The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Noor Ul Haq

Applicable Criteria

Related Research

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 | Rating Watch Removed

Rating Type Entity
(24-Nov-22 )
(29-Nov-21 )
Action Maintain Maintain
Long Term A+ A+
Short Term A1 A1
Outlook Stable Stable
Rating Watch - Yes

The assigned ratings incorporate HUM Network's ability to uphold its relative market position within the media industry. With an appreciable presence of HUM TV – the Company’s flagship channel in the entertainment segment, the Company has expanded into multiple TV ventures on a timeline basis including Hum Masala, Hum Sitaray and Hum News. During the year HUM News channel showed improvement and witnessed positive outcomes. The ratings take into account the improved margins and profitability of the Company, as well as on-balance sheet liquidity to continue supporting the overall risk profile of the Company. With a view to sustainable diversified revenue streams, management is building upon various revenue segments including the growing ‘Subscription Income’ component as well as the development of Hum News. Furthermore, the Company intends to acquire Tower Sports (Pvt.) Ltd., a company that currently holds the landing rights of Ten Sports and Ten Sports 2. In addition to that, the Company also intends to acquire Sphere Ventures (Pvt.) Ltd, a Company which deals in kid’s content. Furthermore, in order to enhance revenue streams, Hum Network FZ LLC 100% owned by HUMNL entered into an agreement with GS Group Inc. as a general partner and is planning to launch a fund named "Pakistan Katalatic Funds (PKF)" with the expected size of USD~ 50mln. These expansionary plans are further expected to strengthen the business and financial prospects of the Company. The strategic change, expanded business horizon & financial gains have bode well for the Company and contributed towards extinguishing of “Rating Watch’'.
The ratings are dependent upon the sustained business profile of the Company. Improvement in the financial risk profile is vital, significant increase in investment book (TFC's & Mutual Funds) which will strengthen the bottom line and have an impact on the Company's performance in the future.

About the Entity
HUMNL listed on PSX commenced its operations in January 2005. Over the recent period, the company's shareholding has experienced changes. Sponsoring family continues to have a majority stake (51%), mainly held by Duraid Qureshi (the CEO). Mr. Duraid Qureshi (~45.7%) and Mr. Shunaid Qureshi (~5.4%). The Company is one of the largest media houses in Pakistan that has a diversified portfolio of business. HUMNL is supported by a team of experienced professionals.
The nine-member BoD has four sponsoring family members, five non-executive directors with one being an independent director. Out of four sponsoring family members, two directors are non-executive while the remaining two – ED and CEO – are executive directors. The Board members enjoy strong profiles and have diversified experience in their respective fields. Ms. Khushbakht Shujat joined the board as Non- executive member. The Company has a simplified organizational structure with clear reporting lines ensuring the segregation of duties.

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.