Hum Network Expects News Segment to Become Profitable Thanks to Govt’s Media Spending

Hum Network (HUMNL) expects its news segment to become profitable as the government is anticipated to resume its media spending in the coming months.  This was disclosed by the company in its analyst briefing to discuss the financial results of FY24 and its future plans, reported BMA Capital Management Ltd. The company’s bottom-line profitability surged by 54 percent year-on-year to Rs. 2.95 billion during FY24, aided by improving revenues.  The management conveyed that it expects HUMNL’s news segment to become profitable as the government is anticipated to resume its media spending in the coming months. The briefing highlighted that the segment’s underperformance was attributable to the government scaling back media spending.  The management highlighted that Ten Sports has secured rights to broadcast notable sports events, including Cricket’s Champions Trophy 2025 and UEFA Champions league. The channel has also secured a seven-year media rights deal with Cricket Australia and a 2.5-year media rights deal with Pakistan Cricket Board.  The company remains confident in its ability to generate revenues from social media platforms. Its subscription income, which primarily constitutes income from YouTube Ad revenues, has grown at a five-year CAGR of 44 percent. The company’s main YouTube channel recently grossed 1 billion monthly views with a subscriber base of around 44 million.