D.B. CORP LTD - SECOND QUARTER RESULTS - SEPTEMBER 2014 - Revenue up 9.2%; PAT up 13.2% YoY

D.B. CORP LTD

SECOND QUARTER RESULTS

SEPTEMBER 2014

Performance highlights

Consolidated Q2 FY 2014-15

 Total Revenues have shown a growth of 9.2% YOY to Rs. 4838 million in Q2 against Rs. 4430 million of Q2 of last fiscal

 Revenues from advertising reported a growth of 9% YOY to Rs. 3610 million in current period from Rs. 3311 million in Q2 last fiscal, on a high base of Qtr 2 of last year

 EBIDTA margin for the quarter came in at 26.3% at Rs. 1271 million, against Rs. 1116 million, in Q2 FY 2014 with YOY growth of 14%. The same factors forex loss of Rs. 18.2 million

 PAT margin stands at 14.1% to Rs. 681 million against Rs. 602 million, in Q2 of last year, with YOY growth of 13.2%. Due to new accounting guidelines, as per new company act 2013, company has provided incremental depreciation of Rs. 50 million, in Q2 FY 15. The same also factors Forex loss of Rs. 19.6 million

 Radio business: Advertising revenues have expanded by 33.3% to Rs. 228 million in Q2 of current period, against Rs. 171 million in Q2 of last fiscal

 Radio business EBIDTA stands at Rs. 86 million (38% margin) in Q2 FY 2014-15

 Radio business PAT stands at Rs. 43.4 million (19% margin) in Q2 FY 15

 Digital business Revenue grew by 57% to Rs. 63 million from Rs. 40 million of last year

 Digital business EBIDTA losses reduced to Rs. 9.6 million from Rs. 22 million of last year H1 FY 2014-15:

 Consolidated Total Revenues have increased by 9.4% to Rs. 9825 million, from Rs. 8980 million

 Consolidated Advertising Revenues grew by 8.5% to Rs. 7340 million as against Rs. 6768 million in last year under review

 DBCL achieved Consolidated EBIDTA Margins of 27.6% in H1 FY2015 at Rs. 2712 million

 Consolidated PAT margin is 15%, at Rs. 1472 million, after considering incremental depreciation of Rs. 97.7 million, (as per new Accounting Guidelines) and forex loss of Rs.19.6 million

 DB Corp Ltd. remains highly respected regional news dailies by 19.8 million readers across India’s fastest growing markets.

Q2 FY 2014-15 financial results highlights:

(comparisons with Q2 FY 2013-14)

 Total Consolidated Revenues have expanded by 9.2 % to Rs. 4838 million from Rs. 4430 million on account of:

 Net Increase in print business Total Revenue of Rs. 340 million in Q2 FY 2015 on YOY basis

 Advertising revenues increase to Rs. 3319 million from Rs. 3099 million, reflecting a growth of 7.1% YOY basis

 Circulation revenues grew YOY 15% to Rs. 915 million from Rs. 796 million

 Net increase of Rs. 53 million in revenues from radio segment in Q2 on YOY basis

 Revenues increased from Rs.175 million to Rs. 228 million due to improved advertising revenues

 Print business EBIDTA margins stand at 26.3% at Rs. 1195 million. The same considers Forex loss of Rs. 18.2 million

 Print business PAT stands at Rs.646 million (14% PAT margin)

 Print Business Mature editions EBIDTA margin stand at ~32%

 An analysis and break-up of Mature and Emerging Editions financials on a quarterly basis is given below. We classify emerging editions as those which are below 4 years of age or profitable since last 4 quarters, whichever is earlier

Particulars		Mature	*Emerging	Radio	Internet	DBCL
Q2FY15-		Editions	Editions	Business	Business	Standalone
RS-Mns
Total Revenues		3979	566	228	63	4836
EBIDTA before Pre-Opex		1267	-72	86	-10	1271
EBIDTA Nargin		32%	-13%	38%	-15%	26%
EBIDTA after Margin		1267	-72	86	-10	1271
EBIDTA Margin		32%	-13%	38%	-15%	26%

*Almost all spill over new printing centres / Editions, after completion of 2 years have been transferred to mature editions with effect from Qtr 2, FY 14

About DB Corp Ltd

DB Corp Ltd. is India’s largest print media company that publishes 7 newspapers with Dainik Bhaskar 37 editions, Divya Bhaskar 7 editions, Divya Marathi 7 Editions, with 199 sub-editions in 4 multiple languages (Hindi, Gujarati,English and Marathi) across 14 states in India. Our flagship newspapers Dainik Bhaskar (in Hindi) established in 1958, Divya Bhaskar and saurashtra Samachar (in Gujarati) have a combined average daily readership of 19.8 million, making us one of the most widely read newspaper groups in India with presence in Madhya Pradesh, Chhattisgarh, Rajasthan, Haryana, Punjab, Chandigarh, Himachal Pradesh, Uttrakhand, Delhi, Gujarat, Maharashtra, Bihar, Jharkhand and Jammu. Our other noteworthy newspaper brands are Dainik Divya Marathi, DB Star and, DNA (in Gujarat & Rajasthan) on a franchisee basis. DBCL is the only media conglomerate that enjoys a leadership position in multiple states, in multiple languages and is a dominant player in its all major markets.

The company’s other business interests also span the radio segment through the brand "My FM" Radio station with presence in 7 states and 17 cities, and a strong online presence in internet portals.

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