DB Corp sees dip in Q1 FY20 revenues to Rs 6,112 mn
DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has seen a fall in its total revenue to Rs 6,112 million for the first quarter ended June 30, 2019, from Rs 6,392 million reported in the same period of the previous fiscal.
Advertising and circulation revenues also recorded a dip in Q1 FY2020. Compared to advertising revenues of Rs 4,549 million in Q1 FY2019, DB Corp saw a dip in its ad revenues to Rs 4,420 million this fiscal. Circulation revenues for Q1 FY2020 stood at Rs 1,314 million, as against Rs 1,345 million in the corresponding period last fiscal.
EBIDTA stood at Rs 1,796 million (EBIDTA margin 29 per cent), as against EBIDTA of Rs 1749 million (EBIDTA margin 27 per cent). EBIDTA increased by around 85 million as per Ind AS 116 – “Leases”, which is added in depreciation and finance cost and hence, negative 9 million impact in profit after tax.
Profit after tax (PAT) also saw degrowth at Rs 937 million (PAT Margin 15.3 per cent) in Q1 FY2020, compared to Rs 976 million (PAT Margin 15.3 per cent) in the corresponding period of the last fiscal.
On the other hand, Radio business revenues grew by 19 per cent YOY to Rs 377 million, as against Rs 317 million. Radio business EBIDTA grew by 84 per cent YOY to Rs 131 million (margin 35 per cent) from Rs 71 million (margin 22 per cent), and increased by around Rs 13 million as per Ind AS 116 – “Leases”, which is added in depreciation and finance cost. Radio business PAT grew by 98 per cent YOY to Rs 52 million (margin 14 per cent) from Rs 26 million (margin 8 per cent).
Commenting on the performance for Q1 FY 2019-20, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “The company enjoys a dominant position in all its major markets of presence. To further strengthen our dominance, we continued with our efforts towards editorial and circulation expansion initiatives through this quarter as well. Despite the challenging macro environment, we are confident of our current strategies to deliver enterprise growth and building profitability aided by overall cost control and moderation in newsprint prices going ahead.”
He further said, “Our business strategy is focused on product strengthening, along with a series of strategic initiatives to orient the editorial team in this direction, and complement our circulation expansion initiatives. Our efforts have delivered strong results and are reflected in the latest published readership and circulation number by MRUC and ABC, respectively. The latest Circulation drive, ‘Life Badal jayegi, Boss’, featuring Salman Khan is a continuation towards strengthening reader engagement, thus giving a push to our circulation efforts. Our non-print businesses continue to progress well, building great value for our readers and advertisers. We continue to build our synergies and leverage the competitive strengths across each business segment.”