DB Corp Q2 FY 16-17 financial results reflect growth in ad revenue

In performance highlights for H1 FY 2016-17 consolidated advertising revenues grew by 14.9% YOY at Rs 7,876 million as against Rs 6,855 million during H1 last year. Circulation revenue grew by 13.3% YOY at Rs 2,354 million from Rs 2,079 million. Total 9.4% growth came from yield growth, largely from mature markets. During the time, Dainik Bhaskar was awarded the ISO-9001:2015 certification for quality management circulation distribution systems and is probably the only newspaper in India to receive this certification.

During the period, consolidated total revenues grew by 14.5% YOY at Rs 11,074 million, as against Rs. 9,670 million during H1 last year. DBCL EBITDA grew by 39.6% YOY in H1 FY 2017 at Rs 3,400 million (margins 30.7%) from Rs. 2435 million (margin 25.2%)

In performance highlights for Q2 FY 2016-17, advertising revenues reported growth of 9% YOY to Rs 3,740 million in current period from Rs 3,433 million in Q2 of last fiscal circulation revenue has increased 11.5% YOY to Rs 1,179 million from Rs 1,057 million, primarily due to yield-driven growth, largely coming from the mature markets.

Total Revenue reported growth of 9.7% YOY at Rs 5,328 million in current period from Rs 4,858 million in Q2 last fiscal. EBIDTA grew by impressive 33.2% YOY at Rs 1547 million with strong EBIDTA margin of 29% for the quarter; against EBITDA of Rs 1,162 million (margin 23.9%) Q2 of last year.

Sudhir Agarwal, managing director, DB Corp, said, “Our performance until date reflects a strong top line growth with an even better profitability growth despite a challenging market situation. We are also pleased to share that Dainik Bhaskar is probably the only newspaper in India to be ISO 9001:2015 certified for Quality Management Circulation Distribution Systems, which acknowledges our commitment to efficient processes. As we grow, the following operational and strategic areas will continue to be important: maintain market share and consolidate our leadership, strengthen the Bhaskar brand recall in a competitive environment and fortify client relationships. We will also maintain a stringent control on operating efficiencies and processes which has played a defining role, engage more meaningfully with our communities and ensure that we actively leverage positive macroeconomic trends that will propel higher news consumption across platforms.”