DB Corp declares Q2 results, revenue grows 9.2%

Revenues from advertising reported a growth of 9 per cent YOY to Rs 3,610 million in current period from Rs 3,311 million in Q2 last fiscal, on a high base of Q2 of last year

e4m by exchange4media Staff
Updated: Oct 17, 2014 2:33 PM
 DB Corp declares Q2 results, revenue grows 9.2%

DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has announced its financial results for the second quarter and half year ended September 30, 2014.

Total Revenues have shown a growth of 9.2 per cent YOY to Rs 4,838 million in Q2 against Rs 4,430 million in Q2 of last fiscal. Revenues from advertising reported a growth of 9 per cent YOY to Rs 3,610 million in current period from Rs 3,311 million in Q2 last fiscal, on a high base of Q2 of last year.

EBIDTA margin for the quarter came in at 26.3 per cent at Rs 1,271 million, against Rs 1,116 million, in Q2 FY 2014 with YOY growth of 14 per cent. The same factors forex loss of Rs 18.2 million. PAT margin stands at 14.1 per cent to Rs 681 million against Rs 602 million, in Q2 of last year, with YOY growth of 13.2 per cent.

Due to new accounting guidelines, as per new company act 2013, company has provided incremental depreciation of Rs 50 million, in Q2 FY 15. The same also factors Forex loss of Rs 19.6 million.

Advertising revenues in the radio business have expanded by 33.3 per cent to Rs 228 million in Q2 of current period, against Rs 171 million in Q2 of last fiscal. Radio business EBIDTA stands at Rs 86 million (38 per cent margin) in Q2 FY 2014-15. Radio business PAT stands at Rs 43.4 million (19 per cent margin) in Q2 FY 15. Digital business Revenue grew by 57 per cent to Rs. 63 million from Rs. 40 million of last year. Digital business EBIDTA losses reduced to Rs. 9.6 million from Rs. 22 million of last year.

According to the company release, “DBCL remains highly respected regional news dailies by 19.8 million readers across India’s fastest growing markets. Dainik Bhaskar continues to be the largest read newspaper of urban India, retains its market position in legacy markets while gaining strong ground in emerging markets.”

The brand has maintains leadership position in legacy markets of Madhya Pradesh, Chhattisgarh, Chandigarh, Punjab, Haryana (CPH), urban Rajasthan, urban Gujarat through continuous focus on high quality content and strong brand development initiatives.  In Jharkhand, the brand is ramping up steadily to close the gap to move to No. 1 position by making focused progressive inroads in the major urban cities and within the readership profile of affluent class SEC A & B, becoming a preferred vehicle for key local advertisers.

In Maharashtra, Divya Marathi continues on a high growth trajectory in all its 7 editions. DBCL continues to aggressively explore the real potential of Maharashtra and the economic growth of surrounding cities and towns. “In an endeavour to unearth the real economic potential of Maharashtra beyond Mumbai and outside of Pune & Nagpur regions, the Company commissioned an independent study undertaken by a leading economic research and data analytics firm,” the statement said.

Dainik Bhaskar sponsored the CMO League – A knowledge and thought leadership platform. The CMO league has been created with the unique purpose of bringing together CMOs and high ranking marketing professionals of various corporate. A panel discussion conducted on ‘The changing India’ where the potential of Unmetro markets (Tier II and Tier III cities of India) and the possible strategies to connect with the consumers of these markets were discussed

Commenting on the performance for H1& Q2 FY 2014-15, Sudhir Agarwal, Managing Director, DBCL said, “We are happy to report a quarter of satisfactory performance driven by satisfactory advertisement revenue growth with strong traction from segments such as FMCG, real estate, Auto and Life Style categories. On an overall basis, we have ensured that our legacy and emerging markets maintain steady growth as we continue to focus on delivering a content-backed news product that has become an integral part in the lives of our readers in various age-groups and with diverse interests. Through continuous strategic reviews on product quality, DBCL is working diligently in each market to bring to its readers unbiased news reports based on local region-wise developments and on news of national importance. It is through this larger mission of unearthing the local potential that we continue to progress along the path of our vision to be the largest and most admired media brand enabling socioeconomic change.”

“While the print media business segment on a self-growth momentum, we have maintained a steady focus on the non-print segment. 52% of India’s population is 24 years or younger comprising audiences of Generation X, Y and Z. We have very successfully adapted ourselves to this digital and social era and are harnessing our strengths to offer greater value to audiences across radio, digital and mobile platforms. Over the past few months, macroeconomic sentiments have improved especially with several global institutions positively revising their India outlook, which has had a good impact on consumer and industrial confidence. We believe that the current outlook indicates broad economic stability and a pick-up in growth, which DBCL is very well positioned to capitalise on, given our inherent business strengths and position as the only media conglomerate that enjoys a leadership position in multiple states, and in multiple languages,” he added.

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