The Indian newspaper industry has grown at approximately 8% last year, bucking a global trend which shows the print media on a downward spiral in most OECD countries. Nevertheless, this growth rate is not hailed by some observers, in an economy that is growing at 7.5% annually. The demand for newspapers seems robust if we consider the growing number of neo-literates. Notably, this demand stems mostly from the regional hinterlands where the literacy wave is sweeping across rural areas. As per the National Sample Survey Office (NSSO), literacy in India was 78.5% in 2015 (Economic Times). This year, it is estimated to reach 80% considering the near 10% growth (National Commission on Population) in literacy the country achieved between 2001 and 2011. In fact, states are racing each other with their respective literacy drives.
Three print media giants that are listed in the National Stock Exchange—DB Corp Ltd., Jagran Prakashan Ltd. and HT Media Ltd.— have published their financial results, which indicates robust growth. Of the three, only HT Media, which owns the English daily Hindustan Times, has a sizable presence in the English language newspaper market. DB Corp and Jagran Prakashan, giants in the Hindi newspaper space, have also shown healthy growth. DB Corp’s claims of “49% of Indian urban population residing in its market across 14 states” gives a fair idea of the colossal size of the regional language newspaper market of which the Hindi segment is the largest.
DB Corp’s Q1 results for FY 2016– 17 shows a rise in its total revenues from Rs. 4,812 million (Rs. 481.2 crore) during the last financial year to Rs. 5,745 million (Rs. 574.5 crore) this financial year. The company’s PAT grew by Rs. 1,040 million (Rs. 104 crore), a massive increase of 62% from the last last financial year (DB Corp). The group is proactively pursuing its growth objectives by adding more editions of its flagship daily, Dainik Bhaskar, in newer Hindi-speaking areas. It boasts of 62 editions of its newspaper, 13 portals and 20 radio stations in addition to other assets.
Jagran Prakashan, on the other hand, has achieved respectable growth YOY although it lags far behind DB Corp. The company shows a growth of 4% in its operating revenue of Rs. 4,705 million (Rs. 470.5 crore) in Q3 FY 2015 over its performance during the corresponding period in 2014, which was Rs. 4,539 million (Rs. 453.9 crore). Its PAT in the third quarter of 2015 was Rs. 710 million (Rs. 71 crore), which is 20% more than its PAT in the same quarter of 2014. Jagran Prakashan’s acquisition of the renowned FM radio channel, Radio City, is also expected to add to its competitiveness and ability to grow more effectively. It already has 11 titles across 13 states in 5 different languages, including Mid-Day and Inquilab.
The three major newspaper groups in the country that are listed in the NSE have shown healthy growth figures. With prospects in the Indian newspaper market on the upswing, these and other newspaper groups are looking forward to a period of sustainable growth in the near term.
HT Media Ltd., one of the top newspaper conglomerates in the country, not just has a long history of success and sustainability but also massive assets worth over a thousand crores that lend credibility to its financial muscle. It owns prime property holdings worth hundreds of crores in Delhi and other major cities. The company has been able to achieve marginal growth of around 6% in FY 2016 with net revenue of Rs. 152,969 million (Rs. 1,529.69 crore) against its net revenue of Rs. 144,463 million (Rs. 1,444.63 crore) in FY 2015. While HT Media is focusing on consolidating its presence in digital media, its robust presence in print media indicates that the company will continue to remain one of the strongest players in the ever-growing newspaper market in India.
