ITV

Tag: DB Corp

  • Successful bidders can start FM channels: I and B Ministry

    Successful bidders can start FM channels: I and B Ministry

    NEW DELHI: Operators who have recently won bids successfully for FM Radio stations have been asked to operationalize their channels as early as possible since “time is money and spectrum sold is still unutilized.”

    Information and Broadcasting ministry joint secretary (B-II) Mihir Kumar Singh said this will benefit all stakeholders including the ministry as annual fee realization will also start early.

    However addressing a meeting of the FM operators, Singh said the ministry was agreeable to allowing interim set-up subject to the interim stations being in the same premises from where regular CTI is operating; and payments to Prasar Bharati and Broadcasting Engineering Consultants (India) Ltd is made in full according to mutual consent.

    The meeting on 27 April was at the instance of four FM Radio operators viz. ENIL, HTML, RBNL and MBL for being allowed to operationalise their fresh FM radio channels from interim set-up till the CTI facility is prepared by BECIL. The ten private FM representatives present also included representatives of Mathrubhumi and DB Corp.

    The representatives of the companies were informed that the ministry was cautious in the matter as the operators at Chennai who were earlier given interim set up permission are yet to shift to the CTI facility at Avadi.

    Upon enquiry about BECIL’s timelines to complete the CTI facilities, BECIL CMD George Kuruvila said though the target dates for all the cities is September 2016, BECIL would be able to complete CTI facilities for new FM channels in some cities in July-August.

    It also agreed to provide city-wise timelines which was done.

    All India Radio Resoirces GM (Commercial) AN Sharma said only single dipole, 7/8 inch cable with 3kw transmitter can be allowed for interim set-up. The range of transmission will be 15-20 km.

    The operators should arrange for their power supply as Prasar Bharati will not be able to provide additional power required for interim set-up. The operation of interim set-up should not pose any hurdle for the regular CTI facilities being created for new FM channels.

    Prasar Bharati was requested to give details of tower aperture, land space and rentals that
    it would be willing to share and the pubcaster would so so within two days.

    Kuruvila said since the interim set-up will be in the same premises for which SACFA clearance is available, BECIL will inform the WPC on the interim set-up on behalf of the operators.

    All the operators sought a week’s time for giving their views and so the next meeting is fixed for 6 May.

  • Successful bidders can start FM channels: I and B Ministry

    Successful bidders can start FM channels: I and B Ministry

    NEW DELHI: Operators who have recently won bids successfully for FM Radio stations have been asked to operationalize their channels as early as possible since “time is money and spectrum sold is still unutilized.”

    Information and Broadcasting ministry joint secretary (B-II) Mihir Kumar Singh said this will benefit all stakeholders including the ministry as annual fee realization will also start early.

    However addressing a meeting of the FM operators, Singh said the ministry was agreeable to allowing interim set-up subject to the interim stations being in the same premises from where regular CTI is operating; and payments to Prasar Bharati and Broadcasting Engineering Consultants (India) Ltd is made in full according to mutual consent.

    The meeting on 27 April was at the instance of four FM Radio operators viz. ENIL, HTML, RBNL and MBL for being allowed to operationalise their fresh FM radio channels from interim set-up till the CTI facility is prepared by BECIL. The ten private FM representatives present also included representatives of Mathrubhumi and DB Corp.

    The representatives of the companies were informed that the ministry was cautious in the matter as the operators at Chennai who were earlier given interim set up permission are yet to shift to the CTI facility at Avadi.

    Upon enquiry about BECIL’s timelines to complete the CTI facilities, BECIL CMD George Kuruvila said though the target dates for all the cities is September 2016, BECIL would be able to complete CTI facilities for new FM channels in some cities in July-August.

    It also agreed to provide city-wise timelines which was done.

    All India Radio Resoirces GM (Commercial) AN Sharma said only single dipole, 7/8 inch cable with 3kw transmitter can be allowed for interim set-up. The range of transmission will be 15-20 km.

    The operators should arrange for their power supply as Prasar Bharati will not be able to provide additional power required for interim set-up. The operation of interim set-up should not pose any hurdle for the regular CTI facilities being created for new FM channels.

    Prasar Bharati was requested to give details of tower aperture, land space and rentals that
    it would be willing to share and the pubcaster would so so within two days.

    Kuruvila said since the interim set-up will be in the same premises for which SACFA clearance is available, BECIL will inform the WPC on the interim set-up on behalf of the operators.

    All the operators sought a week’s time for giving their views and so the next meeting is fixed for 6 May.

  • FM players seek FDI at par with GECs since only AIR news permitted

    FM players seek FDI at par with GECs since only AIR news permitted

    NEW DELHI: The Foreign Direct Investment (FDI) in the radio sector should be increased and the government should consider a 15 per cent national ceiling for future auctions and allow news on private FM radio, private FM players have said.

