DB Corp's radio biz turns profit positive

MUMBAI: DB Corp?s radio business has turned profit positive in four years since launch.

The company said the net profit from its radio business in the third quarter ended 31 December rose 113 per cent to Rs 47 million from Rs 16.5 million a year earlier. Its revenue in the third quarter grew 21 per cent to Rs 190.8 million from Rs 156.7 million a year earlier.

DB Corp, publisher of leading Hindi daily newspaper Dainik Bhaskar, said advertising revenues from its radio business grew 22 per cent to Rs 191 million in the third quarter from Rs 157 million a year earlier. Operating profit from DB Corp?s radio business was Rs 73 million in the third quarter, up 68 per cent from a year earlier.

DB Corp?s consolidated net profit in the third quarter grew 28 per cent to Rs 704 million from Rs 554 million a year earlier. The company?s consolidated operating profit grew by 25.1 per cent in the quarter to Rs 1.23 billion from Rs 983 million a year earlier.

The company?s consolidated revenues grew by 11.2 per cent to Rs 4.42 billion in the third quarter from Rs 3.98 billion a year earlier. Its consolidated revenues from advertising rose 12 per cent to Rs 3.41 billion in the quarter from Rs 3.05 billion a year earlier. The company?s consolidated expenditure increased to Rs 3.34 billion in the third quarter from Rs 3.13 billion a year earlier.

DB Corp?s net profit from print media business rose 21 per cent to Rs 1.06 billion from Rs 872.1 million a year earlier. The company has seen revenue from print media grow to Rs 4.16 billion in the third quarter from Rs 3.72 billion a year earlier.

The company?s advertising revenue from print media business increased to Rs 3.18 billion in the third quarter from Rs 2.87 billion a year earlier, a rise of 11 per cent. Its circulation revenue grew 16 per cent to Rs 729 million in the third quarter from Rs 630 million a year earlier.

DB Corp?s operating profit margin from print media business was 28 per cent at Rs 1.17 billion, after a foreign exchange loss of Rs 36.1 million.

DB Corp managing director Sudhir Agarwal said, "Following the past few quarters of sluggish economic growth and subdued sentiment, I believe this quarter heralds better tidings on the back of an improved economic environment that has also spurred the momentum of media ad spend over the last few months ? a trend that may continue.?

"We continue to strengthen our internal capacities and resources and remain optimistic about our progress in every region. Our efforts in consolidating pan-India readership growth especially in the recently launched areas of Jharkhand and Maharashtra that are emerging strongly, and persistent cost rationalisation ? is reflected in this quarter?s performance."