DB Corp Q1 FY19 revenues up 7% at Rs 6,392 mn; net profit up at Rs 976 mn
DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has reported 7 per cent growth in its total revenues at Rs 6,392 million in Q1 FY2019 from Rs 5,997 million in Q1 of the last fiscal.
Circulation revenues in Q1 FY2019 increased 10.3 per cent YoY to Rs 1,345 million from Rs 1,220 million, primarily due to volume driven growth. Advertising revenues reported growth of 5 per cent YOY to Rs 4,549 million in the current period from Rs 4,334 million in Q1 of last fiscal.
EBIDTA stood at Rs 1,749 million, EBIDTA margin of 27 per cent for the quarter, against EBIDTA of Rs 1,933 million in Q1 FY2018, after considering forex loss of Rs 24.9 million and circulation expansion strategy related non-recurring expenditure of Rs 58.6 million.
Profit After Tax (PAT) stood at Rs 976 million (PAT margin 15.3 per cent), against Rs 1,101 million (PAT margin 18.4 per cent) in Q1 of last year, after considering forex loss of Rs 31 million and circulation expansion strategy related non-recurring expenditure of Rs 58.6 million.
Advertising revenues of the Group’s radio business expanded by 2 per cent YOY in Q1 FY2019 to Rs 317 million, against Rs 311 million in Q1 FY2018 despite high base. Radio business EBIDTA grew by 26 per cent YOY to Rs 71 million from Rs 56 million. Radio business PAT grew by 59 per cent YOY to Rs 26 million.
Digital business revenue grew by 4 per cent YOY to Rs 126 million.
Commenting on the performance for Q1 FY 2018-19, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “This quarter, our focus continued to be on ensuring successful implementation of our circulation expansion strategy, in markets across India that are responding well with the team’s complete focus on market expansion, editorial and impactful readership engagement efforts. As India’s largest news networks, we are in the process of assembling an exciting curation of editorial activities keeping in mind important developments with wide public appeal. A detailed road map has been structured in association with industry stalwarts, which will help us deliver stimulating content for our readers. Our non-print businesses continue to progress well, building great value for readers, advertisers and the organisational triad.”
Agarwal further said, “The next 5 years are set to be the golden years for Tier 2 and 3 towns, and DB Corp with its strong presence across these markets is in the best position to capitalise on these opportunities. With our legacy of execution excellence, we are excited, aggressive and totally committed to think and act much beyond our capabilities so that we can deliver the desired levels of growth. At a broader level, all positive signals such as GDP growth, government spending, SmartCity projects, etc., augur well towards a period of greater progress and advancement.”
Dainik Bhaskar continued to maintain strong momentum on circulation expansion strategy across key markets, delivering a growth of 12 per cent since initiation of circulation campaign in June 2017.
Circulation expansion strategy is on track, with growth of almost 12 per cent from around 51 lakh copies in June 2017 to around 58 lakh copies as on June 2018, an increase of around 7 lakh copies, mainly across markets of Bihar, Rajasthan, Gujarat and Madhya Pradesh.
Over past five years (from FY2012-13 to FY2017-18) circulation revenue has delivered 13 per cent CAGR growth driven by yield in core legacy markets, much above the industry reported numbers.
Persistent focus on strong reader engagement efforts and product enrichment initiatives continue to complement circulation expansion strategy.