DB Corp PAT drops by 13.6% to Rs 3240 million in FY18

DB Corp has registered 13.6% drop in profit after tax (PAT), which has fallen to Rs 3240 million in FY18 from Rs 3748 million in FY17. The advertising revenues grew by 3% YOY to Rs 16425 million in current period as against Rs 15973 million last year.

DB Corp publishes many newspapers, including Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar. The company has announced its audited financial results for the quarter and year ended March 31, 2018.

Performance highlights for Q4 FY 2017-18-Consolidated

• Consolidated Total Revenues grew by 10% YOY to Rs 5745 million, as against Rs 5222 million reported during Q4 FY17.
• Consolidated Advertising Revenues grew by 8.2% YOY to Rs 3861 million as against Rs 3567 million reported during Q4 FY17.
• Circulation revenue increased by 8.5% YOY to Rs 1320 million from Rs 1217 million during Q4 FY17, largely an outcome of Circulation expansion strategy.
• EBITDA during Q4 FY 2018 stands at Rs 1051 million (margins 18%) vis-a-vis Rs 1173 million (margin 22%); after considering forex loss of Rs 9.9 million. Further, excluding impact of circulation expansion-related one-off expenditure, EBIDTA growth would have been in mid-single digit.
• Consolidated PAT stands at Rs 571 million, as against Rs 642 million reported during Q4 FY17, after considering forex loss of Rs 16.4 million. Further, excluding circulation expansion strategy-related one-off expenditure, PAT would have seen double-digit growth.
• Radio business revenue grew by 9.5% YOY to Rs 362 million from Rs 330 million during the corresponding period last year.
• Radio business EBIDTA grew by 45% YOY to Rs 116 million (margin 32%) from Rs 80 million (margin 24%).
• Radio business PAT grew by 70% YOY to Rs 55 million (margin 15%) from Rs 32 million (margin 10%)
• Digital business revenue stands at Rs 131 million versus Rs 142 million reported during the corresponding period last year.
• Board has considered and recommended final dividend of 10% on Rs 10 face value per share. Further, Board continues to evaluate different efficient avenues for distribution of Income.

Performance highlights for FY 2017-18 - Consolidated

• Total Revenue grew by 3.4% YOY to Rs 23522 million in the current period from Rs 22750 million generated during last fiscal.
• Advertising Revenues grew by 3% YOY to Rs 16425 million in current period as against Rs 15973 million.
• Circulation Revenue grew by 7% YOY to Rs 5145 million from Rs 4814 million, largely an outcome of volume growth driven by circulation expansion strategy and without any reduction in cover prices.
• EBIDTA for current fiscal stood at Rs 5875 million (margin 25%); against EBIDTA of Rs 6592 million (margin 29%) reported during FY17. Further, excluding circulation expansion-related one-off expenditures and previous year’s non-recurring gains on account of private treaty business deals and music royalty reversal of Radio business, our EBIDTA has registered growth YOY.
• PAT stood at Rs 3240 million (PAT Margin 14%), against Rs 3748 million (PAT Margin 16%), delivered in FY17, after considering forex loss of Rs 7.5 million. Further, excluding circulation expansion-related one-off expenditures and previous year’s non-recurring gains on account of private treaty business deals and music royalty reversal of Radio business, our PAT has registered high single-digit growth YOY.
• Radio business revenues grew by 6% YOY to Rs 1358 million, against Rs 1273 million in FY 17.
• Radio business EBIDTA stands at Rs 362 million (27% margin).
• Radio Business PAT stands at Rs 153 million (11% margin).
• Digital business revenue stands at Rs 529 million.

Sudhir Agarwal, Managing Director, DB Corp, said, “Our performance in the fourth quarter has reflected a culmination of all efforts we have been under taking over the last one year in implementing editorial and circulation expansion strategies. As evident, both have played out their complementary roles and we have reported significant circulation-led growth. Our focus markets remains the same in Gujarat, Bihar and Rajasthan and we are working hard to further increase our circulation in markets we already enjoy a strong dominance, including MP, CG, Haryana and Chandigarh. A key aspect of our circulation strategies have been the strong reader engagement initiatives that helped in expanding our markets and attracting new readers. Through these efforts, we have been successful in also attracting the right profile of audiences in NCCS A and B categories also benefiting our advertisers. Our stringent business processes are ensuring that all our resources are prudently utilised, and through capabilities in technology, we have ensured that every team’s efficiency and productivity is at their best. The non-print businesses are also well synergised and strongly complement the overall package to advertisers and brands. At a broader level, all fundamental business growth drivers are in place which positions us well to capitalise on emerging industry opportunities. The positive outlook on India reflected by global institutions is providing a strong impetus to the positive sentiment on-ground that signals a better new fiscal ahead.”

Q 4’ FY 2017-18 financial results highlights: (comparisons with Q4’ 17 & Q3’ FY18)

(Rs Mn)

Q4 FY18

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