DB Corp Q4 FY19 revenues up 4.2%; digital business revenues see decline

DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has reported a 4.2 per cent growth in its total revenues for the fourth quarter ended March 31, 2019 at Rs 5,911 million from Rs 5,675 million in the corresponding period of the last fiscal. 

Advertising revenues reported growth of 7 per cent YOY to Rs 4,130 million in Q4 FY2019, as against Rs 3,859 million in Q4 FY2018. Meanwhile, circulation revenues grew 2 per cent YoY to Rs 1,273 million from Rs 1,252 million in the corresponding period last fiscal. 

DB Corp’s Q4 FY2019 EBIDTA stood at Rs 1,067 million (EBIDTA margin 18 per cent), against EBIDTA of Rs 1,051 million (EBIDTA margin 19 per cent) in Q4 FY2018. Profit After Tax (PAT) was reported at Rs 545 million (PAT margin 9.2 per cent), against Rs 571 million (PAT margin 10.1 per cent) in the corresponding period last fiscal. 

Q4 FY2019 financial results highlights

Radio business revenue grew by 8 per cent YOY to Rs 390 million in Q4 FY2019 from Rs 361 million reported during the corresponding period last year. Radio business EBIDTA grew by 13 per cent YOY to Rs 132 million (margin 34 per cent) from Rs 116 million (margin 32 per cent). Radio business PAT grew by 14 per cent YOY to Rs 63 million (margin 16 per cent) from Rs 55 million (margin 15 per cent). 

Digital business revenue stood at Rs 99 million, which was a decline from Rs 131 million reported during corresponding period last year. 

Performance highlights for FY 2019 

Total revenues grew by 6.2 per cent YOY to Rs 24,794 million in FY2019 from Rs 23,349 million in FY2018. 

Consolidated advertising revenues grew by 7.4 per cent YOY to Rs 17,625 million in FY2019, as against Rs 16,416 million in FY2018. Circulation revenues grew by 5.1 per cent YOY to Rs 5,237 million from Rs 4,981 million generated during last fiscal. 

EBIDTA for the current fiscal stood at Rs 5,209 million (margin 21 per cent), against EBIDTA of Rs 5,875 million (margin 25 per cent) reported during FY2018, after considering forex loss of Rs 48.4 million. 

PAT stood at Rs 2,738 million (PAT margin 11 per cent), against Rs 3,240 million (PAT margin 14 per cent) delivered in FY2018, after considering forex loss of Rs 48.4 million. 

Radio business revenues grew by 14.4 per cent YOY to Rs 1,549 million, against Rs 1,354 million in FY2018. Radio business EBIDTA grew by 45 per cent YOY to Rs 525 million (margin 34 per cent) against Rs 362 million (margin 27 per cent). Radio business PAT grew by 70 per cent YOY to Rs 260 million (margin 17 per cent) against Rs 153 million (margin 11 per cent). 

Digital business revenues for FY2019 stood at Rs 487 million against Rs 529 million in FY2018. 

Commenting on the performance for Q4 and FY 2018-19, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “We are happy to report another quarter of noteworthy progress and implementation of growth-oriented initiatives inspite of a higher base in the corresponding fiscal, which conveys that DBCL team is working hard to deliver results. 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 added, “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 stabilise. 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,” Agarwal further said.