Pawan Agarwal – Deputy Managing Director, Girish Agarwaal – Non Executive Director addressed the call

Highlights of the call

D.B. Corp registered a 5% rise in consolidated sales to Rs 588.52 crore for the quarter ended March 2019.

Advertising Revenues reported growth of 7% YOY to Rs 413.0 crore. Circulation Revenue increased 2% YoY to Rs 127.30 crore.

OPM rose 20 bps to 17.7% which saw OP rise 6% to Rs 104.16 crore. PBT grew 2% to Rs 80.54 crore. PAT fell 5% to Rs 54.46 crore.

In FY 2019, it registered a 7% rise in consolidated sales to Rs 2462.70 crore.

Advertising Revenues grew 7.4% to Rs 1762.5 crore. Circulation Revenue increased 5.1% to Rs 523.70 crore primarily volume driven.

OPM fell 390 bps to 20.5% which saw OP fall 11% to Rs 504.23 crore. PBT fell 15% to Rs 413.74 crore. PAT fell 15% to Rs 273.84 crore.

Its sustained focus over the past 5-6 quarters on circulation expansion in legacy markets as well as in the newer markets is paying off as reflected in the latest published readership and circulation number, by MRUC and ABC respectively.

Dainik Bhaskar's well-implemented Circulation expansion strategy has delivered strong results on account of increased market share.

Without this strategy the management doubts that the overall sales would have grown 7% in FY 2019.

A focused and well-executed Circulation expansion strategy has delivered excellent readership results.

Dainik Bhaskar Group stands as Torch bearer of Readership growth. As per recent IRS Survey, all Hindi Newspapers added 93.27 lakh new readers.

Dainik Bhaskar adds 63.55 lakh new readers; a growth of 13.71% majorly in legacy markets of Madhya Pradesh-Chhattisgarh, Rajasthan, Haryana, Punjab, Gujarat and in newer market of Bihar.

Semi urban and rural market is expected to stabilize along with the stabilization on political scenario.

Q4 did not have any political advertising although government advertising grew over 26%. The quarter had full benefit of DAVP rate as there was not much of volume increase.

Q1 2020 will see growth in political advertising. But it will be nullified due to no advertising from government advertising.

Debtors increased by Rs 71 crore in print advertising. In that Rs 28 crore grew due to billing. Also the government outstanding grew due to model code of conduct.

Month of April 2019 was a normal month and nothing great. In May 2019 most of the companies are waiting for the election. However due to normal monsoon forecast and political stability after May 2019 the growth should continue.

As of March end circulation is at 56.20 lakh copies. Landed cover price was Rs 4.16 per copy. The realized price is Rs 2.69 per copy.

The benefit of softening newsprint prices along with the cost cutting initiatives, already implemented is expected to improve bottom line going forward.

Newsprint price in Q4 of 2019 was Rs 44.50 per kg on blended basis of imported and Indian newsprint. In Q3 it was 45.40/KG. In Q1 it is expected to be Rs 40/KG. In Q2, Q3 and Q4 it will soften further.

Circulation strategy was complimented by strong editorial and product enrichment efforts along with unique and impactful reader engagement initiatives.

Dainik Bhaskar Group has maintained its leadership as the Largest Newspaper Group of Urban India, as per latest Indian Readership Survey 2019 Q1 that were announced on 26thApril 2019.

In print business the company does not want to increase price in hurry as the newspapers are already prices at Rs 4 in most of the market and newsprint prices are coming down.

FY 2020 will see normal circulation growth as nothing new strategy has been planned. 

The implementation of second phase of economic reform is expected to accelerate the consumption and industry growth going ahead.

Auto industry advertising fell in Q4 and other segments were in low single digits.

China which used to import newsprint is now NIL on net-net basis.

In USA, couple of newsprint manufacturers which were not producing newsprint have started producing newsprint.

There is low demand of newsprint in US and China.

The positive outlook on India reflected by global institutions is providing a strong impetus to the positive sentiment that signals a new fiscal ahead.

All fundamental business growth drivers are in the place which positions the company well to capitalize on emerging industries opportunities.

Going forward circulation growth should be 2-3% mainly due to volume.

Radio business

Phase 3 stations bottom line is now positive, on the back of strong inventory management, programme profile, strong cost efficiencies and growing popularity

Q4 FY 2019 Radio business EBIDTA grew 8% to Rs 39.0 crore.

Q4 FY 2019 Radio Business PAT grew 13% YOY to Rs 13.2 crore.

FY 2019 Radio business EBIDTA grew 45% to Rs 52.5 crore (margin of 34%) against Rs 36.2 crore (27%margin).

FY 2019 Radio Business PAT grew 70% YOY to Rs 26 crore (margin 17%) against Rs 15.3 crore (11%margin).

Radio business growth was largely volume led than yield improvement in Q4. Blended realization for 10 second advertisement is Rs 3500-4000.

Government share of advt in Radio business is around 25%.

Future strategy is to maintain leadership position in Chandigarh / Haryana / Punjab / Rajasthan / Madhya Pradesh & Chhattisgarh and continues to be the largest player in Rest of Maharashtra

Q4 digital business revenue fell 24% to Rs 9.9 crore.

FY 2019 Digital business revenue stood at Rs 48.7 crore against Rs 52.9 crore, down 8%.

Digital business intensified its focus to further strengthen loyal user base and potential monetisation of the platform.

Dainik Bhaskar group leveraging its premium brand equity and loyal user base through introduction of subscription based model on its digital platforms.

Digital business is embarking on multiple noteworthy initiatives aimed at further strengthening loyal user base through organic ie. brand and search traffic and efficient monetisation.

Very stringent cost optimisation and change in content approach continue to add value to business.

www.Dainikbhaskar.com the largest Hindi News Website continues to secure the No. 1 spot in Hindi News

www.Divyabhaskar.com continues to remain #1 Gujarati website

Launch of new version of "Divya Bhaskar" App will strengthen the leadership position in Gujarat Market.