DB Corp posted a good performance in its second quarter financial results for the current fiscal year. The company that owns newspapers Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar reported consolidated total revenues of Rs 3010 million, a 14.8 per cent increase compared to the corresponding quarter last year and consolidated PAT of Rs 551 million from Rs 440 million, up by 25 per cent in Q2 YOY.
Advertising revenues of the company grew by 17.8 per cent to Rs 2359 million from Rs 2003 million in the corresponding quarter last fiscal. Out of this, print business contributed Rs 2273 million, a growth of 18.3 per cent over same quarter last fiscal while the radio segment contributed revenue of Rs 106 million from Rs 91 million in the corresponding quarter last fiscal.
“DB Corp posted good advertising rate growth considering it is coming from a higher base; Q2 last year benefited from festivities,” said Mihir M Shah Research Analyst-Media & Entertainment, Alchemy Share & Stock Brokers Pvt. Ltd. Backed by buoyant advertising revenues, the print business saw a jump of 26 per cent in net profits at Rs 606 million. Circulation revenues increased from Rs 527 to Rs 532 million in the second quarter this fiscal.
Commenting on the performance Sudhir Agarwal, Managing Director, DB Corp Limited said, “This has been a quarter of steady development and sustained progress. We focused on organic expansions and defined execution in several key regions.” The company launched Dainik Bhaskar in Ranchi and Jharkhand in August and expanded to Jammu in October. It announced the launch of two new editions in Bhatinda, Punjab and Nagour, Rajasthan and new printing centres in Madhya Pradesh.
Next quarter results will also be strong because of festive season, though newsprint costs will eat up some operating profits,” said Shah from Alchemy. Even the company in the analysts’ conference call said that it is expecting the newsprint prices to go up in the coming quarter. “However, for the entire year, the company will also benefit to the extent of Rs 30 crore in tax due to accumulated losses in the radio business,” added Shah. Operating losses of radio reduced to Rs 23.62 million from Rs 40.5 million.