Hum Network Limited: performance and outlook

Hum Network Limited (PSX: HUMNL) was incorporated in Pakistan as a public limited company in 2004. The company is engaged in the business of launching satellite channels with the aim to portray cultural heritage.

The core areas of operations include production, advertisement, media marketing and entertainment.

Pattern of Shareholding

As of June 30, 2025, HUMNL has a total of 1134 million shares outstanding which are held by 4591 shareholders. Directors, their spouse and minor children have the majority stake of around 54.6 percent in the company followed by Banks, DFIs, NBFIs, Modarabas, Insurance, Takaful and Pension funds collectively holding 14.73 percent shares.

Local general public account for 14.42 percent stake in the company. Around 2.70 percent of HUMNL shares are held by Mutual Funds. The remaining ownership is distributed among other categories of shareholders.

Historical Performance (2019-25)

Over the period under consideration, HUMNL’s topline slid in 2019, 2020 and 2025. Revenue slide resulted in net losses in 2019 and 2020, however, in 2025, the company’s bottomline stayed in the positive zone. HUMNL’s margins which drastically fell in 2019, recovered in 2020 and 2021. In 2022, gross profit picked up but operating and net margins posted marginal downtick. In 2023, all the margins registered incredible growth. Gross margin continued its upward journey in 2024, however, operating and net margins slightly dipped. In 2025, all the margins posted decline. The detailed performance review of the period under consideration is given below.

In 2019, HUMNL’s topline dipped by 13.68 percent year-on-year to clock in at Rs.3979.10 million. This was on account of massive decline in advertisement, production and film distribution revenue which offset the effect of robust subscription income and an uptick in digital revenue in 2019. Despite thinner revenue, production and transmission cost mounted by 22.50 percent and 8.63 percent respectively on account of inflationary pressure which particularly took its toll on the salaries & benefits expense as well as cost of in-house and outsourced programs.

Gross profit shrank by 81.59 percent in 2019 with GP margin drastically falling down from 34.24 percent in 2018 to 7.30 percent in 2019. Distribution expense slid by 7.52 percent in 2019 due to lower salaries expense of marketing staff coupled with lesser advertising & promotion budget allocated for the year.

Travelling & conveyance expense also dropped in 2019. Administrative expense slumped by 5.93 percent in 2019 due to lower payroll expense as the company considerably downsized its workforce from 981 employees in 2018 to 791 employees in 2019. Other income strengthened by 54.19 percent in 2019 due to robust exchange gain, profit on bank accounts as well as interest income.

Despite keeping a check on its operating expenses and recognizing a hefty other income, HUMNL posted operating loss of Rs.311.48 million in 2019 as against operating profit of Rs.845.30 million recorded in 2018.

Finance cost escalated by 332.19 percent in 2019 due to higher discount rate as well as a momentous spike in the company’s short-term borrowings. This resulted in a gearing ratio of 42.96 percent in 2019 versus gearing ratio of 28.34 percent recorded in the previous year.

The company posted net loss of Rs.535.884 million in 2019 versus net profit of Rs.729.49 million posted in 2018. Loss per share stood at Rs.0.57 in 2019 versus EPS of Rs.0.77 recorded in 2018.

In 2020, HUMNL’s topline further slumped by 7.53 percent year-on-year to clock in at Rs.3679.47 million. In line with last year, advertisement, production and film distribution revenue declined during the year while subscription income and digital revenue increased.

Unlike last year, where cost of production and transmission continued to hike despite lesser revenue, in 2020, the company was able to cut down its production and transmission cost by 21.15 percent and 28 percent respectively. This was mainly because the company kept a check on its cost of outsourced and in-house programs and also incurred lesser salaries expense.

Gross profit mounted by 169.84 percent in 2020 with GP margin staggeringly picking up to 21.31 percent.

Distribution expense shrank by 10.90 percent in 2020 primarily due to lesser salaries of distribution network and also because of lesser travelling & conveyance as well as advertising & promotion budget allocated for the year. Administrative expense slipped by 4.74 percent in 2020 as the company further curtailed its workforce to 771 employees.

Other income weakened by 17.60 percent in 2020 due to lesser exchange gain and lesser profit on bank accounts. During the year, the company also recorded other expense of Rs. 97.61 million owing to provision of impairment booked on other receivables and investment in subsidiary.

HUMNL recorded operating profit of Rs.105.33 million in 2020 with OP margin of 2.86 percent. Finance cost escalated by 68.56 percent in 2020 due to higher discount rate for most part of the year. Lesser outstanding borrowings in 2020 resulted in gearing ratio of 35.94 percent.

Higher finance cost dragged the company’s bottomline to the negative zone. Net loss stood at Rs.113.239 million in 2020, down 78.87 percent year-on-year. This translated into loss per share of Rs.0.12 in 2020.

In 2021, HUMNL’s net revenue grew by 17.61 percent year-on-year to clock in at Rs.4327.33 million. This was mainly the result of robust 46 percent year-on-year growth in subscription income recorded in 2021. Except film distribution, all other revenue streams performed well during the year.

