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DB Corp Q1 consolidated net slumps 16% as ad rev falls 8%
MUMBAI: Print media major DB Corp, which houses brands like Dainik Bhaskar, Divya Bhaskar and Divya Marathi, has posted a 16 per cent drop in its consolidated net profit in the first quarter of FY16. This has largely been due to an 8 per cent fall in ad revenue and a 3.7 per cent decline in overall revenue.
DB Corp’s net profit for the quarter ended 30 June 2015 stood at Rs 66.46 crore (Rs 664.59 million), compared to Rs 79.13 crore (Rs 791.27 million) in the year-ago period.
Total revenue stood at Rs 480.2 crore (Rs 4.80 billion), as against Rs 498.7 crore (Rs 4.99 billion) a year ago. Revenue from advertising rose to Rs 342.3 crore (Rs 3.42 billion) in the quarter, from Rs 373 crore (Rs 3.73 billion) recorded in the corresponding quarter of the previous fiscal.
The EBIDTA margin for the quarter was at Rs 128.7 crore (Rs 1.29 billion), compared to Rs 144.1 crore (Rs 1.44 billion) in the earlier year. The same factored in a forex loss of Rs 98 lakh (Rs 9.8 million) and Bihar launch-related preoperative expenses of Rs 2.35 crore (Rs 23.5 million).
In the print business, circulation revenue grew 16 per cent to Rs 102.2 crore (Rs 1.02 billion), from Rs 88.5 crore (Rs 885 million) in the year-ago period.
Commenting on the results, DB Corp Ltd MD Sudhir Agarwal said, “Through this quarter, we continued our efforts to consolidate our positions across all our markets with a key focus on implementing our strategy of yield increase, which was undertaken last quarter with an aim to monetise better yield growth as we progress towards achieving our ambitious long-term growth plans and goals.
“We took some important strategic steps to strengthen the foundations of our business over the last few years, which continue to hold us in good stead and Bhaskar is working fiercely in an environment that continues to demand aggressive marketing efforts across all regions with our presence. In an environment that continues to be challenging, we are confident of our current strategies and business fundamentals that are directed towards enterprise growth while ensuring that we continue to operate efficiently and in a calibrated manner for the future. Our operating efficiencies continue to be validated while we also continue to benefit from softened newsprint prices.
“Several market expansion initiatives are underway and we look forward to completing our Bihar foray within the next few months. As the government continues with its efforts and initiatives to boost economic growth, we remain confident of our operating strengths and highly differentiated business approach that positions us very well to capitalise on better opportunities as we move ahead”
DB Corp’s radio business, which consists of radio brand My FM, posted a net profit of Rs 2.6 crore (Rs 26 million).
Radio business ad revenue grew by 4 per cent from Rs 20.7 crore (Rs 207 million) in Q1FY15 to Rs 21.5 crore (Rs 215 million).
Radio business EBIDTA stood at Rs 6.1 crore (Rs 61 million), down 16.3 per cent.
DB Corp publishes six newspapers including Dainik Bhaskar’s 37 editions, Divya Bhaskar’s and Divya Marathi’s seven editions each, as well as 199 sub-editions in four languages (Hindi, Gujarati, English and Marathi) across 14 states in India.