Media Times Limited (PSX: MDTL) was incorporated in Pakistan as a private limited company in 2001 and was converted into public limited company in 2007. The principal activity of the company is printing and publishing daily English newspapers in the name of “Daily times” and “Sunday Times” and Urdu newspaper in the name of “Aaj Kal”. Besides, the company also publishes “Sunday Magazine” and “TGIF magazine”. The electronic media channels of MDTL include “Business plus TV” and “Zaiqa TFC”. Pattern of Shareholding As of June 30, 2025, MDTL has a total of 178.851 million shares outstanding which are held by 3101 shareholders. Local general public has the majority stake of 53.92 percent in the company followed by associated companies, undertakings and related parties holding 36.06 percent shares. Banks, DFIs and NBFIs account for 3.27 percent shares of MDTL. The remaining shares are held by other categories of shareholders. Financial Performance (2019-25) Except for 2022, MDTL’s topline followed a downward trend over the period under consideration. The company posted net loss in all the years except 2022. The company’s gross margin posted its optimum level in 2025 while operating and net margins maxed in 2024 and 2022 respectively (see the graph of profitability ratios). The detailed performance review of the period under consideration is given below. In 2019, MDTL’s topline slid by 50.08 percent year-on-year to clock in at Rs.177.17 million. This was primarily the result of lesser advertising revenue (particularly electronic media advertising) as well as lower outsourcing & other services revenue recognized during the year. Cost of production dropped by 38.64 percent in 2019 on account of lesser salaries & benefits, paper, stores and spare parts consumed as well as lower transmission & up-linking cost incurred during the year. The company incurred gross loss of Rs.16.52 million in 2019 versus gross profit of Rs.39.24 million recorded in 2018. Selling & administrative expense plunged by 16.81 percent in 2019 due to considerably lower payroll expense incurred during the year as the company squeezed its workforce from 263 employees in 2018 to 120 employees in 2019. Marketing, distribution & promotion expense also dipped in 2019. MDTL recorded 63.78 percent thinner other income in 2019 on the back of no liabilities written back as well as no rental income from property on sub-lease received during the year. Other expense also shrank by 25.75 percent in 2019 due to lesser fixed assets written off during the year. The company recorded operating loss of Rs.191.23 million in 2019, up 26 percent year-on-year. Finance cost slid by 22.43 percent in 2019 in the face of high prevailing discount rate. Despite restructuring of its loan agreements, the company was unable to meet its financial obligations on due dates and went under litigation and default. MDTL incurred net loss of Rs.244.507 million in 2019, up 6.65 percent year-on-year. This translated into loss per share of Rs.1.37 in 2019 versus loss per share of Rs.1.28 recorded in 2018. In 2020, MDTL recorded 11.69 percent year-on-year plunge in its revenue which clocked in at Rs.156.45 million. This was on account of non-release of advertisement campaign from the government, shift of customers from print media to social media as well as outbreak of COVID-19 during the last two quarters of the year. Cost of production decreased by 28.50 percent in 2020 due to lesser salaries & benefits, lesser paper, stores & spares consumed during the year as well as curtailed transmission & up-linking cost incurred during the year. By keeping a check on its cost, MDTL was able to recorded gross profit of Rs.17.97 million in 2020 with GP margin of 11.49 percent. Selling & administrative expenses plummeted by 44.51 percent in 2020 due to lesser payroll expense, utility expense as well as rent, rates and taxes incurred during the year. The company squeezed its workforce to 87 employees in 2020. Other income strengthened by 77.34 percent in 2020 due to greater amount of liabilities written back during the year. Other expense thinned down by 96.43 percent in 2020 as no fixed assets, advances to staff and fixed assets were written off during the year. MDTL made 70.97 percent leaner operating loss to the tune of Rs.55.51 million in 2020. Finance cost ticked down by 0.67 percent in 2020. Net loss slumped by 55 percent in 2020 to clock in at Rs.110.019 million with loss per share of Rs.0.62. MDTL registered 22.89 percent thinner topline to the tune of Rs. 120.64 million in 2021. While revenue from print media advertisement improved during the year, no outsourcing & other services fee and lesser revenue from sale of newspapers resulted in a weaker topline in 2021. Cost of production shrank by 18.19 percent in 2021 as the company kept a check on its salaries expense, consumed lesser paper, incurred lesser printing charges and recorded smaller depreciation expense during the year. This enabled the company to post gross profit of Rs.7.36 million in 2021, down 59 percent year-on-year. GP margin also fell to 6.10 percent in 