    A Stakeholders’ Consultation on 22 January on the Phase III e-Auction showed that the players wanted a lock-in period of three years on composition of largest Indian shareholder.

    Information & Broadcasting Ministry Secretary Sunil Arora said that the aim of FM Phase III was to enhance radio density in the country and efforts should be made for supporting FM radio to grow into a viable business model. He wanted all stakeholders to give their suggestions and inputs in writing by 30 January if they so desire considering that some stakeholders have already submitted their suggestions in meeting.

    FM operators felt that the reserve prices recommended by TRAI on 24 March 2015 were very high and unviable. However, Ministry officials said the TRAI recommendations were advisory in nature.

    Similarly, it was stated that the rentals by Prasar Bharati were very high.

    It was also argued that the FDI limit could be increased to 100 per cent to bring it at par with the general entertainment channels as no news other than that from All India Radio was permitted.

    This suggestion from Reliance Broadcasting found favour with many of the participants but some companies like ENIL and DB Corp wanted permission to make news bulletins on their own. The Association of Radio Operators in India (AROI) said news from PTI and ANI could be permitted.

    AROI said if subsequent auction takes place in batches without relaxing the 15 per cent national cap, then this cap should be applied on overall number of channels being put to auction in phase III and not batch wise. 

    ENIL found it unreasonable that Phase II migrant licenses were made to undergo three years’ lock-in restriction under Phase III regime as well when they had already served five years’ lock-in under Phase II. But HT Media said the lock-in requirement was fundamental to FM Phase III policy.

    Representative of Digital Radio Broadcasting also suggested that connected companies of a Group be treated as a single entity for participation in online bidding / auction process.

    Suggestions for future rounds included more clock rounds per day; increase of Auction Activity Requirement (AAR); apart from auction report at the end of the day, and report of each round.

    ENIL referred to delay of security clearance of its directors and key operatives from Home Ministry.

  • FM players seek FDI at par with GECs since only AIR news permitted

    FM players seek FDI at par with GECs since only AIR news permitted

    NEW DELHI: The Foreign Direct Investment (FDI) in the radio sector should be increased and the government should consider a 15 per cent national ceiling for future auctions and allow news on private FM radio, private FM players have said.

    A Stakeholders’ Consultation on 22 January on the Phase III e-Auction showed that the players wanted a lock-in period of three years on composition of largest Indian shareholder.

    Information & Broadcasting Ministry Secretary Sunil Arora said that the aim of FM Phase III was to enhance radio density in the country and efforts should be made for supporting FM radio to grow into a viable business model. He wanted all stakeholders to give their suggestions and inputs in writing by 30 January if they so desire considering that some stakeholders have already submitted their suggestions in meeting.

    FM operators felt that the reserve prices recommended by TRAI on 24 March 2015 were very high and unviable. However, Ministry officials said the TRAI recommendations were advisory in nature.

    Similarly, it was stated that the rentals by Prasar Bharati were very high.

    It was also argued that the FDI limit could be increased to 100 per cent to bring it at par with the general entertainment channels as no news other than that from All India Radio was permitted.

    This suggestion from Reliance Broadcasting found favour with many of the participants but some companies like ENIL and DB Corp wanted permission to make news bulletins on their own. The Association of Radio Operators in India (AROI) said news from PTI and ANI could be permitted.

    AROI said if subsequent auction takes place in batches without relaxing the 15 per cent national cap, then this cap should be applied on overall number of channels being put to auction in phase III and not batch wise. 

    ENIL found it unreasonable that Phase II migrant licenses were made to undergo three years’ lock-in restriction under Phase III regime as well when they had already served five years’ lock-in under Phase II. But HT Media said the lock-in requirement was fundamental to FM Phase III policy.

    Representative of Digital Radio Broadcasting also suggested that connected companies of a Group be treated as a single entity for participation in online bidding / auction process.

    Suggestions for future rounds included more clock rounds per day; increase of Auction Activity Requirement (AAR); apart from auction report at the end of the day, and report of each round.

    ENIL referred to delay of security clearance of its directors and key operatives from Home Ministry.

  • Q2-2016: DB Corp print revenue drops marginally; radio revenue up 5%

    Q2-2016: DB Corp print revenue drops marginally; radio revenue up 5%

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported a 0.4 per cent fall in YoY Total Income from Operations (TIO) in the quarter ended 30 September, 2015 (Q2-2016, current quarter). The company reported a TIO of Rs 478.33 crore in the current quarter as compared to the Rs 480.21 crore in the corresponding year ago quarter and a one per cent growth as compared to the Rs 473.36 crore in Q1-2016.

     

    Note: (1) 100,00,000 = 100 Lakhs = 10 million = 1 crore

     

    (2) The figures mentioned in this report are consolidated figures unless stated otherwise.

