PACRA Maintains Entity Ratings of HUM Network Limited

Lahore, June 28, 2018 (PPI-OT):The ratings reflects HNL’s ability to capacity its robust market position in the domestic media industry. HNL enjoys healthy financial profile supported by less leveraged capital structure, sound coverages and decent profitability. With strong presence of HUM TV, HNL’s flagship channel in entertainment segment, HNL has aided from increasing advertisement spent in Pakistan. This is evident in turnover growth along with relatively stable margins.

Reported margins depict slight dilution on account of lately launched news channel. HNL is growing in ancillary domains including publications and holding events. Recently, HNL has taken an initiative to exploit opportunities available through e-commerce by launching its online store named “Hum Mart”, a 24 hrs delivery online grocery store.

With the launch of Hum News, HNL plans to model the elements of modern journalism – enterprising, investigative, events-driven, data-based and audience focused. HNL is expected to capitalize on its strong presence in the entertainment segment to help thrive its News Channel.

Positive outlook highlights the company’s business initiatives which are likely to strengthen its business profile besides bringing diversification 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:
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

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