Good evening, everyone, and thank you for joining us on this call today. A shift in festival linked advertising activity impacted the quarter's year-on-year comparison.

Despite these challenges, our underlying business remained broadly stable, supported by our strong readers relationship, trusted brands, and continued relevance among advertisers. Looking ahead, we remain positive about the opportunities in the second half of the year, with the festive season expected to support advertising activity across our key markets.

We will continue to strengthen our advertisers' partnership, enhance reader engagement, and build on our competitive advantage across newspapers, radio, and digital. With our sustained focus on efficiency, innovation, and long-term growth, we remain committed to strengthening our market position and creating sustainable value for all our stakeholders.

With this, we can now open the floor for the questions-and-answers session. Thank you.

Hi,

good evening.

My first question was regarding the seasonality. As you mentioned, Navratri was there in Q2 last year, and this time we have seen in Q3.

What is the revenue guidance on our advertisement for Q3 and for the whole year as a whole, and also circulation business? See,

on the advertising front, as we mentioned to you, because of the 8 days of shift of the season from September to October, we believe there is an impact of almost around ₹40 crore. Now, with that shifting into Q3, and the overall momentum, what we believe is there, though in certain parts of India is not playing well because in Rajasthan, even there is rains happening even today.

I don't know how the overall three or next 6 months going to pan out, especially I'm more concerned about the geopolitical situation. Having said that, looking at the overall momentum which our country has, I am pretty optimistic on the next two quarters, also.

Right. I guess in one of our interviews, you had mentioned that we are confident of reaching high-single-digit to early-double-digit revenue for the full year for advertisement.

Do you think, considering the festive demand, we'll be able to reach somewhere there?

That's what our endeavor is. Looking at what we see in last 7, 8 days of festival, overall momentum is good.

Let's hope this continues.

What would have led to the circulation decline, however, since you've mentioned?

We are at around 38 lakh copies. If you compare last quarter, numbers are almost the same.

All efforts are there to make sure that we continue having the base. Few percentage here and there is the one which is bothering us.

We're working all efforts on that. Especially, what we are doing in our non-core markets, and that's the area where we are not much bothered about few copies going down.

In the core markets of ours, we're putting all our efforts to make sure that we maintain the number.

Got it. Are we taking any further price hikes?

No. We have taken this call, if you remember, a year back or so, that overall, let's face it, there's a challenge on the number of copies.

Furthermore, if we increase the cover price, that will further accelerate the decline. We don't want to do that.

All right. In terms of our print and the newspaper cost, we have a mix of imported as well as domestic.

I assume that we would be also bearing the incremental freight cost. Going further, what is your guidance on the newspaper cost per ton?

What kind of inventory do we hold for the same?

See, if you look at the last year to this year, in terms of per-ton cost, there is an increase of 20%. What we were paying ₹47,000 per ton average cost, we are paying right now almost ₹57,000.

These are almost 20.8%, to be more precise, 21% is the impact on the newsprint cost. That is all because of the geopolitical situation.

Because the imported prices are up, domestic prices also follow the same route. Once, and also the freight is on our higher side.

We believe that in next Q3 and Q4, this prices should go down by maybe 2% or 3%. Not more than that as what we hear from our suppliers.

I think that's one pain area which the industry is facing and going through right now.

Are we facing any issues in shipments or availability of imported paper or anything on those fronts?

See, this becomes a rate. When somebody says that I have this much quantity to offer and the market is tight, you lose the leeway on the pricing if you want to secure the supply.

That's the problem.

Inventory, how much do we keep?

Inventory, generally speaking, we keep few months for the Indian because Indian transportation takes 10 to 15 days maximum, and imported around a quarter.

Got it, got it. Ideally now since I think major price hike happened in Q1, Q2, the further inventory which will come in, say in Q3, would be of much [better?]

of a higher price versus Q2?

No. As I mentioned to you, compared to Q2, the prices may soften down by 2%.