Cost of production inched up by just 0.39 percent in 2021 while transmission cost dipped by 34.97 percent. This resulted in 87.43 percent stronger gross profit in 2021 with GP margin climbing up to 33.97 percent. Distribution expense tumbled by 15.88 percent in 2021 predominantly due to lower advertising & promotion budget.

Conversely, administrative expense grew by 7.46 percent in 2021 due to higher payroll expense. This was despite the fact that the company kept squeezing its workforce which stood at 711 employees in 2021. Other income eroded by 7.53 percent in 2021 due to exchange loss incurred and considerably lower mark-up income recorded during the year.

Other expense spiked by 57.60 percent in 2021 mainly on account of provision booked for impairment of investment in subsidiary, Sky Line Publication (Private) limited.

During the year, HUMNL also recognized gain worth Rs. 476.83 million on the sale of non-current assets (land located in Karachi) held for sale. This resulted in a marvelous operating profit of Rs.1207.51 million in 2021, up 1046.40 percent year-on-year. OP margin was recorded at 27.90 percent in 2021.

Finance cost slipped by 58.43 percent in 2021 due to lower discount rate as well as payment of a large portion of outstanding liabilities during the year. This pushed the gearing ratio down to 19.14 percent in 2021.

HUMNL recorded net profit of Rs.1014.396 million in 2021 with EPS of Rs.1.07 and NP margin of 23.44 percent.

HUMNL’s topline grew by 39.09 percent to clock in at Rs. 6018.97 million in 2022. While all the revenue streams performed quite well during the year, the show-stoppers were Hum news and digital media sector revenues which grew by 133 percent and 84 percent respectively. This was the result of a change in the company’s social media strategy.

Cost of production and transmission grew by 24.85 percent and 10.76 percent respectively in 2022. Gross profit improved by 67.65 percent in 2022 with GP margin attaining a new high level of 40.94 percent. This was due to efficient cost management. Distribution expense mounted by 48.36 percent in 2022 due to increased advertisement & promotion budget and increased salaries of distribution network.

Administrative expense mounted by 14.31 percent on account of higher payroll expense due to inflationary pressure while workforce stood at almost the same level as last year.

Other income slid by 47.10 percent in 2022 as the company recognized unrealized loss on the revaluation of its investments and also incurred loss on the sale of its investments.

Other expense dropped by 81.72 percent in 2022 due to high-base effect as the company booked provision for impairment of investment in subsidiary last year. Operating profit strengthened by 31.53 percent in 2022 with OP margin slightly ticking down to 26.39 percent.

HUMNL was able to cut down its finance cost by 26.91 percent in 2022 despite high discount rate. This was because the company paid off a considerable portion of its outstanding liabilities. This resulted in gearing ratio of 14.3o percent in 2022. Net profit improved by 34.45 percent in 2022 to clock in at Rs.1363.91 million with EPS of Rs.1.2 and NP margin of 22.66 percent.

In 2023, HUMNL’s topline increased by 13.4 percent to clock in at Rs.6825.59 million. Advertisement and subscription income continued to impress during the year. Production revenue also posted an uptick. However, film distribution and digital revenue ticked down.

Massive decline in fee paid for managing digital subscriptions of the company resulted in only 2.48 percent uptick in cost of production in 2023 despite acute inflationary pressure. Transmission cost hiked by 26.49 percent in 2023.

The company recorded 28.18 percent improved gross profit in 2023 with GP margin climbing up to 46.28 percent. Elevated salaries of distribution network and increased advertising budget resulted in 17.23 percent spike in distribution expense in 2023. Administrative expense posted a whopping 51.70 percent surge in 2023 due to increase in payroll expense as well as generous donations distributed during the year.

HUMNL increased its workforce from 676 employees in 2022 to 721 employees in 2023. A staggering growth of 640.77 percent in the company’s other income in 2023 was the result of massive exchange gain as the local currency reached its lowest level during the year.

Besides, reversal of ECL, reversal of liabilities no longer payable as well as robust dividend income and profit on bank deposits also contributed in driving up the other income in 2023. Other expense dipped by 73.96 percent in 2023 as the company didn’t book any allowance for ECL during the year.

Operating profit posted 56.52 percent rise in 2023 with OP margin mounting to an unprecedented level of 36.42 percent. Finance cost shrank by 37.21 percent in 2023 due to payment of outstanding liabilities which squeezed the gearing ratio to 2.22 percent.

HUMNL recorded 57.58 percent improvement in its net profit which clocked in at Rs.2149.24 million in 2023 with EPS of Rs.1.9 and NP margin of 31.49 percent.

In 2024, HUMNL’s revenue grew by 21.71 percent to clock in at Rs.8307.67 million. This was on account of superior performance across the segments – advertisement, production, subscription, film distribution and digital revenue. Due to efficient cost control measures, cost of production grew by just 13.10 percent in 2024, while transmission cost took 4.37 percent dive. This resulted in 32.41 percent stronger gross profit in 2024 with GP margin attaining the highest ever level of 50.34 percent.

