DB Corp aiming for strong single-digit growth in FY25 amid challenging environment

New Delhi: DB Corp said on Wednesday that the company expects high single-digit growth in the overall ad segment in the near term.

In the earnings call with investors, DB Corp Promoter-Director Girish Agarwal, deputy managing director, DB Corp, said, “To be very honest, 15% full year this year, I don't think that's a justifiable number. But if I take the election revenue out of that, a strong single-digit growth we are aiming for and should be able to deliver.”

The company, which publishes newspapers including Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, on Tuesday reported a muted Q2 for the 2025 fiscal, led by a sharp drop of 8.7%/7.5% YoY/QoQ in Print advertisement (64.4% of total revenue). 

Talking about categories that led the advertising revenue, Agarwal said, “Automobile is one category that was not advertising heavily earlier. But in Q2, DBCL saw healthy growth (50% YoY) from the sector. Volume from Real Estate ads grew 35% YoY while from government ads dropped by 50%YoY. The lifestyle category has witnessed a YoY drop. The FMCG sector grew 20% YoY in Q2FY25.”

Circulation revenue fell 2.5%/1.4% YoY/QoQ due to extended monsoons and a high base last year (led by state elections).

“After the Lok Sabha elections, circulation revenue declined. A prolonged monsoon also impacted the circulation revenue. We are concerned about this and are proactively seeking to address the drop and improve the overall growth trajectory. DBCL has planned ‘reader initiatives’ in November to boost print circulation,” Agarwal said.

In Q2, DBCL implemented various activities and events to incentivise the distributors, which led to higher other expenses, but this may cool off in the next quarters.

Overall, H1FY25 results benefited from healthy Q1 performance and effective cost-control measures, coupled with softer newsprint prices.

However, the company feared that the newsprint prices may increase by 1-2% in H2FY25.

Talking about how the festive season is going for DB Corp, Agarwal said, “So far, we have just completed Navaratri days. I think it's good, and I hope this continues. Though, let me put the rider there. It is not so amazingly good that I am already burning the cracker. It's not that good, but it's good, and I hope this continues going forward for the more.”