DB Corp, the publisher of newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has reported a drop in its revenues and net profit in the first quarter of the financial year 2019-20.
In the quarter ending June 30, 2019, the company posted a net profit of Rs 937 million, down 4% from Rs 976 million in the corresponding quarter of the previous year.
Total revenue stood at Rs 6112 million in the current period from Rs 6392 million in the same quarter of the previous year. Advertising revenues stood at Rs 4420 million as against Rs 4549 million in Q1 last fiscal while circulation revenue was recorded at Rs 1314 million as against Rs 1345 million in the corresponding period last fiscal.
The advertising revenue from Print Publishing and Allied Business stood at Rs 4048 million, down by 4.4% from the previous year. Radio business revenue grew by 19% YOY to Rs 377 million against Rs 317 million.
Radio business EBIDTA grew by 84% YOY to Rs 131 million (margin 35%) from Rs 71 million (margin 22%), increased by around Rs 13 million. Radio business PAT grew by 98% YOY to Rs 52 million (margin 14%) from Rs 26 million (margin 8%).
The consolidated EBIDTA stood at Rs 1796 million (EBIDTA margin 29%), against EBIDTA of Rs 1749 million (EBIDTA margin 27%).
Commenting on the performance, Sudhir Agarwal, Managing Director, DB Corp, said, “The Company enjoys a dominant position in all its major markets of presence. To further strengthen our dominance, we continued with our efforts towards editorial and circulation expansion initiatives through this quarter as well. Despite the challenging macro environment, we are confident of our current strategies to deliver enterprise growth and building profitability aided by overall cost control and moderation in newsprint prices going ahead. Our business strategy is focused on product strengthening, along with a series of strategic initiatives to orient the editorial team in this direction, and complement our circulation expansion initiatives.”
“Our Nonprint businesses continue to progress well, building great value for our readers and advertisers. We continue to build our synergies and leverage the competitive strengths across each business segment. With the formation of a stable and decisive government in Centre, the semi-urban and rural consumption and demand cycle is expected to stabilize. As the government continues with its efforts and initiatives to boost economic growth, with our execution excellence, we are confident to deliver the desired levels of growth,” he added.