DB Corp Achieves 12% Profit Growth in H1 FY25 Amid Ad Revenue Challenges

DB Corp Limited (DBCL), India’s largest print media company, announced its financial results for the quarter and half-year ending September 30, 2024. The company's key operational and financial performance highlights include a 20% CAGR growth in advertisement revenue over the last three years, rising from Rs 10,084 million in FY21 to Rs 17,524 million in FY24. During the same period, PAT saw a remarkable 44% CAGR growth from Rs 1,414 million to Rs 4,255 million. In the first half of FY25, EBITDA margins expanded by 200 bps YoY to 27.8%, with EBITDA at Rs 3,351 million, reflecting a 10% growth, supported by soft newsprint prices and effective cost management. Profit After Tax grew by 12% YoY to Rs 2,004 million, with total revenue increasing by 2% YoY to Rs 11,988 million. Advertisement revenue experienced a modest 1% YoY growth due to a high election-led base in H1 FY24. The extended monsoon season in key markets also slowed economic activities and ad spending in Q2 FY25. However, the company's radio business led industry growth with an 11% YoY increase in ad revenue, reaching Rs 801 million and a 250 bps rise in EBITDA margin to 33%, amounting to Rs 264 million.

DBCL's Capital Allocation Policy remained strong, maintaining a 60% dividend payout, with the company's financial strength further emphasized by the second interim dividend of Rs 5 per share.

In H1 FY25, newsprint costs decreased by 18% YoY due to soft prices, and the company's average cost of newsprint reduced to Rs 47,450 PMT. DB Corp also made significant strides in its digital business, registering growth from 2 million users in January 2020 to 19.5 million in August 2024. The company is now focusing on expanding its mobile app visibility in 14 states, solidifying its position as the leading digital and print news app provider in India.

Editorially, DB Corp continues to engage readers by focusing on local issues and news that impact their lives. On the circulation front, the company's initiatives, including reader engagement programs and the reopening of closed distribution agencies, contributed to growth.

DBCL remains committed to its digital strategy, focusing on high-quality content, innovation, and enhancing user engagement. The radio business also saw success, with MY FM winning multiple awards and recognition for its on-air and on-ground initiatives.

DB Corp's continued efforts in community engagement through CSR activities, such as the "Ek Ped Ek Zindagi" and "Mitti Ke Ganesh" campaigns, further reflect the company's dedication to sustainability and social responsibility.

Despite challenges posed by the extended monsoon and a high base from last year's elections, DB Corp is confident in maintaining its growth trajectory and capitalizing on future opportunities.