D. B. Corp (DBCORP) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 marked the 12th consecutive quarter of broad-based growth, with advertising revenue up 8.4% YoY to INR 4,277 million and strong performance across print, radio, and digital segments.

• EBITDA rose 40.4% YoY to INR 1,909 million, with margins expanding by 700 bps to 31%, aided by lower newsprint costs.

• Profit after tax increased 49.7% YoY to INR 1,179 million, reflecting sustained profitability.

• Print business attracted both traditional and new advertisers, with circulation strategies targeting urban and emerging markets.

• Digital segment reached over 18 million monthly active users as of May 2024, reinforcing leadership in Hindi and Gujarati news apps.

Financial highlights

• Consolidated total revenue grew 7.4% YoY to INR 6,163 million in Q1 FY25.

• Newsprint cost dropped 17.2% YoY to INR 46,900/MT, supporting margin expansion.

• Government ad revenue grew nearly 20% YoY, contributing about 20% of ad revenue.

• Auto ad revenue grew 35% YoY, now 8% of ad revenue.

• Interim dividend of INR 7 per share declared for the quarter.

Outlook and guidance

• Focus on enhancing circulation, optimizing costs, and expanding digital footprint to maintain market leadership.

• Management optimistic about growth across print, radio, and digital, leveraging brand equity and market leadership.

• Expectation of continued ad revenue growth, especially from auto, education, real estate, and jewelry sectors, contingent on a favorable budget.

• Anticipate a slight increase in newsprint costs next quarter due to rising freight, but ad revenue expected to offset margin impact.

• Well-positioned to capitalize on post-election economic opportunities.