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DB Corp FY15 net up 3%, ad revenue sees 7% growth

MUMBAI: Hindi print media major DB Corp Ltd (DBCL) has seen a moderate 3 per cent increase in its net profit in the fiscal ended 31 March 2015 to Rs 316.34 crore (Rs 3.16 billion), compared to Rs 306.6 crore (Rs 3.06 billion) recorded in the year-ago period.

However, in the previous fiscal, there was a one-time tax gain of Rs 14.9 crore (Rs 149 million) due to the demerger of its digital media business.

The company said that excluding the one-time tax gain and after considering incremental depreciation of Rs 22.8 crore (Rs 228 million) in line with the new Company Act, net profit grew by 9 per cent year on year. PAT margin remained at 16 per cent for the fiscal.

DB Corp’s total revenue increased by 8 per cent to Rs 2035.3 crore (Rs 20.35 billion), from Rs 1883.6 crore (Rs 18.84 billion) in the previous fiscal. Advertising revenue grew by 7 per cent to Rs 1516.6 crore (Rs 15.17 billion), as against last fiscal’s Rs 1417.8 crore (Rs 14.18 billion).

EBITDA stood at Rs 587.9 crore (Rs 5.88 billion), compared to Rs 524.1 crore (Rs 5.24 billion), while EBIDTA margin was at 29 per cent.

Radio business ad revenue grew by 21 per cent to Rs 96 crore (Rs 960 million) from Rs 80.1 crore (Rs 801 million) a year ago. Digital media ad revenue grew by 88 per cent to Rs 30.4 crore (Rs 304 million) from Rs 16.3 crore (Rs 163 million) last year.

DB Corp MD Sudhir Agarwal said, “For ‘Dainik Bhaskar’, this fiscal demanded stronger marketing efforts and closer introspection of all operational aspects, with all our teams across every department putting in harder efforts. We have undertaken significant changes to the billing structure to ensure better value for advertisers as well as for ourselves. Continued softness in newsprint prices has also protected the bottom line.

“We have seen a transformation in the overall business sentiment that translated into appreciable traction from categories like lifestyle, hyper markets, high-end FMCG goods, consumer durables, and high-end automobiles that will be inaugurating showrooms in Tier II and III cities.”

He went on to add, “Our non-print businesses continue to report steady growth while retaining their leadership positions through strong audience engagement initiatives. We are constantly striving to take pioneering steps in our editorial initiatives—and are very encouraged by the acknowledgment of our campaign ‘No Negative Monday’ by Prime Minister Narendra Modi, to encourage a positive start for the week. Going forward, our focus on managing growth will continue to be the key to healthy financials. In addition to market expansion, we are working hard to ensure a healthy bottom line through stronger internal operating efficiencies, tighter billing structures, and better expense management. Over the past few months, the government has put in process several initiatives to boost economic growth and we expect to observe its visible on-ground impact over the coming quarters. Our business fundamentals continue to be strong and we are confident of our business strategies that have positioned us as India’s largest print media company amongst national dailies.”

Q4FY15

In the fourth quarter of the fiscal, DB Corp’s total revenues showed a growth of 7 per cent even as advertising revenues reported a growth of 4 per cent.

The company said that after considering the Bihar pre-launch expenses of Rs 24.7 lakh (Rs 2.47 million), EBIDTA margin for the quarter came in at 26 per cent at Rs 129.2 crore (Rs 1.29 billion), as against a margin of 24 per cent and EBIDTA of Rs 112.7 crore (Rs 1.13 billion).

Net profit grew by 5 per cent to Rs 64 crore (Rs 640 million), excluding the one-time tax impact and consideration of incremental depreciation of Rs 5.6 crore (Rs 56 million).

DB corp qoq

Radio business

During the quarter, DB Corp’s advertising revenues from its radio business expanded by 25 per cent to Rs 26.8 crore (Rs 268 million), as against Rs 21.5 crore (Rs 215 million) in the corresponding quarter of the previous fiscal.

Radio business EBIDTA stood at Rs 12 crore (Rs 120 million) with around 45 per cent EBITDA margin. The company also stated that the radio business achieved net profit of Rs 6.6 crore (Rs 66 million) during the quarter.