D. B. Corp (DBCORP) Q4 07/08 earnings summary

Executive summary

• FY08 standalone sales and other income rose 26.31% to Rs 850.59 crore; EBITDA more than doubled and PAT increased over 69% YoY.

• Consolidated revenue reached Rs 862.70 crore, up 27.73% YoY; consolidated PAT was Rs 75.06 crore.

• Growth investments expanded the publishing footprint and radio network, while new editions were expected to need 3–4 years to stabilize and earn.

Financial highlights

• Standalone EBITDA was Rs 203.10 crore vs Rs 98.34 crore; PBT was Rs 164.14 crore vs Rs 67.30 crore.

• Standalone PAT was Rs 101.40 crore vs Rs 60.17 crore; profit for the year was Rs 101.40 crore vs Rs 59.79 crore after prior-period expense in FY07.

• Consolidated PBT before prior-period items was Rs 132.81 crore vs Rs 62.08 crore; PAT including minority-interest effects was Rs 75.06 crore vs Rs 54.16 crore.

• Consolidated cash from operations was Rs 223.20 crore vs Rs 90.63 crore; net cash used in investing was Rs 143.87 crore.

Outlook and guidance

• New editions typically require 3–4 years to stabilize and generate earnings; management expected the long-term growth strategy to show results in coming years.

• Business Bhaskar planned at least four additional Tier II/III editions by FY09 year-end, alongside an Indore edition; DNA Rajasthan launched in Jaipur in June 2008.

• DB STAR launched in Bhopal and Indore; management cited India’s readership gap, with 359 million literate people not reading a publication, as market headroom.