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DB Corp registers 6% growth in advertising revenues in Q2, 2017-18

Consolidated total revenues grew by six per cent YOY at Rs 5741 million as against Rs 5432 million during Q2 FY17

DB Corp Limited (DBCL) has registered a year-on-year growth of six per cent in the consolidated advertising revenues to reach Rs 3,966 million in second quarter of 2017-18 fiscal, up from Rs 3,740 million during Q2 last year.

Consolidated total revenues grew by six per cent YOY at Rs 5,741 million, as against Rs 5,432 million during Q2 FY17, after taking into consideration of one-off income in Q2 last year of Rs 103.8 million on account of profit booking on sale of Gitanjali gems share.

The company running newspapers like Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar also earned a growth of eight per cent YOY in the circulation revenue to earn Rs 1273 million, increasing from Rs 1179 million during Q2 last year. As per the financial results for the quarter ended September 30, 6.5 per cent growth has come from yield growth, largely from mature markets.

Its efforts have been delivering excellent growth since July with 50.41 lakh copies, growing to 53.33 lakh copies in July end; 53.77 lakh copies in August end; 54.28 lakh copies in September end – adding 3.87 lakh copies since the initiation of the expansion drive. This means eight per cent growth on a high base of circulation copies, along with cover price increase.

DBCL EBITDA stands at Rs 1456 million (margins 25 per cent) from Rs 1547 million (margin 28 per cent); after factoring one-offs related to the rollback of radio music royalty of Rs 58 million, in Q2 last year, as well as its new circulation expansion drive in Bihar and other markets at Rs 132 million, in Q2 of current year.

Consolidated PAT stands at Rs 787 million (margin 14 per cent) from Rs 885 million (margin 16 per cent), after factoring one-off related to rollback of radio music royalty of Rs 58 million, in Q2 last year, as well as new circulation expansion drive in Bihar and other markets at Rs 132 million , in Q2 of current year.

Sudhir Agarwal

Commenting on the performance for Q2 FY 2017-18, Sudhir Agarwal, Managing Director, DBCL, said, “We are happy to report another quarter of noteworthy progress and implementation of several growth-oriented initiatives. We moved ahead with the second phase of our product strengthening campaign focusing on the knowledge theme and now dedicate a full page of the most interesting utility based facts that can enhance our readers’ daily lives. Supplementing our product campaign, we have adopted a circulation expansion strategy across all territories aimed at expanding reach, which is progressing well and has translated into good growth.”

Radio business grew by 17 per cent YOY to Rs 349 million from Rs 299 million last year. Radio business EBIDTA stands at Rs 92 million (margin 26.5 per cent) from Rs 152 million (margin 51 per cent), after factoring rollback of radio music royalty of Rs 58 million, in Q2 last year; radio business PAT stands at Rs 40 million (11 per cent margin) in Q2 last year.

Advertising revenues reported a growth of 5.4 per cent YOY to Rs 8301 million in current period from Rs 7876 million in H1 of last fiscal. Circulation revenue has increased 6.5 per cent YOY to Rs 2506 million from Rs 2354 million, primarily due to yield driven growth.

Its second phase of strengthening campaign continued with impactful and important changes in the product. The first phase was undertaken in main and satellite editions during the previous quarter included Aha Zindagi, Dharm Samaj Sanstha, City Sports and City Life pages.

The second phase continued to bring in more changes based on the Knowledge Theme.

DBCL was identified as India's Most Trusted Company 2017 by Media Research Group (MRG – International brand consulting corporation USA).

Agarwal added, “Our cost-control initiatives implemented in the earlier quarters continue to deliver as in spite of the circulation expansion initiative we have successfully guarded the company’s profitability. All our growth-led efforts undertaken during the quarter are reflective of our determination to further fortify our leadership position and build a futuristic, agile and competitive organisation. At a broader level, India’s GDP is gradually on an uptrend as the GST impact seems to be stabilising slowly. With several progressive steps underway, we expect economy to improve and look forward to better growth.”

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