If we compare to last year of Q3 and this year's Q3, there's an impact of almost 18%, 20%.

Right, right, right. Sure, sure.

Got it.

Next is regarding the segment-wise split. How have all the segments done in Q2?

Going forward, where do you see demand traction from?

I can give you the break-up, but those break-up will not be useful. Why?

Because the festival season, nine 8 days of Navratra is in Q3 this year, the number looks not apple-to-apple comparison. Also, furthermore, just to add on, we also lost on some of the government advertising because there was some panchayat election happening in couple of states, because of the code of conduct, so that advertising also went down.

Okay. Still the sectors are seeing traction on good growth?

Real estate single-digit. Ideally, this should have been good double-digit, but because of the festival season going this way.

Most of the them are on the almost flat or single-digit.

Okay. I'll join back in the queue.

Thank you.

Hello. Thank you for the opportunity.

Recently, the company has increased its app subscription price from ₹149 to ₹199. What is the current revenue contribution from paid subscription in Q2?

How has the price hike impacted our subscriber growth and retention? One more question regarding the upcoming UP elections.

How is the company positioning its digital business to capture the ad opportunities there?

Let me answer one by one. The price hike which we have taken from ₹149 to ₹199, this is on the experimental basis.

It's not a flat. Some places, we have even tried slightly lesser, even monthly price and all that.

As we mentioned to you, we're doing multiple experiments in digital. The advantage is that I can do an experiment on a cohorts of almost 1 lakh subscriber, also.

That's experiment we are doing. Happy to inform you that the results are pretty decent and good.

This experiment will continue. Taking the second question of had of yours that what will be the impact on the revenue is too early to say because this is all just the experiment phase right now.

In couple of quarters, this will get settled and then we'll get the real number out of it. Coming to the third questions of yours, which is about UP election, as we mentioned to you in couple of calls earlier also, the election advertising is uncertain.

Though we are working hard for it in terms of readers engagement in UP, today we have got huge connect with the readers in UP. We have got very sizable downloads of our monthly active users, as well as DAU.

Also, we have got a huge network of our journalists in UP. I can proudly boast that today, compared to any news organization, our coverage, ground coverage on UP would be far, far, far higher.

We're very hopeful that during the election time, our subscriber base in UP will certainly go up.

Okay. Are you seeing any recovery in FMCG ad spends?

If I look at this quarter, FMCG, where is the FMCG right now is at -2%. As I mentioned, this quarter would be wrong way to comparison.

It's I would say almost single-digit growth. Even considering the festival in this quarter.

Okay. Thank you.

Thank you, sir.

Good evening. My question is related to digital app.

Our MAU have declined from 20 million in Q4 to 18 million in Q2 currently. There is a consistent decline from past two quarters.

Any key reason for this and how management is looking forward for to increase our MAU growth?

Two things, just to let you know the reason is this. We have tried to reduce the marketing spend on this entire activity because we believe now brand should be able to sustain the readers base based on their own merits and the organic.

We have reduced the marketing spend, there's some impact because of that also. Furthermore, we are trying to do many experiments, as you just mentioned about the subscriber value, there is some impact of here and there of that.

As you will appreciate, between 18, 19, and 20, the difference on if I look at the quarter-on-quarter is around 3% to 4%.

Okay. The another question that our other expense have been increased in both on absolute term and in a percentage of revenue.

Could you please define that which cost are driving this? Is it majorly the freight cost which company is bearing right now?

Sorry, I'm not able to hear this question of yours. Can you go again, please?

If I look at our other expense, it have increased in both as a percentage term and in the absolute terms also. Could you please provide the breakup that which led to this increase in cost?

If you look at this cost of the other cost, I think you are comparing between the Q1 and a Q2, correct? Yes,

yes.

Yes, because if you compare from the last year, there is a deduction on this. Between Q1 and Q2, there is an increase because these are the sales-based events.