2021. Selling & administrative expense dipped by a marginal 2.45 percent in 2021. Massive spike in ECL on financial assets at amortized cost was the main culprit which overshadowed the company’s efforts to keep its operating expense in check in 2021. Other income picked up by 13.57 percent in 2021 due to greater liabilities written back during the year as well as bigger gain recorded on disposal of fixed assets. Other expense dropped by 66.39 percent in 2021 as no impairment on plant & machinery was recorded during the year. MDTL recorded operating loss of Rs.60.20 million in 2021, up 8.44 percent year-on-year. Finance cost slid by 1.73 percent in 2021. Net loss increased by 4.05 percent in 2021 to clock in at Rs.114.476 million in 2021 with loss per share of Rs.0.64. 2022 proved to be the year of revival for MDTL whereby the company recorded a decent 25 percent year-on-year rise in its topline which clocked in at Rs.150.79 million. This was on account of encouraging increase in print media advertisement revenue recognized during the year. Despite robust revenue, the company was able to cut down its cost of production by 4.31 percent in 2022. This was due to lesser depreciation expense recorded on owned assets in 2022. As a consequence, gross profit enhanced by 476.36 percent in 2022 to clock in at Rs.42.39 million. This culminated into GP margin of 28.11 percent in 2022. Selling & administrative expense were squeezed by 17.75 percent in 2022 due to lesser ECL on financial assets at amortized cost. Other income strengthened by 372 percent in 2022 as the company recorded massive gain of Rs.99.49 million on disposal of licenses. MDTL recorded operating profit of Rs.92.62 million in 2022 which culminated into OP margin of 61.42 percent. Finance cost surged by 40.72 percent in 2022 due to higher discount rate and increase in long-term finances obtained during the year. 2022 was the only year during the period under consideration where the company posted net profit to the tune of Rs.17.07 million. EPS stood at Rs.0.10 in 2022 while NP margin was recorded at 11.32 percent. In 2023, MDTL’s topline got back on its descending journey and posted year-on-year decline of 26.41 percent. Net revenue clocked in at Rs.110.97 million in 2023. Both advertisement revenue and revenue from sale of newspapers decreased during the year. This was on account of a widespread shift of customers from print to social media. Non release of advertisement campaign by the government also contributed in squeezing MDTL’s topline in 2023. Cost of production inched up by 0.87 percent despite curtailment in operating activities. This was the effect of mounting inflationary pressure. The company was able to post gross profit; however, it went down by 96.17 percent year-on-year. GP margin drastically dropped to 1.46 percent in 2023. Selling & administrative expense contracted by 7.19 percent in 2023 due to considerably lower payroll expense incurred during the year as the company right-sized its workforce from 76 employees in 2022 to 63 employees in 2023. The effect of lower payroll expense was greatly offset by considerably higher ECL on financial assets at amortized cost booked during the year. Other income plunged by 47.39 percent in 2023 due to high-base effect as the company recorded gain on disposal of licenses in the previous year. MDTL recorded operating loss of Rs.3.19 million in 2023. Finance cost grew by 47 percent in 2023 due to higher discount rate. As a consequence, the company recorded net loss of Rs.110.54 million with loss per share of Rs.0.62. MDTL’s net sales further eroded by 39.40 percent to clock in at Rs.67.24 million in 2024. This was due to persistent drop in advertisement revenue and revenue from sale of newspapers. Inflationary pressure didn’t allow the cost of production to taper by comparable margin resulting in gross loss of Rs.19.63 million- the highest gross loss recorded during the period under consideration. The company tried to make up for the lost sales by keeping a check on its operating expense which plummeted by 16.30 percent in 2024. This was done by booking lesser allowance for ECL on financial assets and by drastic downsizing which resulted in a petite workforce of just 39 employees in 2024. Other income also provided generous support to MDTL as it multiplied by 157.66 percent in 2024. This was the result of waiver of loan mark-up by Faysal Bank. MDTL also wrote back liabilities which were no longer payable. This resulted in a buoyant operating profit of Rs.93.45 million recorded in 2024 with a magnificent OP margin of 138.97 percent. Finance cost shrank by 9.70 percent in 2024 as the company received mark-up waiver. However, finance cost was still huge enough to drag the company’s bottomline in the negative zone. MDTL recorded net loss of Rs.3.07 million in 2024 with loss per share of Rs.0.02. In 2025, MDTL posted a tremendous 127.43 percent year-on-year increase in its topline which clocked in at Rs.152.94 million. This was the result of robust advertisement revenue which was because of dedicated print and social media campaigns