     

    Segment Numbers

     

    The company reports revenue from five segments: Printing and publishing of newspaper and periodicals (Printing segment); Radio segment; Events; Internet; and power. Two of the segments are major contributors to the revenue – printing and radio and their numbers have been considered below.

     

    Radio segment

     

    DB Corp’s radio segment reported a 5.2 per cent growth in operating revenue to Rs 23.96 crore in the current quarter as compared to the Rs 22.77 crore in Q2-2015 and 11.5 per cent more than the Rs 21.50 crore in Q1-2016. The segment reported an eight per cent drop in operating profit to Rs 6.04 crore in the current quarter as compared to the Rs 6.57 crore in Q2-2015, but 48 per cent more than the Rs 4.08 crore in the immediate previous quarter. The company’s radio business PAT stands at Rs 4 crore. 

     

    Radio segment EBIDTA declined 6.7 per cent in Q2-2016 to Rs 8 crore as compared to the Rs 8.6 crore in Q2-2015, but grew 31.6 per cent as compared to the Rs 6.1 crore in Q1-2016.

     

    Printing segment

     

    The company’s printing segment reported a 1.6 per cent decline in operating revenue at Rs 442.24 crore in Q2-2016 as compared to the Rs 449.32 crore in Q2-2015, but 0.5 per cent more than the Rs 440.19 crore in Q1-2016. The segment reported a 6.2 per cent decline in operating result to Rs 93.91 crore as compared to the Rs 110.07 crore in Q2-2015 and was 6.2 per cent lower than the Rs 108.56 crore in the immediate trailing quarter.

     

    DB Corp’s profit after tax (PAT) in the current quarter declined 13.2 per cent to Rs 59.12 crore as compared to the Rs 68.11 crore in Q2-2015 and declined 11 per cent as compared to the Rs 66.46 crore in Q1-2016.

     

    DB Corp achieved EBIDTA margins of 24 per cent at Rs 117.1 crore from Rs 127.1 crore in Q2-2015, after factoring in forex loss of Rs 1.56 million and its Bihar launch preoperative expenditure of Rs 2.77 crore.

     

    Total Expenditure in the current quarter grew 2.8 per cent to Rs 388.14 crore as compared to the Rs 377.53 crore in Q2-2015 and was 4.3 per cent more than the Rs 372.30 crore in Q1-2016. Raw Material consumption in Q2-2016 declined 7.7 per cent to Rs 149.69 crore as compared to the Rs 162.09 crore in Q2-2015 and was 3.4 per cent more than the Rs 144.74 crore in Q1-2016.

     

    Advertising and Circulation revenue

     

    The company says that its advertising revenue declined to Rs 343.3 crore in the current quarter as compared to Rs 316 crore in the corresponding quarter of last year on account of the impact of the difference in the dates of the Navratri festival during the years FY-2015 and FY-2016.

     

    Circulation revenue increased 16 per cent in Q2-2016 to Rs 105.7 crore as compared to the Rs 91.5 crore, primarily due to yield driven growth, largely coming from its mature markets.

     

    Company speak

     

    DB Corp managing director Sudhir Agarwal said, “This quarter we established another expansion milestone as we consolidated our presence in Bihar, a region of strong strategic importance and we are able to provide a better reach to our advertisers and cater to an under-tapped, yet potential readership base. The yield strategy we have adopted has begun delivering good results as is evident from a consistent growth in yields. We are patiently continuing to have intensive successful discussions with our national and local level advertisers who have supported our yield strategy and highly appreciate the value we bring to support their plans. We are committed to strengthen these relationships as we progress.”

     

    “DB Digital has been performing well as we continue to gather commendable momentum with 177 per cent growth in page views and unique visitors. Our radio business strategy to be the market leading radio business in ‘Unmetro ‘ regions is well aligned to print business and with the recent acquisition of 14 frequencies in the Phase III auctions, we are now strongly placed to offer compelling package and reach to advertisers in Maharashtra, Rajasthan, CPH and Gujarat. On an overall basis, we continue to take all measures to leverage our strengths across print, radio and digital businesses to drive growth aggressively, while also ensuring that we continue to achieve better organisational efficiencies.“

  • FY-2015: DB Corp revenue up 8%; My FM op profit up 52%

    FY-2015: DB Corp revenue up 8%; My FM op profit up 52%

    BENGALURU: DB Corp Limited, home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported an 8.1 per cent increase in Total Income from Operations (TIO) at Rs 2009.57 crore in FY-2015 (year ended 31 March, 2015, current quarter) as compared to the Rs 1859.76 crore in FY-2014.

     

    In Q4-2015, DB Corp TIO at Rs 455.6 crore was 6.9 per cent more than the Rs 454.17 crore in the corresponding quarter of the previous year, but was 12.4 per cent lower than the Rs 554.57 crore in the immediate trailing quarter.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    The company’s radio segment – My FM, which contributes less than five per cent (4.77 per cent in FY-2015) to its overall revenue, reported 20.7 per cent increase in revenue in FY-2015 to Rs 95.87 crore from Rs 79.45 crore in the previous year. My FM operating profit improved 51.9 per cent in FY-2015 to Rs 31.23 crore from Rs 20.56 reported in the previous year.

