D. B. Corp (DBCORP) Q4 13/14 earnings summary

Executive summary

• FY14 delivered consolidated revenue of ₹18,836 million, EBITDA of ₹5,241 million and PAT of ₹3,066 million amid weak Indian macro conditions.

• Expansion into Bihar and new Maharashtra editions broadened reach to 14 states; print, radio and digital advertising all advanced.

Financial highlights

• Consolidated revenue rose 16.8% YoY to ₹18,836 million; advertising revenue increased 17.4% to ₹14,178 million.

• Consolidated EBITDA grew to ₹5,241 million from ₹3,998 million; PAT reached ₹3,066 million from ₹2,181 million.

• Excluding the one-time ₹149 million demerger-related tax benefit, consolidated PAT was ₹2,917 million.

• Circulation revenue grew 14.6% to ₹3,234 million; finance costs declined 28% to ₹75 million.

Outlook and guidance

• Management expects further advertising-yield gains through state-focused sales and the Unmetro initiative, which aims to attract additional national advertiser spending.

• Continued content innovation and focus on new launches are intended to strengthen competition in emerging markets while sustaining leadership in established markets.

• Emerging editions typically need 3–4 years to stabilise; margins are expected to improve as newer editions mature.

• FY15 newsprint prices were expected to remain soft for much of the year, supported by lower import spot prices and rupee appreciation.