D. B. Corp (DBCORP) Q4 11/12 earnings summary

Executive summary

• FY12 delivered 15% standalone revenue growth to ₹14,648.6 million, but PAT fell to ₹2,084.7 million from ₹2,673.2 million as expansion costs and newsprint inflation outpaced revenue growth.

• Expanded to 65 editions across 13 states and four languages; launched five Divya Marathi editions and DNA Indore, and opened the 49th printing press.

Financial highlights

• Standalone revenue from operations rose 15% to ₹14,418.1 million; advertising revenue grew 12% to ₹11,220.4 million.

• Standalone EBITDA was ₹3,657.7 million versus ₹4,246.4 million; PBT was ₹3,065.4 million versus ₹3,669.8 million; PAT was ₹2,084.7 million versus ₹2,673.2 million.

• Consolidated revenue was ₹14,755.3 million versus ₹12,793.6 million; EBITDA was ₹3,603.9 million versus ₹4,169.1 million; attributable PAT was ₹2,021.1 million versus ₹2,584.8 million.

• Consolidated basic EPS was ₹11.03 versus ₹14.24; standalone basic EPS was ₹11.37 versus ₹14.73.

Outlook and guidance

• FY13 expected to remain challenging due to inflation, high interest rates, policy constraints, euro-zone risks and currency depreciation; focus areas include content, advertiser solutions and cost rationalization.

• Management expected to sustain top-line and bottom-line performance through stronger reader engagement, targeted consumer work and cost control.

• Industry forecast: Indian media and entertainment sector projected to grow 13% in 2012 to ₹823 billion, supported by regional markets and Tier 2/3 consumption.