DB Corp reports strong Q2 FY15 financials

Total Revenues have shown a growth of 9.2% YOY to Rs 4,838 million. Ad Revenues also reported a growth of 9% YOY to Rs 3,610 million

BestMediaInfo Bureau | Delhi | October 20, 2014

DB Corp Limited (DBCL), India's largest print media company and home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, last week announced its financial results for the second quarter and half-year ended September 30, 2014.

Consolidated Q2 FY 2014-15:

Total Revenues have shown a growth of 9.2% YOY to Rs 4,838 million against Rs 4,430 million in Q2 of last fiscal. Revenues from advertising reported a growth of 9% YOY to Rs 3,610 million, up from Rs 3,311 million in Q2 last fiscal.

EBIDTA margin for the quarter came in at 26.3% at Rs 1,271 million against Rs 1116 million in Q2 last fiscal. PAT margin stands at 14.1% at Rs 681 million against Rs 602 million in Q2 of last year, a YOY growth of 13.2%.

H1 FY 2014-15:

Consolidated Total Revenues have increased by 9.4% to Rs 9,825 million, up from Rs 8,980 million. Consolidated Advertising Revenues grew by 8.5% to Rs 7,340 million against Rs 6,768 million in last year under review.

The company achieved consolidated EBIDTA margin of 27.6% in H1 FY2015 at Rs 2,712 million. Consolidated PAT margin is 15% at Rs 1,472 million, after considering incremental depreciation of Rs 97.7 million (as per new Accounting Guidelines) and forex loss of Rs 19.6 million.

Dainik Bhaskar continues to be the largest read newspaper of urban India, and has retained its market position in legacy markets while gaining strong ground in emerging markets. It has maintained leadership position in the legacy markets of Madhya Pradesh, Chhattisgarh, Chandigarh, Punjab, Haryana (CPH), urban Rajasthan, and urban Gujarat.

In Jharkhand, the paper is ramping up steadily to close the gap with the No. 1. It has made focussed inroads in the major urban cities and within the readership profile of affluent Sec A & B, becoming a preferred vehicle for key local advertisers.

In Maharashtra, Divya Marathi continues on a high growth trajectory across its seven editions. DBCL continues to aggressively explore the real potential of Maharashtra and the economic growth of surrounding cities and towns.

Radio: DBCL continues to ramp up well in 'Un-metro' geographies where it has a significant print footprint leveraging synergies of the print segment. It continues to build on its strengths to capitalise on the potential offered by Phase 3 implementation through healthy prospective delta in our existing print markets with an avenue of almost 100 new radio stations. MY FM has successfully cultivated a very strong bond with its listeners – driven by DBCL's relentless toil to understand the preferences of its audiences across all age groups.

Commenting on the performance for H1& Q2 FY 2014-15, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “We are happy to report a quarter of satisfactory performance driven by satisfactory advertisement revenue growth with strong traction from segments such as FMCG, real estate, Auto and Lifestyle categories. On an overall basis, we have ensured that our legacy and emerging markets maintain steady growth as we continue to focus on delivering a content-backed news product that has become an integral part in the lives of our readers in various age-groups and with diverse interests. Through continuous strategic reviews on product quality, DBCL is working diligently in each market to bring to its readers unbiased news reports based on local region-wise developments and on news of national importance. It is through this larger mission of unearthing the local potential that we continue to progress along the path of our vision to be the largest and most admired media brand enabling socio-economic change.”

Agarwal added, “While the print media business segment on a self-growth momentum, we have maintained a steady focus on the non-print segment. 52% of India's population is 24 years or younger comprising audiences of Generation X, Y and Z. We have very successfully adapted ourselves to this digital and social era and are harnessing our strengths to offer greater value to audiences across radio, digital and mobile platforms.”

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