Media company DB Corp's third quarter profit is seen rising 8 percent year-on-year to Rs 113.3 crore and revenue may increase 5.4 percent to Rs 584 crore, according to analysts polled by CNBC-TV18.
Advertising revenue, which contributes around 75 percent to total topline, is expected to grow 3 percent on yearly basis to Rs 441 crore. The company increased advertising rates in FY16 with a view to improve yields.
Analysts expect improvement due to higher yields, festive season and better ad environment. In Q2FY16, advertising revenue declined 5 percent and in Q1FY16, ad revenue fell 8 percent.
Operating profit is likely to increase 4.2 percent year-on-year to Rs 192.4 crore but margin may contract 40 basis points to 32.9 percent due to lower advertising revenue and also high base in year-ago period. Margin may get support from lower newsprint prices as raw material cost is expected to decline 2 percent.
Circulation revenue may increase 15 percent and radio business revenue growth is seen at around 10-12 percent.
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