DB Corp, which has flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar in its stable, has announced its financial results for the second quarter and half year ended September 30, 2013.
The group’s consolidated advertising revenues grew by 19 per cent to Rs 6,744 million in H1 FY2013-14, as against Rs 5,688 million in last year under review. Consolidated total revenues for H1 have increased by 17 per cent to Rs 8,958 million, from Rs 7,638 million in the previous year. Consolidated H1 PAT margin stood at 15 per cent, at Rs 1,363 million, registering growth of 48 per cent on YOY basis.
Consolidated revenues from advertising reported a growth of 17 per cent YOY to Rs 3,297 million in Q2 FY14 from Rs 2,826 million in Q2 last fiscal. Total revenues have shown a growth of 16 per cent YOY to Rs 4,418 million in Q2 FY14, as against Rs 3,823 million of Q2 of last fiscal.
PAT stands at Rs 602 million (margin 14 per cent) in Q2 FY14, as compared to Rs 486 million in the corresponding quarter of last fiscal, showing growth of 24 per cent YOY. This factors one-time pre-operative expenses of Rs 20 million for Akola-Amravati and Patna launch as well as forex loss of Rs 57.12 million.
Advertising revenues from the group’s radio business have expanded by 14 per cent to Rs 175 million in Q2 FY14, as against Rs 154 million in Q2 of last fiscal. Radio business achieved PAT of Rs 19 million (11 per cent margin) in Q2 FY14, while the EBIDTA stood at Rs 56 million (32 per cent margin) in Q2 FY14.
Commenting on the performance for Q2 FY14, Sudhir Agarwal, Managing Director, DB Corp said, “We are pleased to report a healthy performance in the second quarter and the first half year period, which leads us further into an exciting second half of this fiscal. Our performance continues to validate the strategic endeavours undertaken over the last few years towards strengthening our business fundamentals, developing an innovation-led, differentiated product offering, forging stronger relationships with our corporate partners and greater organisational efficiencies, all of which are directed to ensure long term value creation.”
He further said, “We are of the view that the GDP growth seems to have bottomed out and in light of various steps taken to sharpen our execution strengths, DBCL continues to be well placed to capitalise on the consumption potential of the Tier II and III cities as we look towards an improved domestic economic environment.”