They generate revenue from a particular event and they also book it at the cost. The full cost is taken as a cost and the revenue is taken as a revenue with the profit margin there.

This keeps moving quarter to quarter depending on the events what they do on the ground.

That's it from my side. Thank you.

Thank you.

Thank you for the opportunity.

Pleasure.

In the recent past, you all hired a senior executive for head of revenue or head of business for your digital SBU. We assume that you'll continue to invest in the digital initiatives and your digital assets.

Can you all give some commentary on that, how it is shaping up and some metrics, and at what point you all would be more comfortable giving out how the trends have been so that the investors can better appreciate the good work that you all are doing there?

Thank you. Thank you very much, and very appropriate question you have asked.

We have hired a team. They are working hard on it.

Unfortunately, there has been exit also on that because there was a expectation and delivery mismatch over there. Right now what is happening, the whole digital genre, if you look at the advertising, is pretty, I would say, unclear for everybody, because at one side, there's an extra inventory coming from multiple sources.

At the same time, certain brands like us are looking for a premium rather than a commodity advertising. It's yet pretty early to say how it is shaping up.

I can assure you it is going in the right direction.

Right. Also, advertisement is not the only source of your digital revenue, you'll have subscription and you'll also have, I think, contracts with the technology companies.

Correct. All three are there, but they all are, I would say, to be very honest, they are all in a nascent stage.

Because advertising also on the app, you must have noticed, we have just recently started the advertising on our app from last, I think, four quarters now.

Right.

We are again checking that it should not happen that the experiment where I'm charging some money from a customer, if he's not happy about the advertising, I'm not showing him any of the ads over there. Everything is evolving together because we are pretty clear that going forward, it cannot be only one vehicle of advertising which can give me the revenue going forward on digital.

It has to be subscription, tie-ups, and the ad revenue, all three. We are doing all three in such a manner that the consumer experience should not get impacted negatively because of any of the three activities.

No, we absolutely appreciate the effort that you'll have put in and the way you'll have gone about institutionalizing the entire digital business. From an investor's perspective, we wanted to have some idea as to at what point would you all be comfortable to give us the trends, historical trends, and the way forward?

I will take your point to my board in the next board meeting and let's see what board decide, because if you remember couple of quarters back, based on the board recommendation, we took the approval from the investors that we can avoid giving out because of the competitive scenario details much more in details in the marketplace right now. We'll take come back to you after the board discussion on this.

Thank you.

Hi. Good afternoon.

Good afternoon.

I missed first 5, 7 minutes. If this question has been taken, then I'm sorry.

My view, I wanted to know, see, we are not raising prices, okay, on the readership, okay. What we're seeing, somehow the leadership is not increasing, okay.

The advertisement is a function of my readership, okay, or how my readership is moving. How are you thinking about the longer-term strategy, let's say, from 4, 5 years perspective, that how will this whole business look like?

Because if readership does not come, one is obviously my circulation, which is a smaller part of revenue, which is not increasing, and we are saying that we don't want to raise the prices, also. Then my advertisement, which is also a larger portion of the revenue, and that's a function of my readership, and if I cannot show the growth, how will my numbers look like?

Or how do you think 3 to 5 years down the line the top line or let's say the organization will look like, because costs will slowly, steadily increase. Means, we have reduced the cost and we've done a very good job on that.

Then how do I think about my fixed costs and my revenue line, and some thoughts on that and your longer-term strategy from here on, that will be helpful, okay.

Sure. See, three things.

One is that, if you notice, post-COVID, we have gained the number which was lost in COVID. Unfortunately, we have not been able to grow from there.

Like, whatever number we gained, we are largely maintaining few percentages here and there only. Nothing major growth happening.

I totally agree with you. The same time, we understood that it may not be possible, though we are putting all the efforts, to grow the circulation numbers.

