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D.B. Corp Limited Q1 FY2025 Earnings Conference Call Summary
Submission Details • Date of submission: July 23, 2024 • Conference call date: July 16, 2024 • Submitted to: BSE Limited and National Stock Exchange of India
Financial Performance Highlights • Advertising Revenue: • 8.4% year-on-year growth • Reached Rs. 4,277 million • Cost Reduction: • 17.2% decrease in average newsprint costs • EBITDA: • Increased by 40.4% to Rs. 1,909 million • EBITDA margin: 31% (up from 24% last year) • Profit After Tax: • Rose by 49.7% to Rs. 1,179 million
Segment Performance • Strong performance in: • Print media • Radio (34% margin) • Digital (over 18 million monthly active users)
Management Insights • Circulation Challenges: • Addressed by Girish Agarwal; efforts to boost circulation expected to show results post-September. • Competition and Revenue: • Focus on market share and product quality amidst flat circulation revenue. • Advertising Revenue Growth: • Optimism for growth in sectors like automobile and education post-budget.
Cost Structure • Newsprint Costs: • Currently 37% of total costs; profitability relies on increasing ad revenue.
Future Plans and Investments • Discussion on cash reserves and potential investments; suggestions to be brought to the Board. • Dividend: • Rs. 7 interim dividend declared; potential increase in payout ratio considered.
Digital Initiatives • Positive growth in digital segment; experimenting with paywalls and advertising. • Competitive digital market limits disclosure of detailed operational data.
Conclusion • Management expressed gratitude for participant engagement during the call.
D.B. Corp Limited Q4 and FY24 Earnings Conference Call Summary
Submission Details • Date of submission: May 29, 2024 • Conference call date: May 22, 2024 • Submitted to: BSE Limited and National Stock Exchange of India
Financial Performance Highlights • Growth: 11 consecutive quarters of growth • Key Metrics: • Advertising revenue: INR 17,524 million (18.2% YoY increase) • Total revenue: INR 24,821 million (14% rise) • Profit After Tax (PAT): INR 4,255 million (152% increase) • Dividend: Interim dividend of INR 8 per share
Management Insights • Print Media Resilience: Emphasis on adapting to digital trends • Segment Growth: Significant growth in radio and digital segments
Advertising Revenue Outlook • Election Year Impact: • 18-19% growth attributed to advertising, with 9% from election-related ads • Sustainable growth rate of around 10% without election influence
Newsprint Pricing • Average Price FY23-24: INR 52,000 per ton • Expected Decrease: About 4% in Q1 • Commodity Price Outlook: Positive due to annualization of lower costs
Digital Growth • User Engagement: 15 million monthly active users in Uttar Pradesh • Competitive Landscape: No specific revenue projections provided
Circulation and Advertising Rates • Current Circulation: Average of 41 lakh copies • Growth Focus: Targeting offices, hotels, and new nuclear families • Ad Rates: Some categories returned to pre-COVID levels, potential for further growth
Q&A Highlights • Ad Rate Status: Some categories at pre-COVID levels; market activities expected to pick up in June • EBITDA Margins: 31% in print, 34% in radio • Cash Flow Utilization: Cash balance of INR 1,017 crores; plans for prudent deployment • Circulation Concerns: Slight drop from 42.5 lakhs to 41 lakhs; minimal cover price increase of 2%
Conclusion • Management expressed gratitude for participation and offered further assistance through Investor Relations.
