DB Corp’s net profit declines 17.6% to Rs 82.6 crore in Q2 FY 2025

New Delhi: DB Corp reported a 17.64% year-on-year decline in consolidated net profit for Q2 FY2025, posting Rs 82.6 crore compared to Rs 100.3 crore in the same quarter last year.

Total revenue for the company stood at Rs 582.5 crore, compared to Rs 601.9 crore in Q2 FY2024. DB Corp’s EBITDA came in at Rs 144.2 crore, with an EBITDA margin of 25%, down from Rs 167.6 crore in the corresponding quarter of the previous year. 

Advertising revenue for Q2 FY2025 was Rs 401.4 crore, a drop from Rs 430.1 crore in the same period last year, while circulation revenue was Rs 117.5 crore, slightly lower than Rs 120.5 crore in Q2 FY2024.

When it comes to the radio business, its advertising revenue grew by 16% YoY at Rs 41.4 crore in Q2 FY 2024 versus Rs 35.6 crore in Q2 last year. The EBIDTA grew by 22% YOY to Rs 13.2 crore versus Rs 10.8 crore.

Sudhir Agarwal, Managing Director, DB Corp, said, "In Q2 FY25, we did not meet our revenue growth targets, primarily due to the extended monsoon season, which slowed market activity and consumer spending, and a high base effect - Q2FY24 was an exceptionally strong quarter bolstered by significant advertising driven by state elections filled environment.” 

Performance highlights for H1 FY2025 

DB Corp has reported strong performance for the first half (H1) of FY2025, with total revenue rising by 2% to Rs 1198.8 crore, up from Rs 1175.5 crore in the same period last year. 

The growth was driven by a 1% increase in advertising revenue, which stood at Rs 829.1 crore, compared to Rs 824.7 crore in H1 FY2024.

Circulation revenue for H1 FY2025 was recorded at Rs 236.7 crore, slightly lower than Rs 240.4 crore in the previous year. 

However, the company's EBITDA saw a significant 10% increase, reaching Rs 335.1 crore, aided by advertising growth, effective cost controls, and softer newsprint prices, said the company. 

This led to an expansion of the EBITDA margin by 200 basis points to 28%, up from 26% in H1 FY2024.

Net profit also witnessed robust growth, rising by 12% year-on-year (YoY) to Rs 200.4 crore, compared to Rs 179.0 crore in the previous year.

In the radio business segment, DB Corp saw a notable 11% YoY growth in advertising revenue, which reached Rs 80.1 crore, up from Rs 72.0 crore. 

EBITDA for the radio business grew by 18%, amounting to Rs 26.4 crore, compared to Rs 22.3 crore in H1 FY2024.

Agarwal commented, “We believe will continue our growth trajectory in the coming quarters to meet our long-term growth strategy as we are actively adapting to current market conditions. Our digital business is thriving, with continued growth in MAUs to almost 20 million as of Aug’24, despite monetising on a pilot basis.”

DB Corp saw a decrease in newsprint prices during the first half of FY2025, with the average cost dropping to Rs 47,450 per metric ton, down from Rs 54,050 in the previous year, representing an 18% year-on-year reduction.

The company also emphasised its commitment to expanding its digital business. DB Corp has experienced remarkable growth, increasing its user base from 2 million in January 2020 to approximately 19.5 million by August 2024.

"We are now concentrating on enhancing the visibility of our digital mobile app across 14 states, including key markets like Uttar Pradesh and Uttarakhand," the company stated.