HUM Network Ltd. ('HUM' or 'the Company') was incorporated in Feb-04 as a public limited company. The Company got listed on the PSX in Jun-05

Eye TV Ltd. was established in Feb-04 (renamed HUM Network Limited in Jan-11) after receiving the license to operate as an International Satellite Television from PEMRA. In Jun-05, HUM raised PKR 150mln (i.e. ~30% of the share capital) through an IPO. Over time, HUM has set up HUM TV, HUM News, HUM Sitaray, and HUM Masala in addition to the international channels. Lately, the acquisition of Ten Sports transmission rights through Tower Sports has further diversified the portfolio.

HUM's principal business includes the launch of transnational satellite channels providing entertainment and news, along with production, advertisement, entertainment, and media marketing. HUM also owns Masala TV Food Mag magazine. HUM's head office is situated in Karachi, while only Hum News, a channel, operates from Islamabad.

HUM is majorly (~54.6%) owned by the sponsors, where Mr. Duraid Qureshi holds ~47.4% stake in the Company. ~13.5% is held by FIs, while mutual funds hold ~3.6% stake. ~17.9% stake resides with the general public.

The ownership is expected to remain stable, going forward, as considerable stake resides with Mr. Duraid Qureshi. This along with the strong association of Ms. Sultana Siddiqui with HUM provides comfort.

The sponsors, Ms. Sultana Siddiqui and Mr. Duraid Qureshi, uphold a strong name as media veterans. Their relevant and substantially strong acumen adds cushion. Ms. Sultana Siddiqui started her career from PTV as a producer in 1974 and established HUM in Feb-04.

The Sponsoring family holds considerable financial muscles to support HUM, if needs be. As of FY25, the Company has a consolidated equity of ~PKR 11,562mln with an asset base of ~PKR 14,128mln. The Company posted a consolidated revenue of ~ PKR 11,478mln and PAT of ~ PKR 1,235mln during FY25.

HUM's BoD comprises eight-member, out of which 4 are Non-Executive, 2 are Independent and 2 are Executive Directors on the BoD. The Sponsoring family dominates the BoD through 4 members, comprising 2 Non-Executive and 2 Executive Directors. The composition ensures significant independence and gender diversity, with 3 female Directors, in the BoDs decision making process.

The BoD is chaired by Mr. Mazhar ul Haq Siddiqui, who is associated with HUM since 2012 and carries diverse experience. Mr. Sohail Ansar, an Independent Director, holds more than 4 decades of diversified experience. All other BoD members carry diversified experience; thus, strengthening the BoDs policy formation process.

The BoD members meet on quarterly basis to resolve concerns and take necessary actions for future growth. The BoD is assisted by two sub-committees, namely (i) Audit Committee (meets on quarterly basis) & (ii) HR and Remuneration Committee (meets on semi-annual basis). Each Committee is chaired by an Independent Director, with adequate documentation of meeting minutes.

M/s EY Ford Rhodes are the External Auditors of the Company. The firm is QCR rated and in category 'A' of SBP Panel. The firm has expressed an unqualified opinion on the financial statements of HUM as of FY25.

HUM operates through Finance, International Operations, Commercial, Strategy, Creative Division, HR, Sales & Marketing, and Administration department. The Creative Division, which includes each channels' Programming and Network Head, reports to the CEO and the Executive Director (ED); while all other departmental Heads report to the CEO only. The CEO and the ED reports to the BoD. While, the Head of Internal Audit & HR functionally reports to the respective BoD committee, and administratively to the CEO.

The CEO, Mr. Duraid Qureshi, is a business graduate from LUMS and has been with the Company since inception. Ms. Sultana Siddiqui started her career as a producer for PTV, Karachi Studios in 1974 and founded HUM in 2005. The management team of the Company comprises well-qualified and seasoned professionals in the media industry. Most of the senior management team at HUM has extensive experience working at senior positions with the state-owned Pakistan Television Corporation (PTV).

The management is facilitated by a formal committee that meets daily to facilitate the decision making process. The committee, comprising all departmental Heads, is chaired by the CEO. Minutes of these discussions are adequate documented.

HUM has deployed technologically enhanced version of supply chain modules, encompassing purchase, inventory, receivable, and payment, from Oracle. Moreover, ERP modules covering HR and payroll are deployed at the head office in Karachi, along with Islamabad.

