BENGALURU:  Indian newspaper group DB Corp Limited (DB Corp) reported that its radio business had 7.1 percent decline and 47.1 percent decline in revenue and operating profit respectively for the quarter ended 31 December 2017 (Q3-18, quarter under review) as compared to the corresponding year-ago quarter (y-o-y). DB Corp reported revenue of Rs 33.57 crore in Q3-18 and Rs 36.82 crore for the corresponding year-ago quarter for its radio business. Radio business operating profit during the quarter under review was Rs 6.53 crore, almost half that of the Rs 12.35 crore in Q3-17. The company in its earnings release has said that Radio business Profit after Tax (PAT) also declined to almost half during the quarter under review to Rs 42.2 crore as compared to Rs 8.1 crore in the corresponding quarter of the previous year.

DB Corp has four businesses or segments – Printing of Publications and Periodicals (Printing); Radio; Events; and Power. The company’s printing segment is by far its largest segment. Radio business is the second major contributor to DB Corp’s revenue. In Q3-18, Radio business contributed about 5.5 percent to DB Corp’s total revenues.

Overall, DB Corp reported a 4.6 percent decline in operating revenues for Q3-18 at Rs 598.58 crore as compared to Rs 627.27 crore in Q3-17. DB Corp EBIDTA declined 28.9 percent y-o-y in Q3-18 to Rs 143.47 million from Rs 201.88 million. DB Corp PAT declined 33.9 percent y-o-y to Rs 78.11 crore from Rs 118.10 crore. DB Corp’s Advertising Revenues stands at Rs. 426.3 crore in current period against Rs. 453 crore. The company says that performance is not comparable on a y-o-y basis as last year’s figure included one-offs pertaining to private treaty and festival billing. Excluding these one-offs, Ad revenue has registered positive growth. It says that excluding last year’s one-offs, total revenue has registered positive growth and that EBITDA growth was in mid-single digit, after adjusting excluding last year’s one-offs and circulation expansion related expenditures.

Company speak

DB Corp managing director Sudhir Agarwal said, “The focus in the third quarter of this fiscal continued to be on two key initiatives which we started earlier – the product strengthening campaign and the circulation enhancement journey and I’m happy to report that both have successfully complemented each other to deliver results. The outcome has been a steady growth in our circulation. Press In India Report 2016-17 released by Registrar of Newspapers of India (RNI) has maintained Dainik Bhaskar newspaper to be the largest circulated multi-edition daily. Our focus is towards achieving stronger ad sales and with the team’s unwavering efforts we are confident of reporting stronger performance. Our internal measures adopted to support the editorial and sales team through initiatives like the DB Knowledge App and more impactful leadership-to-unit connect, are strengthening our internal efficiencies, our agility in decision making and quick turnaround. Through several key new leadership responsibilities, we have also ensured that the best talent resources are available for business growth as well as building internal leadership strengths.”

“DBCL’s mission is also to engender socio-economic change across India. Aligned to this, on the 73rd birth anniversary of our chairman Late. Shri Ramesh Chandra Agarwal, which we will commemorate as Prerna Diwas, this quarter, we initiated the establishment of the Ramesh and Sharda Agarwal Foundation. This will contribute to some core areas of socio-economic welfare including education of girl child, adoption of old age homes, mentoring talented small-scale businesses and building a convention center of international standards in Bhopal. At a broader level, several core efforts have already been implemented by the government and signs of market revival are visible. The optimism demonstrated by the World Bank advising on India’s ability to achieve higher economic growth of 7.3 percent in 2018, also signals a stronger year ahead,” revealed Agarwal.