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DNA newspaper owner DMCL ad revenue up 19.24% to Rs 81.82 cr

31-August-2018
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DNA newspaper owner DMCL ad revenue up 19.24% to Rs 81.82 cr

Diligent Media Corporation Limited (DMCL), the company that publishes English language newspaper DNA (Daily News & Analysis), its supplements and other online platforms has shown losses of over Rs 98 crore (after tax) in its financial statement for the year ended March 31, 2018. In the last financial year, the company had showed losses of Rs 25.51 crore.

“During FY 17-18, while the Company clocked revenue of Rs 124 Crores, the operations during the year resulted in Net Loss (before tax) of approx. Rs 60 Crores,” the statement read.

For the same period, the company also shows total revenue of over Rs 127 crores and total expenses of over Rs 187 crores.

The Company achieved a growth of 38.73% in its total revenue including other income during FY 2017-18 at Rs. 127.12 cr, compared to Rs 91.63 cr for FY 2016-17. Revenue from advertisement increased by 19.24% during FY 2017-18 at Rs 81.82 cr, as compared to Rs 68.61 cr in FY 2016-17.
The increase was primarily due to takeover of DNA franchise editions in Jaipur and Ahmedabad and launch of Zee Marathi Disha.
“While the Company’s operations have been in losses since inception, it is expected that the recent expansions, with independent strategic directions to the Print Media business by an experienced senior management team and support from the promoters, shall lead the Company to a growth trajectory,” read the statement.
The company, in order to turn itself profitable, unlike previous years, will focus on maximising advertising revenue by moving towards convergence and offering its clients and advertisers integrated media solutions and consumer reach.

It will be consolidating print and digital media sale as part of it long terms strategy.
DMCL also mentions about increasing the readership of its print publications by offering its readers fair, independent and extremely relevant content that informs and positively engages them. At the same time it also says that it will focus on “corporate business through editorial integrations.”
“Few major categories, which are the biggest contributor to the print business are Government, Automobile, FMCG, BFSI and Real Estate. The Company will focus on these through editorial and content route across its daily main issue or through dedicated supplements,” the statement reads.
While speaking about the key risks faced by the company, the statement talks about the increasing competition in the print news.
“With reading habits shifting online, there is increased competition from purely online news portals apart from the digital properties of print competitors,” it said in the statement.
The changing customer preferences or slowdown in advertising spends is also mentioned in the company’s statement, as a matter of concern.
“This shift may impact overall demand for newspapers in future. This trend may impact readership that determines advertising spends. The advertising spends may also be impacted by the overall economic environment that may have an adverse effect on the advertisement spends,” the statement read.
Newsprint, which is the key raw material and forms a substantial portion of the overall cost for the Company, saw inflation in its cost. Adverse movement in price of newsprint on account of increase in cost of paper pulp, fuel and foreign exchange rates has also affected the operating margins for the Company. Long term supply contracts and strong relationships with vendors is one of the way in which Company manages to insulate itself from any volatility in newsprint costs.
“The primary raw material cost, i.e. cost of newsprint, increased by 0.13% to Rs 30.11 cr for FY 2017-18, as compared to Rs 30.07 cr in FY 2016-17. The incremental cost of two new editions and one new launch during FY 2017-18 was offset by a reduction in number of copies,” the statement read.

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