DB Corp ad revenue up 18.4% YOY in Q3 FY24 to Rs 4,819 mn

Newspapers are growing, and DB Corp Limited’s financial results for the quarter and nine months ended December 31, 2023 reflect this growth. DB Corp, home to flagship newspapers – Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar – continues with yet another quarter of robust growth across all segments, underscoring the powerful leadership position of the Group amidst a quarter that benefitted from the festive season, elections and general economic buoyance.

Advertising revenue registered a stellar growth of 18.4% YOY to Rs 4,819 million from Rs 4,069 million, rounding nearly 10 quarters of consistent growth.

EBIDTA margin continued to expand with 1400 basis points jump in Qtr 3 FY24 (31% Margin), leading to EBITDA growth of 101.7% YOY to Rs 2,031 million against Rs 1,007 million.

Print Business EBIDTA margin stood at 32% in Qtr 3 FY24. Profit After Tax (PAT) grew by 156.8% YOY to Rs 1,240 million against Rs 483 million.

The Group’s Radio Segment’s industry-leading performance continues with yet another quarter of industry-best revenue growth of 28.3% YOY and impressive EBITDA margins of 39.5%.

“With sustained growth performance in both top-line and bottom-line across all our business segments, we are excited for the forthcoming quarters and truly believe that happy days are back for the print business,” DB Corp said in a release issued.

Print Media Business

Print media’s dominance in the news landscape has been demonstrated with consistent growth for advertisers for amplifying their messaging. The Group’s mantra of ‘We Grow when our Advertisers Grow’ has helped it in creating a virtuous cycle. The quarter gone by also saw a fillip due to overall festival days and also due to economic buoyancy in key states due to election faze.

Dainik Bhaskar’s powerful brand equity as India’s #1 Newspaper Group is reflected in the impressive portfolio of advertisers that continue to repose their trust and increase their advertising spends every quarter.

Newsprint prices’ southward journey continued in Q3 FY2024 and based on the Group’s assessment, it expects newsprint purchase prices to further soften in the next few quarters. The average cost for newsprint has reduced from the high of Rs 63,500 PMT in Q2 FY2023 to around Rs 51,500 PMT in Q2 FY2024 and now to Rs 50,200 PMT in Q3 FY2024 resulting in newsprint cost reduction of 18.3% YoY. Newsprint prices are expected to soften further in ensuing quarters.

On the Advertising front, the buoyancy continued. The Auto sector saw further traction, with traditional advertisers such as Education, Real Estate, Government, Jewellery, Health, etc., continue to use print as their preferred medium. As the leader in the print segment, Dainik Bhaskar has been outperforming the sector and our teams continue to work hard to extend this performance.

On the Circulation front, the teams continued to focus on ensuring that the page-heavy ad-laden copies reached the readers on time, daily. Reader engagement activities during the quarter included thematic events such as Rajneetibaaz, Cricket Challenge, etc. “We work with our partners to help improve their efficiency, for instance, we continue to push UPI Payments by our readers to help our network partners,” the Group said.

Performance highlights for Q3 FY2024 – Consolidated [All Comparisons with Q3 FY2023]

Advertising Revenue grew by strong 18.4% to Rs 4819 million as against Rs 4,069 million
Circulation Revenue grew by around 3.4% to Rs. 1200 million as against Rs. 1,161 million
Total Revenue grew by around 15.5% to Rs. 6648 million as against Rs. 5,756 million
EBIDTA grew by strong 101.7% to Rs. 2031 million as against Rs. 1,007 million aided by stringent cost control measures, & also helped by softening newsprint prices. EBIDTA margin expanded by impressive 1400 basis points to 31% from 17% last year
Net Profit grew by impressive 156.8% YOY to Rs. 1240 million as against Rs. 483 million.

Radio business:

Revenue grew 28.3% YOY at Rs. 464.4 million versus Rs. 362 million
EBIDTA grew by 55.6% YOY to Rs. 183 million versus Rs. 118 million

Performance highlights for 9M FY2024 – Consolidated [All Comparisons with 9M FY2023]

Advertising Revenue grew by strong 16.2% to Rs. 13066 million as against Rs. 11,248 million
Circulation Revenue grew by around 3.8% to Rs. 3604 million as against Rs. 3,474 million
Total Revenue grew by around 13.3% to Rs. 18403 million as against Rs. 16,236 million
EBIDTA grew by strong 86.1% to Rs. 5066 million as against Rs. 2,722 million aided by stringent cost control measures, & also helped by softening newsprint prices. EBIDTA margin expanded by impressive 1100 basis points to 28% from 17% last year
Net Profit grew by impressive 136.6% YOY to Rs. 3030 million as against Rs. 1,281 million

Radio business:

Revenue grew by 17.2% YOY at Rs. 1196 million versus Rs. 1,020 million
EBIDTA grew by 27.8% YOY to Rs. 407 million versus Rs. 318 million

Commenting on the performance for Q3 FY2024, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “Dainik Bhaskar’s leadership position in the Print Media Sector is exemplified by a track record of strong growth outperformance for nearly 10 quarters now, making it the torchbearer of growth for the sector. We are encouraged by our readers, advertisers and our partners who continue to repose trust in us and use our platforms of Print, Digital and Radio to amplify their messaging.”

“With a slew of positive events – Elections in our key markets, the Cricket World Cup, General economic buoyancy in our markets and the festive season, our performance in Q3 FY2024 is a testament to all the efforts that we continue to put to deliver the best product, and with an omni-channel delivery mechanism working well, we believe that we should be able to extend our leadership position and fortify our financial position going ahead,” he added.