     

    My FM revenue in Q4-2015 at Rs 26.68 crore was 24.8 per cent more than Rs 21.37 crore in Q4-2014 and 3.9 per cent more than the Rs 25.69 crore in Q3-2015. The segment reported 38.4 per cent growth in operating profit to Rs 9.95 crore in the current quarter as compared to the Rs 7.19 crore in Q4-2014 and 5.4 per cent more than the Rs 9.44 crore in Q3-2015.

     

    Advertising revenues

     

    In its earnings release, DB Corp says that revenue from print advertisement grew 1.3 per cent y-o-y to Rs 319.1 crore in Q4-2014 from Rs 315.1 in Q4-2014, while q-o-q, print advertisement revenue declined 18.9 per cent from Rs 393.4 crore in Q3-2015.

     

    Radio advertisement in Q4-2015 grew 24.8 per cent to Rs 26.8 crore as compared to the Rs 21.5 crore in Q4-2015 and grew 4.3 per cent as compared to the Rs 25.7 crore in Q3-2015.

     

    Digital advertising revenue grew 107.8 per cent in the current quarter to Rs 9 crore from Rs 4.3 crore in Q4-2014, but fell 1.2 per cent as compared to the Rs 9.2 crore in Q3-2015.

     

    Company speak

     

    DB Corp managing director Sudhir Agarwal said, “Going forward, our focus on managing growth will continue to be the key to healthy financials. In addition to market expansion, we are working hard to ensure a healthy bottom line through stronger internal operating efficiencies, tighter billing structures and better expense management. Over the past few months the government has put in process several initiatives to boost economic growth and we expect to observe its visible on-ground impact over the coming quarters. Our business fundamentals continue to be strong and we are confident of our business strategies that have positioned us as India’s largest print media company amongst national dailies.”

     

    Let us look at the other results reported by DB Corp:

     

    DB Corp reported 3.2 per cent higher PAT (Profit after Tax) at Rs 316.34 crore in FY-2015 as compared to the PAT of Rs 306.65 crore in FY-2014. PAT for Q4-2015 at Rs 64 crore declined 15.7 per cent from Rs 75.92 crore in Q4-2014 and declined 39.1 per cent as compared to the Rs 105.11 crore in Q3-2015.

     

    The company’s total expenditure (TE) in FY-2015 at Rs 1535.46 crore was 11.9 per cent more than the Rs 1423.72 crore in FY-2014. TE in Q4-2015 at Rs 390.74 crore was 6.8 per cent more than the Rs 366.02 crore in Q4-2014 and almost flat (lower by 0.4 per cent) that the Q3-2015 TE at Rs 392.19 crore.

     

    Raw material consumption (RMC) in FY-2015 at Rs 647.57 crore was 2.3 per cent more than the Rs 632.95 crore in FY-2014. Q4-2015 RMC at Rs 151.7 crore was 2.6 per cent lower than the Rs 166.59 crore in Q4-2014 and 9.6 per cent lower than the Rs 167.9 crore in Q3-2015.

     

    Segment Revenue

     

    The company’s radio segment (My FM) results have been mentioned above.

     

    Printing and publishing of newspaper and periodicals (Printing segment) revenue at Rs 1877.7 crore in FY-2015 was 6.6 per cent higher than the Rs 1762.16 crore in the previous year. Q4-2015 revenue from this segment at Rs 448.41 crore was 4.7 per cent more than the Rs 428.21 crore in Q4-2014, but 13.6 per cent lower than the Rs 518.9 crore in Q3-2015.

     

    Printing segment reported operating result of Rs 490.23 crore in FY-2015, which was 6.8 per cent more than the Rs 458.9 crore in FY-2014. In Q4-2015, the segment reported operating result of Rs 112.21 crore, which was 17.5 per cent more than the Rs 95.5 crore but 28.8 per cent lower than the Rs 157.76 crore in Q3-2015.

  • “Agencies are not rapidly reinventing to stay relevant to changing advertiser needs”: IAA

    “Agencies are not rapidly reinventing to stay relevant to changing advertiser needs”: IAA

    MUMBAI: The India chapter of the International Advertising Association (IAA) is all set for the big debate.

     

    To be held on 16 February, the theme for the new season of IAA Debate is: ‘Agencies are not rapidly reinventing themselves to stay relevant to changing advertiser needs.’

     

    Speaking for the motion (that is agencies are not reinventing themselves) will be Ashish Bhasin (of Dentsu Aegis) and Sameer Satpathy (of Marico). Those presenting the points against the motion (that is agencies are reinventing themselves) are Sam Balsara (of Madison) and Shireesh Joshi (of Godrej).

