PACRA Upgrades Entity Ratings of HUM Network Limited

HUM Network Limited ('HUM' or 'the Company) is a global 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, stable on its own. This along with the recent 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 has maintained a stable business risk profile, generating ~73% of the revenue from Asia, followed by ~27% of 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 revenue posted a growth of ~22%, supported by strategic emphasis on digital platforms and expansion into a sports channel (Ten Sports). Margins remain strong. The bottom-line is considerable and gathers support from the investment income, generated from term finance certificates & mutual funds. On the financial risk front, HUM has maintained a stable working capital cycle with relatively strong coverages and capital structure. Following conservative leveraging remains important. PACRA upgrades the entity ratings keeping in view the consistent improvement in the business risk profile and financial resilience that reaps benefits for the Company. This along with HUM's pursuit for digital transformation, expanding content offerings, and exploring new business opportunities to enhance the financial performance and position, provides comfort to ratings. All strategic initiative, if exectuted timely and successful, 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 (~54.6%) owned by the Sponsors, where Mr. Duraid Qureshi holds ~47.41% stake in the Company. ~13.53% is held by FIs, while mutual funds hold ~3.67% stake. ~17.97% stake resides with the general public. Mr. Mazhar ul Haq Siddiqui chairs the Board; while Mr. Duraid is the CEO. He is assisted by an experienced management team.