Top Story

e4m_logo.png

Home >> Media – Print >> Article

DB reports strong advertising growth; profits rise by 25 per cent

26-October-2010
Font Size   16
DB reports strong advertising growth; profits rise by 25 per cent

DB Corp posted a good performance in its second quarter financial results for the current fiscal year. The company that owns newspapers Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar reported consolidated total revenues of Rs 3010 million, a 14.8 per cent increase compared to the corresponding quarter last year and consolidated PAT of Rs 551 million from Rs 440 million, up by 25 per cent in Q2 YOY.

Advertising revenues of the company grew by 17.8 per cent to Rs 2359 million from Rs 2003 million in the corresponding quarter last fiscal. Out of this, print business contributed Rs 2273 million, a growth of 18.3 per cent over same quarter last fiscal while the radio segment contributed revenue of Rs 106 million from Rs 91 million in the corresponding quarter last fiscal.

“DB Corp posted good advertising rate growth considering it is coming from a higher base; Q2 last year benefited from festivities,” said Mihir M Shah Research Analyst-Media & Entertainment, Alchemy Share & Stock Brokers Pvt. Ltd. Backed by buoyant advertising revenues, the print business saw a jump of 26 per cent in net profits at Rs 606 million. Circulation revenues increased from Rs 527 to Rs 532 million in the second quarter this fiscal.

Commenting on the performance Sudhir Agarwal, Managing Director, DB Corp Limited said, “This has been a quarter of steady development and sustained progress. We focused on organic expansions and defined execution in several key regions.” The company launched Dainik Bhaskar in Ranchi and Jharkhand in August and expanded to Jammu in October. It announced the launch of two new editions in Bhatinda, Punjab and Nagour, Rajasthan and new printing centres in Madhya Pradesh.

Next quarter results will also be strong because of festive season, though newsprint costs will eat up some operating profits,” said Shah from Alchemy. Even the company in the analysts’ conference call said that it is expecting the newsprint prices to go up in the coming quarter. “However, for the entire year, the company will also benefit to the extent of Rs 30 crore in tax due to accumulated losses in the radio business,” added Shah. Operating losses of radio reduced to Rs 23.62 million from Rs 40.5 million.

 

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In terms of affiliates, India ranks on the top. Spurred by the fast growth of mobile users and hence internet users, there are millions of websites, apps, WAP-sites and blogs using affiliate marketing...

Insecurity in the workplace due to the idea of AI encroaching on your job, or being sidelined at work because of your small town background? Sandeep Goyal has the right answers to help you deal with w...

As National Sales Head at News18.com, Ashish aims to bring on board a maximum number of advertising partners and consolidate the network’s position as a leader in the space.