the newspaper companies in India have also used Internet to complement their models. In order to leverage its strong content database, HTML launched its web properties hindustantimes.com, hindustan.com and htcricket.com. It has also launched livemint.com to support its business daily, Mint. It has formed an Internet company called Firefly e-Ventures with plans to enter into the classifieds, matrimonials, travel and real estate verticals on its web property. It also wants to tap the value added services market like gaming, contests, alerts and short codes. The company recently acquired a social networking site Desimartini.com through its subsidiary in an attempt to enter one of the fastest growing segments in the Indian Internet space. Desimartini.com has a decent user base of 0.3 m people with more than 2.5 m page views a month. Though much details on the deal is not available, the company’s aim is to expand the Internet business and even demerge it once it acquires scale.

    Radio: Valued at Rs 6.2 bn in 2007, the radio segment is expected to grow at a CAGR of 24% over the next 5 years. Seeing this huge opportunity, HT Media through its subsidiary HTMECL (HT Music and Entertainment Ltd) has launched the radio channel Fever 104 in Mumbai, Delhi and Bangalore under a technical collaboration with Virgin Radio. HTML owns 75% of this venture and its parent Hindustan Times owns the remaining 25%. At the start of the current year it launched its fourth FM station in Kolkata, completing the launch of all the stations that the company has a license for. The company has lined up further expansion plans for its radio operations in Chennai and Hyderabad after the third phase of radio licensing. Its strategy is to be a player in the top 10 cities in India going forward. The company, however, has to incur substantial establishment and advertising costs, which is affecting its margins. Currently, while in the investment phase, the management expects this business to breakeven in the next couple of quarters.

    Going forward...
    The company has been successful in transforming itself from just a newspaper company to a company with comprehensive media offerings. Its expansion into other segments gives an impetus to its strategy of bundling ad space, thereby accelerating its ability to garner advertising revenues. Though this would affect its margins in the near future and the execution risk remains, over a longer term it would benefit the company.

     

     

    Equitymaster requests your view! Post a comment on "HT Media: A complete package". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    HT MEDIA SHARE PRICE


    Aug 21, 2017 (Close)

    TRACK HT MEDIA

    • Track your investment in HT MEDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    HT MEDIA - FAME INDIA COMPARISON

    Compare Company With Charts

    COMPARE HT MEDIA WITH

    MARKET STATS