Submission Details • Date of submission: January 31, 2024 • Meeting date: January 25, 2024 • Compliance: Submitted transcript to BSE and NSE as per SEBI regulations
Financial Performance Highlights (Q3 FY2024) • Consolidated Advertising Revenues: INR 4,819 million (18% YoY growth) • EBITDA: INR 2,031 million (102% increase) • PAT: INR 1,240 million (157% rise) • Key Growth Factors: • Increased advertisement revenue • Reduced newsprint costs • Effective cost control measures
Digital Segment • Dainik Bhaskar maintains leadership in Hindi and Gujarati news apps • Management confident in print business recovery • Financial position: Zero debt and strong cash flow
Advertising Revenue Insights • Growth in Segments: • Automobile: 47% • Real Estate: 20% • Jewellery: 26% • Government: 36% • FMCG: 20-25% • Declines: • Education: 10% • Hypermarkets: 25% • Focus on content quality to attract readers without discounts
Market Expansion Strategies • Focus on existing 12 key states in India • Importance of high-quality editorial content to attract new readers
Digital Expenses and Investments • Digital expenses on a downward trend • Open to further investment if it yields increased viewership and reduced costs
Radio Advertising Growth • Strong growth attributed to focus on Tier 2 and Tier 3 markets and local programming • Approximately 13 million monthly active users reported
Print Advertising and Newsprint Prices • Optimism for growth due to upcoming elections and strong GDP • Acknowledgment of unpredictable newsprint prices
Hiring and Capital Allocation Strategy • Necessary hires completed; open to expanding team as revenue grows • Focus on maintaining cash reserves and distributing excess as dividends (recent dividend of INR 5 issued)
Ongoing Discussions and Concerns • License fee issue under discussion; TRAI recommends a fixed percentage of revenue • Slight increase in newsprint prices (2-3% in Europe) • Challenges in assessing market share due to competitors not being publicly listed
Conclusion • Management expressed gratitude for participation and engagement during the call.
Earnings Performance • Date of Call: October 26, 2023 • Key Financial Highlights: • 15% increase in consolidated advertising revenue • 124% rise in profit after tax (PAT) for H1 FY2024 • Significant reduction in newsprint costs • Growth in print and radio segments
Management Insights • Girish Agarwal's Remarks: • Limited impact from absence of government ads (10-14% of total revenue) • Optimism about auto sector advertising growth due to improved vehicle availability • Manageable ad-to-edit ratio in newspapers (70:30 or 67:33)
Margins and Costs • EBITDA Margin: Achieved 28%, with potential fluctuations • Newsprint Prices: Decreased significantly; slight reduction expected later due to seasonal demand
Digital Revenue and Strategy • Current Contribution: Digital revenue is a small portion of total revenue • Focus: Maintaining circulation in existing markets rather than geographic expansion
Advertising Growth Outlook • Future Projections: Anticipated continued double-digit growth in advertising • Market Dynamics: Shift in market share favoring DB Corp despite overall slow market growth
Sector Performance • Key Contributors: • Government advertising growth due to increased spending • Strong performance in education and healthcare sectors • FMCG sector decline of about 10%
Radio Advertising • Rate Increase: Anticipated 43% increase in radio ad rates could lead to 4-5% revenue growth • Yield Improvement: Ongoing efforts to enhance non-government advertising yields
Digital Subscribers and Engagement • Mixed Traction: Digital paid subscriber growth is varied; premature for specific insights • Radio Listenership Metrics: Based on advertiser responses rather than third-party data
Conclusion • Management expressed gratitude for participant engagement during the call.
Earnings Highlights • Date of Call: July 20, 2023 • Consolidated Ad Revenue: INR 3,946 million (17.2% YoY increase) • Overall Revenue Growth: INR 5,736 million (15% increase) • EBITDA: INR 1,359 million (84% increase) • EBITDA Margin: Expanded to 24% • Ad Growth: Strong across all segments; radio revenues up by 16.2%
Management Insights • Content Payment: Some remuneration received, but not full payment for content. • Circulation Revenue: 4% growth (1% volume, 3% price increase). • FMCG Sector Challenges: Weakness in rural markets noted. • Auto Advertising Growth: 30% increase due to new model launches. • Newsprint Prices: Falling import prices expected to influence domestic prices.
Future Outlook • Revenue Growth: Optimism in auto sector and government advertising. • Advertising Revenue Drivers: Upcoming state assembly elections expected to boost spending.
Segment Contributions • Top Segments: Contribute 65-70% of total revenue. • Ad Revenue Growth: Primarily driven by volume rather than pricing.
Financial Metrics • Print Business EBITDA: 93% growth with a margin of 26%. • Future Margin Improvements: Expected due to declining newsprint prices.
Digital Strategy • Disclosure Policy: Digital numbers withheld until a certain size is reached. • Complementary Segments: Print and digital segments support each other.
Conclusion • Investor Relations: Encouraged participants to reach out for further inquiries. • Call Closure: Thanked participants and concluded the session.
