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DB Corp records net profit of Rs 488 million in Q2 FY23; ad revenue grows by 26%

DB Corp’s total revenue grew by 21% to Rs 5,461 million in the quarter ended September 30, 2022, as against Rs 4,513 million in the corresponding quarter in the previous year

DB Corp saw an increase in the company’s total revenue by 21% to Rs 5,461 million in the quarter ended September 30, 2022, as against Rs 4,513 million in the corresponding quarter in the previous year.

The company’s total revenue grew by 38% to Rs 10,464 million in H1FY23 versus Rs 7,592 million YoY.

DB Corp’s net profit stood at Rs 488 million, as against Rs 538 million, after considering a forex loss of Rs 25 million. Its net profit grew 153% to Rs 798 million in H1 FY2023 as against Rs 315 million in the previous year’s H1, after considering a forex loss of Rs 48 million.

The company’s EBIDTA stands at Rs 977 million as against Rs 1,054 million considering forex loss, aided by stringent cost control measures, despite high newsprint prices and large digital business investment for future growth.

DB Corp’s EBIDTA grew by around 55% YoY in H1 FY 23, despite a forex loss of Rs 42 million.

Meanwhile, the advertising revenue increased by 26% to Rs 3812 million in Q2FY23 from Rs 3,029 million in Q2FY22. The circulation revenue stands at Rs 1156 million as against Rs 1,159 million (YoY).

The advertising revenue for H1FY23 has surpassed the previous year with 51% growth YoY. Print advertising revenue in H1FY23 has grown by 53% YoY.

On gaining advertisers’ interest, DB Corp said, “The credibility of print media has caused a shift in the focus of advertisers from new age media back to traditional media, like print. The Dainik Bhaskar Group has been a beneficiary of this shift as it offers clear advantages to the advertisers – an omnichannel delivery mechanism for high-quality content and, a well-trusted and respected brand in the high-growth non-metro markets that provides a strong platform for bespoke advertising.” 

The advertising revenue of DB Corp’s radio business grew by 18% YoY to Rs 338 million versus Rs 287 million. Radio business’ EBIDTA grew by 22% to Rs 106 million (EBITDA margin at 31%) versus Rs 87 million.

The radio advertising revenue in the first half of the current financial year grew by 49% to Rs 658 million versus Rs 443 million.

Sudhir Agarwal, Managing Director, DB Corp, said, “While the last six months have been news-heavy with major geo-political events dotting the landscape, the Indian economy with its large consumer base and growing manufacturing sector has shown signs of resilience and revival. Our industry has been a beneficiary of this momentum and Dainik Bhaskar, being the industry leader has led the way not only in financial results but also in furthering the reversion-to-print trend which is being witnessed amidst the digitisation of media.”

He further said, “Our editorial integrity has always been of paramount importance to us and that has been validated by the increase in advertisers across the spectrum – new age as well as traditional businesses. Our omnichannel news delivery platform, along with well-oiled machinery on the circulation front, has propelled us to the #1 Indian-language newspaper company. We continue to focus our energies on building a strong and resilient financial position to ensure that we are able to capitalise on all opportunities that come our way.”

Geopolitical circumstances, pre and post-Covid scenarios around the world, a steep increase in energy costs etc. resulted in supply chain disruptions and all above led to a steep rise in newsprint prices in the last two years period. 

However, the company said, “We believe that the newsprint prices have peaked and now we should see softening in newsprint prices going forward based on the current contracts for deliveries in our hands for the rest of the current financial year. We expect a correction of around 12-15% in newsprint buying rates going forward both in Indian and imported newsprint. We expect this continued softening in newsprint prices going forward in the short to medium term and the positive impact on our input costs should be visible from Q4 FY23.”

Stating the Comscore report, DB Corp said that its monthly active users on digital platforms have grown by roughly eight times from 2 million in January 2020 to around 15 million in August 2022.

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