DB Corp reports 18% rise in circulation in nine months

DB Corp (DBCL), India’s largest print media company and home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, on 16 May 2018 announced its audited financial results for the quarter and year ended 31 March 2018. The highlights of the results reveal that Dainik Bhaskar’s well-implemented circulation expansion strategy has delivered strong results, as the company achieved commendable performance on the back of higher circulatio

23 May 2018 | By Dibyajyoti Sarma

This includes an almost 18% rise in circulation in nine months from around 51 lakh copies in June end 2017 to around 59.6 lakh copies as on March end 2018, an increase of around 9 lakh copies, majorly in markets of Bihar, Rajasthan and Gujarat. Over the past five years (from FY 2011-12 to FY 2016-17), Dainik Bhaskar has delivered 15% CAGR growth driven by yield in core legacy markets – much above the industry reported numbers.

The circulation strategy was complimented by strong editorial and product enrichment efforts along with unique and impactful reader engagement initiatives.

In Q4 FY 2017-18, the company’s consolidated total revenues grew by 10% YOY to Rs 5,745 million, as against Rs 5,222 million reported during Q4 FY17. Consolidated advertising revenues grew by 8.2% YOY to Rs 3,861 million as against Rs 3,567 million reported during Q4 FY17.

Circulation revenue increased by 8.5% YOY to Rs. 1,320 million from Rs. 1,217 million during Q4 FY17, largely an outcome of circulation expansion strategy.

EBITDA during Q4 FY 2018 stands at Rs 1,051 million (margins 18%) vis-à-vis Rs 1,173 million (margin 22%); after considering forex loss of Rs. 9.9 million. Further, excluding impact of circulation expansion related one off expenditure, EBIDTA growth would have been in mid single digit.

Consolidated PAT stands at Rs 571 million, as against Rs 642 million reported during Q4 FY17, after considering forex loss of Rs 16.4 million. Further, excluding circulation expansion strategy related one off expenditure, PAT would have seen double digit growth.

For FY 2017-18, the company’s total revenue grew by 3.4% YOY to Rs 23,522 million in current period from Rs. 22,750 million generated during last fiscal.  Advertising revenues grew by 3% YOY to Rs 16,425 million in current period as against Rs 15,973 million. Circulation revenue grew by 7% YOY to Rs 5,145 million from Rs 4,814 million, largely an outcome of volume growth driven by circulation expansion strategy and without any reduction in cover prices.