DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, announced its financial results for the quarter and year ended March 31, 2017.
For FY 2016-17, advertising revenues grew by 8% YOY to Rs. 15973 million as against Rs. 14812 million generated during FY16. Growth in line, considering, most of the 2nd half, was impacted by demonetisation decision and resultant impact on consumption breakdown.
Circulation revenue grew by 11% YOY to Rs. 4814 million from Rs. 4356 million reported during FY16. Consolidated total revenues grew by 10% YOY to Rs. 22750 million, as against Rs. 20735 million delivered during last year. DBCL EBITDA grew by 18% YOY during FY 2017 to Rs. 6592 million (margins 29%) from Rs. 5590 million (margin 27%); margin expansion of 200 bps. Consolidated PAT grew by 28% to Rs. 3748 million (margin 16.5%) from Rs. 2921 million (margin 14.1%).
The group’s radio business grew by 18% YOY to Rs. 1273 million from Rs. 1076 million last year. Radio business EBITDA grew by 20% YOY to Rs. 478 million (margin 38%) from Rs. 400 million (margin 37%); margin expansion of 100 bps, in spite of launch of all new stations. Radio business PAT grew by 21% YOY to Rs. 247 million (margin 19%) from Rs. 205 million (margin 19%)
Digital business revenue grew by 24% to Rs. 567 million from Rs. 460 million during FY16.
For Q4 FY 2016-17, ad revenues was Rs. 3567 million in current period from Rs. 3600 million in Q4 of last fiscal while Circulation Revenue grew by 7% YOY to Rs. 1217 million from Rs. 1136 million, primarily due to yield driven growth, largely growth has come from mature market. Total Revenue reported growth of 1.4% YOY at Rs. 5222 million in current period from Rs. 5149 million in Q4 last fiscal. EBIDTA stands at Rs. 1173 million with EBIDTA margin of 22% for the quarter; against EBIDTA of Rs. 1211 million (margin 24%) Q4 of last year. PAT grew by 6% YOY at Rs. 642 million (PAT Margin 12.3%), against Rs. 604 million (PAT Margin 11.7%), in Q4 of last year.
In Radio business, advertising revenues expanded by 11% YOY to Rs. 330 million in Q4 of current period, against Rs. 298 million in Q4 of last fiscal. Radio business EBIDTA stands at Rs. 80 million (24% margin) while PAT stands at Rs. 32 million (10% margin).
Digital business revenue grew by 19% to Rs. 142 million from Rs. 119 million reported during corresponding quarter last fiscal.
Commenting on the performance for Q4 & FY 2016-17, Sudhir Agarwal, Managing Director, DB Corp Ltd said, “While this fiscal continued to be one that tested our resilience, we are pleased with the final culmination having achieved some significant operating milestones. Dainik Bhaskar is an integral part of our readers’ lives and a window to the external world. We maintained our focus on editorial strategy on how we can best leverage our largest network of journalists across media and languages platform. Equipping them with training and focusing on smaller centers, late night news reporting are initiatives that have led to significant improvement in quality and growth. We launched Dainik Bhaskar in Surat successfully and catered to the city’s non-Gujarati speaking audience from Day 1 itself which is about 50% of city population of 58 lacs. MY FM became the fastest radio company to roll out all 13 newly acquired stations expanding our presence in 7 states across 30 cities. Our digital business continues to focus on strengthening viewer engagement reporting significant growth in unique visitors and page views. Management is evaluating different efficient avenues for distribution of income. India has been witnessing a strong demographic shift in the rural population over the last few years. Dainik Bhaskar’s Unmetro initiative continues to unearth this potential since consumer groups in these regions have become a significant pool with changing tastes and preferences. At the same time, literacy levels across states have been growing which has continued to initiate new readers. It is noteworthy that besides the eight large metros, 42 new and emerging urban clusters have transformed into consumption hubs. This is aligned to Dainik Bhaskar’s Unmetro endeavour which we had already started exploring a few years ago and have expanded our presence to about 50% of these new consumption clusters. On an overall basis, impact of the currency purge undertaken by the Government, seem to be easing out on consumption. The outlook for a normal and healthy monsoon season and the impending GST implementation are positive signals as we progress into a few fiscal.”