DB Corp Q1 FY25 ad revenue up 8.4%; Net profit grew 49.7% YOY

DB Corp Limited (DBCL), home to flagship newspapers – Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar – has announced its financial results for the first quarter ended June 30, 2024.

DB Corp reported an 8.4% growth in its advertising revenue to Rs 4,277 million for Q1 FY2025, as against Rs 3,946 million in Q1 FY2024. Circulation Revenue stood at Rs 1,192 million as against Rs 1,199 million. Total Revenue grew by 7.4% to Rs 6,163 million as against Rs 5,736 million.

EBIDTA grew by 40.4% to Rs 1,909 million as against Rs 1,359 million, aided by advertising revenue growth with effective cost control measures, and also helped by softening newsprint prices. EBIDTA margin expanded by 700 basis points to 31% from 24% last year.

Net Profit grew by 49.7% YOY to Rs 1,179 million in Q1 FY2025, as against Rs 788 million in the corresponding quarter of the previous fiscal.

Print Business

Newspapers are rising in India. In Q1 FY2025, Dainik Bhaskar delivered yet another strong performance, marking the 12th consecutive quarter of broad-based growth. Advertising revenue surged by 8.4% to Rs 4,277 million on a high base of Q1 of last year, underpinned by robust market alignment. EBITDA margins expanded by 700 bps to 31% and stood at Rs 1,909 million with growth of 40% YOY, on account of soft newsprint prices and reflecting efficient cost management.

Profit after tax saw a substantial 50% YoY growth to Rs 1,179 million, showcasing sustained profitability.

Newsprint prices continued to be soft in Q1 FY2025. DB Corp’s average cost for newsprint has reduced to Rs 46,900 PMT in Q1 FY2025, resulting in newsprint cost reduction of 20.9% YoY.

Print media retains its pivotal role in the media landscape, continuing to wield significant impact and effectiveness. With Dainik Bhaskar’s robust brand equity cementing its position as India’s top newspaper group, establishing a positive cycle of growth. This not only supports DB Corp’s advertisers’ success but also fuels the group’s own thriving progress alongside them. Indian language newspapers are increasingly preferred across diverse sectors, with notable growth seen in auto, education, real estate, jewellery, health, response and government advertisements.

Radio business:

Advertising Revenue grew by 6.2 % YOY at Rs 386 million versus Rs 364 million. EBIDTA grew by 14.2% YOY to Rs 132 million versus Rs 115 million. EBIDTA margin saw 300 bps rise to 34% at Rs 132 million. This performance underscores the group’s commitment to stakeholder value, reinforced by a consistent interim dividend of Rs 7 per share, demonstrating its financial strength and strategic focus on growth.

Commenting on the performance for Q1 FY2025, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “As we enter Fiscal 2025, Dainik Bhaskar has demonstrated resilience and strength. Our first quarter results are particularly impressive considering the dip in government billing due to the election code of conduct. We are maintaining our growth trajectory across our Print, Radio, and Digital platforms, underscoring the robustness of our omnichannel strategy and the underlying demand for our media offerings. Our Digital platform with currently 18 million MAUs is a powerful pillar of growth.”

He further said, “The editorial excellence, continued broad-based support from advertisers and the strong economic growth of our key markets provides us a strong platform. As India’s economic landscape continues to evolve post-elections, we’re well-positioned to capitalize on new opportunities, further cement our market leadership, and deliver enhanced value to our stakeholders.”