DB Corp sees decline in Q3 FY2020 revenues; PAT grows by 8%

DB Corp, home to flagship newspapers – Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar – has reported total revenues of Rs 6,018 million for the third quarter ended December 31, 2019, as against Rs 6,616 million in Q3 FY2019.

Advertising revenue, too, saw a decline in Q3 FY2020 at Rs 4,248 million, compared to Rs 4,813 million in Q3 FY2019, which includes elections base of Madhya Pradesh, Chhattisgarh and Rajasthan.

Meanwhile, circulation revenue saw a slight increase to Rs 1,321 million, as against Rs 1,301 million in the corresponding quarter of the previous fiscal.

Profit After Tax (PAT) grew by 8 per cent to Rs 816 million (margin of 13.6 per cent), as against Rs 756 million (margin of 11.4 per cent) in Q3 FY2019, after considering forex loss of Rs 9 million.

EBIDTA registered a growth of 2.2 per cent to Rs 1,447 million (margin of 24 per cent) as against EBIDTA of Rs 1,417 million (margin of 21 per cent) in Q3 FY2019, registering a margin expansion of 300 basis points.

Radio business in Q3 FY2020

Advertising revenue for DB Corp’s radio business declined to Rs 372 million in Q3 FY2020 when compared to Rs 465.3 million in Q3 FY2019. EBIDTA was reported at Rs 135 million (margin of 36.2 per cent) versus Rs 202 million (margin of 43.4 per cent) in Q3 FY2019. PAT came in at Rs 62 million (margin of 16.6 per cent), versus Rs 112 million (margin of 24 per cent) in Q3 FY2019.

Performance highlights for 9M FY2020

For the nine months ended December 31, 2019, PAT reported a growth of 14.4 per cent to Rs 2,509 million (margin of 14.4 per cent), as against Rs 2,194 million (margin of 11.6 per cent) in 9M FY2019, after considering forex loss of Rs 35.3 million.

EBIDTA registered a growth of 2.6 per cent YOY to Rs 4,249 million (margin of 24 per cent) as against Rs 4,142 million (margin of 22 per cent) in 9M FY2019, margin expansion of 200 basis points.

Operating profit margin expansion is ably assisted by softened newsprint prices at Rs 38,158 PMT in Q3 FY2020, down 16 per cent YOY. The other cost efficiency measures are also yielding desired results.

DB Corp’s total revenue in 9M FY2020 saw a decline at Rs 17,465 million, as against Rs 18,883 million in 9M FY2019. Circulation revenue stood at Rs 3,921 million, a slight decline from Rs 3,964 million reported in 9M FY2019. Advertising revenue stood at Rs 12,338 million, as against Rs 13,494 million in 9M FY2019.

Radio business in 9M FY2020

Advertising revenue at Rs 1,065 million, compared to Rs 1,159 million in 9M FY2019.
EBIDTA at Rs 334 million (margin of 31 per cent) versus Rs 393 million (margin of 34 per cent) in 9M FY2019.
PAT came in at Rs 164 million (margin of 15.4 per cent) versus Rs 197 million (margin 17 per cent) in 9M FY2019.

Commenting on the performance for Q3 and 9M FY2019-20, Sudhir Agarwal, Managing Director, DB Corp, said, “The present market conditions continue to be challenging on the back of weak consumer demand and a general economic slowdown. However, we are pleased that our innovative knowledge-driven product strategies and well implemented circulation expansion drive is yielding results. Dainik Bhaskar newspaper continues to garner market share in its newer markets while maintaining leadership position in its existing markets. Further, we are proud that Dainik Bhaskar is the only Indian news daily to feature amongst the world’s top 3 most circulated newspapers, in 2019, as per WAN IFRA. Our consumer-centric focus coupled with strong on-ground execution has enabled us to build a position of strength that will help us capitalise on forthcoming opportunities.”

Agarwal further noted that on the revenue front, growth continues to be challenging for the industry, however, softening newsprint prices is a silver lining. “This, coupled with our cost-rationalisation measures, has enabled us to improve profit margins. Going forward, we are optimistic about revival in consumer spending and better revenue scenario,” he added.

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