DB Corp Q2 FY18 revenues up 6% at Rs 5,741 mn; PAT at Rs 787 mn

DB Corp Ltd (DBCL), India’s largest print media company and home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, has reported a 6 per cent YOY growth in its consolidated total revenues during Q2 FY18 at Rs 5,741 million, as against Rs 5,432 million during Q2 FY17, after taking into consideration of one-off income, in Q2 last year of Rs 103.8 million on account of profit booking on sale of Gitanjali Gems share. 

Consolidated advertising revenues for the quarter grew by 6 per cent YOY at Rs 3,966 million as against Rs 3,740 million during Q2 last year. 

Circulation revenue grew by 8 per cent YOY at Rs 1,273 million from Rs 1,179 million during Q2 FY17. 6.5 per cent growth has come from yield growth, largely from mature markets only. 

DB Corp has been witnessing good growth in its circulation following various initiatives since July with copies at 50.41 lakh copies, which significantly grew to 53.33 lakh copies in July-end; 53.77 lakh copies in August-end; 54.28 lakh copies in September-end – adding 3.87 lakh copies since the initiation of the expansion drive, amounting to an 8 per cent growth on a high base of circulation copies, along with cover price increase. 

DBCL EBITDA stood at Rs 1,456 million (margins 25 per cent) from Rs 1,547 million (margin 28 per cent); after factoring one-offs related to rollback of radio music royalty of Rs 58 million, in Q2 last year, as well as new circulation expansion drive in Bihar and other markets at Rs 132 million in Q2 FY18. 

Consolidated profit after tax (PAT) stood at Rs 787 million (margin 14 per cent) from Rs 885 million (margin 16 per cent), after factoring one-off related to rollback of radio music royalty of Rs 58 million in Q2 last year, as well as new circulation expansion drive in Bihar and other markets at Rs 132 million in Q2 FY18. 

Radio business grew by 17 per cent YOY to Rs 349 million from Rs 299 million last year. Radio business EBIDTA stood at Rs 92 million (margin 26.5 per cent) from Rs 152 million (margin 51 per cent), after factoring in rollback of radio music royalty of Rs 58 million in Q2 FY17. Radio business PAT stood at Rs 40 million (11 per cent margin), after considering rollback of radio music royalty of Rs 58 million in Q2 last year. 

Performance highlights for H1 FY2017-18 

In H1 FY18, DB Corp’s consolidated advertising revenues reported a growth of 5.4 per cent YOY to Rs 8,301 million from Rs 7,876 million in H1 FY17. 

Circulation revenue increased by 6.5 per cent YOY to Rs 2,506 million from Rs 2,354 million, primarily due to yield driven growth, largely growth has come from mature market. 

Total revenue in H1 FY18 reported growth of 4.8 per cent YOY at Rs 11,753 million from Rs 11,219 million in H1 last fiscal, after taking into consideration of one-off income in H1 of last year of Rs 145.4 million on account of profit booking on sale of Gitanjali Gems share. 

EBIDTA stood at Rs 3,390 million with strong EBIDTA margin of 29 per cent for the first half; against EBITDA of Rs 3,400 million (margin 30 per cent) in H1 of last year, after factoring one-off related to rollback of radio music royalty of Rs 58 million in H1 FY17, as well as new circulation expansion drive in Bihar and other markets at Rs 132 million in H1 FY18. 

PAT stood at Rs 1,888 million (PAT margin - 16 per cent), against Rs 1,925 million (PAT margin 17 per cent) in H1 of last year. 

Advertising revenues of DB Corp’s radio business expanded by 14 per cent YOY to Rs 661 million in H1 of current period, as against Rs 579 million in H1 FY17. Radio business EBIDTA stood at Rs 149 million (23 per cent margin), after factoring in rollback of radio music royalty of Rs 58 million in H1 of last fiscal. 

Commenting on the performance for Q2 FY 2017-18, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “We are happy to report another quarter of noteworthy progress and implementation of several growth-oriented initiatives. We moved ahead with the second phase of our product strengthening campaign focusing on the Knowledge Theme and now dedicate a full page of the most interesting utility based facts that can enhance our readers’ daily lives. Supplementing our product campaign, we have adopted a circulation expansion strategy across all territories aimed at expanding reach, which is progressing well and has translated into good growth. The team has been putting best efforts and already achieved significant success of the targeted expansion, evident in the performance numbers. Our cost control initiatives implemented in the earlier quarters continue to deliver as in spite of the circulation expansion initiative we have successfully guarded the company’s profitability. Internally also, we have taken up several new efforts to strengthen and encourage more impactful communication across states/ business units to review the business and make quicker decisions.”