DB Corp Q2 net seen flat, ad rev may fall 4%; radio biz key

DB Corp is expected to post flat net profit at Rs 68.4 crore in Q2FY16, up 0.4 percent from Rs 681.3 crore in corresponding quarter last fiscal. Total income is also seen growing marginally by 1.2 percent to Rs 486 crore in July-September quarter compared to Rs 480 crore year-on-year, according to CNBC-TV18 poll.

Analysts polled by CNBC-TV18 think advertising revenue may decline 3.8 percent on annual basis as the company increased ad rates in FY16 with a view to improve yields. In Q1FY16 ad revenue had fallen 8 percent.

During the quarter, operating margins may be under pressure due to low ad revenue while stable/lower newsprint prices should limit margin pressure. Analysts polled by CNBC-TV18 feel margins are likely to improve sequentially, as Bihar launch expenses are out of the way. Newsprint prices are seen to be stable on quarter-on-quarter basis but down 8-9 percent (Y-o-Y).

Radio business revenue growth is seen between 10-12 percent while digital business revenue growth may be at 70-80 percent.