DB Corp reports a revenue growth of 6.2% in FY 19, ad revenue grows by 7.4%

DB Corp, a large print media company which runs newspapers like Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar announced its financial results for the quarter and year ended on March 31, 2019.

In Q4 - FY 2019, DB Corp reported a 7 per cent growth in advertising revenue. It went up to Rs 413 crore in current period from Rs 3859 million in Q4 FY - 18. The circulation revenue has also increased by 2 per cent YoY to Rs 127.3 crore from Rs 125.2 crore in the corresponding period last fiscal.

The total revenue registered a growth of 4.2 per cent to Rs 591.1 crore in the current period from Rs 567.5 crore. The EBIDTA (Earnings before interest, tax, depreciation and amortization) the group stands at Rs 106.7 crore securing an (EBIDTA margin 18 per cent), against EBIDTA of Rs 105.1 crore (EBIDTA margin 19 per cent) in the same quarter last fiscal.

PAT (Profit After Taxes) stands at Rs 54.5 crore (PAT Margin 9.2 per cent), against Rs. 57.1 crore (PAT Margin 10.1 per cent)

Sudhir AgarwalThe radio business revenue grew by 8 per cent YoY to Rs 39.0 core from Rs 36.1 crore, reported during corresponding period last year. Radio business EBIDTA grew by 13 per cent YoY to Rs 13.2 crore (margin 34 per cent) from Rs 11.6 crore (margin 32 per cent). Radio business PAT grew by 14 per cent YoY to Rs 6.3 crore (margin 16 per cent) from Rs 5.5 crore (margin 15 per cent).

The digital business revenue stands at Rs. 9.9 crore versus Rs 13.1 crore reported during corresponding period last year.

The consolidated results reports a growth of 7.4 per cent in advertising revenues grew. It went up to Rs 1762.5 crore in current period as against Rs 1641.6 crore in FY - 18. The total revenue grew by 6.2 per cent YoY to Rs 2479.4 crore in current period from Rs 2334.9 crore generated during last fiscal.

Circulation revenue grew by 5.1 per cent YoY to Rs 523.7 crore from Rs 498.1 crore in FY 18.

EBIDTA for current fiscal stood at Rs. 520.9 crore (margin 21 per cent) against EBIDTA of Rs 587.5 crore (margin 25 per cent) reported during FY18, after considering forex loss of Rs. 4.84 crore.

The organisation’s PAT stood at Rs 273.8 crore (PAT Margin 11 per cent), against Rs 324.0 crore (PAT Margin 14 per cent) delivered in FY18, after considering forex loss of Rs 5.84 crore.

Radio business revenues grew by 14.4 per cent YoY to Rs 154.9 crore, against Rs 135.4 crore in FY18. Radio business EBIDTA grew by 45 per cent YoY to Rs 525 crore (margin 34 per cent) against Rs. 36.2 crore (27 per cent margin). Radio business PAT grew by 70 per cent YoY to Rs 26 crore (margin 17 per cent) against Rs 15.3 crore (11% margin).

Digital business revenue saw a dip as it stands at Rs 48.7 crore against Rs 52.9 crore in FY 18.

Commenting on the performance for Q4 & FY 2018-19, Sudhir Agarwal, managing director, DB Corp in a press release says, “Our sustained focus over the past 5-6 quarters on our circulation expansion in our legacy markets as well as in the newer markets is paying off as reflected in the latest published readership and circulation number, by MRUC and ABC respectively. The benefit of softening newsprint prices along with the cost cutting initiatives, already implemented is expected to improve our bottom line.”

He adds, “We continue to look forward with cautious optimism and we are hopeful that as we move towards political certainty, the semi-urban and rural consumption and demand cycle is expected to stabilize. The implementation of second phase of economic reform is expected accelerate the consumption and industry growth going ahead. At a broader level, all fundamental business growth drivers are in the place which positions us well to capitalize on emerging industries opportunities. The positive outlook on India reflected by global institutions is providing a strong impetus to the positive sentiment that signals a new fiscal ahead.”