DB Corp Q2 net drops 41% to Rs 46.2 cr

MUMBAI: Print media major DB Corp’s consolidated net profit has dropped 41% to Rs 46.2 crore in Q2 FY19 compared to Rs. 78.7 crore in Q2 FY18 due to forex loss of Rs. 6.2 crore and circulation expansion strategy related non-recurring expenditure of Rs. 11 crore.

Consolidated EBITDA declined 32.9% to Rs 97.7 crore as against Rs. 145.6 crore. Print EBITDA was down 39.6% to Rs 86.4 crore from Rs 143 crore. Radio EBITDA was up 29.8% at Rs 12 crore from Rs 9.2 crore.

The total revenue has grown by 2.8% at Rs 587.5 crore from Rs. 571.3 crore. On an adjusted basis, the total revenue grew by 12.8% to Rs. 587.5 crore from Rs. 520 crore after adjusting for last fiscal one off items as well festival season billing

The circulation revenue has increased by 5.6% to Rs. 131.8 crore compared to Rs. 124.8 crore. The increase in revenue was primarily due to volume driven growth.

The ad revenue grew by 4.3% at Rs 413.2 crore compared to Rs 396.3 crore after adjusting impact of last year’s festival season. Print ad revenue was up 4% to Rs 361.4 crore while radio ad revenue increased 8.3% to Rs 37.7 crore.

The digital business revenue grew by 5% to Rs 11.9 crore from Rs 11. 4 crore.

The total pledged shares of promoters reduced from 58.32% to 32.28%.

Radio Phase 3 stations become profitable which delivered positive EBIDTA positive, following the complete commissioning of all 13 stations, acquired under batch 1 of Phase 3 during 2017. Profitability was achieved on the back of strong inventory management, programme profile, prudent cost efficiencies and growing popularity.

Commenting on the performance for Q2 FY 2018-19, DB Corp MD Sudhir Agarwal said, “Our circulation strategy implemented in recent times continues to deliver results that are also driven by the parallel execution of several growth-led initiatives undertaken across all our pillar divisions. The results of our efforts are visible through Dainik Bhaskar’s progress in Bihar where in a short span of time, we have been able to build a second leadership position through strong on-ground execution. Dainik Bhaskar is also now the largest circulated paper in Rajasthan. The same operating philosophy is being aggressively implemented across all regions of our presence where our focus continues to remain on sharpening our organisational strengths, leading market expansion and driving excellence, enabling us to strive harder in a rapidly evolving and competitive media environment.

“As we progress we expect the consumption and demand cycle to stablilise. Crude volatility and currency led inflation seem to loom going ahead, but we will continue to manage our business dynamically while driving operational efficiencies. As our strategic campaigns play out well we look excitedly towards the second half of fiscal 2019, as we expand the frontiers of our vision, drive key areas of the business, act swiftly and efficiently on available opportunities, and address our customers’ needs with our full range of capabilities.”