DB Corp announces quarterly results

DB Corp has delivered advertisement revenue CAGR growth of 20% in the last three years period from Rs 10,084-million in FY21 to Rs 17,524-million in FY24. Similarly, PAT has delivered an impressive 44% CAGR growth in the last three years from Rs 1,414-million in FY21 to Rs 4255-million in FY2024. 

In the 1st half-year of FY25, EBITDA margins expanded by 200-bps YoY to 27.8% and EBITDA stood at Rs 3,351-million with growth of 10% YoY, on account of soft newsprint prices & reflecting efficient cost management. Profit after tax saw a 12% YoY growth to Rs 2004-million, showcasing sustained profitability. Total revenue grew by 2% YoY to Rs 11,988-million on an election-led high base, where the state elections boosted ad revenues in H1 last year. Advertisement revenue remained flattish with 1% YOY growth to Rs 8,291-million on an election-led high base where the state elections-driven environment boosted ad revenue in H1 FY24 followed by a similar boost with the national elections in the H2 of FY24. 

Further an extended monsoon till August and September specially in its key markets of MP, CG, Rajasthan and Gujarat slowed down the economic activities and consumer spending, thereby impacting overall ad spend in Q2 of FY25. 

In the performance highlights for H1 FY2025, total revenue grew by 2% to Rs 11,988-million as against Rs 11,755 million. Advertising Revenue grew by 1% to Rs 8291 million as against Rs 8,247-million. Circulation Revenue stands at Rs 2367-million as against Rs 2,404-million. EBIDTA grew by 10% to Rs 3,351-million as against Rs. 3,035-million aided by ad revenue growth with effective cost control measures and also helped by softening newsprint prices. EBIDTA margin expanded by 200 basis points to 28% from 26% last year. Net Profit grew by 12% YoY to Rs 2,004-million as against Rs 1,790-million.

Newsprint prices continued to be soft in H1 of FY2025. Our average cost for newsprint has reduced to Rs 47,450-pmt in H1 FY2025 from Rs 54,050-pmt in last year resulting in newsprint cost reduction of 18% YoY. Further newsprint prices are expected to remain soft at current levels in next few quarters.

Sudhir Agarwal, managing director, DB Corp, said, “In Q2 FY25, we did not meet our revenue growth targets, primarily due to the extended monsoon season, which slowed market activity and consumer spending, and a high base effect - Q2FY24 was an exceptionally strong quarter bolstered by significant advertising driven by state elections filled environment. We believe we will continue our growth trajectory in the coming quarters to meet our long-term growth strategy as we are actively adapting to current market conditions. Our Digital Business is thriving, with continued growth in MAUs to almost 20 million as of August 24, despite monetising on a pilot basis.”

He added, “Our foundation for future success remains strong, built on our commitment to editorial excellence, continued broad-based support from advertisers, and the robust economic growth in our key markets. These factors position us well to capitalise on emerging opportunities. As India's economic landscape evolves in the post-election period, we are confident in our ability to further cement our market leadership and continue to focus on enhancing value to our stakeholders.”