DB Corp ad revenue reported growth of 13% YOY to Rs 4,813 million

Sudhir Agarwal, Managing Director, DB Corp Ltd says performance this quarter is a culmination of dedicated strategic efforts made across all businesses spanning print, digital and radio

D B Corp

DB Corp Limited (DBCL), the print media company, which is home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has announced its financial results for the quarter and nine months ended December 31, 2018. 

Performance highlights for Qtr 3 FY 19 Consolidated -All Comparisons with Qtr 3 FY 18
•    Advertising revenues reported growth of 13 per cent YOY to Rs 4,813 million in current period from Rs 4,261 million
•    Circulation Revenue has increased 3 per cent YoY to Rs 1,301 million from Rs 1,262 million
•    Total Revenue has grown by 11 per cent to Rs 6616 million in current period from Rs 5965 million
•    EBIDTA stands at Rs 1417 million (margin of 21.4%), against EBIDTA of Rs 1434 million on the back of strategic cost rationalisation measures and despite high newsprint rates
•    PAT stands at Rs 756 million (PAT Margin 11.4 per cent), against Rs 781 million (PAT Margin 13 per cent)
•    Radio business: Reports stellar performance
•    Advertising revenues expanded by 39 per cent YOY to Rs 465 million in Q3 of current period against Rs 334 million in Q3 of last fiscal
•    EBIDTA grew 2x YOY to Rs 202 million (EBIDTA margin of 43 per cent) from Rs 96 million
•    (EBIDTA margin of 29 per cent); margin expansion of 1400 bps
•    PAT grew by 3x YOY to Rs 112 million from Rs 42 million last year

Digital business – Gaining traction
•    Turns EBITDA positive on the back of renewed focus on business profitability
•    Revenue for the quarter stood at Rs 141 million as against Rs 154 million for Q3 FY 18

Performance highlights for YTD December 9 Months FY 2018-19 - Consolidated
•    Advertising Revenues reported growth of 7.5 per cent YOY to Rs 13,494 million in current period
•    from Rs 12,557 million in 9M of last fiscal
•    Total Revenue reported growth of 7 per cent at Rs 18,883 million in current period from Rs 17,675 million in 9M last fiscal    
•    Circulation Revenue has increased 6.3 per cent YoY to Rs 3,964 million from Rs 3,729 million, primarily volume driven
•    EBIDTA stands at Rs 4,142 million (margin of 22 per cent) against EBIDTA of Rs 4,824 million, in 9M FY 2018; after considering forex loss of Rs 54 million
•    PAT stands at Rs 2,194 million (PAT Margin 12 per cent), against Rs 2,669 million (PAT Margin 15%) in 9M of last year; after considering forex loss of Rs 62 million
Radio business
•    Advertising revenues expanded by 17 per cent YOY to Rs 1,159 million in 9M of current period, against Rs 993 million last fiscal
•    Radio business EBIDTA grew by 60 per cent YOY to Rs 393 million from Rs 245 million
•    Radio Business PAT grew by 102 per cent YOY to Rs 197 million from Rs 98 million
•    Digital business revenue stands at Rs 387 million from Rs 398 million

Commenting on the performance for Q3 FY 2018-19, Sudhir Agarwal, Managing Director, DB Corp Ltd said, “Our performance this quarter is a culmination of dedicated strategic efforts made across all our businesses spanning print, digital and radio. Over the last few quarters our focus has been on the execution of our circulation strategy across India supported by strong reader engagement and product enrichment initiatives. We have undertaken several initiatives to unlock their potential that will help us monetise our inherent, strong brand strengths through leveraging our loyal digital user base, our hyper local presence across radio and programming strength through content. The impact of these efforts have already started to emerge and will reflect in the coming months. 

At an industry level, the government’s ad rate hike is a welcome move for all players and will provide a strong impetus for growth. Structurally, India continues to be one of the world’s fastest growing economies. Decline in crude oil prices and rationalization of GST rates will help trigger a revival momentum in consumption. Across India, content consumption is growing at a brisk pace across mediums and given our legacy and competitive aggression, we are totally committed to expand our capabilities to deliver growth and shareholder value.”

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