DB Corp Q1 FY2021: Ad performance witnesses month-on-month improvement since April
The company's communique stated that its circulation revenue stood at Rs 928 million as against Rs 1314 million
DB Corp Limited (DBCL), home to flagship newspapers - Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, today announced its financial results for the quarter ended June 30, 2020. The highlights of the Company’s operational and financial performance are as follows:
"The results of the first quarter are indicative of current disrupted business environment, and the focus has been on safeguarding profitability and maintaining the strong liquidity position
of the Company which should enable it to pivot its growth strategies for the second half of the year and beyond. Both circulation and advertisement revenues have shown signs of a gradual
pick up on a month-on-month basis as lockdown restrictions are easing out in various states and the overall economy too is gradually getting back on track," said the company in its official release.
DB Corp witnessed month-by-month improvement in its advertising revenue. "In April 2020, we reached 19% of last year April performance, in May it improved to 20%, in June to 32% and in July we have been able to achieve 53% of last year. Further due to softer Newsprint rates and lower consumption along with strong cost controls measures, after witnessing an operating loss in April, which got substantially reduced in May, the month of June clocked a positive EBIDTA. The print EBIDTA margin further improved to around 20% in July 2020," read the communique.
On the Circulation front, DB Corp's efforts to educate readers through an awareness campaign by experts paid off well. Circulation copies increased to 76% by 30th June and to 78% per day by end of July, thus registering continuous pick up in circulation. Currently, circulation is 81% at the overall level with key markets including Rajasthan, it has reached 84% of pre Covid level.
On Operating Cost front, NP rates continue to be soft with almost 4% QOQ drop in Q1FY21 to Rs 35850/- and is likely further correct by around 1-2% in coming quarters. Its other
operating cost efficiency measures are effective and helping us in safeguarding our bottom line.
Performance highlights for
Q1 FY2021 Consolidated [All Comparisons with Q1 FY2020
Circulation revenue stood at Rs. 928 million as against Rs. 1314 million
Advertising Revenue stood at Rs. 1070 million as against Rs. 4420 million
Total Revenue came in at Rs. 2157 million as against Rs. 6112 million
Operating loss at Rs. 278 million as against profit of Rs. 1796 million (margin of 29
Net loss at Rs. 480 million as against profit of Rs. 937 million (margin of 15.3
Advertising revenue at Rs. 80 million versus Rs. 377 million
Operating loss at Rs. 61 million versus profit of Rs. 131 million (margin of 35
Net loss at Rs. 84 million versus profit of Rs. 52 million (margin of 14%)
Commenting on the performance for Q 1 FY 20 20 21, Sudhir Agarwal, Managing Director, DB Corp Ltd said, “In what has proven to be an intractable business environment, we are thankful that the Dainik Bhaskar Group’s fundamentals continue to remain strong. Our Company’s focus on implementing a centrally managed multi-pronged strategy to deal with the pandemic has ensured that our operations continued with minimal disruptions while adhering to the Government’s guidelines for health and safety of our stakeholders. As India’s largest newspaper group, our employees and operations reacted with agility to the extraordinary challenges faced due to the widespread economic disruption and uncertainty.
Clearly the pandemic has had an impact on our results in the quarter, but all of our efforts, including embarking on cost-cutting programs are intended not only to deal with the short term needs but also to ensure that the Company is well equipped to prosper in a decidedly different business environment. Economic activity in Tier II and Tier III towns has already begun its path to normalcy and Dainik Bhaskar’s strong position in these markets will help quicken the pace of our return to pre-Covid levels. We believe worst is behind us and we are determined and working hard to recover the previous quarter’s operating losses within the next quarter."
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