DB Corp's net profit grows 49.7 percent y-o-y in Q1FY25

DB Corp Limited (DBCL), India’s leading print media company and home to flagship newspapers - Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has announced financial results for Q1 FY25. Its net profit grew by 49.7 percent year-on-year (YOY) to Rs 1,179 million in Q1 FY2025, as against Rs 788 million in the corresponding quarter of the previous fiscal.

The advertising revenue for the company surged by 8.4 percent to Rs 4277 million on a high base of Q1 of last year. EBITDA margins expanded by 700 bps to 31 percent and stand at Rs 1,909 million with growth of 40 percent YOY, on account of soft newsprint prices and reflecting efficient cost management. Profit after tax saw a substantial 50 percent YoY growth to Rs 1,179 million, showcasing sustained profitability.

Its circulation revenue stood at Rs 1,192 million as against Rs 1,199 million in the same quarter last year. Total Revenue grew by 7.4 percent to Rs 6,163 million as against Rs 5,736 million in Q1 FY24. Additionally, the radio business led industry growth with a 6.2 percent increase in advertising revenue again on a high base of Q1 of last year and 300 bps rise in EBIDTA margin to 34 percent at Rs 132 million. This performance underscores our commitment to stakeholder value, reinforced by a consistent interim dividend of Rs 7 per share, demonstrating our financial strength and strategic focus on growth. Print media retains its pivotal role in the media landscape, continuing to wield significant impact and effectiveness.

"Indian language newspapers are increasingly preferred across diverse sectors, with notable growth seen in auto, education, real estate, jewellery, health, response and government advertisements," it said.

Its average cost for newsprint has reduced to Rs 46900 PMT in Q1 FY2025 resulting in newsprint cost reduction of 20.9 percent YoY. In Q1 of FY25, it has launched initiatives like the Cut & Paste Mega Offer and the Sure Gift Reader’s Scheme, tailored specifically to cater to the demands of the market.

Digital Business

Company's apps have registered a growth in monthly active users (MAUs) from 2 million in January 2020 to approx 18 million in May 2024.

Commenting on the performance for Q1 FY2025, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, "We are maintaining growth trajectory across print, radio, and digital platforms, underscoring the robustness omnichannel strategy and the underlying demand for the media offerings. The editorial excellence, continued broad-based support from advertisers and the strong economic growth of key markets provides us a strong platform. As India's economic landscape continues to evolve post-elections, we're well-positioned to capitalise on new opportunities, further cement our market leadership, and deliver enhanced value to our stakeholders.”