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DB Corp Q1 FY19: Ad Revenue up 5% Y-O-Y to Rs 454 crore

19-July-2018
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DB Corp Q1 FY19: Ad Revenue up 5% Y-O-Y to Rs 454 crore

DB Corp Limited (DBCL), which owns newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has reported a decline of 11 percent in net profit to Rs 97.5 crore.

The company’s total income for the current quarter is Rs 639.2 crore, which was up by 7 percent against Rs 599.6 crore on yoy basis.

Dainik Bhaskar said in BSE filing that the company continued to maintain strong momentum on circulation expansion strategy across key markets delivering a growth of 12 percent since initiation of circulation campaign in June 2017. "Circulation expansion strategy on track – with growth of almost 12 percent from around 51 lakh copies in June 2017 to around 58 lakh copies as on June 2018 - an increase of around 7 lakh copies, mainly across markets of Bihar, Rajasthan, Gujarat & Madhya Pradesh," it said in the filing.

Over past five years (from FY 2012-13 to FY 2017-18) circulation revenue has delivered 13 percent CAGR growth driven by yield in core legacy markets – much above the industry reported nos. Persistent focus on strong reader engagement efforts and product enrichment initiatives continue to complement circulation expansion strategy

Commenting on the performance for Q1 FY 2018-19, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “This quarter our focus continued to be on ensuring successful implementation of our circulation expansion strategy, in markets across India that are responding well with the team’s complete focus on market expansion, editorial and impactful readership engagement efforts. As India’s largest news networks, we are in the process of assembling an exciting curation of editorial activities keeping in mind important developments with wide public appeal. A detailed road map has been structured in association with industry stalwarts, which will help us deliver stimulating content for our readers. Our non-print businesses continue to progress well, building great value for readers, advertisers and the organisational triad.”

He further added, “The next 5 years are set to be the golden years for Tier 2, 3 towns and DB Corp with its strong presence across these markets is in the best position to capitalize on these opportunities. With our legacy of execution excellence, we are excited, aggressive and totally committed to think and act much beyond our capabilities so that we can deliver the desired levels of growth. At a broader level, all positive signals such as GDP growth, government spending, SmartCity projects, etc. augur well towards a period of greater progress and advancement.”

Performance highlights for Q1 FY 2018-19 - Consolidated


Circulation Revenue has increased YoY 10.3 percent to Rs.134 crore from Rs. 122 crore, primarily due to volume driven growth.

Advertising Revenues reported growth of 5 percent YOY to Rs. 454 crore in current period from Rs. 433 crore in Q1 of last fiscal
EBIDTA Stands at Rs. 174 crore, EBIDTA margin of 27 percent for the quarter, against EBIDTA of Rs. 193 crores in Q1 FY 2018, after considering forex loss of Rs 2.4 crore and circulation expansion strategy related non-recurring expenditure of Rs, 5.8 crores.

PAT stands at Rs. 97 crores (PAT Margin 15.3 percent), against Rs. 110 crores (PAT Margin 18.4 percent), in Q1 of last year; after considering forex loss of Rs. 3.1 crore and circulation expansion strategy related non-recurring expenditure of Rs. 5.8 crore.

Radio business: Advertising revenues expanded by 2 percent YOY to Rs. 31.7 crore in Q1 of current period, against Rs. 31.1 crore in Q1 of last fiscal, despite high base

Radio business EBIDTA grew by 26 percent YOY to Rs. 7.1 crore from Rs. 5.6 crores

Radio Business PAT grew by 59 percent YOY to Rs 2.6 crores

Digital business revenue grew by 4% YOY to Rs. 12.6 crores

Key developments and initiatives

Daink Bhaskar launched daily election coverage news through unique initiative – Mahabharat 365: A new format of pre-election related, in-depth news coverage through a specific theme on each day of the week. Reporting objective, hard core reviews from well-known election analysts, literary personalities and senior editorial team members.

Radio Phase 3 stations become profitable:
Turned EBIDTA positive, following the complete commissioning of all 13 stations, acquired under batch 1 of Phase 3 during 2017. Profitability achieved on the back of strong inventory management, programme profile, prudent cost efficiencies and growing popularity.

New Look www.divyabhaskar.com: The World`s largest Gujarati website has re-launched itself as the global destination for Gujarati content with a new look and wide, exciting canvas of popular content. Introduced 4 news unique categories of content which will be seen first time ever in the industry.

Buy Back of Shares The Board of Directors at its meeting held on May 26, 2018 approved the proposal of buyback of 92,00,000 equity shares of Rs. 10/- each (representing approximately 5% of total equity share capital) from the shareholders of the company through the “Tender offer” route as prescribed under the Securities and Exchange Board of India (Buyback of Securities) Regulations at a price of Rs. 340/- per equity share, aggregating to approximately Rs 312.80Crores. The buyback has been approved by the shareholders on July 6, 2018. The public announcement was published on July 10, 2018. The draft letter of offer was filed with SEBI on July 17, 2018.

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