HT Media - Estiamtes Under Review - Motilal Oswal

HT MEDIA 3QFY11: Above estimates driven by ad revenue resurgence in English business; estimates under review

HT Media's 3QFY11 Adj PAT grew 28.5% YoY and 23.2% QoQ to Rs478m. Revenue increased 27% YoY and 4.4% QoQ to Rs4.65b.

EBITDA increased 18.5% YoY and 11.6% QoQ to Rs883m (vs est of Rs831m). EBITDA margin stood at 19%, up 123bp QoQ but down 137bp YoY.

Motilal Oswal was positively surprised by the ad revenue performance; key challenges include competitive pressure in the hindi segment and newsprint cost inflation.

Motilal Oswal is putting the estimates under review as we await further details in the earnings call scheduled 19th January 2011 at 12.30 pm IST. We look forward to better clarity on: 1) sustenance of ad revenue growth and 2) potential impact of hardened newsprint prices. The stock trades at P/E of 16.1x FY12E and 13.4x FY13E; we have a neutral rating on the stock.

Source : Equity Bulls

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