DB Corp Limited (DBCL), India's largest print media company, has reported a robust 31% EBITDA margin in its print business, showcasing the company's strong financial performance and operational efficiency. The media giant, known for its flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi, and Saurashtra Samachar, aims to achieve even higher margins through business growth.

Financial Highlights

The company's Board of Directors, in a meeting held on July 16, approved the unaudited financial results for the quarter ended June 30. Despite a challenging market environment, DB Corp demonstrated resilience in its core print business.

Key financial highlights for Q1 include:

Print Business Performance

The print business demonstrated strong performance, with EBITDA margins expanding by 800 basis points quarter-on-quarter to reach 31%. This significant improvement was driven by continued soft newsprint prices and disciplined cost management. The EBITDA for the print business rose to ₹1,647.00 crore, reflecting a growth of 45% compared to the previous quarter.

Advertising and Circulation

While the reported advertising revenue experienced a year-on-year decline of 7% to ₹3,978.00 crore, the company noted that on a like-for-like basis, excluding the impact of election-related advertising in the previous year, advertising revenue grew by high single digits. This performance underscores the robustness of DB Corp's franchise and ongoing advertiser trust.

Circulation revenue showed a modest increase of 1% year-on-year, reaching ₹1,203.00 crore. The company reported a notable trend reversal, with circulation holding firm during the typically weak summer period and even growing in select states.

Digital Business Growth

DB Corp's digital business continues to show impressive growth. The company's news apps have seen tremendous user growth, with Monthly Active Users (MAUs) reaching approximately 22 million as of May, up from 2 million in January 2020. This growth has solidified Dainik Bhaskar's position as the dominant digital leader with the #1 Hindi and Gujarati News Apps.

Dividend Declaration

In a move that signals confidence in its financial stability and commitment to shareholder returns, DB Corp's Board of Directors declared an interim dividend of ₹5.00 per equity share (face value of ₹10.00 each). The record date for determining shareholder eligibility is set for July 23, with the dividend to be paid on or before August 14.

Management Commentary

Mr. Sudhir Agarwal, Managing Director of DB Corp Ltd, commented on the company's performance: "Despite a high base effect from last year's general elections, which had driven a temporary surge in advertising revenues, our core performance remained steady – supported by stable advertising trends, soft newsprint prices, and disciplined cost structures."

He added, "Our digital business continues to scale rapidly, with Monthly Active Users reaching the 22 million mark this quarter – reinforcing our position as India's leading Indian language news app platform."

Looking ahead, DB Corp remains optimistic about growth prospects, particularly in Tier II and beyond markets, driven by anticipated government initiatives to boost disposable incomes and economic activity.

As DB Corp continues to leverage its editorial strength, hyperlocal relevance, and product innovation, the company aims to drive sustainable growth across both print and digital platforms, reinforcing its position as a leader in the Indian media landscape.

DB Corp , India's largest print media company, has released its financial results for the first quarter, showing a decline in key metrics compared to the same period last year.

Financial Performance

DB Corp reported a 31.40% drop in Q1 consolidated net profit to ₹80.80 crore. Revenue fell 5.20% to ₹559.00 crore. EBITDA declined 32.80% to ₹111.00 crore, with margins contracting by 810 basis points to 19.80%.

The company's key financial indicators showed the following changes:

Key Business Highlights

1. Advertising Revenue: The company experienced a decline in advertising revenue. However, on a like-for-like basis, excluding the impact of election-driven revenue in the previous year, advertising revenue showed a single-digit growth.

2. Print Business: The print segment showed resilience with EBITDA margins expanding quarter-on-quarter.

3. Newsprint Costs: The company benefited from softer newsprint prices, which helped offset some of the revenue decline.

4. Digital Business: DB Corp's digital platforms continued to show growth, solidifying the company's position as a dominant digital leader in Hindi and Gujarati news apps.

5. Radio Business: The radio segment, operating under the brand "94.3 MY FM," contributed to the overall revenue.

Management Outlook

While specific management commentary for this quarter is not provided, the company is likely focusing on strategies to navigate the challenging market conditions. These may include:

• Capitalizing on digital growth opportunities
• Maintaining cost discipline
• Leveraging its strong presence in print media across multiple languages and states
• Focusing on product innovation to deliver long-term value to stakeholders

DB Corp's ability to adapt to the evolving media landscape and capitalize on the growing "Bharat" consumption story will be crucial for its future performance.