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The Pakistan Credit Rating Agency Limited
Press Release

Date
28-Dec-18

Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of HUM Network Limited

Rating Type Entity
Current
(28-Dec-18 )
Previous
(28-Jun-18 )
Action Maintain Maintain
Long Term A+ A+
Short Term A1 A1
Outlook Stable Positive
Rating Watch - -

The ratings reflect HUM Network's ability to uphold its strong market position in the domestic media industry. With an appreciable presence of HUM TV - the company's flagship channel in entertainment segment, HUM Network has expanded into multiple TV ventures on a timeline basis including Hum Masala, Hum Sitaray and now Hum News since May'18. Sponsors are aimed at exploiting new markets; the company has also marked its footprint in the e-commerce segment by launching its online store named "Hum Mart", a 24 hours delivery online grocery store, currently available in Karachi. Additionally, Hum Network has grown in ancillary domains including publications and holding events.The company has booked a net loss over the last two quarters. This attributes to Industry-wide factors as well as the costs borne by the company on the newly launched news channel. The ratings, however, take into consideration on-balance sheet liquidity to support the overall risk profile of the company. Profit retrieval remains critical.

The ratings are dependent upon recourse to improved financial risk profile. Any prolonged downturn in subdued revenues will have a negative impact on the ratings.

About the Entity
HUM Network Limited, listed on Pakistan Stock Exchange, commenced its operations in January 2005. The company's shareholding is dominated by ownership of foreign companies (~51%), followed by shares of the Sponsoring family (~29%) - Mr. Duraid Qureshi (~24%) and Mr. Shunaid Qureshi (~5%).

The company is one of the largest media houses of Pakistan that has a diversified portfolio of business. Board of Directors comprises nine (9) members with one independent directors. Mr. Duraid Qureshi is the CEO of the company. He is supported by a team of experienced professionals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.