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DB Corp Q1 net up 4%; radio sees strong growth in Q1
MUMBAI: DB Corporation, publisher of Hindi daily Dainik Bhaskar, reported a 4 per cent rise in fiscal fourth-quarter net profit from the year-ago period to Rs 79.1 crore (Rs 791 million) as advertising revenue growth softened.
Consolidated revenue grew 10 per cent from the earlier year to Rs 498.7 crore (Rs 4.99 billion). Advertising revenue grew 8 per cent to end the quarter at Rs 373 crore (Rs 3.73 billion), performing below analysts’ expectations.
DB Corp’s radio business, which operates under the MY FM brand, performed strongly as advertisement revenue grew 21 per cent to Rs 20.7 crore (Rs 207 million) in the quarter ended 30 June. The radio business recorded EBITDA of Rs 7.3 crore (Rs 73 million) and PAT of Rs 3.5 crore (Rs 35 million) which translates into PAT margin of 17 per cent.
Print ad revenue grew 6.5 per cent while subscription revenue increased 15.4 per cent.
DB Corp’s EBITDA remained flat during the period under review while margin fell 210 basis points to 27.5 per cent. New editions reported EBITDA loss of Rs 8 crore ( Rs 80 mn), despite first full quarter of operation of Bihar edition.
The company’s digital business revenue grew 134 per cent to Rs 5.9 crore (Rs 59 million) during the quarter under review. However, the segment continues to be incurring losses. For the quarter period, the division’s operating loss stood at Rs 80 lakh (Rs 8.0 million), which stands in contrast to the operating loss of Rs 3.10 crore (Rs 31 million) incurred in the corresponding quarter of the previous year.
DB Crop’s print products include Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar.
DB Corp MD Sudhir Agarwal said, “We have successfully leveraged our strengths in the print medium to deliver robust growth in the digital and radio business also and are in the process of achieving greater scale, as well as being well placed to take advantage of future growth opportunities. On overall basis, we have continued to capitalise on organisational efficiencies, expense management and maintained a strong momentum across print and non-print segments supported by innovative brand development endeavour and a reader-centric approach that continues to drive growth.”