Release Date: October 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EBITDA grew by 10.4% to INR3,351 million, driven by effective cost control and softer newsprint prices.
- Net profit increased by 12% to INR2,004 million compared to the previous year.
- Radio business showed strong growth with an 11% YoY increase in revenue.
- Digital business strategy is progressing well, with MAU reaching 19.6 million.
- Dainik Bhaskar maintains its position as the digital leader with the top Hindi and Gujarati news apps.
Negative Points
- Total revenue for Q2 FY 2025 decreased to INR5,825 million from INR6,019 million in the previous year.
- Advertising revenue was impacted by prolonged monsoon and high base effect from last year's election-driven surge.
- Circulation revenue remained flat, with a noted decline in print circulation by 2-3%.
- Other expenses increased due to delayed expenditures and market expansion efforts.
- Government advertising revenue decreased significantly, impacting overall sales growth.
Q & A Highlights
Q: Can you elaborate on the digital growth and its regional contributions?
A: The digital growth is not confined to any specific region as digital has no boundaries. We are expanding across India, particularly in Hindi and Gujarati-speaking areas. Significant growth has been observed in Uttar Pradesh, Bihar, and Uttarakhand.
Q: What is the reason for the decline in circulation revenue, and how does it compare to industry trends?
A: Post-election, we experienced a 2-3% decline in circulation, which is a concern. This trend is consistent across the industry, as many saw a dip after the election period. We are planning initiatives to regain and grow circulation numbers.
Q: There was a sharp increase in other expenses in Q2. What caused this, and will it continue?
A: The increase was due to delayed expenses from the previous year, market activities, and digital expansion. While some expenses may continue, they are expected to align with revenue growth.
Q: What is the outlook for advertising revenue growth for the full year, considering the impact of elections and monsoon?
A: We expect strong single-digit growth for the full year, excluding the election-related surge from last year. The growth will depend on market conditions and economic factors.
Q: Can you provide insights into the digital business strategy and its future monetization?
A: Our focus is on acquiring and engaging users with quality content and technology. Monetization will follow as the market matures. We are not disclosing specific digital financials due to competitive reasons.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
