⚡ Flash Summary

Media Times Limited (MDTL) reported a significant increase in revenue for FY2025, rising 2.26 times to PKR 153 million compared to PKR 67.68 million in FY2024. This growth was driven by stronger advertisement revenues and improved client diversification. Despite increased revenue and improved gross margins, the company experienced a net loss of PKR 0.79 million, although significantly lower than the previous year’s loss of PKR 3.07 million. The company is exploring a potential merger with a real estate company, authorized by the Board.

📌 Key Takeaways

• 📈 Revenue increased by 2.26x, reaching PKR 153 million in FY2025 from PKR 67.68 million in FY2024.
• 📣 Advertisement revenues surged from PKR 63.14 million to PKR 148.40 million.
• 🤝 Direct client contributions nearly tripled, rising from PKR 29.38 million to PKR 84.84 million.
• 📰 Newspaper segment revenues remained stable at PKR 4.60 million.
• 📉 Net loss decreased significantly to PKR 0.79 million from PKR 3.07 million year over year.
• 💰 Gross profit improved to PKR 68.95 million from a loss of PKR 19.63 million in the previous year.
• 💸 Finance costs reduced from PKR 95.68 million to PKR 65.03 million.
• 🏢 The company is exploring a potential merger with a Real estate company.
• 📺 The company is developing YouTube channels for new revenue streams.
• 🏦 Non-current assets decreased primarily due to lease asset adjustments.
• ✅ Current assets strengthened due to higher receivables and improved cash flow.
• 💵 Long-term finance remains consistent at PKR 340.60 million.
• 📉 Accumulated loss increased slightly from PKR 2,918.70 million to PKR 2,921.96 million.
• 💼 Earnings per share improved from (0.02) to (0.004).

🎯 Investment Thesis

HOLD. While MDTL has shown considerable improvement in revenue and reduced its net loss, the company is still loss-making and carries significant accumulated losses. The potential merger with a real estate company introduces both opportunities and uncertainties. Until the merger details are clear and the company demonstrates sustained profitability, a HOLD recommendation is appropriate. A price target cannot be reliably established due to the current financial performance and speculative nature of the potential merger.