PACRA Maintains Entity Ratings of HUM Network Limited, Assigns ‘Rating Watch’ and ‘Developing’ Outlook
Lahore, December 28, 2020 (PPI-OT): The ratings incorporate HUM Network’s ability to uphold its relative 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 Hum News. The company has suffered losses as a result of COVID-19, which curtailed the advertisement spend.
This is coupled with the cash outflow amidst of the launch of News Channel. The ratings, however, take into consideration on-balance sheet liquidity to support the overall risk profile of the company though the revival from losses is essential. The management is also eyeing new revenue streams; they are looking at increased revenue from the News Channel, which is expected to reach break-even over the medium horizon.
The company is unable to hold its Annual General Meeting due to legal proceedings pertaining to the election of directors. Therefore, financial statements cannot be released till the Annual General Meeting is conducted. As a consequence, HUM Network Limited has been assigned ‘Rating Watch’ and ‘Developing’ Outlook. PACRA will monitor the proceedings and update the ratings accordingly.
The ratings are dependent upon sustained business profile of the company. Improvement in financial risk profile is vital. Prolonged downturn in the bottom line would have an adverse impact on the credit rating of the company.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425