Q2 FY20: DB Corp profit up Rs 75.6 cr

Advertising revenue stood at Rs 367 cr as against Rs 413.2 cr in Q2 last fiscal

e4m by exchange4media Staff
Updated: Oct 17, 2019 9:45 AM

DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has announced its financial results for the quarter ended September 30, 2019.

The total revenue for Q2 FY2020 stood at Rs 533.6 crore as against Rs 587.4 crore in Q2 of last fiscal. Circulation revenue was recorded as Rs 128. 6 crore as against Rs 131.8 crore in Q2 FY2019. The advertising revenue was Rs 367 crore as against Rs 413.2 crore in Q2 last fiscal.

EBIDTA for Q2 FY2020 was Rs 100.6 crore (margin of 19%), against EBIDTA of Rs. 97.7 crore (margin of 17%). Profit After Tax (PAT) was Rs 75.6 crore (margin of 14%), against Rs 46.2 crore (margin of 8%), after considering forex loss of Rs 2.71 crore and after application of new tax rates as per recent corporate tax rate change announcement.

For the radio business, the advertising revenue stood at Rs 31.6 crore against Rs 37.7 crore Q2 FY2019. EBIDTA stood at Rs 6.9 crore (margin of 22%) against Rs 12 crore (margin of 32%). PAT came in at Rs 5 crore (margin of 16%) against Rs 5.8 crore (margin of 15%).

Commenting on the results, Sudhir Agarwal, Managing Director, DB Corp Ltd said, “The market conditions have been lacklustre primarily due to the economic slowdown resulting in weak demand and tepid consumer spending. While we too have witnessed the impact, our innovative product strategies and growth-led initiatives aided in not only maintaining market leadership in all our major markets but also gaining share in newly forayed markets. Apart from the recent run ‘Circulation Expansion Drive’, our focus on extending the editorial philosophy of ‘Reader-centric’ to include ‘Knowledge and Ideation’ approach has delivered encouraging results, as also reflected in the recent survey data published by IRS and ABC. Further, within a short span of our launch in Bihar, we have emerged as the formidable No. 2 newspaper in the state. With this operating philosophy of ‘Regular Product Re-invention’ being aggressively implemented across our Print, Radio and Digital segments, we look forward to excelling further in a rapidly evolving business environment.”

“As mentioned earlier, the first half of the fiscal has been challenging for the overall industry; however, our continued focus on Cost Control measures coupled with softening newsprint prices helped in sustaining the overall profitability for the company. Further, the initial signs of festive demand are positive and we are cautiously optimistic about growth revival.”

“We applaud the Central government’s recent industry-friendly announcements and hope for few more stimulus measures in the offing. These progressive steps towards reviving the economy are expected to provide the desired impetus to growth in the mid to long term. With all our fundamental growth drivers in place, we are well prepared to capitalise on the upcoming opportunities and would strive to enhance our performance,” he added.

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