Pakistan Credit Rating Agency Limited assigns positive outlook to ratings of HUM Network Limited

Lahore, June 30, 2015 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of HUM Network Limited (HNL) at “A+” (Single A Plus) and “A1″ (A One) respectively. Meanwhile, “Positive Outlook” has been assigned to these ratings. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect HNL’s ability to maintain its strong market position in the domestic media industry. HNL enjoys robust financial profile supported by low leveraged capital structure, strong coverages, and healthy profitability. With strong presence of HUM TV, HNL’s flagship channel, in entertainment segment, HNL has benefited from increasing advertisement spent in Pakistan. This is reflected in turnover growth along with stable margins.

To bring diversification in the revenue stream, HNL is expanding its viewer ship in different geographies. It has entered in to agreements with foreign media players, extending rights to broadcast Hum TV content on their channels/portal. Meanwhile, HNL intends to step in the film industry under the brand of “HUM Films”. HNL is also expanding in ancillary domains including publications and holding events. The ratings recognize the company’s seasoned management team, having sound understanding of the industry dynamics.

Positive outlook highlights the company’s business initiatives which are likely to add strength to its business profile besides diluting concentration in revenue streams. Moreover, preserving the sound capital structure is important. At the same time, upholding high governance standards would remain important.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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