PACRA maintains entity ratings of Hum Network Limited

Lahore, December 27, 2019 (PPI-OT): The ratings reflect 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 since May’18. The company has booked a net loss over the last one year on account of Industry-wide factors as well as the cash outflow in the 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; also they are looking at increased revenue from the News Channel, which is expected to reach break-even over the medium horizon. The times are challenging, decreasing revenue in all segments is a concern. The company is resolved to cruise through the tough period with the help of available cushions available on its balance sheet. The company currently has no short term debt. The ratings are dependent upon recourse to improved financial risk profile. Prolonged downturn in the bottom line would have an adverse impact on the credit rating of the company.

For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com