     

    The debate will be moderated by CNBC – Storyboard editor Anant Rangaswami.

     

    IAA India Chapter president and IAA Asia Pacific VP-development Srinivasan K Swamy said, “I am delighted to see some of the leading lights of Indian industry raise the stature of the IAA Debates even higher. The topic chosen has been in the minds of industry professionals and IAA decided to debate this in the open. I am sure many in the industry will be there to witness this.”

     

    D B Corp chief – marketing & corporate sales officer Pradeep Dwivedi added,  “At Dainik Bhaskar Group, we are delighted to partner with IAA in furthering the spirit of discovery and engagement with-in all the stakeholders in our industry. The Indian economy is on the cusp of a significant growth curve and the innovation in our ideas will determine our success as marketing & advertising thought leaders, and hence the need to have serious introspection on our need to reinvent at a rapid pace. We are hopeful that our earnest attempt at being a harbinger of this change will be received very well.”

     

    The IAA Debates hosted so far have been in Mumbai, Goa, Delhi, Bengaluru, Hyderabad and Chennai. The Debates have featured senior advertising, media and marketing professionals such as Prasoon Joshi, VikramSakhuja, Lloyd Mathias, Josy Paul, Pratap Bose, Deepika Warrier, Anupriya Acharya, Arun Anant, Arunabh Das Sharma, Partha Sinha, Monica Tata, Vikram Chandra, PunithaArumugam, Mahesh Murthy, Virginia Sharma, Ashok Lalla and ZerinRahman, Sadashiv Nayak, Atul Phadnis, Ronita Mitra, and Amitabh Pande amongst others speaking for and against the motion.

  • DB Corp Q3-2015 PAT up 54%; Radio segment posts 44% improvement in op results

    DB Corp Q3-2015 PAT up 54%; Radio segment posts 44% improvement in op results

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, reported a 54.3 per cent increase in PAT at Rs 105.11 crore in Q3-2015 from Rs 68.11 crore in the immediate trailing quarter and 11.3 per cent more than the Rs 94.46 crore in Q3-2014. Year-to-date (YTD) for 9M-2015, the company’s PAT at Rs 252.34 crore was 9.4 per cent more than the Rs 230.72 crore in the corresponding period of the previous year. The company says that PAT grew in 9M-2015 after factoring forex loss of Rs 4.41 crore and incremental depreciation of Rs 17.25 crore, as per new Companies Act, 2013
     
    DB Corp’s radio segment (MyFM) reported a 43.8 per cent growth in operating result in Q3-2015 at Rs 9.44 crore versus the Rs 6.57 crore in Q2-2015 and 11 per cent more than the Rs 8.51 crore in the corresponding quarter of 2014. For 9M-2015, the radio segment’s operating result improved 59.1 per cent to Rs 21.28 crore from Rs 13.37 crore in 9M-2014.
     
    Advertising Revenues

     

    The company said that advertising revenues grew by 7.8 per cent in 9M-2015 to Rs 1162.3 crore as against Rs 1077.8 crore during corresponding period last year. Revenues from advertising reported a growth of 6.2 per cent y-o-y to Rs 428.3 crore in Q3-2015 from Rs 403.5 crore in Q3-2015, which had a high base of the third quarter of last year, benefitting from state election impact in Madhya Pradesh, Chattisgarh and Rajasthan.

     

    The company added that radio advertising revenues grew by 7.8 percent to Rs 25.7 crore in Q3 -2015 against Rs 23.9 crore in Q3-2014 on a high base of last year, mixed with state election impact.

     

    Let us look at the other results reported by DB Corp:

     

    DB Corp’s consolidated income from operations in Q3-2015 increased 15.5 percent to Rs 554.57 crore from Rs 480.21 crore in Q2-2015 and was 7 percent more than the Rs 518.20 crore in Q3-2014. For 9M-2015, income from operations at Rs 1523.97 crore was 8.4 percent more than the Rs 1405.56 crore in 9M-2014.

     

    The company’s total expenditure (TE) in Q3-2015 at Rs 392.19 crore was 3.9 percent more than the Rs 377.53 crore in Q2-2015 and 3.4 percent more than the Rs 379.21 crore in Q3-2014. In 9M-2015, TE at Rs 1144.71 crore was 8.2 percent more than the Rs 1057.70 crore in 9M-2014.

    Raw Material consumption (RMC) in Q3-2015 at Rs 167.90 crore was 3.6 percent more than the Rs 162.09 crore in Q2-2015 and 2.6 percent lower than the Rs 172.41 crore in Q1-2014. RMC in 9M-2015 at Rs 495.87 crore was 6.3 percent more than the Rs 466.36 crore in 9M-2015.

