dbcorplogoDB Corp, the publisher of newspaper dailies Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar and Dainik Divya Marathi, has reported a loss before tax of Rs 1.46 crore in the Internet segment for the quarter ended March 31, 2014 (Q4-FY14). This is a significant improvement from Rs 3.16 crore loss in the same quarter last year but down from Rs 0.52 crore loss in the previous quarter.

The total Internet revenue for the company was at Rs 4.3 crore for the quarter, registering a significant 117.2% growth from Rs 1.98 crore revenues in the same quarter last year. In the previous quarter, the Internet revenues were are at Rs 5.25 crore.

For the year ended March 31, 2014, the Internet revenues was at Rs 16.13 crore, up 54% from Rs 10.8 crore in the previous year. The loss before tax was at Rs 7.4 crore, an improvement from 8.83 crore loss in the previous year.

Internet Business Merger complete: DB Corp informed that the Internet and mobile interactive service business of I Media Corp Ltd (IMCL) has been demerged to merge it with the holding company DB Corp with effect from April 1, 2013. This merger was approved by the Madhya Pradesh High court on March 27, 2014.  The company had previously received board approval for this in May 2013.

Post this demerger, the company has de-recognized goodwill of Rs 35.6 crore on account of IMCL stake acquisition and it has been adjusted against the general reserve.

Other Highlights

– DB Corp continues to say it has a combined average daily readership of 19.8 million in the country. Dainik Bhaskar claims to be the largest read newspaper of urban India and claims to have leadership position in legacy markets like Madhya Pradesh, Chhattisgarh, Chandigarh, Punjab, Haryana (CPH), urban Rajasthan and urban Gujarat. Dainik Bhaskar also plans to shortly roll out a new edition from Patna.

– DB Corp currently publishes 7 newspapers, 51 newspaper editions and 199 sub-editions in four languages (Hindi, Gujarati, Marathi and English) across 14 states in India. It also publishes DNA newspaper in Gujarat, Rajasthan and Madhya Pradesh on a franchisee basis.

– Total revenues up 14% year-on-year (YoY) to Rs 462.2 crore from Rs 407.3 crore in Q4-FY13. In FY13, total revenues was up 17% year-on-year (YoY) to Rs 1,883.6 crore from Rs 1,613.7 crore in FY12.

– Profit After Tax (PAT) increased 37.4% YoY to Rs 75.9 crore from Rs 55.2 crore in Q4-FY13. This includes one-time pre-operative expense of Rs 3.95 crore for Patna-Bihar launch and forex gains of Rs 2.59 crore. In FY13, the total PAT increased by 41% to Rs 306.6 crore from Rs 218.1 crore. This includes a one-time gain of Rs 14.9 crore on account of demerger of digital media business.

EBITDA: 9.2% increase YoY to Rs 112.7 crore from Rs 103.2 crore in Q4-FY13. EBITDA Margin is at 24.4%

– Advertising revenues up 14.3% YoY to Rs 340 crore from Rs 297.5 crore in Q4-FY13.

– Print: Advertising revenue increased by around 13.4% to Rs 315.1 crore from Rs 277.9 crore in Q4-FY13, Circulation revenue increased by around 15% to Rs 83.9 crore from Rs 73.1 crore in Q4-FY13. PAT was at Rs 70.5 crore which includes a one-time gain of Rs 14.9 crore on account of demerger of digital media business.

– Radio Business: Ad revenues increased by 17% YoY to Rs 21.5 crore from Rs 18.5 crore in Q4-FY13. PAT was up 75.7% YoY to Rs 7.19 crore and EBITDA was at Rs 9.8 crore. For FY13, ad revenues was up 19.2% to Rs 80.1 crore. DB Corp currently operates the radio station My FM in 17 markets and claims to be the leading radio station in majority of them.

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