DB Corp Ltd, the media firm renowned for publishing newspapers like Dainik Bhaskar, Divya Bhaskar, Divya Marathi, and Saurashtra Samachar, has witnessed an impressive financial performance in the first quarter of 2023. The company reported a consolidated net profit of ₹78.75 crore ($11.6 million), marking a remarkable two-and-a-half-fold increase from the same period last year when it posted a net profit of ₹31 crore.
Riding on strong advertising revenue growth, DB Corp’s consolidated total income for Q1FY24 stood at ₹573.6 crore, surpassing the ₹499.38 crore earned in the corresponding quarter last fiscal. During this quarter, the company’s total expenses were recorded at ₹469.97 crore, compared to ₹457.3 crore in the same period a year ago.
The resurgence of print media as the most trusted source of news has been a significant factor contributing to DB Corp’s success. Advertisers are increasingly turning to print media, leading to a robust 24% year-on-year growth in print advertisement revenue for the last five quarters, which increased from ₹1,351 crore to ₹1,675.5 crore.
In Q1FY24, advertising revenue grew by an impressive 17.2%, reaching ₹394.6 crore compared to ₹336.8 crore in the same period the previous year. Circulation revenue also saw a notable increase of around 4% to ₹119.9 crore, up from ₹115.6 crore in the corresponding period of the last fiscal.
DB Corp also benefited from the downward trend in newsprint prices during the quarter, and the company remains hopeful that this trend will continue based on its assessment.
As global economies recover from inflationary pressures, the Indian economy, particularly non-metro markets, is experiencing rapid growth. The print sector has been on an upward trajectory over the past few months, with regional newspapers outperforming English language print in terms of demand.
DB Corp’s Managing Director, Sudhir Agarwal, expressed confidence in the company’s continued growth, citing their focus on cost optimization and easing newsprint prices over the last 4-6 months. The media firm has achieved five consecutive quarters of consistent growth across all segments and aims to sustain this positive trend in the forthcoming quarters.
The media industry’s resilience and advertisers’ trust in print media as an effective marketing avenue have played a crucial role in DB Corp’s stellar Q1 performance. As the company continues to adapt to changing market dynamics, it remains committed to providing reliable news and delivering value to its readers and advertisers alike.