DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, today announced its financial results for the first quarter ended June 30, 2013.
Total revenues have shown a growth of 19 per cent YOY to Rs 4539 million in Q1 against Rs 3815 million of Q1 of last fiscal on account of:
Net Increase in print business total revenue of Rs 688 million in Q1 FY 2014 on YOY basis
Advertising revenues increase to Rs 3253 million from Rs 2701 million, reflecting a growth of 21 per cent YOY basis
Circulation revenues grew YOY to Rs 767 million from Rs 656 million, at 17 per cent YOY
Net increase of Rs 31 million in revenues from radio segment in Q1 on YOY basis
Revenues increased from Rs 141 million to Rs 173 million due to improved advertising revenues
Print business EBIDTA margins stand at 31.2 per cent at Rs 1351 million
Print business PAT stands at Rs 768 million (17.7 per cent PAT margin)
Print business mature editions EBIDTA margin stand at 36 per cent
Commenting on the performance Sudhir Agarwal, Managing Director, DB Corp said, “We are happy to report a strong performance in the first quarter of this fiscal that has sustained our expansion momentum. We have maintained our brand equity and leadership position in all our legacy markets as we also continue to demonstrate good growth in our emerging editions. Our new edition in Akola – a city with great potential, widens our presence in Maharashtra which allows us to offer greater reach to our corporate partners and a much more customised media solution. This quarter we also directed our efforts to further strengthen our deep relationships and inroads with our agency partners who have identified us as their preferred media due to our growing all-India readership base.”
EBIDTA grew by 65 per cent YOY with EBIDTA margin for the quarter expanded to
30.3 per cent at Rs 1374 million, against Rs 831 million, in Q1 FY 2013. The same factors one-time preoperative expenses of Rs 8.7 million, on the launch of Akola edition in
Maharashtra and impact of operating losses of six editions of Maharashtra and three editions of Jharkhand as well as Forex loss of Rs 25.32 million.
The company’s EBIDTA margins stand at 31.1 per cent at Rs 1402 million on a stand-alone basis. Mature editions EBIDTA margin expanded to 36 per cent at Rs 1410 million. PAT grew by solid 74 per cent YOY with PAT margin expanded to 17 per cent for Q1 at Rs 761 million against Rs 437million (11.4 per cent margin), in Q1 of last year. The same factors one-time preoperative expenses of Rs 8.7 million for Maharashtra launch as well as Forex loss of Rs 36.64 million.
Coming to the radio business, advertising revenues expanded by 22 per cent to Rs 173 million in Q1 of current period, against Rs 141 million in Q1 of last fiscal; radio business EBIDTA expanded to Rs 51 million (29.4 per cent margin) in Q1 FY 2013-14 and PAT expanded to Rs 24 million (14 per cent margin) in Q1 FY 14.
Divya Marathi launched its sixth edition in Akola (Maharashtra) and another edition in Amravati in Maharashtra will be launched soon
With the view to maintain focus on its high growth business model, DBCL sold its entire stake in Divya Prabhat Kiran (an afternoon newspaper in Indore).
“Our exclusive tie-ups with leading international publications like HBR and Time Magazine, undertaken to enrich the content quality of our product, are already showing great results making a meaningful impact in the readership base, especially of SEC A & B categories. On a macro level, we continue to maintain a sharp focus on cost efficiency and operational controls that have again played an important role in this quarter’s performance. We are very closely mapping the growth potential of Tier II and III towns across India – the socio-economic structures, demographics, marketing trends of various categories, marketing spends of these regions and their growth prospects. The untapped existing potential continues to greatly excite us. We are confident of our business growth strategies to monetise these opportunities and truly create high value by being very active socio-economic change agents,” added Agarwal.