Dainik Bhaskar ad revenue grows 7% for FY19

The results prove that a focussed and well-executed circulation expansion strategy has delivered excellent readership results which are recently published. As per the IRS survey, all Hindi Newspapers added 93.27 lakh new readers and Dainik Bhaskar added 63.55 lakh new readers — a growth of 13.71% majorly in legacy markets of Madhya Pradesh-Chhattisgarh, Rajasthan, Haryana, Punjab, Gujarat and in newer market of Bihar.

Among the performance highlights for Q4 FY2019 – consolidated, advertising revenues reported growth of 7% yoy to Rs 4,130-million in current period from Rs 3,859-million. Circulation revenue has increased 2% yoy to Rs 1,273-million from Rs 1,252-million in the corresponding period last fiscal.

Total revenue registered a growth of 4.2% to Rs 5,911-million in current period from Rs 5,675-million. EBIDTA stands at Rs 1,067-million (EBIDTA margin 18%), against EBIDTA of Rs 1,051 million (EBIDTA margin 19%). PAT stands at Rs 545-million (PAT margin 9.2%), against Rs 571-million (PAT margin 10.1%).

Meanwhile, advertising revenues grew by 7.4% yoy to Rs 17,625-million in current period as against Rs 16,416-million. Total revenue grew by 6.2% yoy to Rs 24,794-million in current period from Rs 23,349-million generated during last fiscal.

Circulation revenue grew by 5.1% yoy to Rs 5,237-million from Rs 4,981-million. EBIDTA for current fiscal stood at Rs 5,209-million (margin 21%); against EBIDTA of Rs 5,875-million (margin 25%) reported during FY18, after considering forex loss of Rs 48.4-million.

Sudhir Agarwal, managing director, DB Corp, “We are happy to report another quarter of noteworthy progress and implementation of growth oriented initiatives, in spite of a higher base in the corresponding fiscal which conveys that DBCL team is working hard to deliver results.”

He added that the company’s sustained focus over the past five-six quarters on its circulation expansion in our legacy markets as well as in the newer markets is paying off as reflected in the latest published readership and circulation number, by MRUC and ABC respectively. The benefit of softening newsprint prices along with the cost cutting initiatives, already implemented is expected to improve our bottom line.

“We continue to look forward with cautious optimism and we are hopeful that as we move towards political certainty, the semi-urban and rural consumption and demand cycle is expected to stabilise. The implementation of second phase of economic reform is expected accelerate the consumption and industry growth going ahead,” he added.

Agarwal said at a broader level, all fundamental business growth drivers are in the place which positions us well to capitalise on emerging industries opportunities. “The positive outlook on India reflected by global institutions is providing a strong impetus to the positive sentiment that signals a new fiscal ahead,” he said.

The flagship of the group, Dainik Bhaskar, is celebrating the completion of its 60 years. Dwarka Prasad Agarwal established the business in 1958 at Bhopal and Ramesh Chandra Agarwal expanded it to pan-India, from one state to 12 states today.