D B Corp

D B Corp reported H1 FY25 total revenue of INR 1,198.8 crores, marking a 2% year-on-year growth from INR 1,175.5 crores. EBITDA for H1 increased by 10.4% to INR 335.1 crores, with the margin expanding from 26% to 28%. Net profit for the half-year also saw a 12% rise to INR 200.4 crores. However, Q2 FY25 presented a challenging picture, with total revenue declining 3.2% year-on-year to INR 582.5 crores, and EBITDA falling 14% to INR 144.2 crores, resulting in a net profit of INR 82.6 crores, down 17.6% from the prior year.

The Q2 revenue decline was primarily attributed to a prolonged monsoon and a high base effect from last year's election-driven advertising surge. Despite this, H1 advertising revenue grew 1% to INR 829.1 crores. Sector-wise, automobile advertising showed a strong 50% growth, real estate grew 35%, and FMCG increased 20%. Conversely, government advertising was down by almost half, and the lifestyle category (clothing and shoes) declined by 10%.

Print circulation revenue remained flat at INR 117.5 crores in Q2, but the company noted a 2-3% decline in overall circulation post-election, which is a 'matter of concern'. Management plans to launch reader initiatives and promotion schemes from November onwards to address this. Newsprint prices softened to INR 48,000 per tonne in Q2 FY25, down from INR 51,500 last year, and are expected to remain soft, with minor fluctuations of 1-2%, in Q3 and Q4.

The digital segment demonstrated robust growth, with Monthly Active Users (MAUs) reaching 19.6 million as of August 31, 2024, a significant increase from 14 million in March. D B Corp positions Dainik Bhaskar as the digital leader in Hindi and Gujarati news apps, attributing this growth to content quality, technical product, and expansion into new geographies like Uttar Pradesh, Bihar, and Uttarakhand. The company aims for both subscription and advertising revenue from its digital platforms.

The Radio segment delivered strong performance, with Q2 FY25 advertising revenue increasing by 16% year-on-year to INR 41.4 crores, up from INR 35.6 crores. This growth translated into a 22% rise in EBITDA for the segment, reaching INR 13.2 crores compared to INR 10.8 crores in the prior year. The radio business contributed to the overall H1 growth with an 11% year-on-year increase in revenue to INR 80.1 crores.

The company's H1 EBITDA margin expanded from 26% to 28%, with the print business EBITDA margin specifically expanding by 400 basis points to 32%. This improvement was driven by effective cost control measures and favorable newsprint prices. Management acknowledged an increase in 'other expenses' in Q2 due to delayed staff-related expenses, market needs, digital expansion, and festival season promotions. Despite Q2's 25% EBITDA margin, management expressed confidence in reaching a 30% EBITDA margin for the full year FY25.