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DB Corp intends to invest Rs 40 crore in Phase III auction

MUMBAI: DB Corp plans to invest around Rs 40 crore (Rs 400 million) in the upcoming Phase III FM radio auctions. A separate amount will be invested in renewing the licence of its existing FM radio stations which operate under the My FM brand.

“Given the market dynamics, we estimate our investment in the Phase III auctions to be in the region of Rs 30–40 crore (Rs 300–400 million). We will only bid in those markets where DB Corp has a strong print presence,” said a senior company executive.

DB Corp has taken a bottom-up approach and set up its FM radio network across Tier II & III cities. Launched in 2006, the company has 17 FM stations across seven states.

DB Corp’s radio business has turned positive at the net level in the fiscal third quarter ended 31 December 2014. The radio business has posted a net profit of Rs 6.23 crore (Rs 62.3 million) with margin of 24.2 per cent.

Advertising revenue grew 7.8 per cent to Rs 25.7 crore (Rs 257 million) in the quarter, compared to Rs 23.9 crore (Rs 239 million) a year ago.

My FM’s operating profit (EBITDA) was Rs 11.5 crore (Rs 115 million). Its EBITDA margin stood at 44.6 per cent.