“The print media industry has been gaining prominence over the past few quarters, again, as readers and advertisers alike are looking to stick to the culture. We have always believed that our ability to deliver very crisp, relatable content with a high level of integrity will help us in the long run,” said DB Corp Non-Executive Director Girish Agarwal during the Q3 FY23 earnings conference call.
He also shared that the sector’s potential is immense after the difficult pandemic period Q3 as well as the nine months of fiscal.
Agarwal said that the company has seen its advertising revenue grow steadily. They are optimistic that they will continue to strengthen their phygital platforms in the coming quarters to achieve better results. “The festive season saw advertisers across the board, starting with traditional sectors to new-age sectors, large conglomerates as well as small businesses, all choosing print for satisfactory returns on advertising spends.”
Automobile, another key traditional sector, is also showing signs of revival, Agarwal said, adding that this is crucial as it comes after the company’s ‘soft performance’ in the last 3-4 years.
He said that the company has launched several initiatives to increase circulation, including one for trade partners and readers.
Agarwal claims that January 2023 saw a double-digit increase in sales compared to last. “The growth has come from all segments like government, education, real estate, automobile, lifestyle and jewellery. So fortunately, this January has closed on a very strong double-digit growth, and we are hopeful that this momentum will continue going forward also.”
He shared that the company’s cost-cutting measures continue to serve well. “We continue to rationalize our operations and have managed to save approximately 9% from our total operating cost for the nine months FY 2023 versus nine months FY 2020, pre-pandemic. Because of the lasting nature of our measures, we have consistently achieved these cost reductions. Our EBITDA growth of 6% in the 9-month period comes after accounting for higher newsprint prices as well as our continued investment in the digital business, which we believe will help us in the long run.”
Pawan Agarwal, Deputy Managing director, DB Corp, stated that the company saw another successful quarter due to advertising revenues from the festive period, along with a strong revival of demand within the key markets in non-metrotier 2 and 3 cities.
“We have, over the past few quarters, highlighted a strong resurgence in traditional media. This quarter is a testament to this trend. As India’s largest print media group, our innovation and consistent focus on our editorial and circulation strength have helped us build on our strength and continue this momentum.”
He shared that the consolidated nine months’ advertising revenue grew by 29% to Rs 11,233 million versus Rs 8,693 million in nine months FY 2022. The growth in circulation revenue was 2%, to Rs 3,469 millions, compared to the Rs 3,406million last year. Total revenues increased 24% Yo-Y to reach Rs 16,209 Million, as against Rs 13,087 millions. EBITDA rose by 6%, to Rs 2,722 millions, against Rs 2,565million. This was due in part to strict cost control measures and large investments by digital business for future growth.
The nine-month consolidated PAT grew 8.5% to Rs 1281 million, compared with Rs 1,180 millions in FY2022. “Further, it is worthwhile to share that domestic newsprint prices are witnessing softness of around 12% to 15% from the peaks of around Rs 70,000 per ton. Imported newsprint spot prices also saw a correction of 15% to 20%, from the highs of US $850 that we purchased. We expect domestic newsprint price to continue to soften because of weak demand. The partial impact of these corrections has started reflecting in our results in the current quarter, and we expect quarter-on-quarter corrections to continue in Q4FY23 as well,” Pawan Agarwal said.
Advertising revenue increased by 2.6% Yo-Y to Rs 4,052 millions in Q3FY23 compared to Rs 3,951million in Q3FY22. Although billing spread and festive season adjustments are made on a similar basis, advertising revenue has increased by double-digits in comparison to Q3FY22.
The circulating revenue was Rs 1.157, compared to Rs 1.141 million in Q3 FY2022. Total revenue increased 4.6% Yo-Y to Rs 5.745 million, as compared with Rs 5,495 millions in Q3 FY22. EBITDA was Rs 1,007 million, compared to Rs 1,459 millions in Q3FY22. This is despite high newsprint prices as well as large investments by digital businesses for future growth. The quarter’s PAT stood at Rs 483 millions, compared to Rs 865 million in Q3FY22. This was after a forex loss that totalled Rs 24million.
Moving on to digital business, which has been a key focus area and an important vertical in terms of future growth for the company’s business, Agarwal said that the company has been steadily growing its loyal monthly active user base across all its app with an increase of over 7x from 2 million in January 2020 to more than 15 million in November 2022.
“As the dominant player in both the physical and digital mediums, we are not resting on our laurels and continue to work on increasing the engagement of our users.
The radio division saw revenue grow by 24.6% in FY2023, to Rs 1,020 millions versus Rs 819million last year. EBITDA grew 37.3% to R 318 million versus R 232 millions and formed a margin 31% in the nine months FY2023. “Our teams at MY FM continue to work towards building a strong brand visibility through key tie-ups in current affairs and innovative content to increase audience engagement, which will help us increase our ad rates and augment revenues.”