Can we increase our engagement with our readers and impact? Because today, we have got 38 lakh copies and we have got crores and crores of reader, that also is a very, very large number.

How do we deliver the response to the advertiser more impactful from that number? That is the reason why, in spite of the circulation being flat, we've been able to continue showing the good single-digit growth on advertising quarter-on-quarter, barring out this, which is a festive shift otherwise.

I guess what we have understood is the impact to the advertiser. I think we've been able to deliver it pretty well.

Having said that, it's not that we are going to just sit idle and let the circulation be there. We're putting all our efforts to increase the circulation, increase our market share, also.

For example, in a particular market, if I'm not able to increase the circulation number, but over there, I have ensured that if competitor is declining much more, I'm at least maintaining the number, my market share goes up. Hence, my revenue share in advertising also goes up in those markets.

I totally understand your apprehension, but I guess this is the formula what we have understood right now. Let's see how it evolves in couple of years.

One more question on this only. See, in some of the newspapers, okay, which are, let's say, language or let's say, a niche newspapers, okay, where they are the dominant players, okay, and we have seen the prices increase quite materially, okay, for them, okay, or they are in, let's say, more than ₹10, something.

It's ₹15, also. Not I'm talking about financial newspapers, but some regional language newspapers here and there, okay.

I have totally understood. I know the names, also.

We gained market share in certain markets, okay. Are we at a dominant stage that in some marketplace, we can have better pricing or increase in pricing?

In certain markets where we are still not that place, and hence, pricing we will not like to touch in those markets? Or you are saying that when you're talking about pricing and you are saying that we don't want to raise prices, it is for all across the markets, or that it would be only for a market where you are still, let's say, fighting the challenger, or the difference between you and the first person or a second person is very low?

How are you thinking in your strategy on those aspects will be helpful.

Yeah. See, largely, our concept is very clear.

We don't want newspaper to become unaffordable for any household. Today, our monthly average cost to a consumer is roughly around ₹150, ₹170.

Out of that also, he or she recovers the some amount by selling the wastage of the newspapers at home. The net cost comes to say 100 bucks.

Now, we don't want to create a situation where this becomes much higher and people start rethinking. Please try to understand this is almost we're talking about a ₹1,200 net annual cost to a consumer.

It's not a cheap one. We don't want to unnecessarily make it much more expensive.

Also, if I increase the cover price on my market, the delta is not For example, today I'm priced at ₹5. Will I make it ₹10?

Answer is no. Even if I make it ₹6, the delta is not that large.

Having said that, that lever is with us. We can use it any point of time.

As of today, we believe we should not. We should let consumer be happy with the pricing.

Let the circulation be continued like that.

See, I know you have spoken on this, but some sense on how the paid subscribers are moving, okay? Let's not in terms of absolute number, but in terms of growth what you are aspiring and what you would have aspired, let's say, 2 years back versus now.

What are you seeing and Yeah.

Yeah. In last 2, 3 years, 2 years actually, whatever experiments we have done in the market, some were very successful, some are not so successful.

Overall, the results are in the right direction, positive direction. That's the reason why we continue to be committed in our digital business.

We are spending money in that digital business, we're investing there, and making sure that at the right point of time, we get the right dividends out of that business.

Okay. Okay.

Thanks from my side.

Thank you, sir.

Hi. Good evening.

Good evening.

My first question is with regards to the copies. Now, we've been at about 38 lakh copies, right?

Correct.

Versus our previous quarter, the revenue has gone down. It is at 116, and in last quarter, it was reported at 120.

Because we had

around 30,000 copies lost.

Copies are almost the same. So, 30,000, okay, it's 37.5.

Yeah. As I mentioned to you 38, it's actually 37.68.

Versus that was around 38, more or less.

Correct.

That has caused revenue to go down.

Yeah. Okay.

What about the advertising pricing? Are we seeing any improvement in that, or what are we doing on that?

