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

DB Corp Limited (DBCL), the country’s largest print media company and home to the flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, on 20 October 2016 announced its financial results for the quarter ended September 30, 2016.

25 Oct 2016 | By Dibyajyoti Sarma

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.”