EBIDTA margin was reported at 24 per cent after factoring in forex loss of Rs 15.6 million and Bihar launch related pre-operative expenditure of Rs 27.7 million
BestMediaInfo Bureau | Mumbai | October 16, 2015
DB Corp has reported a dip in its net profit after tax and minority interest for Q2 FY16 at Rs 59.1 crore from Rs 68.1 crore in the corresponding quarter last fiscal.
The EBIDTA for Q2 FY16 stood at Rs 117.1 crore, down by 7.9 per cent from the corresponding quarter last fiscal, where it had posted EBIDTA of Rs 127.1 crore. EBIDTA margin was reported at 24 per cent after factoring in forex loss of Rs 15.6 million and Bihar launch related pre-operative expenditure of Rs 27.7 million.
The operating income for Q2 FY16 also saw a marginal dip at Rs 478.3 crore, compared to Rs 480.2 crore in the corresponding quarter last fiscal.
The half yearly profit after tax and minority interest stood at Rs 125.5 crore as against Rs 147.2 crore recorded in the half yearly period ending September 30, 2014.
DB Corp achieved consolidated EBITDA margins of 25.5 per cent in H1 FY16 at Rs 245.7 crore after considering forex loss of Rs 25.4 million and Bihar launch related pre-operative expenditure of Rs 51.3 million.
The half yearly operating income for the period ending September 30, 2015 was Rs 951 .6 crore, while the same was pegged at Rs 969.4 crore in the same period last year.
Segment wise performance
DB Corp’s primary business, that is print, fetched revenues of Rs 442.2 crore in Q2 FY16, while the same in the corresponding quarter last fiscal was Rs 449.3 crore.
The half yearly revenues for print business stood at Rs 882.4 crore, whereas in the first six months of 2014 this figure was pegged at Rs 910.3 crore.
Profit before tax and finance costs for print business in Q2 FY16 was Rs 93.9 crore, as against Rs 100 crore in the corresponding quarter last fiscal.
The half yearly profit before tax for print business was Rs 202.4 crore, compared to Rs 218 crore at the end of the first six months of 2014.
The print EBDTA for Q2 FY16 was Rs 115.3 crore, down by 3.5 per cent in the corresponding quarter last fiscal, where the figure was pegged at Rs 119.5 crore.
Circulation revenues increased 16 per cent YoY to Rs 105.7 crore from Rs 91.5 crore, primarily due to yield driven growth, largely coming from mature markets in Q2 FY16. In the mature markets (other than Jharkhand, Bihar and Maharashtra) , the circulation revenue grew by 14.8 per cent YoY, while net realisation grew by 13.6 per cent YoY post implementation of strategy to drive yield growth.
The radio business ad revenue grew by 5.2 per cent YoY to Rs 24 crore from Rs 22.8 crore in Q2 of last fiscal. The half yearly revenues for the radio business for 2015 was Rs 45.4 crore, up from Rs 43.5 crore at the end of September 30, 2014.
Profit before tax and finance costs in the radio business for Q2 FY16 stood at Rs 6.04 crore, down from Rs 6.567 crore in the corresponding quarter last fiscal.
The half yearly profit before tax and finance costs for Q2 FY16 was Rs 10.1 crore, as opposed to Rs 11.8 crore in corresponding quarter last fiscal.
Radio business EBIDTA stood at Rs 80.3 million (EBIDTA margin 33.4 per cent). The PAT here was reported at Rs 40 million (PAT margin 16.5 per cent).
During the quarter, My FM acquired 14 frequencies successfully in the Phase III FM auctions.
DB Corp’s digital business ad revenues grew by 82 per cent to Rs 11.4 crore in Q2 FY16 from Rs 6.3 crore in the corresponding last fiscal.
The half yearly ad revenues in 2015 were Rs 21.5 crore, as opposed to Rs 12.1 crore in the same period last year.
Loss before tax and finance for Q2 FY16 was Rs 6.912 crore, as against loss of Rs 1.208 crore in Q2 FY15.
Commenting on the performance for H1 and Q2 FY16, Sudhir Agarwal, Managing Director, DB Corp, said, “This quarter, we accomplished another expansion milestone as we consolidated our presence in Bihar, a region of strong strategic importance. Now with four editions and seven district editions in Bihar, we are able to provide better reach to advertisers and cater to an under-tapped yet potential readership base. The yield strategy we have adopted has begun delivering good results as evident from a consistent growth in yields. We are patiently continuing to have intensive and successful discussions with our national and local advertisers who have supported our yield strategy and highly appreciate the value we bring to support their plans. We are committed to strengthening these relationships as we progress.”
He further said, “DB Digital has been performing well as we continue to gather commendable momentum through a 177 per cent growth in page views and unique visitors. Our radio business strategy to be the market leading radio business in ‘Unmetro’ regions is well aligned to the print business and with the recent acquisition of 14 frequencies in the Phase 3 auctions, we are now strongly placed to offer a very compelling package and reach to advertisers in Maharashtra, Rajasthan, CPH and Gujarat. On an overall basis, we continue to take all measures to leverage our strengths across print, radio and digital businesses to drive growth aggressively, while also ensuring that we continue to achieve better organisational efficiencies.”