I know the quarter is not comparable, but then have we taken some stand or what happened during the quarter on pricing front? Because at every point, we'll have to not just focus on volume, but also gather pricing, as well, increase.

Correct. What we are doing on the pricing side, we are able to increase the ticket size, which means the advertiser who was advertising on inside page, we've been able to upgrade them, take some extra money from them, and bringing them onto the premium pages of back page, third page, and the front page also.

That's the way we have been able to increase the unit price with the advertisers. Even on the front-page jackets, we've been able to take some margin extra over there.

Overall, the focus is both ways, that we get more volume, and wherever possible, we'll be able to increase the unit price also.

How are we getting those advertisers to spend on premium pages? Are we giving discounts compared to what the market price would be?

We are upgrading them. For example, if somebody is paying me ₹100 for inside page, we're saying why don't you pay ₹140 and come on the front page?

They get more exposure, we get more value out of that.

Then that 40 or 140, in your example, would have some sort of discount, right?

No, that's a prevailing price of that particular page. Okay.

Okay. All right.

I just missed one point. I know you've covered this, but I couldn't gather the entire point that was discussed.

The other expenses which seem to be on a lower side for print business by around 10%, you said that is on account of events?

No, no. The other costs which increase over last year, but increase decrease over last year, but it has increased from quarter one to this year, because these are the cost on the sales-based event.

For example, if sales is doing a particular conclave, so that the cost of the conclave, which goes in the cost, and the revenue comes and sit in the revenue side with the profit.

That's a part of the publishing segment, right?

Yeah.

Yeah. That's that would be the only thing that would be mainly attributable to the lowering of costs?

Correct. Correct.

Otherwise, if you look at my personal cost, if you look at my other cost, they are very much under control. In fact, we have taken a cut on most of the cost elements.

Okay.

Only one thing which is not in our control is the newsprint prices, which has taken a steep of almost 20.8% hike over last year's quarter. That's a painful thing.

Okay. What about our major industries or verticals?

You mentioned that even though it's not comparable, you said the real estate has grown by single-digit. That is in spite of the festive, or was it excluding the festive impact?

No,

no, this is in spite of the festive shifting. If I assume the festive was in this quarter itself, this could have been a double-digit growth.

Like jewelry is very good, FMCG is down, lifestyle is down, hypermarkets is almost down because the festive season yet to come for them. That way, I think it's a mixed bucket.

Apart from real estate, which other sectors have done well in spite of the festive being different?

Jewelry has done well in spite of the festive shift, because they start early. The banking and financial services done.

In fact, IPO business has done a fantastic job, very much double-digit, 50%, to be very honest.

Oh, okay. 5-0, okay.

Let's not get carried away by that because the volume is much not Yeah,

yeah. It was the IPOs that must have driven it.

Correct, right. Healthcare is doing very good.

Again a strong double-digit. What else?

Automobile is flat. Education is single-digit, because last year, if you remember, because of the NEET issue and all that, the advertising came to second quarter.

Okay.

That.

All right, that's about it. Thank you.

Thank you so much.

Good evening. Am I audible?

Yes, very much, sir.

Hi. I'm trying to understand the industry structure, and I would love your perspective on it, right?

Although the results over the mid-term seem to be stable, I'm worried about the long-term problem of the print media industry. I'm trying to compare it with Western publishers and they've had a major decline in the long run.

What makes the Indian market different? Does the next generation continue to read the newspapers?

Do you have any sort of demographic break-up if the next generation is reading newspapers? Why and how will the structure evolve over the next 10 to 15 years?

I appreciate all your questions. I would request you, sir, to have a meeting with us, our investor relationship team, one-on-one, because this is a much loaded and larger discussion.

I would encourage you to get in touch with us and we can have a one-on-one meeting with you to explain you much more in detail, which we keep doing with other investors on a timely basis.

Okay. Thank you.

Thank you.

Am I audible?

Yes, sir.

