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DB Corp Q2FY16 consolidated net slumps 13.2% as revenue flattens
MUMBAI: Print media major DB Corp, which houses brands like Dainik Bhaskar, Divya Bhaskar and Divya Marathi, has posted a drop in net profit for the second consecutive quarter.
In the first quarter of the current fiscal, it had registered a 16 per cent drop in consolidated net profit, and in the second quarter ended 30 September 2015, the net revenue dipped another 13.2 per cent, compared to the year-ago period as revenue stayed flat.
DB Corp’s consolidated net profit for the quarter ended 30 September 2015 stood at Rs 59.12 crore (Rs 591.2 million), compared to Rs 68.11 crore (Rs 681.1 million) a year ago.
Total revenue stood at Rs 478.33 crore (Rs 4.78 billion), as against Rs 480.2 crore (Rs 4.80 billion) a year ago. Revenue from advertising dropped to Rs 343.3 crore (Rs 3.43 billion) in the quarter, from Rs 361 crore (Rs 3.61 billion) recorded in the corresponding quarter of the previous fiscal. The company said that ad revenue was lower due to the impact of different Navratri festival dates compared to the year-ago period.
EBIDTA for the quarter was at Rs 117.1 crore (Rs 1.17 billion), compared to Rs 127.1 crore (Rs 1.27 billion) in the earlier year. The same factored in a forex loss of Rs 1.56 crore (Rs 15.6 million) and Bihar launch-related pre-operative expenses of Rs 2.77 crore (Rs 27.7 million). EBITDA margins stood at 12 per cent during the quarter.
In the print business, circulation revenue grew 15.5 per cent to Rs 91.5 crore (Rs 915 million), from Rs 105.7 crore (Rs 1.06 billion) in the year-ago period. Print advertising revenue was at Rs 331.9 crore (Rs 3.32 billion), down 7.2 per cent, from Rs 307.9 crore (Rs 3.08 billion).
Commenting on the results, DB Corp Ltd MD Sudhir Agarwal said, “This quarter, we accomplished another expansion milestone as we consolidated our presence in Bihar, a region of strong strategic importance. Now with four editions and seven district editions in Bihar, we are able to provide better reach to advertisers and cater to an under-tapped yet potential readership base. The yield strategy we have adopted has begun delivering good results, as evident from a consistent growth in yields. We are patiently continuing to have intensive and successful discussions with our national and local advertisers who have supported our yield strategy and highly appreciate the value we bring to support their plans. We are committed to strengthening these relationships as we progress.”
DB Corp’s radio business, which consists of radio brand My FM, posted a net profit of Rs 4 crore (Rs 40 million).
Radio business ad revenue grew by 5.2 per cent from Rs 22.8 crore (Rs 228 million) in Q2FY15 to Rs 24 crore (Rs 240 million) in the second quarter.
Radio business EBIDTA stood at Rs 8.03 crore (Rs 80.3 million), down from Rs 8 crore (Rs 80 million, while EBITDA margin was at 33.4 per cent.
DB Corp publishes six newspapers including Dainik Bhaskar’s 40 editions, Divya Bhaskar’s and Divya Marathi’s seven editions each, as well as 206 sub-editions in four languages (Hindi, Gujarati, English and Marathi) across 14 Indian states.