DB Corp Ltd that owns flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has reported a significant drop of 15% in its net profit for the financial year 2019 ending March 31, 2019. The company’s PAT stood at Rs 2738 million (PAT Margin 11%), against Rs 3240 million (PAT Margin 14%), delivered in FY18, after considering forex loss of Rs 58.4 million.
EBIDTA for current fiscal stood at Rs 5209 million (margin 21%) against EBIDTA of Rs 5875 million (margin 25%) reported during FY18, after considering forex loss of Rs. 48.4 million.
The company reported that its advertising revenues grew by 7.4% YOY to Rs 17625 million in the current period as against Rs 16416 million while total revenue grew by 6.2% YOY to Rs 24794 million in the current period from Rs 23349 million generated during the last fiscal. Circulation Revenue grew by 5.1% YOY to Rs 5237 million from Rs 4981 million.
Radio business revenues grew by 14.4% YOY to Rs 1549 million, against Rs 1354 million in FY 18. Radio business EBIDTA grew by 45% YOY to Rs 525 million (margin 34%) against Rs 362 million (27% margin) while profit after tax (PAT) for the radio business grew by 70% YOY to Rs 260 million (margin 17%) against Rs 153 million (11% margin).
Digital business revenues slipped by 6% during FY19 and stood at Rs 487 million against Rs 529 million.
Sudhir Agarwal, Managing Director, DB Corp, said, “We are happy to report another quarter of noteworthy progress and implementation of growth-oriented initiatives, in spite of a higher base in the corresponding fiscal which conveys that DBCL team is working hard to deliver results. Our sustained focus over the past 5-6 quarters on our circulation expansion in our legacy markets as well as in the newer markets is paying off as reflected in the latest published readership and circulation number, by MRUC and ABC respectively. The benefit of softening newsprint prices along with the cost-cutting initiatives, already implemented is expected to improve our bottom line.
We continue to look forward with cautious optimism and we are hopeful that as we move towards political certainty, the semi-urban and rural consumption and demand cycle is expected to stabilize. The implementation of the second phase of economic reform is expected to accelerate the consumption and industry growth going ahead.
At a broader level, all fundamental business growth drivers are in the place which positions us well to capitalize on emerging industries opportunities. The positive outlook on India reflected by global institutions is providing a strong impetus to the positive sentiment that signals a new fiscal ahead.”