The publisher of Dainik Jagran, India’s most read newspaper, Jagran Prakashan Ltd, posted a 52% increase in net profit for the first quarter ended 30 June that came from increased advertising revenue and growing circulation.
The company reported revenue of Rs192.27 crore—up 35% from Rs142.75 crore in the year-ago period. Net profit rose to Rs34.71 crore from Rs22.89 crore in the same period last year.
Jagran’s shares rose 2.07% on Friday, on a day when most media and entertainment stocks were battered amid a sharp plunge in the broader Sensex index. The shares reached a high of Rs523.80 before closing at Rs504.95 on the Bombay Stock Exchange.
Jagran Prakashan is among India’s Top 10 media and entertainment companies. The publisher of Mint, HT Media Ltd also publishes a Hindi newspaper, Hindustan, which competes in some markets with Dainik Jagran.
Of the company’s total revenues this quarter, 66% (Rs126.74 crore) were from advertisements, as against Rs89.22 crore in the same quarter last year. Overall advertising revenue grew 42%. The growth was attributed partly to an increase in the advertising space sold, a rate hike in March and an increase in colour space, which tends to sell at a premium compared with black-and-white space. “While the total space sold increased by 21%, there was a 24% increase in the colour space sold,” the company said.
Jagran reported that circulation increased by 10.9% to 17.11 million copies per day. “We dedicated our efforts towards strengthening Dainik Jagran and various other initiatives,” said Mahendra Mohan Gupta, chairman and managing director, Jagran Prakashan. “While Jagran Engage (an out-of-home advertising venture) and Jagran Solutions (provides below-the-line marketing services) have already attained a critical mass, other activities are ready to take off now. We are positive about the future of the media industry,” he added.