DB Corp reports 20% CAGR for ad revenue in three years

DB Corp Limited (DBCL has announced its financial results for the Quarter and Nine Months ended 31 December 2024. 

In the performance highlights for Q3 FY2025, total revenue stands at Rs 6,556-million as against Rs. 6,648-million on an election-filled high base of last year. Advertising Revenue stands at Rs 4,767-million as against Rs 4,819-million last year. Circulation revenue stands at Rs 1,195-million as against Rs 1,200-million. EBIDTA stands at Rs 1,902-million (EBIDTA margin 29%) as against Rs 2,031-million aided by effective cost control measures, and also helped by softening newsprint prices. Net Profit stands at Rs 1,182 million as against Rs 1,240 million.

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 4,255-million in FY2024.

DB Corp announces its highest-ever nine-month performance with revenue at Rs 18,544 million and PAT at Rs 3,187-million. This performance is particularly noteworthy, considering the election-led high base of last year. 

Further, excluding the election-related ad benefits, Q3 FY25 registered healthy growth in ad revenue, EBIDTA and PAT YOY underscoring the company’s leadership position. Dainik Bhaskar's market leadership in India's newspaper industry helped draw in a strong portfolio of advertisers across diverse sectors, aiding growth even on a high base. Traditional sectors continued their ad spend in the festive season, and while there has been some cooling off thereafter, the overall sentiments continue to remain optimistic. 

In the nine months of FY25, top line grew by 1% YOY on a high base, EBITDA grew by 4% YOY to Rs 5,252-million, on account of stable newsprint prices and reflecting efficient cost management. Profit after tax saw a 5% YOY growth to Rs 3,187-million, showcasing sustained profitable growth. Print Business EBIDTA margin expanded by 200 basis points to 32%. 

Newsprint prices continued to be soft in 9M FY 2025. The company’s average cost for newsprint was Rs 47,600-pmt in 9M FY2025 from Rs 52700-pmt in last year, resulting in a newsprint cost reduction of 14% YoY. As expected, newsprint prices remained stable in dollar terms in Q3 of FY2025 and are expected to remain soft for the next couple of quarters subject to dollar exchange fluctuation.

Sudhir Agarwal, managing director, DB Corp, said, “Our performance in Q3FY25 contributing to the highest ever nine-month performance, even on the back of a high base is a confidence-booster for us and underscores our strategic focus on Content over Noise, Truth over Trends in our editorial strategy which has brought us rich dividends. The festive season saw strong demand from advertisers and while there has been some softening thereafter, we continue to remain optimistic. Our digital business continues to support our omni-channel market leadership.”

He added, “With global economic performance remains sluggish, the Indian economy, driven by domestic consumption, continues to drive our key markets and advertisers while our circulation teams have been active in driving engagement. These pillars will augur well as we set to not only cement our leadership position but continue to look for windows of opportunity to push growth.”