PACRA Maintains The Entity Rating of HUM Network Limited

HUM Network Limited ('HUM Network' or 'the Company) is a well-recognised entertainer and news network. The Company is one of the largest broadcasting brands that has generated outstanding content on subjects of interest and relevance to a wide range of audiences while using best professional practices and ensuring long-term continuity. The sponsors, Ms. Sultana Siddiqui and Mr. Duraid Qureshi uphold a strong name as media veterans. Their relevant and substantially strong acumen further adds cushion. Over time, HUM has strategically expanded as a holding company. The Company’s broadcasting portfolio boasts an array of satellite channels, including HUM TV, HUM News, HUM Sitaray, and HUM Masala, in addition to international channels. Each channel is a separate business unit. This, along with the previous inclusion of Ten Sports, a renowned sports channel, further diversifies the portfolio and broadens the range of content and offerings. Beyond these stellar satellite channels, HUM places a strong emphasis on diverse business divisions, encompassing Films, Digital Media, and Print Media, to create a range of offerings. This sets the Company apart from the market. The Company maintained a stable business risk profile with ~73% of sales in Asia and ~27% in America. Advertisements remained the major revenue stream of the Company, contributing ~68% of total revenue, followed by Subscriptions at ~29%. These were followed by Digital (~2%), Production (~2%), and Film Distribution (~0.05%). Revenue for the Company recorded a decline of ~4%, primarily due to a cautious spending approach, overall view of the market sentiments. Despite a reduction, margins remained considerably strong. The bottom line gathered support from the investment income, generated from equity securities & mutual funds. On the financial risk front, the Company maintained a stable working capital cycle and a considerably strong borrowing cushion on its balance sheet. Despite a decline, the coverage ratios remain solid at ~52.3%. Following a conservative leveraging approach remains important. HUM Network’s strong performance record, ongoing experimentation into diverse media avenues, and the growth of its Digital segment—along with the sponsors’ expertise—provide comfort to the ratings. All strategic initiative are expected to drive further growth, going forward. Moreover, strong governance framework and managerial practices benefits the ratings.
The ratings are dependent on the management's ability to sustain the market position amidst considerable competition. Sustaining the financial risk profile remains vital. A substantially diverse revenue base, emanating from segments independent of each other in terms of risk, remains pivotal to ratings. This requires attention in view of the future strategy and business plan of the Company.

About the Entity
HUM Network Limited ('HUM' or 'the Company') was incorporated as a publicly listed company in Feb-04. The Company received a license to operate an International Satellite Television from the Pakistan Electronic Media Regulatory Authority (PEMRA) in Oct-04. The Company is listed on PSX. HUM is majorly (~55%) owned by the Sponsors, where Mr. Duraid Qureshi holds ~47.41% and M. Sultana Siddiqui holds ~1.81% stake in the Company. About ~2.7% is held by FIs and mutual funds. ~14.42% stake resides with the general public, while ~8.09% is held by other individuals. Mr. Mazhar ul Haq Siddiqui chairs the Board; while Mr. Duraid is the CEO. He is assisted by an experienced management team.