- 20 Oct 2022
- ICICIdirect Research
recovery seen for DB Corp albeit margins continue to remain lowDBCORP - 98 Change: -1.45 (-1.45 %)
DB Corp revenues witnessed a healthy growth of ~21% YoY to Rs 538.4 core, with Print & digital ad revenue at Rs 348 crore, up 26.8% YoY (~3.7% above precovid levels) while radio ad revenue also registered growth of 17.8% YoY at Rs 33.8 crore, on a benign base. Circulation revenue was up flat YoY to Rs 115.9 crore. EBITDA was down 11% YoY to Rs 90.1 crore while margins at 16.7% were down 590 bps QoQ. The higher newsprint prices led to higher newsprint expenses by 70% YoY impacting margins. Reported PAT was at Rs 48.8 crore, down 9% YoY.
Notwithstanding strong YoY growth, we note that EBITDA and PAT remain 9% and 35% below pre-covid numbers. The impact of rising newsprint prices, for next few quarter, remains a key concern. The growth trajectory of print ad, post normalisation, does not have the visibility along with challenges in government ad for the company.