Release Date: July 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- D B Corp Ltd (BOM:533151, Financial) reported a resilient performance in Q1 FY26 despite a high base effect from last year's general elections.
- Advertising revenue showed single-digit growth when normalized for the election-related spike, indicating sustained advertiser interest.
- The digital segment saw a significant increase in monthly active users, reaching 22 million in May 2025, reflecting strong digital engagement.
- The company maintained circulation numbers during the typically lean summer months, demonstrating effective circulation strategies.
- Newsprint prices remained stable, with a slight decline in average cost per metric tonne, contributing to cost management.
Negative Points
- Total revenue for the quarter decreased to INR5,872 million from INR6,163 million in Q1 FY25, reflecting a year-on-year decline.
- Overall EBITDA and net profit both saw declines compared to the previous year, with EBITDA at INR1,384 million and net profit at INR808 million.
- Government and political advertising revenue dropped by 40% due to the absence of election-related spending, impacting overall advertising revenue.
- The radio segment experienced a decline in EBITDA from INR132 million to INR115 million year-on-year.
- Increased other expenses related to circulation initiatives and digital investments led to lower margins compared to the previous year.
Q & A Highlights
Q: What is the impact of additional spending on circulation and the number of copies compared to last quarter?
A: Girish Agarwal, Non-Executive Director, explained that circulation revenue remained flat as the cover price was not increased. The company managed to maintain circulation numbers during the typically lean summer months. Additional costs were attributed to circulation initiatives and digital efforts, which are expected to stabilize in the coming quarters.
Q: Can you provide insights on the growth across different advertising categories and the outlook for future quarters?
A: Girish Agarwal noted growth in several categories: education (10%), real estate (27%), automobile (7%), healthcare (17%), and jewelry (18%). The government advertising segment saw a 40% decline due to the election base effect. However, with the election impact over, the company is optimistic about growth in the upcoming quarters.
Q: How did the India-Pakistan news impact the digital app's user growth, and what are the efforts to increase digital engagement?
A: Girish Agarwal stated that significant news events drive higher engagement across media platforms. The company has a large news gathering team providing extensive content, which helps engage users. The digital app saw an increase to 22 million active users, attributed to both news events and ongoing digital initiatives.
Q: What is the company's strategy regarding competition in circulation and market focus?
A: Girish Agarwal mentioned that while competitors have not significantly responded to DB Corp's market strategies, the company believes all newspapers should focus on market growth. DB Corp is targeting semi-urban areas with populations over 25,000 and is committed to ongoing circulation efforts similar to FMCG companies.
Q: What is the status of the digital business, and when is it expected to become profitable?
A: Girish Agarwal indicated that the digital business is in a growth phase, with investments being made to increase user numbers. While no specific timeline for profitability was provided, the company is focused on expanding its digital reach and engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
