DB Corp Q3FY18 Concall Summary

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Financial Highlights

DB Corp Q3Y18 Financial Performance.png

9MFY18

  • For 9MFY18, total revenue grew by 1.4% to Rs. 17,778 million as against Rs. 17,528 million of 9MFY17.
  • Advertising revenue for 9MFY18 grew by 1.3% YoY to Rs. 12,565 million from Rs. 12,406 million of 9MFY17.Last year’s figure include number of one-off incomes which exaggerated the figures.
  • EBIDTA for 9MFY18 stood at Rs. 4824 million as against Rs. 5418 million generated during nine month last year. EBIDTA has registered growth excluding last year’s one off and circulation expansion strategy related expenditure.
  • PAT for 9MFY18 stood at Rs. 2669 million as against Rs. 3106 million of 9MFY17. PAT has registered Double digit growth excluding last year’s one offs and circulation expansion related expenditure.
  • The company has added almost 6 lakhs copies since the initiation of the expansion drive in July 2017 which is almost 12% growth on circulation copies.
  • The number of copies in July 2017 stood at 50.41 lakhs which increased to 56.39 lakhs in December 2017.
  • On YoY, company has seen growth of 5.3% in circulation copies.

Q3FY18:

  • Total revenue for Q3FY18 stood at Rs. 6025 million as against Rs. 6309 million of Q3FY17.
  • Ad revenue for the quarter stood at Rs. 4263 million as against Rs. 4530 million of Q3FY17. Ad revenue has registered growth in Q3FY18 after excluding last year’s one off and festival days billing difference
  • Circulation revenue grew by 6% and stood at Rs. 1319 million as against Rs. 1243 million generated in Q3FY17.
  • Radio advertising revenues for Q3FY18 stood at Rs. 336 million as against Rs. 363 million in the same period last year. EBIDTA stands at Rs. 97 million.
  • EBIDTA for the Q3FY18 stood at Rs. 1434 million as against Rs. 2019 million reported in Q3FY17. EBIDTA has registered mid-single digit growth excluding last year’s one off income.
  • PAT for the quarter stood at Rs. 781 million as against Rs. 1181 million of Q3FY17.

Markets:

  • The company have maintained its legacy market of Madhya Pradesh, Chhattisgarh, Chandigarh, Punjab, Haryana, Urban Rajasthan and Urban Gujarat. The company has launched its product in 38 district of Bihar.
  • Press in India report 2016-17 launched by Registrar of Newspaper of India maintains Dainik Bhaskar as India’s largest circulated multi editions daily.
  • In digital segment, Dainikbhaskar.com maintains number one Hindi news website and Divyabhaskar.com as number one Gujarati news website.
  • Page views for the month of December 2017 were 1.3 billion while unique visitors for the same month were 79.1 million.
  • DBCL’s radio business remains number player in Chandigarh, Haryana, Punjab, Rajasthan, Madhya Pradesh and Chhattisgarh and largest player in rest of Maharashtra.
  • The company has seen growth of 6 lakhs copies in last six month, out of which 3 lakhs have come from Bihar expansion and remaining 3 lakhs from existing markets of Rajasthan, Gujarat and Madhya Pradesh.

Revenue:

  • The company has witnessed de-growth of 6% in Ad revenue in Q3FY18 because of negative growth in real estate, education, electronics sector and so forth.
  • The company is having yield growth of 2% and volume decline of 8% in ad revenues.
  • For print, real estate contributed around 5% in last quarter and Government and education contributed 15% and 6% respectively.

Radio advertisement:

  • 70% decline in radio revenue is because of reduced government expenses and decline in real estate.
  • Government advertising, both centre and state, contribute 25% to total radio ad revenue in Q3FY18 and real estate contribute 8%.
  • The company had launched 13 new radio stations and in Q3FY18 all of them have break even and contribute 15% to the total revenue.

Expenses:

  • On newsprint paper prices, the company is at average price of Rs. 35.49/kg for Indian and imported papers. The company expects prices to increase by 8% to 10% by Q1FY19 and Q2FY19.
  • The incremental expense for expansion in Bihar and Gujarat is Rs. 25 crores. The company expects this expenses to come down drastically from next quarter as company has achieved majority of expansions.

Digital segment:

  • The company have highest number of active users in India with daily actives of 5 million as compared to 4 million of times of India and 3 million of NDTV.
  • The company is having struggle in growing revenue from digital advertising category as the desktop revenue is decreasing because of the transition of readers from desktop to mobile.

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