Hum Network reported consolidated profit of Rs389 million in quarter ending June 2020. This is the highest profit witnessed in company’s history. HUMNL gross profit increased to 60 percent in this quarter from Rs200mn in June 2019 quarter to Rs745mn in June 2020.
Hum Network profitability increased due to higher gross margins on both consolidated and unconsolidated basis. Increase in profitability on consolidated basis may be due to profitability of HUM Mart (e-commerce grocery selling platform business). It is worth mentioning to note that as per market sources HUM mart has gained significant market share in retail business in Karachi due to its aggressive marketing strategy and focus on quality compared with other players in the market.
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Hum Mart app user base is also growing significantly as its current android based user stands above 100k compared with 5K for MANDIEXPRESS.PK. Hum Network reported sales of Rs4,645 miilion in year ending June 2020. Growth in HUMNL profitability is only due to better gross margins as sales growth remained muted in year ending June 2020 other expenses and finance cost also remained on higher side.
It is worth mentioning to note that Hum Network has earlier obtained stay order from Sindh High Court in October 2020 for elections of board of directors that were supposed to be held on firsf half of year ending June 2020. Due to this act doubts of foreign investors increased about the company’s corporate governance structure and resultant they sold 321 million shares of Hum Network at the negotiated price of Rs6.0 per share. Out of 321 million shares Kingsway Fund-Frontier consumer Franchises Extoba sold 196 million shares and stichting General Holdings sold 125 million shares.
Pakistan Stock Exchange – Announcements
About Hum Network Limited
HUM Network (KSE symbol: HUMNL), enjoys the reputation of being the first ever listed company in electronic media in Pakistan. It started its operations in January 2005, and subsequently the acquisition of its up-linking equipment, it started up-linking directly from the head office in Karachi. In 2005, HUMNL shares were offered via an Initial Public Offering (IPO). Its authorized and the paid-up capital is Rs 700M and Rs 500M, respectively. Of this, Rs 270 million were raised from sponsors, Rs 80 million from private placements and Rs 150 million from the general public.
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Within the television medium, HUMNL offers HUM TV, HUM Sitaray and Masala TV under its belt. Besides, its publications include Masala TV Food magazine, Humsay, Catalogue (a Bridal Couture Week Magazine), and Style G.L.A.M. Just recently, the company has acquired Newsline magazine which is among the leading social political magazine in Pakistan.
HUM NETWORK’S GLOBAL PRESENCE: HUMNL is aggressively pursuing its vision to become an internationally famed channel. By expanding its global presence in a jiffy, the company is leading by example. Besides its subsidiaries in the UK and USA, the company is taking the next big step by setting up a subsidiary in the UAE. This was unearthed by the company through a stock exchange announcement in the beginning of the month. Referring to the notice, “The name HUM Network FZ LLC has been reserved with the UAE authorities for the formation of the wholly owned subsidiary. The said subsidiary will be registered after regulatory approvals and completion of the due process in UAE”.
