Economic recovery gives DB Corp a boost, Q1 FY2022 revenue up at Rs 3,080 mn

DB Corp Limited (DBCL), home to flagship newspapers – Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has reported total revenue of Rs 3,080 million for the first quarter ended June 30, 2021, as against Rs 2,157 million in Q1 FY2021. Advertising revenue stood at Rs 1,713 million in Q1 FY2022, as against Rs 1,070 million in Q1 of last fiscal, while circulation revenue for the quarter stood at Rs 1,106 million, as against Rs 928 million. Net loss for the quarter stood at Rs 223 million as against Rs 480 million in the corresponding quarter of FY2021.

On the advertising front, the economy is experiencing a broad-based recovery as the country recovers from the second wave of COVID-19. This is especially true for the un-metro towns and cities that Dainik Bhaskar operates in. As a result, the demand for Print Ad space is witnessing an upsurge, with advertisers increasingly turning to Print Media to announce their return to business, with every month sales improvement from April to June and now July. Dainik Bhaskar Group has signed an exclusive advertisement deal with Škoda Auto India for the advertising campaign for its newly launched Škoda Kushaq. This deal is in addition to its recent large deal with Honda Motorcycles and Scooters Ltd. With phased unlocking, the company has registered a month-on-month improvement in advertisement revenues.

EBIDTA for Q1 FY2022 stood at Rs 51 million as against EBIDTA loss of Rs 278 million, aided by efficient cost control measures and despite large digital business investment for future growth. Despite COVID-19 second wave led disruptions, the EBITDA for the Print Business in Q1 FY2022 came in at Rs 381 million (with an EBIDTA margin of 13%) as against EBIDTA loss of Rs 112 million in Q1 FY2021.

Radio business

DB Corp reported a increase its radio advertising revenue at Rs 156 million, via-a-vis Rs 80 million in Q1 FY2021. On the other hand, the radio business saw EBIDTA loss at Rs 2.6 million during this quarter, versus Rs 61 million in Q1 of the previous fiscal.

Digital business

DB Corp reported that the group has largely achieved its goal of becoming the #1 Hindi and Gujarati News Apps over the last year and plans to expand its lead even more in the coming months. According to the current ComScore study, the Dainik Bhaskar App monthly users grew by around 7.5x in the last 18 months, owing to high-quality content development and a highly tailored product experience.

Commenting on the performance for Q1 FY2021-22, Sudhir Agarwal, Managing Director, DB Corp, said, “The circulation and editorial strategies that we have been following have always given us strong results, and this quarter too is a testament to the fact that when we remain true to our values, results will follow. With its ability to reach mass audience, ease of executing geo-targeted campaigns, and bespoke communication with category-specific audiences, international brands continue to rely on Print Media in general and Indian Language newsprint in particular to reach out to a large audience.  Dainik Bhaskar, with its commanding presence in the Indian Language Newsprint space, has reaped the maximum benefits from its national and international goodwill and we believe that we are well-placed to continue on our growth trajectory.”