Sir. My question was regarding the Q2 this one only.

Actually, the first caller also asked the similar question, but I have this same question. In Q2 now, the main reason with these results the dip is due to the festive season getting postponed or half completed due to?

That was one of my main question. Also along with that, in other income also, we have some 11 cr or something as part of this one.

What I wanted to get clarification on that part.

Let me explain you the other income which has come. Now, this income has come because, as our registered office, which is in Ahmedabad, was on a long-term lease basis, where we have paid the security deposit at the time of commencement of the lease.

Now, and the same has been recognized at present value. Lease agreement of Ahmedabad has been terminated because the builder from whom we have taken the premise, they are going for redevelopment.

We have derecognized the ROU assets and lease liability, booked the gain of around ₹13.39 crore under the head of other income as per the Ind AS 116/109 regulation.

Got it, sir. Yeah.

Sir, and regarding this festive impact, is it only going to be the short term or how about that is?

Sir, it's just a shift of around ₹40 crore in the quarter three. Now, the most important thing what we are focusing and I'm sure looking at the overall economy, that the festival season should do good for everybody, so that we are able to continue the momentum.

Sir. Sir, one one more question I have.

Can I go, or can I go ahead with that, or should I come back in the queue?

Totally your call, sir.

Sir, only one question was that, will cash actually reach the shareholders going forward? Because now I also heard in last two quarters, you are increasing the CapEx and digital spend also.

Keeping that in mind, for a long-term shareholder, how will this have an impact? Mainly on three things I wanted to ask.

One is the CapEx cash flow will and then, yeah, please go ahead, sir, yeah.

CapEx cash flow, as I mentioned to you on the call in few quarters also, that we don't have any large CapEx planned, because all the machines, production equipments, and all are all in place, we don't foresee any major CapEx coming in couple of quarters, or maybe four, five quarters ahead. As on today, company has a total cash and bank balance of around ₹1,120 crore.

As that company have already paid ₹5 per share as the first interim dividend in the Q1. Now, the board will decide that how we want to further distribute the cash lying in the company to our stakeholders and shareholders.

Sir. Based on the meeting only, then you'll be deciding on the dividend part.

Okay.

Correct, sir. Sir,

any update on the digital this one, sir? You from last 2 to 3 years, we had even one strategic advisor from US, that Benson.

Few developments were happening, yeah?

Happy to inform you we are on the right track. We are doing multiple experiments on the subscription, also.

Overall, things are in a good, good shape, I would say.

Got it, sir. Sir, just for the previous caller, you told we can get in contact with the investor relations.

Is it through email, or through the direct call if you want to have some detailed conversation, how to get in touch, sir?

Mail it to us and we can fix up a time with you. Our team will certainly reach out to you on that.

Okay. Is it to the investor relations email only, I need to send that, right?

Yes, sir.

Yes, sir. Sir.

Got it, sir. That's all.

I have one strategic input also, how to increase the revenue through the ads only. Also, you were already saying to another caller, Even though we have the same viewership or readership, but you are trying to improve the connection with viewers, yeah.

I think I have one really good plan. Maybe post this call or anytime once you're free, I want to connect with you and share it with you directly, sir, if possible.

It'll be a pleasure to discuss with you on this idea. Lalit ji, you can reach out to this person and we can fix up a call with them.

My name is Alok, sir. I will be really looking forward, sir, yeah.

Thank you. Thank you, Alok ji.

Thank you.

Thank you, sir. Thank you, yeah.

Thank you, everyone, for your participation today and time on this earnings call. I hope we have responded to your queries and will always be of assistance to you through our investor relation department headed by Mr.

Prasoon Kumar Pandey and CFO Lalit Jain for all your further queries. Thank you, and have a great evening.

Further, wishing you and your family a very happy and prosperous Diwali in advance. Thank you.

Thank you, everybody. Wishing you a very happy Diwali in advance.

Thank you.