DB Corp’s Q3 FY2023 ad revenue up 2.6% YOY to Rs 4,052 million

DB Corp Limited (DBCL), home to flagship newspapers – Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar – continues its streak of strong results, with yet another quarter of good financial performance driven by robust revival of demand in the non-metro markets coupled with strong festive demand in the quarter.

For Q3 FY23, print ad revenues grew by 6.4% QOQ basis and around 4% YOY basis. However, on adjusting for the spread of the festive season, on a like-to-like basis, ad revenues in Q3 FY23 grew in mid-teens on a YoY basis.

Advertising revenue grew by 2.6% YOY and 6.3% QOQ to Rs 4,052 million as against Rs 3,951 million. Adjusting for the festive season Ad billing spread, that is, on a like-to-like basis, Ad revenue grew by double digit YOY.

Circulation Revenue stood at Rs. 1,157 million as against Rs 1,141 million in Q3 FY2022. Total revenue grew by 4.6% at Rs 5,745 million as against Rs 5,495 million. Adjusting for the festive season billing spread, that is, on a like-to-like basis, total revenue grew in double digit YOY.

EBIDTA stood at Rs 1,007 million as against Rs 1,459 million considering Forex loss of Rs 21 million, aided by stringent cost control measures, and despite high newsprint prices and large digital business investment for future growth.

Net Profit stood at Rs 483 million in Q3 FY2023 as against Rs 865 million, after considering forex loss of Rs 24 million.

Radio business:

Advertising revenue stood at Rs 362 million versus Rs 376 million in Q4 FY2022. EBIDTA stood at Rs 118 million versus Rs 147 million.

Traditional advertisers such as Real Estate, Education, BFSI, White Goods, Jewellery, etc., have created strong advertising campaigns for the festive season. Another key traditional category Automobile is now showing signs of revival. Further, New Age digital sectors have also seen value in the Print media, and in this quarter too, digital, app-based companies and start-ups have turned to the traditional media, for their advertising spends.

Newsprint prices have commenced moving southward and the company is hopeful that this trend will continue in the forthcoming quarter as well. DB Corp’s cost optimisation measures, coupled with its proven circulation strategy and robust growth in advertising revenues have translated into strong operating results. For 9MFY23, DB Corp’s consolidated EBITDA grew by 6% YoY basis.

Commenting on the performance for Q3 FY2023, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “The Indian Economy continues to be the most resilient on the global stage, and while most major economies are facing recessionary sentiments, the Indian Consumption Story has played out well in the past nine months. The festive season saw a strong revival of growth and this was primarily driven by Tier-II and beyond cities that seem to be the engines driving the growth of the economy. Our strong presence in these markets have ensured that we are key beneficiaries of robust growth in ad revenues coupled with continued trend of advertisers turning to traditional sectors like Print for their ad spends.”

He further said, “To ensure that we stay engaged with our loyal reader base, our teams continue to work on our omni-channel news delivery platform with significant strides being made through our digital initiatives. We continue to focus on financial prudence to strengthen our balance sheet and deliver strong returns to all our stakeholders.”