     

    Segment Revenue

     

    Printing segment: Printing and publishing of newspaper and periodicals’ revenue at Rs 518.9 crore was 15.5 percent more than the Rs 449.32 crore in Q2-2015 and 6.2 percent more than the Rs 488.63 crore in Q3-2014. In 9M-2015, printing segment revenue at Rs 1429.29 crore was 7.1 percent more than the Rs 1333.95 crore in 9M-2014.

     

    Printing segment reported operating result of Rs 157.76 crore in Q3-2015, which was 57.7 percent more than the Rs 100.07 crore in Q2-2015 and 11.7 percent more than the Rs 141.23 crore in Q3-2014. In 9M-2015, the segment reported operating result of Rs 375.78 crore, 3.4 percent more than the Rs 363.39 crore in 9M-2014.

     

    Radio segment: The company’s radio segment operating results have been mentioned above. The segment’s revenue in Q3-2015 at Rs 25.69 crore was 12.8 percent more q-o-q versus Rs 22.77 crore and 11 percent more y-o-y compared to Rs 23.82 crore in Q3-2014. In 9M-2015, radio segment’s revenue increased 19.1 percent to Rs 69.19 crore from Rs 58.07 crore in 9M-2014.

     

    Digital segment: DB Corps’s digital business revenue grew by 75 per cent to Rs 9.2 crore in Q3-2015 from Rs 5.25 crore in Q3-2014 while incurring EBITDA loss of Rs 2.17 crore.

     

    DB Corp managing director Sudhir Agarwal said, “This quarter we diligently focused on three core areas: product, content and distribution, which demanded all our hard work and efforts. Through an exciting mix of a high quality product led by innovative content, focus on better local news coverage in each region, various ground activation initiatives to intensify reader engagement, events to welcome greater corporate partnerships, have all contributed to improving our reach to readers across our legacy and emerging markets. We continue to progress well through Jharkhand, Bihar and Maharashtra making good headway in the readership profiles of SEC A and B categories, particularly Bihar and Maharashtra, even on the back of a higher cover price. In Jharkhand, we are working doubly hard to move towards our break-even target in this fiscal. Our focus on stronger internal operating efficiencies has ensured our financial health through better expense management while newsprint costs have also seen a correction, which has contributed to the strong bottom line.”

     

    “Our non-print business continues to make steady strides. The environment within the digital, mobile and radio world in Tier 2 and 3 cities is exciting and there’s much to explore and study in consumption behaviour and trends in regional language in these areas, which we have already undertaken very actively. Our digital properties have been gaining larger viewership numbers due to real time region specific coverage, our mobile app has been developed with best-in-class engineering to serve audiences struggling with slow connectivity issues in 2 and 3 Tier cities and we expect good response from it. Several initiatives are in progress to enable us to take advantage of future growth opportunities,” he added.

     

    “The government has been working towards speeding up the needed reform implementations required to boost industrial and economic growth and we expect to observe some visible impact on better GDP numbers over the next two years. We are confident of our operating strengths and continue to execute to plan while maintaining stability in our profitability outlook,” Agarwal concluded.

     

  • Q1-2015: DB Corp reports higher income, PAT

    Q1-2015: DB Corp reports higher income, PAT

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported improved results in Q1-2015, both in terms of total income from operations (Tot Inc) and PAT. The company reported Tot Inc of Rs 489.2 crore which was 7.7 per cent more than the Rs 454.17 crore in the immediate trailing quarter Q4-2014 and 8.9 per cent more than the year ago Op Inc of Rs 449.41 crore in Q1-2014.

     

    The company’s PAT in Q1-2015 at Rs 79.12 crore (16.2 per cent of Tot Inc) was 4.3 per cent more than the Rs 79.92 crore (16.7 per cent of Tot Rev) in Q4-2014 and 4 per cent more than the Rs 76.1 crore (16.9 per cent of Tot Inc) in Q1-2014.

     

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million. (2) The figures mentioned in this report or on a consolidated basis.

     

    DB Corp’s Radio Business segment, with 17 stations across seven states of India under the Brand Name – MYFM reported 3 per cent lower operating revenue (Op Rev) of Rs 20.73 crore (4.2 per cent of Tot Inc) as compared to the Rs 21.37 crore (5 per cent of Tot Inc) in Q4-2014 and 20.8 per cent more than the Rs 17.16 crore (3.8 per cent of Tot Inc) in Q1-2014. The segment reported 26.8 per cent lower positive result at Rs 5.27 crore in Q1-2015 as compared to the Rs 7.19 crore in Q4-2014, but was more than double (2.17 times) the Rs 2.32 crore in Q1-2014.

     

    Let us look at the other results reported by DB Corp for Q1-2015:

     

    DB Corp’s total expenditure in Q1-2015 at Rs 374.99 crore was 2.4 per cent more than the Rs 366.02 crore in Q4-2014 and 12.8 per cent more than the Rs 332.34 crore in Q1-2014. The company’s raw material consumption in Q1-2015 at Rs 165.88 crore was 3.8 per cent less than the Rs 166.59 crore in Q4-2014 and 15.5 per cent more than the Rs 143.59 crore in Q1-2014.

