Jagran Prakashan is showing some extraordinary jump in volumes at over 6 times. It is currently the top gainer on the BSE, going up over 8.5% to Rs.119.45.
One is the two days old news – ADAG’s Reliance Broadcast Network has sold Big 92.7 FM Radio to Jagran Prakashan-owned Music Broadcast Ltd (MBL) for an estimated value of Rs 1,200 crore. In December 2014, Jagran Prakashan acquired MBL, which owns FM channel Radio City, in an all-cash deal. This acquisition will make it the largest FM radio operator in the country in terms of reach as well as revenue.
That apart, it declared its earnings yesterday after market hours. Publisher of leading Hindi daily Dainik Jagran, for Q4FY19 posted a 12.5% (YoY) jump in consolidated net profit at Rs.71 crore, mainly helped by a spur in advertisement revenue. Its revenue from operations rose 8% at Rs.606 crore.
Its advertisement revenue for the quarter was up 9% at Rs.433 crore; circulation revenue rose 2% at Rs.109 crore. Contribution from other businesses coupled with steep reduction in loss of digital business compensated for loss of profit from print business, to some extent.
The quarter benefited from increase in advertisement rate coupled with the increased advertisement spend by the government ahead of elections. Local advertising continues to post growth but national is still a concern. Another positive for the industry is the correction in newsprint prices, impact of which will start reflecting from Q2FY20.