Robust ad revenues to drive growth in future: DB Corp

Moneycontrol Bureau

Strong advertising revenues boosted media firm DB Corp's June quarter numbers. Going ahead, the newspaper publisher is confident of achieving double digit growth in FY14.

The firm has reported over 74 percent year-on-year jump in profit to Rs 76.09 crore on strong ad revenues which grew 21 percent to Rs 345 crore. Sales also grew 20 percent to Rs 422 crore Y-o-Y.

The firm is expanding reach in Maharashtra and has just launched an edition in Akola and is set to reach Amravati. Talking about breaking-even post a new launch, an email response from the company stated, “As per our own internal bench mark set up, any new state takes around four years to break-even, as per past experience. We are only two years old in Jharkhand and a year old in Maharashtra, post completion of all launches.”

The firm further said that circulate was also up 17 percent in the quarter gone by.

A weak rupee continues to be an overhang on financial on media firms that import newsprint and in the case of DB Corp,` it imports 40 percent of it. However, the firm will take strategic call on whether to reduce imported consumption or no if rupee continues with its freefall.

“Since a year, our imported newsprint consumption has doubled to 40 percent and we have space available to reduce it,” said the company.
 
Talking about its radio and digital segments, it said that it is the only radio company to break-even in shortest duration of around 2.5 years, since it launch. Radio division is an outperformer due to better internal efficiencies and sustained focus on the complete business model. However, the company’s focus will remain only in tier II and III towns, which are growing much faster, than other markets.

The company expects to receive an order from the court in third or last quarter of FY14 to demerge its internet and mobile businesses.

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