DB Corp's Profit For Q2 FY25 Grows By 12%, Hits Rs 200 Cr

DB Corp (DBCL) has reported its financial results for the quarter and half year ended September 30, 2024. Print and other business advertisements recorded Rs 360 crore in the period Q2 FY25, marking a 7.5 per cent decrease when compared with Q1 FY25.

Print circulation revenue saw a 2.5 per cent decline when compared to last year’s similar quarter, falling from Rs 120.5 crore to Rs 117.5 crore in one year.

On the brighter side, the publication has delivered advertisement revenue CAGR growth of 20 per cent in the last 3 years from Rs 1008.4 crore in FY21 to Rs 1752.4 crore in FY24. Similarly, profit after tax (PAT) has delivered a 44 per cent CAGR growth in the last 3 years from Rs 141.4 crore in FY21 to Rs 425.5 crore in FY24.

But advertisement revenue remained flattish with 1 per cent YOY growth to Rs 829 crore 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.

In the first half year of FY25, Ebitda margins expanded by 200 bps YoY to 27.8 per cent and Ebidta stood at Rs 335 crore with growth of 10 per cent YOY, on account of soft newsprint prices and reflecting efficient cost management. Profit After Tax saw a 12 per cent YoY growth to Rs 200.4 crore, showcasing sustained profitability.

Newsprint prices continued to be soft in H1 of FY2025. The publication said, “Our average cost for newsprint has reduced to Rs 47450 PMT in H1 FY2025 from Rs. 54050 PMT in last year resulting in newsprint cost reduction of 18 per cent YoY. Further newsprint prices are expected to remain soft at current levels in the next few quarters.”

The Radio Business led industry growth with an 11 per cent YoY increase in advertising revenue to Rs 80.1 crore and a 250 bps rise in Ebitda margin to 33 per cent at Rs 26.4 crore.

On the digital front, their apps have registered a growth of 46 per cent, rising from 1.07 crore users in January 2023 to approximately 1.95 crore in August 2024.