Jagran Prakashan Q1 FY2007 revenues up 20 % at Rs 136.67 crore
Q1 FY2007 PAT up 433 % to Rs 22.89 crore

New Delhi, July 29, 2006; Jagran Prakashan Limited (JPL) (BSE SCRIP ID: JAGRAN; NSE SYMBOL: JAGRAN), publishers of 'Dainik Jagran', India's largest read and selling newspaper, has reported net revenues of Rs. 136.67 crore for Q1FY07, an increase of 20% over the corresponding previous quarter. The net profit was at Rs 22.89 crore, a sharp increase from Rs 4.29 crore in the corresponding previous fiscal. The EPS for the quarter was at Rs 4.56 as against Rs 1.13 in the corresponding previous quarter.

The board of directors has recommended one bonus share for every five shares held by the equity share holders, subject to their approval in the AGM. The board has also recommended appointment of Price WaterHouse as the statutory auditors of JPL.

The increase in revenues was contributed by better advertising revenues and higher per copy realization. The advertisement revenue increased by 21.47% to Rs 89.51 crore, which was driven by increase in local as well as color advertising. The color advertising saw a sharp jump of 22.1% over the corresponding previous quarter. The increase in advertisement tariff has contributed a growth of approximately 10% over the corresponding quarter of the last fiscal. The per copy realization witnessed increase of 14.05% over the corresponding previous quarter.

The optimization of consumption between imported and indigenous news print led to significant cost savings. EBITDA for the quarter was significantly higher by 172 % at Rs 34.43 crore. The operating margin for Q1FY07 was 25% and net margin was 17%.

The out of home (OOH) advertising division of JPL saw establishment of additional infrastructure growing to 11 offices and 40 people needed to cater pan India clientele. The division has invested significantly in taking properties on short/medium term leases, revenue from which would start flowing from the current quarter. In Q1 FY07, the division recorded revenues of over Rs 90 lakh with an impressive client list including TVS, Apollo, REL, Titan, Microsoft, Café Coffee Day, Ansals, ABN Amro, Aircel etc.

Key operating highlights

  o  Extremely encouraging initial response in Siliguri and Indore, circulation numbers and advertising revenues in line with plan
  o  Market dominance strengthened in existing areas of operation and Dainik Jagran becoming No 1 in terms of readership in 3 crucial towns (Jallandhar, Ludhiana and Amritsar) of Punjab (IRS 2006 Round 1)
  o  Attracting more national advertisers and better rates due to highest circulation and readership
  o  Hi-tech printing facilities across all printing centers with enough capacity to cater to future growth. Orders placed for printing machines/ equipments worth over Rs 100 crore.
  o  Overall robust ad revenue growth
  o  High operating margins primarily due to ad revenue growth, per copy realization and cost optimizations.

About Jagran Prakashan Limited

Jagran Prakashan Limited is a leading media house of India which publishes Dainik Jagran, India's largest read and highest circulated daily with a total readership of 19.07 million readers per day (as per IRS 2006 R1) and 21.24 million readers per day (as per NRS 2005). It was also voted the most credible and trusted newspaper in India, according to a survey by Globscan, conducted in 10 of the world's leading countries, including the US, UK, Germany and Russia.

Established in 1942, Dainik Jagran was the brainchild of the Indian Freedom fighter, Late Shri Puran Chandra Gupta. The first edition was launched from Jhansi, Uttar Pradesh in 1942. Dainik Jagran is now published in 30 editions across 11 states from 30 different facilities. The group publishes Sakhi, a monthly magazine targeted at women. The group also publishes Jagran Varshiki, an annual general knowledge digest, and various national and state statistical compilations.

Jagran Engage, a newly created division provides specialized 'Out of Home' advertising services with a Pan-India footprint. It is headed by Mr. Indrajit Sen, ex president, Prime Sites, a division of Mudra Communications.

Jagran Solutions provides below the line activities like promotional marketing, event management and on ground activities having pan India presence. The company's portal www.jagran.com is the most visited Hindi portal in the world. The company provides IVR/AVR/SMS services through its short code service 7272.