DB Corp reports 2.6% ad rev growth for the festive quarter

DB Corp Limited (DBCL), home to flagship newspapers - Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, today announced its financial results for the quarter and nine months ended December 31, 2022.

"Dainik Bhaskar Group continues its streak of strong results, with yet another quarter of good financial performance driven by robust revival of demand in the non-metro markets coupled with strong festive demand in the quarter. These results are a testament to the omni-channel approach for delivering well-researched and pertinent news to its readers. The circulation strategy, as well as the strong editorial prowess, have been instrumental in extending leadership of the group in all markets," said the publication in its official statement.

"For the nine months ended December 31, 2022, print advertising revenues posted a healthy growth of around 31% YOY basis. For Q3 FY23, print ad revenues grew by 6.4% QOQ basis and around 4% YOY basis. However, on adjusting for the spread of the festive season, on a like to like basis, ad revenues in Q3 FY23 grew in mid-teens on a YoY basis," said the group.

In the festive quarter, the group's advertising revenue grew by 2.6% YOY and 6.3% QOQ to Rs. 4,052 million as against Rs. 395.1 crore. Consolidated ad revenue grew by 6% QoQ & 3% YOY to Rs. 405 crore. from Rs. 395 crore.

Circulation revenue stood at Rs. 115.7 crore as against Rs. 114.1 crore. Total revenue grew by 4.6% at Rs. 574.5 crore as against Rs. 549.5 crore. EBIDTA stands at Rs. 100.7 crore as against Rs. 145.9 crore considering Forex loss of Rs 2.1 crore, aided by stringent cost control measures, & despite high newsprint prices and large digital business investment for future growth.

The net profit for the quarter stood at Rs 48.3 crore against Rs 86.5 crore, considering a forex loss of Rs 2.4 crore.

Ad revenue from its radio business stood at Rs 36.2 crore versus Rs 37.6 crore. EBITDA stood at Rs 11.8 crore versus Rs 14.7 crore.

The group also commented on the reducing newprint prices: "We are hopeful that this trend will continue in the forthcoming quarter as well. Our cost optimisation measures coupled with our proven circulation strategy and robust growth in advertising revenues have translated into strong operating results. For the 9MFY23, our consolidated EBITDA grew by 6% YoY basis."

Sudhir Agarwal, Managing Director, DB Corp Ltd said: "The Indian Economy continues to be the most resilient on the global stage, and while most major economies are facing recessionary sentiments, the Indian Consumption Story has played out well in the past nine months. The festive season saw a strong revival of growth and this was primarily driven by Tier-II and beyond cities that seem to be the engines driving the growth of the economy. Our strong presence in these markets have ensured that we are key beneficiaries of robust growth in ad revenues coupled with the continued trend of advertisers turning to traditional sectors like Print for their ad spends. To ensure that we stay engaged with our loyal reader base, our teams continue to work on our omnichannel news delivery platform with significant strides being made through our digital initiatives. We continue to focus on financial prudence to strengthen our balance sheet and deliver strong returns to all our stakeholders."