Distribution expense mounted by 28.28 percent in 2024 due to increase in salaries as well as advertisement and promotion expense incurred during the year. Administrative expense surged by 11.83 percent in 2024 due to elevated payroll expense on account of inflation and also because the workforce was enhanced to 756 employees.

Other income slid by 34.74 percent in 2024 due to high-base effect as the company recorded massive exchange gain and booked reversal of ECL in the previous year. Other expense escalated by 1471.87 percent in 2024 due to massive exchange loss and allowance for ECL booked during the year. Operating profit picked up by 19.18 percent in 2024 with OP margin slightly ticking down to 35.66 percent. Finance cost continued to slide as the company discharged its liabilities.

Gearing ratio diminished to 1.97 percent in 2024. HUMNL recorded 21.47 percent growth in its net profit which clocked in at Rs.2610.59 million in 2024 with EPS of Rs.2.3 and NP margin of 31.42 percent.

In 2025, HUMNL’s net sales ticked down by 3.55 percent to clock in at Rs.8012.81 million. Around 62 percent of the company’s revenue comprised of advertisement revenue followed by subscription revenue constituting 27 percent of the revenue mix – both of which weakened during the year.

Except digital revenue, all other revenue streams also posted a drop in 2025. Despite revenue slide, cost of production and transmission cost spiked by 4.40 percent and 9.88 percent respectively in 2025 due to inflationary pressure. This resulted in 11.55 percent thinner gross profit in 2025 with GP margin falling down to 46.17 percent.

Distribution expense mounted by 37.98 percent in 2025 due to elevated salaries of sales force and hefty advertisement & promotion budget allocated for the year. Administrative expense also surged by 18.49 percent in 2025 primarily due to higher payroll expense, depreciation expense as well as travelling & conveyance expense incurred during the year. HUMNL expanded its workforce from 756 employees in 2024 to 780 employees in 2025.

Other income considerably buttressed the financial performance of the company in 2025 as it strengthened by 70.14 percent on the back of exchange gain, superior unrealized gain on the revaluation of investments and greater dividend income.

Other income was partially offset by 130.75 percent spike in other expense in 2025 which was the consequence of greater allowance for ECL and provisioning done for impairment against long-term investments. Operating profit diluted by 24.57 percent in 2025 with OP margin sliding down to 27.89 percent.

Finance cost tapered off by 5.47 percent in 2025 due to monetary easing and lesser outstanding debt at the end of the year. Gearing ratio hit its lowest level of 1.34 percent in 2025. HUMNL posted net profit of Rs.2102.987 million in 2025, down 19.44 percent year-on-year. This translated into EPS of Rs.1.85 and NP margin of 25.25 percent in 2025.

Recent Performance (9MFY26)

During the nine-month period of the ongoing fiscal year, HUMNL posted 12.70 percent slide in its revenue which clocked in at Rs.5552.93 million. While subscription income considerably increased during the year, it was offset by a plunge in revenue from all other streams – advertisement, production, digital sales and film distribution.

Cost of production slid by 0.22 percent in 9MFY26 due to a downtick recorded in the cost of outsourced programs, salaries expense and utility expense during the period.

Transmission cost ticked up by 2.54 percent in 9MFY26. This resulted in 26.31 percent weaker gross profit in 9MFY26 with GP margin clocking in at 40.50 percent versus GP margin of 47.98 percent recorded in 9MFY25.

Distribution expense tapered off by 29.89 percent in 9MFY26 likely due to thinner advertisement budget. Administrative expense continued to tick up by 1.52 percent during the period under review due to the revision of minimum wage rate and higher cost of skilled labor.

Other income deteriorated by 74.40 percent in 9MFY26 due to exchange loss worth Rs.163.356 million incurred during the period versus exchange gain of Rs.6.29 million recognized in the comparative period of last year.

Thinner gain on the revaluation of short-term investments, lower profit on bank deposits, no management fee income and petite sale of content and festival revenue also squeezed HUMNL’s other income in 9MFY26.

HUMNL posted 48.19 percent decline in its operating profit in 9MFY26 with OP margin clocking in at 19.58 percent versus OP margin of 33 percent recorded in 9MFY25. Finance cost escalated by 84.41 percent in 9MFY26 as the company acquired short-term loan worth Rs.1412.35 million From Tower Sports (Private) Limited, a subsidiary company.

HUMNL registered net profit of Rs.1146.25 million in 9MFY26, down 39.26 percent year-on-year. This translated into EPS of Rs.1.01 and NP margin of 20.64 percent in 9MFY26 as against EPS of Rs.1.66 and NP margin of 29.67 percent recorded in 9MFY25.

Future Outlook

With continuous diversification of revenue streams and cost optimization, HUMNL is well poised to face the future with vigor. Besides, the company is embracing new technologies to keep up with the challenges of the fast paced media industry and meet the evolving demand of the wider audiences.

The company is expanding its digital footprint to stay aligned with the customers’ changing preferences.