MUMBAI: Jagran Prakashan Ltd (JPL), publishers of Dainik Jagran, has reported a 14.18 per cent fall in its consolidated net profit for the fiscal ended 31 March 2012 even as its advertising revenue went up 9.89 per cent.

JPL posted a net profit of Rs 1.78 billion, down from Rs 2.08 billion in the previous fiscal. The company said net profit is after accounting for steep increase in newsprint prices (Rs 570 million), increase in circulation of Dainik Jagran (9.37 per cent), initial loss from Punjabi Jagran (Rs 120 million), higher depreciation (Rs 90 million) and interest cost (Rs 70 million) during the fiscal.

Operating revenues jumped 11.02 per cent to Rs 13.56 billion, from Rs 12.21 billion in the previous fiscal.

Advertising revenues accounted to Rs 9.38 billion, compared to Rs 8.54 billion in the previous fiscal, while circulation revenues were up 11.29 per cent to Rs 2.65 billion (from Rs 2.38 billion). The revenue from event and outdoor business jumped 20.49 per cent to Rs 1.13 billion (from Rs 939.5 million), while digital revenues were up by 23.17 per cent in the fiscal to Rs 82.4 million, from Rs 66.9 million.

The company?s expenses also surged 19.32 per cent to Rs 11.1 billion, compared to Rs 9.30 billion a year ago.

perating profit fell to Rs 3.17 billion, from Rs 3.56 billion in FY?11.

JPL CMD Mahendra Mohan Gupta said, "After registering a growth of 15 per cent in Q3, there was again a growth of 11.5 per cent in ad revenue in Q4. Similarly, other revenues too recorded robust growth in the most economically difficult circumstances prevailing during the year."

"We are cautious and we are taking all necessary steps to keep our cost under strict control as the external environment has worsened and is, in fact, a hurdle in the way of progress. Nobody knows what is further in store but I am confident that the company will continue to perform incredibly."

The consolidated results include 96.19 per cent of Midday Multimedia, 48.64 per cent interest in Leet OOH Media and 39.2 per cent in X-pert Publicity.

During the fiscal, JPL also acquired Suvi Info-Management (Indore), the 100 per cent holding company of Naidunia Media, publisher of Nai Dunia and Nav Dunia. However, it was not consolidated as Subi became subsidiary of JPL at the close of business on 31 March 2012, JPL clarified.

It also said that dues of Suvi of Rs 2.99 billion were included in long-term borrowings since settled as part of acquisition.

MUMBAI: Jagran Prakashan has snapped up NaiDunia Media Ltd. for an enterprise value of Rs 2.25 billion, continuing the wave of consolidation that the regional print media market is going through.

The all-cash deal will bolster Jagran‘s presence in the newspaper market in Central India. Jagran will also derive tax benefits from the accumulated losses at NaiDuniya, which has accumulated losses of Rs 2.25 billion. Estimates suggest that the tax benefit could be in the range of Rs 750-800 million.

Ending days of speculation, Jagran Prakashan Monday announced the acquisition of Indore-based Suvi Info Management, the parent of publishing house NaiDunia Media Limited. NaiDunia comes out with publications in Hindi and Urdu.

Ernst & Young was the exclusive advisor in the transaction.

Earlier, Jagran had acquired Mid Day, an afternoon tabloid, in 2010.

Jagran Prakashan chairman and managing director Mahendra Mohan Gupta said, "This was a logical market expansion that enables us to strengthen our presence in Central India. NaiDunia is a newspaper with a very strong team and has demonstrated editorial excellence over the last several decades. With the acquisition of Mid Day in 2010 and this acquisition, we are well on our way towards implementing our strategy of inorganic growth through mergers and acquisitions. On the one hand, this allows us to bring significant scale with much lesser investment and on the other hand, it saves long gestation period, which is typical to the print industry. The acquisition will enable us to leverage our existing network and allow significant operating synergies."

Has the acquisition price been too steep? "Had Jagran Prakashan planned a greenfield expansion in the region, the total cost could have run into at least Rs 3 billion. Hence, the buyout (at the net of tax price) does make sense as it gets a ready entry into the market with a revenue market share of 14 per cent. The acquisition does not excite us from a short term perspective, but we feel that the price paid (net of tax benefits) is inexpensive and should derive benefits in the medium to long term," a media analyst said.

Nai Dunia is the third largest read newspaper in Madhya Pradesh and the fourth largest in Chhattisgarh. Its expected revenues could be in the range of Rs 1.05 billion with an Ebitda loss of Rs 250 million (excluding losses from the closed NCR edition of Nai Dunia).

NaiDunia was launched in 1947 and has multiple editions published from Indore, Gwalior, Jabalpur and Bhopal in Madhya Pradesh and Raipur and Bilaspur in Chhattisgarh. NaiDunia?s Delhi edition was shut down as part of this takeover. The Urdu edition is a weekly.

Will DB Corp be impacted? " We believe that DB Corp will not be impacted because of the entry of Jagran Prakashan from a short-to-medium term perspective. ?Patrika?, however, could be impacted as Jagran would become aggressive to win back the No. 2 slot in MP," the analyst said.

MUMBAI: Jagran Prakashan Ltd. (JPL) has reported a 17.53 per cent fall in its net profit for the quarter ended 30 September as its expenses saw a 20 per cent jump.

The company has posted a net profit of Rs 457.77 million, as against Rs 555.06 million a year ago.

Income from operations jumped to Rs 3.05 billion, from Rs 2.77 billion in the corresponding quarter of the previous fiscal.

The company?s expenses also surged to Rs 2.42 billion, compared to Rs 2.01 billion a year ago.

?I am happy to report that since rolling out our plans in mid-August 2011, the company has achieved advertisement revenue growth exceeding 20 per cent. Festive season too is looking good but scepticism remains for post festive season due to macro economic conditions that have
worsened in past couple of months and continue to remain uncertain. In this environment where no advertiser s prepared to make even short term commitments, sharp increase in newsprint prices with equally sharp depreciation of rupee is hurting further,? JPL CMD Mahendra Mohan Gupta said.

Gupta asserted that the company would continue to go ahead with its investment plan for increasing circulation to "ensure a long term sustainable growth".