HUM has outsourced its internal audit function to M/s KPMG Taseer Hadi & Co. The finding reports are functionally discussed with and reported to the BoD's Audit Committee.

The media sector is split between TV and Media Buying. The TV segment saw declining profit margins due to lower revenues and higher finance costs. While expected lower interest rates may support net margins, advertising revenue growth will likely be range-bound due to the increasing adoption of social media and streaming. In contrast, the Media Buying segment improved its profit margins, operating by securing bulk discounts and service fees. The overall media sector ad revenue reached PKR 114.6bln in FY24 (up 14.4% YoY). Television remains the largest segment, capturing PKR 50.1bln (~43.7% share), but the Digital segment is rapidly growing, reaching PKR 35.8bln (~31.2% share). This fast shift from traditional TV/Print to digital media (e.g., ~71.7mln YouTube users) poses a risk to TV channels and intermediary agents. Digital media, however, also faces challenges related to viewer privacy and regulation.

HUM is a prominent leader in the entertainment industry and is one of the largest broadcasting brands catering to a wide range. HUM holds a market share of ~10.6%.

HUM generates ~73% of the revenue from Asia, and ~27% of the revenue from the American region. Advertisements remain the top revenue-generating segment contributing ~67% to the overall revenue, followed by subscription (~28%), production (~3%), digital (~2%), and film & distribution (~1%). The total revenue for HUM during FY25 was PKR 8,012 mln, which, in comparison to FY24 [PKR 8,307 mln], showcased a slight ~4% decline. This drop was reported across all its revenue streams with the exception of Digital Revenue, which exhibited a ~10% increase, reporting PKR 141 mln during FY25 from PKR 128 mln in FY24. The decline in revenue is mainly attributed to cautious advertiser spending, higher costs, and intense competition. Consolidated revenue generated by HUM across all regions was PKR 11,474 mln during FY25.

Gross profit margin for Hum declined in FY25, standing at ~46.2% from ~50.3% in FY24, as gross profits decline by ~12% [FY25: PKR 3,699mln, FY24: PKR 4,182mln] due to lower revenues. Operating profit margins for the Company during FY25 were ~23% from ~36% in FY24, due to operating expense that increased to ~PKR 1,898mln from ~PKR 1,237mln. Net profit margins for the Company decreased to ~26% from ~35% in FY24.

HUM aims for digital transformation, expansion of content offerings, and exploring new business opportunities to enhance the financial performance and position. All strategic initiative, if exectuted timely and successful, are expected to drive further growth, going forward. The Company aims to diversify its revenue stream. For this, the Company had previously acquired broadcasting rights of Ten Sports and Sphere Ventures, to make a mark in broadcasting kids content.

HUM maintains a healthy working capital cycle with stable net working capital days (FY25: ~126 days, FY24: ~115 days). HUM holds minimal invnetory with marginaly low inventory held days (FY25: ~5 days, FY24: ~5days). The trade receivables and payables have comparatively inflated - value wise; while, days calculation remains streamlined (trade receivable | FY25: ~120 days, FY24: ~127 days, trade payable | FY25: ~19 days, FY24: ~16 days). Borrowing cushion remains considerably strong. Going forward, working capital management is streamline further.

HUM's interest cover remains substantially strong (FY25: ~52.3x, FY24: 86.3x), mainly due to ~40% decine in the FCFO (FY25: ~PKR 1.6bln, FY24: ~PKR 2.7bln), which grew primarily due to reduced profitability. Moreover, minimal level of finance cost due to neglible borrowing adds strength. HUM's core and total coverage also remains strong (FY25: ~21x, FY24: ~30x). As policy rates have reduced, HUM's coverages are expected to remain strong, provided borrowings remain low.

HUM holds a leverage ratio of ~1.3% as of FY25 (FY24: ~2.1%), due to a strong equity base (FY25: ~PKR 11.9bln, FY24: ~9.8bln), which mainly gathers support from profit retention (FY25: ~PKR 10.8bln, FY24: ~PKR 8.7bln). Moreover, total borrowings remain minimal (FY25: ~PKR 162mln, FY24: ~PKR 209mln). Overall capital structure is expected to remain stable, going forward.