DB Corp Q1 FY18 revenues grow 4%; net profit up at Rs 1,101 mn

DB Corp, home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, has reported ~4 per cent growth in its total revenues at Rs 6,012 million in the quarter ended June 30, 2017, from Rs 5,787 million in Q1 of the previous fiscal. 

Advertising revenues reported a growth of ~5 per cent YOY to Rs 4,336 million in Q1 FY18, from Rs 4,136 million in Q1 of the last fiscal, despite high base, continued demonetisation impact and pre GST launch impact. Meanwhile, circulation revenues stood at Rs 1234 million, an increase of ~5 per cent YoY from Rs 1,176 million, primarily due to yield driven growth. 

Profit after tax (PAT) grew by ~6 per cent YOY at Rs 1,101 million (PAT margin 18.3 per cent), against Rs 1,040 million (PAT margin 18 per cent), in Q1 FY17. 

EBIDTA grew by more than 4 per cent YOY at Rs 1,933 million, with strong EBIDTA margin of 32 per cent for Q1 FY18, against EBITDA of Rs 1,853 million in Q1 FY17, a clear impact of cost efficiency measures. 

DB Corp’s radio business reported 11 per cent YOY growth in its advertising revenues to Rs 312 million in Q1 of the current period, against Rs 281 million in Q1 of last fiscal, despite high base. Radio business EBIDTA stood at Rs 56 million. 

Commenting on the performance for Q1 FY18, Sudhir Agarwal, Managing Director, DB Corp, said, “We are pleased with the overall results in the first quarter despite a higher base in the corresponding period of last fiscal. We will continue to rigorously execute our strategy program to further strengthen our innovation power, customer proximity and reader engagement efforts in all markets, as also our internal efficiencies.” 

Agarwal further said, “We have undertaken several strategic growth and expansion initiatives in all markets across print, digital and radio platforms and the current focus is on ensuring implementation, consolidation and monetisation of these endeavours.” 

He remarked that the recent launch and implementation of GST will be a positive for India in the long term as the country gradually transforms to improved tax compliance, administration, ease of doing business, unifying the national market, all of which will be positive for India's credit profile. “On an overall basis, an improvement in the global economy, stable commodity prices, normal monsoon prospects, positive impact of pay commission reforms are good signals that India is geared for strong growth going forward,” he added.

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