Mumbai: DB Corp Ltd (DBCL) announced its financial results for the quarter and half-year ended 30 September 2024. DB Corp reported a 17.6 per cent year-on-year decline in net profit for Q2 FY2025, dropping to Rs 825.36 million from Rs 1,002.45 million a year earlier. The company attributed the weak performance to a high base effect and sluggish market activity exacerbated by an extended monsoon season.

In the first half of FY2025, DB Corp's total revenue grew by a modest 2 per cent year-on-year to Rs 11,988 million, supported by a high base effect from the previous year, where state elections had significantly boosted ad revenues. Advertising revenue showed minimal growth, rising just 1 per cent to Rs 8,291 million, as the impact of state elections in H1 FY2024 and national elections in H2 FY2024 continued to skew year-on-year comparisons.

Total revenue for the quarter fell by 3.2 per cent to Rs 5,824.75 million compared to Rs 6,019.19 million in Q2 FY2024, primarily driven by a dip in advertising revenue, which slid 6.7 per cent to Rs 4,014 million. Circulation revenue also saw a slight decline, dropping 2.5 per cent to Rs 1,175 million.

DB Corp MD, Sudhir Agarwal, remarked, "In Q2 FY25, we did not meet our revenue growth targets due to the extended monsoon season, which slowed market activity and consumer spending, coupled with a high base effect from Q2 FY24, an exceptionally strong quarter driven by state election advertising. However, we are confident in our growth trajectory as we adapt to current market conditions. Our Digital Business is thriving, with MAUs nearing 20 million as of August 2024, despite pilot monetisation. Our foundation for future success remains strong, backed by editorial excellence and robust advertiser support. As India's economic landscape evolves post-elections, we are well-positioned to enhance stakeholder value and further cement our market leadership."

The company's EBITDA also suffered, shrinking by 13.9 per cent to Rs 1,442 million, resulting in a 25 per cent EBITDA margin, down from 27.8 per cent last year. The decline in profitability signals challenges within the print media sector, where soft newsprint prices were not enough to offset the revenue slump.

The radio segment emerged as a bright spot, with advertising revenue growing 16.3 per cent to Rs 414 million this Q2 FY2025. EBITDA in this segment increased by 22.3 per cent to Rs 132 million, demonstrating resilience despite broader market headwinds. DB Corp business recorded an 11 per cent year-on-year increase in advertising revenue to Rs 801 million, with EBITDA margins rising by 250 basis points to 33 per cent in H1 FY2025.

Performance highlights for H1 FY2025:  

- Total revenue increased by 2 per cent to Rs 11,988 million, compared to Rs 11,755 million.  

- Advertising revenue grew by 1 per cent to Rs 8,291 million, up from Rs 8,247 million.  

- Circulation revenue stands at Rs 2,367 million, compared to Rs 2,404 million.  

- EBITDA rose by 10 per cent to Rs 3,351 million, aided by advertising revenue growth and effective cost control measures.  

- Net profit increased by 12 per cent year-on-year to Rs 2,004 million, compared to Rs 1,790 million.  

- Radio business revenue grew by 11 per cent year-on-year to Rs 801 million versus Rs 720 million.  

Performance highlights for Q2 FY2025:  

- Total revenue reached Rs 5,825 million, down from Rs 6,019 million due to a high growth base last year.  

- Advertising revenue stood at Rs 4,014 million, down from Rs 4,301 million.  

- Circulation revenue decreased to Rs 1,175 million from Rs 1,205 million.  

- EBITDA fell to Rs 1,442 million with a margin of 25 per cent, compared to Rs 1,676 million.  

- Net profit decreased to Rs 825.36 million from Rs 1,002.45 million.  

- Radio business revenue grew by 16.3 per cent year-on-year at Rs 414 million versus Rs 356 million.