D.B. Corp Limited Q4 FY2023 Earnings Conference Call Summary
Financial Performance Highlights • Print Advertising Growth: 27% year-on-year increase for FY23. • Consolidated EBITDA: 34% growth. • Total Revenue: 21.2% year-on-year growth, reaching Rs 21,682 million. • Consolidated PAT: 19% growth to Rs 1,691 million. • Digital Segment: Monthly active users increased from 2 million to over 14 million. • Radio Division: 20% revenue increase.
Management Insights • Cost Optimization: Ongoing measures to enhance profitability. • Market Growth: Strong performance expected in print media, particularly in MP, Bihar, Rajasthan, and Gujarat. • Digital Strategy: Shift towards subscription models; ongoing experiments to gauge customer willingness to pay.
Q&A Highlights • Cost Savings from Paper Prices: Savings will enhance bottom line and support expansion. • Radio Ad Capacity: Currently at 11 minutes per hour, indicating growth potential. • Advertising Rates: Complex process influenced by market conditions. • Operating Income Increase: Attributed to job work and interest from cash reserves. • Circulation Plans: Aim to grow circulation by 2-3 lakh copies despite price increases. • Gross Margins: Expected improvement due to declining newsprint prices.
Advertising and Revenue Insights • Government Advertising: Approximately Rs 65 crores in last quarter; making up about 15% of total revenue. • Regional Advertisement Growth: Contributions from real estate and education sectors noted. • Political Advertising: Encouraged political parties to utilize the platform for communication.
Employee and Cost Management • Manpower Expenses: 3% increase noted. • Digital Spending: Focus on achieving results without disclosing specific figures for competitive advantage.
Conclusion • Optimism for Future: Management expressed confidence in financial trajectory, with expectations of improved EBITDA margins and stable digital spending.
D.B. Corp Limited Q3 and 9M FY2023 Earnings Conference Call Summary
Financial Performance Highlights • Advertising Revenue: Increased by 29% to Rs. 11,233 million. • Total Revenues: Rose by 24% to Rs. 16,209 million for the nine months ending December 31, 2022. • EBITDA: Grew by 6% to Rs. 2,722 million. • Consolidated PAT: Increased by 8.5% to Rs. 1,281 million. • Cost Reduction: Operating costs reduced by 9% compared to pre-pandemic levels.
Market Insights • Traditional Media Resurgence: Notable growth in non-metro markets. • Digital Business Growth: Significant increase in active users. • Radio Division: Reported a 24.6% revenue growth.
Paper Consumption and Costs • Paper Mix: 64% domestic and 36% imported. • Newsprint Costs: Increased by 60% over nine months; 39% in the latest quarter, but prices expected to decline.
Advertising Demand • Government Advertising: Rebounded, contributing to overall growth. • Sector Contributions: Growth from education, real estate, jewelry, and recovering automobile sector.
Revenue Impact from Elections • Election Spending: Minimal direct revenue but potential boost from increased government spending.
Institutional Sales and Digital Strategy • Institutional Sales: Include sales to hotels, restaurants, and hospitals. • Digital Strategy: Positive feedback on subscription models being tested.
Circulation and Radio Business • Circulation Revenue: Flat year-over-year despite price increases; slight decline in circulation copies noted. • Radio Business Outlook: Only 4% below pre-COVID revenue levels; optimistic about future growth.
Print Advertising Trends • Recovery: Strong recovery in January despite previous COVID-related concerns. • Newsprint Cost Projections: Expected decline to Rs 50-55 per kilo in the next 2-3 quarters.
Digital Investments and Monetization • Revenue Sharing: Emphasis on fair revenue sharing for publishers in relation to the Indian Newspaper Association's case against Google. • Subscription Pilots: Conducting pilots for subscriptions and learning from international models.
Future Plans and Market Conditions • Inorganic Acquisitions: No current plans for acquisitions. • Cover Price and Realization: Average cover price at Rs 4.81; net realization at Rs 3.10. • E-commerce and Start-ups: Reduced investment and expansion due to market slowdown, but hope for recovery.
Conclusion • Management expressed gratitude to participants and offered further assistance through the Investor Relations Department.