Advertising/Media

In H1 FY2025, DB Corp's ad revenue increased by 1% to Rs 829 crore.

In H1 FY2025, DB Corp's ad revenue increased by 1% to Rs 829 crore.

By Kajal Sharma - 15 Oct 2024 05:20 PM

In H1 FY2025, DB Corp's consolidated advertising income increased by 1% to Rs. 829 crores. However, compared to Q1 FY25, print and other business advertisements brought in Rs 360 crore in Q2 FY25, a 7.5% drop. With an 11% YoY increase in advertising revenue to Rs 80.1 crores and a 250 bps increase in EBIDTA margin to 33% at Rs 26.4 crores, the radio industry led the growth.Previously, the circulation revenue was Rs 240.4 crores; now, it is Rs 236.7 crores."In Q2 FY25, we did not meet our revenue growth targets, primarily due to the extended monsoon season, which slowed market activity and consumer spending, and a high base effect." Mr. Sudhir Agarwal, Managing Director, DB Corp Ltd, commented on the performance for Q2 FY2025, saying, "Q2FY24 was an exceptionally strong quarter bolstered by significant advertising driven by state elections filled environment." As we aggressively adjust to the current market conditions, we anticipate maintaining our growth trajectory in the upcoming quarters in order to meet our long-term growth objective.

Despite monetizing on a pilot basis, our digital business is flourishing, as seen by the continuous growth in MAUs to nearly 20 million as of August 24."Our dedication to editorial excellence, the ongoing widespread support from advertisers, and the strong economic growth in our key regions continue to be the cornerstones of our success in the future. These elements put us in a strong position to take advantage of new opportunities. We are certain that we can maintain our market leadership and keep concentrating on increasing value for our stakeholders as India's economy changes in the years following the election."But during the last three years, D B Corp has increased its ad income at a CAGR of 20%, from Rs. 1008.4 crores in FY21 to Rs. 1752.4 crores in FY24. In a similar vein, PAT has produced a remarkable 44% compound annual growth rate over the past three years, rising from Rs 141.4 crores in FY21 to Rs 425.5 crores in FY24. Due to depressed newsprint prices and effective cost control, EBITDA margins increased by 200 basis points year over year to 27.8% in the first half of FY25, and EBITDA stood at Rs. 335.1 crores, indicating a 10% YoY gain. Sustained profitability was demonstrated by the 12% YoY growth in profit after tax to Rs 200.4 crores.Additionally, the company said that newsprint prices remained low in FY2025's first quarter. The average cost of newsprint decreased by 18% year over year to Rs 47450 PMT in H1 FY2025 from Rs 54050 PMT the previous year. In the upcoming quarters, newsprint prices are anticipated to stay low at their current levels.

 

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