     

    DB Corp reports revenues from five segment: Printing and Publishing of Newspaper and Periodicals segment; Radio business; events; internet and power.

     

    The company’s Printing and Publishing of Newspaper and Periodicals segment reported revenue of Rs 461.07crore (94.3 per cent of Tot Inc) in Q1-2015, which was 7.7 per cent more than the Rs 428.21 crore (94.3 per cent of Tot Inc) in Q4-2014 and 7.4 per cent more than the Rs 429.15 crore (95.5 per cent of Tot Inc) in Q1-2014.

     

    The company’s radio segment details have been mentioned above. The results of the other three segments are quite small as compared to the contributions to overall revenue by DB Corp’s Printing and Publishing of Newspaper and Periodicals and Radio Business segments. The event segment has shown a 24.8 per cent q-o-q growth to Rs 1.4 crore in Q1-2015 in terms of operating revenue, while its internet business in Q1-2015 has grown by 36.7 per cent to Rs 5.89 crore as compared to Q4-2014. All the three segments reported negative operating results that slightly eroded profits generated by the other two segments.

     

    DB Corp Managing Director Sudhir Agarwal said, “We are happy to report a sound performance to start our fiscal year that reflects that we have sustained our growth momentum. We have maintained our strengths and leadership position in all our legacy markets as we also continue to demonstrate good growth in our emerging editions. Having already demonstrated operational excellence in the print business, we have also maintained a similar focus and emphasis on DBCL’s non-print segments spanning our digital and radio initiatives. Both these segments hold tremendous potential to capitalise on over the next few years, given India’s still nascent exposure to internet penetration and yet one of the largest and fastest growing digital markets.

     

    We have successfully leveraged our strengths in the print medium to deliver robust growth in the digital and radio businesses also and are in the process of achieving greater scale as well as being well placed to take advantage of future growth opportunities. On an overall basis, we have continued to capitalise on organisational efficiencies, expense management and maintained a strong momentum across print and non-print segments, supported by innovative brand development endeavours and a reader-centric approach that continues to drive growth.

     

    The macro-economic environment centered on a stable government reflects positive sentiments that are expected to translate into better GDP numbers. The current environment demands an agile operating model that can capture diverse growth opportunities. We are confident of our operating strengths and continue to execute to plan and invest for growth, while maintaining stability in our profitability outlook.”

     

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  • Digital media eats into traditional media spend

    Digital media eats into traditional media spend

    MUMBAI: India’s low ad-spend-to-GDP ratio makes it one of the most promising ad markets globally, says IIFL’s Institutional Equities. In  a Media sector report titled “India: Ad-vert > Ad-word – Digital yet to come of age,” IIFL states that digital media is eating ad space with the other traditional forms of media like the print and television media and has been the fastest growing advertising media. This trend is likely to continue as the Internet user base expands at a brisk pace.

     

    India’s digital ad market grew at 43% CAGR over the past decade to ~Rs25bn, far in excess of the overall ad-spend growth of 13% during this period. Digital now accounts for 7% of the total ad spend, compared with 1% in CY03. A multi-fold rise in the Internet user base over CY03-13 (from 5m to 169m) and increasing acceptance of the digital platform among advertisers drove this growth. The supernormal growth in Internet penetration is likely to continue, driven by the Internet on mobile, the report states.

     

    However, India still is behind developed markets in terms of mobile technology and internet connectivity, hence there is no immediate threat to Print and Television advertising from the digital media ad spends, the report adds.

     

    Emergence of digital would materially harm the print industry in the medium to long term. English print is at a higher risk compared with regional print. Moreover, given the limited reach of the Internet, certain India-specific factors would help print to face competition from digital media. Ad spend on Indian print is expected to continue to increase in the medium term.

     

    “However, a larger audience base and diversified viewer profile make television advertising indispensable. Additionally television is a better-suited medium for certain types of ads such as new product launches or brand building. Hence, the impact of the Internet on television would be lower as compared with print. An analysis of ad spends for the past ten years reveals that print ad spend is more sensitive to economic growth. These factors make television ad spend more resilient,” says Bijal Shah and Jaykumar Doshi of IIFL Institutional Equities, authors of the report.

     

    Print media ad spends growth decelerated sharply from 16% CAGR during CY03-07 to a meagre 4.5% CAGR in the past three years. The slowdown in English was more pronounced than in vernacular languages. Vernacular papers benefited from continued strength in smaller towns and villages. A drop in ad spend from large national categories such as BFSI, telecom, and consumer durables, partly explains the weaker growth for print. Additionally, education and real estate, the two big categories, witnessed a sharp deceleration. Local advertisers maintained their higher spends, riding on the buoyancy in consumption.