launched during the year. The company also achieved greater client diversification besides reducing its dependence on agency based business. Direct client contributions almost tripled during the year. Newspaper segment revenue also remained steady during the year. Focus on high margin digital ventures and curtailment of cost by squeezing freight and carriage charges and printing charges resulted in the highest ever gross profit of Rs.68.96 million in 2025. This culminated into GP margin of 45 percent in 2025. Selling & administrative expense went down by 1.67 percent in 2025 due to lower payroll expense as workforce was further streamlined to 33 employees in 2025. Lower ECL on financial assets also contributed in driving down the operating expense in 2025. Other income deteriorated by 67.39 percent in 2025 due to high-base effect as MTL received waiver of loan mark-up from Faysal Bank in the previous year. Lesser liabilities written back during the year also pushed down other income in 2025. These two factors overshadowed the hefty gain of Rs.32.497 million recognized by the company on the termination of lease in 2025. Operating profit weakened by 29.21 percent in 2025 with OP margin falling down to 43.25 percent. Finance cost tapered off by 32 percent in 2025 due to monetary easing and lesser outstanding liabilities as the company terminated its finance lease agreement with Pace (Pakistan) Limited, a related party of MDTL, before its contractual expiry. The company recorded profit before tax of Rs.1.12 million in 2025 versus loss before tax of Rs.2.23 million posted in the previous year. However, increase in levy resulted in net loss of Rs.0.79 million in 2025, down 74.23 percent year-on-year. This translated into loss per share of Rs.0.004 in 2025. Recent Performance (1HFY26) During the first half of the ongoing fiscal year, MDTL posted 45.62 percent year-on-year growth in its topline which clocked in at Rs.108.69 million. This was on the back of higher advertisement revenue recognized during the period. During the period under review, the company further expanded its direct corporate client base and reduced its reliance on agency based business. The company focused on its flagship brand “Sunday Times” as a core revenue driver. Besides, it also launched a web TV platform through its YouTube channel to capitalize on the growing digital advertising market. Increased focus on high margin fashion, life-style and digital brands resulted in 98.32 percent enhancement in gross profit in 1HFY26 with GP margin clocking in at 61.40 percent versus GP margin of 45 percent recorded in 1HFY25. Operating expense surged by 11.24 percent in 1HFY26. This was likely due to shift of business operations from print-intensive to digital-first media platforms which required strategic brand collaborations, digital advertisement, paid shoots and sponsored content. Other income strengthened by 2242.14 percent in 1HFY26 as MDTL disposed of some its brand assets (including Daily Times English Newspaper, Aaj Kal Urdu Newspaper, Sunday Times English Magazine and their related social media platforms excluding Sunday Times social media platform to Pace Pakistan Limited) for Rs.860 million to buttress liquidity management and for the strategic repositioning of its business. Superior other income resulted in 2188.46 percent year-on-year growth in operating profit in 1HFY26 with OP margin clocking in at 822.29 percent versus OP margin of 52.32 percent recorded in 1HFY25. Finance cost slid by 38.43 percent in 1HFY26 due to monetary easing. MDTL posted net profit of Rs.721.817 million with EPS of Rs.4.04 in 1HFY26 versus net loss of Rs.1.162 million and loss per share of Rs.0.01 recorded in 1HFY25. NP margin clocked in at 664.09 percent in 1HFY26. Future Outlook With the widespread shift from print media to digital media, the company can no longer rely on the sale of its newspapers and print media advertisement. The company has already entered the electronic and social media spaces which have greater margin profile, increased user engagement and sustainable revenue streams. The company is also planning to tap the real-estate sector. In this regard, MDTL has also been authorized to invest Rs.1000 million in the share capital of Pace Barka Properties Limited. In addition to strategic shift and diversification of revenue lines (as discussed above), MDTL also developed an in-house digital production house to boost operational efficiency and also to create an additional revenue line through paid shoots, influencer partnerships and content production services. As of December 31, 2026, MDTL has an accumulated loss of Rs. 2200.147 million. Its current liabilities exceed its current assets by Rs. 47.127 million. This indicates that a material uncertainty exists which may cast significant doubts on the ability of the company to continue as a going concern. The aforementioned initiatives along with the promoters’ support to meet working capital requirements are expected to yield a positive impact on the financial stability, operational continuity and liquidity of the company.