DB Corp registers 6% growth in ad revenues in Q2, 2017-18

DB Corp Limited (DBCL), India’s largest print media company and home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, on 31 October 2017 announced its unaudited financial results for the quarter ended 30 September 2017.

01 Nov 2017 | By Dibyajyoti Sarma

In the Q2 FY 2017-18-consolidated, the company’s consolidated advertising revenues grew by 6% YOY at Rs 3,966 million as against Rs 3,740 million during Q2 last year. Circulation revenue grew by 8% YOY at Rs 1,273 million from Rs 1,179 million during Q2 last year. Total 6.5% growth has come from yield growth, largely from mature markets only.

Consolidated total revenues grew by 6% YOY 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 1,03.8 million on account of profit booking on sale of Gitanjali gems share.

DBCL EBITDA stands at Rs 1,456 million (margins 25%) from Rs 1,547 million (margin

28%); after factoring one-offs related to roll back of radio music royalty of Rs 58 million, in Qtr 2 last year, as well as new circulation expansion drive in Bihar and other markets at Rs 132 million, in Q2 of current year.

Efforts have been delivering excellent growth since start of initiative in July with copies at 50.41 lakh copies, significantly grown 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 i.e. 8% growth on a high base of circulation copies, along with cover price increase.

Meanwhile, DBCL was identified as India's Most Trusted Company 2017 in ‘India's most trusted media company’ category as per the research conducted by Media Research Group (MRG - International brand consulting corporation, USA).

Sudhir Agarwal, managing director, DB Corp, 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.”

Agarwal said all the company’s growth-led efforts undertaken during the quarter are reflective of its determination to further fortify its leadership position and build a futuristic, agile and competitive organisation. “It demonstrates our confidence on the untapped industry potential and the role Dainik Bhaskar Group can play across India to bring about great socio-economic transformations. At a broader level, India’s GDP is gradually on an uptrend as the GST impact seems to be stabilising slowly. With several progressive steps underway, we expect economy to improve and look forward to better growth,” he concluded.