     

    FMCG, Consumer durables and Auto constitutes to 65% of overall ad spends on television. Both FMCG and Auto ad spends have shown signs of slowing down, where as the Consumer durable companies are witnessing sluggishness in sales volumes, impacting the Television ad spend going forward and we can witness marginal growth in this segment. However Mobile handsets and e-commerce ad spends have supplemented in the overall as spends on television and have emerged as new categories. The television ad spend growth is expected to soften to high single digits.

     

    A sustained 6%+ GDP growth could accelerate ad-spend growth to 15%+, compared with 9% CAGR over CY10-13, as per IIFL’s Institutional Equities research report on media industry. The report further states that in medium term, TV and print should dominate ad budgets whereas digital would play a complementary role. Digital advertising is gaining traction, but limited reach and minimal fresh and vernacular content are limitations.

     

    Following the general elections, government ad spend, a key tailwind for print media in FY14, would taper. Thus, print media ad-spend growth could remain lacklustre in FY15 unless GDP growth picks up.

     

    Some key highlights from the report are:

    · India’s low ad-spend-to-GDP ratio and rising consumerism make it one of the most promising ad markets

    · A sustained 6%+ GDP growth could accelerate ad-spend growth to 15%+ compared with 9% Cagr over CY10-13.

    · Given its miniscule reach and slow Internet speed in India, digital is unlikely to emerge as a key advertising vehicle in the short-to-medium term

    · However driven by rising Internet penetration digital ad spends will continue to grow by 2-3 times the total ad spends  

    · TV would continue to be the mainstay for advertisers, given limited fresh content and absence of certain key target audience group such adult females on digital

    · Television ad spend is double that of digital in the US

     

    Few stocks recommended in the media industry:

     

    Zee Entertainment

    Zee Entertainment (Zee) is the best play on structural improvement in India’s pay television market and resilient consumption. Zee’s distribution joint venture with Star network, coupled with digitisation, would help secure its rightful share of subscription revenue. Furthermore, a diversified bouquet of channels and improving network market share would translate into above-industry ad-revenue growth. Meanwhile, Zee is investing in new channels and markets, which we believe lays the foundation for long-term growth.

    Call: ADD

     

    SUN TV Network

    Sun TV Network (Sun) is a strong player in the Rs36bn southern ad market with a leadership position in three of the four markets. Its diversified revenue stream and bouquet of channels, large movie library, and low-cost operations are advantages that are difficult to replicate. Subscription revenue is growing at a brisk pace and the momentum is likely to sustain. We expect ad revenue growth to resume following a drop for two consecutive quarters. At PER of 16x FY16ii, Sun is trading at ~15% its median multiple and at 33% discount to Zee. We believe the risk-reward is favourable.

    Call: ADD

     

    DB Corp

    DB Corp, through its flagship brands Dainik Bhaskar, Divya Bhaskar, and Divya Marathi, enjoys a well-entrenched franchise in several print media markets. Over the past two decades, it has evolved from a single-city newspaper to a strong player in several regional markets. DB Corp delivered double-digit ad-revenue growth even during periods of subdued ad spend. It has built a strong readership base and it is poised for gains in revenue market share. Healthy ad-revenue growth along with margin expansion would drive 20% EPS CAGR over FY14-16ii. At 16.4x FY15ii, scope for re-rating is limited; we expect returns in line with earnings growth.

    Call: BUY

     

    Jagran Prakashan

    Jagran Prakashan (Jagran), publisher of Dainik Jagran, India’s most read Hindi daily, enjoys a strong brand franchise in the key Hindi markets of Uttar Pradesh (UP), and Bihar and Jharkhand (BJH). Competitive intensity is on the rise in UP and BJH, which together contribute ~75% to Jagran’s ad revenue. DB Corp’s entry in Bihar and Hindustan’s readership gains in UP as per IRS 2013 are medium-term risks. In the interim, lower losses at subsidiaries would help margins. At 12.3x FY15ii P/E, Jagran is valued attractively and it is trading at ~35% discount to its three-year median multiple despite 17% EPS CAGR FY14ii-16ii.

    Call: ADD

     

    HT Media

    HT Media is one of the largest print media players in India with a well-entrenched franchise in the English and Hindi markets. We believe the long investment phase in new businesses is nearing an end. Two key properties, HT Mumbai and Hindustan UP, are at inflection points and should boost ad-revenue growth in a weak environment. Losses in digital would continue but will likely remain stable. At PER of 9.8x/7.9X FY15ii/FY16ii, valuations are compelling, given upside risks to our forecast of 20% EPS CAGR.

    Call: BUY

    Disclaimer: The views expressed in the research report accurately reflect such research analyst’s personal views about the subject securities and companies; and that no part of his or her compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in the research report.`