Ladies and gentlemen, good day and welcome to the D. B. Corp Limited Q4 and FY 2024 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone.
Please note that this conference is being recorded. We have with us today the senior management team of D. B. Corp Limited, Mr. Pawan Agarwal, Deputy Managing Director, Mr. Girish Agarwal, Non-Executive Director, Mr. Lalit Jain, Chief Financial Officer, Mr. Mushtaq Ali, Senior Vice President, Finance and Accounts, and Mr. Prasoon Kumar Pandey, Head of Investor and Media Relations, who will represent the D. B. Corp Limited on the call.
The management will be sharing the key operating and financial highlights for the quarter ended March 31, 2024, followed by a question and answer session. Please note that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties.
Documents relating to the company's financial performance have already been emailed to you and are available on the website of the stock exchanges and the company's investor relations section. Trust you have been able to go through the same. I now hand the conference over to Mr. Pawan Agarwal. Thank you, and over to you, sir.
A very good evening to everyone, and thank you for joining the Q4 FY 2024 D. B. Corp earnings conference call. We will begin the call by highlighting the key financial performance for the quarter ended March 31, 2024, followed by key operational updates. We've had yet another year of growth, with Q4 topping off 11 consecutive quarters of broad-based growth.
The current period has definitely seen an uptick, also supported by the positive sentiments and consumption growth due to increase in disposable income around the election season. We are particularly encouraged by the industry-leading growth in advertising revenue and a significant increase in the EBITDA. In keeping with our focus on creating shareholder value, the board of directors have recommended an interim dividend of INR 8 per share.
You will recall that during the past few quarters, we have been highlighting how the print media is impacting the media landscape on the back of editorial integrity and trust. As a market leader, Dainik Bhaskar has driven this change, and we have fostered a virtuous cycle of growth, supported our advertisers' success while concurrently thriving alongside them.
For FY 2024, our consolidated advertising grew by 18.2% YOY to INR 17,524 million against INR 14,827 million. Total revenue grew by around 14% YOY to INR 24,821 million against INR 21,682 million. EBITDA grew by 95% YOY to INR 7,033 million against INR 3,611 million. PAT grew by 152% YOY to INR 4,255 million against INR 1,691 million.
Our average cost for newsprint has reduced from the high of INR 63,500 per metric tonne in Q2 FY 2023 to around INR 51,500 per metric tonne in Q2 FY 2024, and now to INR 49,350 per metric tonne in Q4 FY 2024, resulting in newsprint cost reduction of 14% YOY in FY 2024.
In Q4 FY 2024, consolidated advertising revenue registered growth of 25% YOY to INR 4,457 million against INR 3,578 million. At the same time, our EBITDA grew by 121% YOY to INR 1,967 million against INR 889 million. EBITDA margin expanded by 1,500 basis points to 31% from 16% last year.
Our PAT grew by 199% YOY to INR 1,225 million against INR 410 million. Let me now take you through some of the highlights of our other business segments. For yet another quarter, our radio segment has delivered industry-leading EBITDA margins.
Our efforts at building the radio business with strategic investment, strong focus on content and various engagement events led us to believe that this performance is sustainable. We will continue to fuel these efforts to help our omni-channel presence grow. Revenue grew 21% YOY at INR 1,623 million versus INR 1,342 million, while EBITDA grew by 37% YOY to INR 551 million versus INR 402 million.
Coming to our digital business, as you are aware, Dainik Bhaskar has continued its focus on building the best-in-class user experience on its digital apps while maintaining very high quality, insightful, and engaging content for its readers.
The omni-channel presence has been very important, and we see our digital presence as a strong supplementary pillar of growth for future. Our app has registered a tremendous growth from 2 million in January 2020 to approximately 14 million in March 2024. With this, I would now request Mr. Girish Agarwal to update us on the operations. Over to you, Girish.
Thank you, Pawan, and good evening, everybody, and thank you for joining us on this call. Print media is much stronger and more resilient in the current environment. According to the Pitch Madison Advertising Report, the print sector demonstrated its robustness by clocking an AdEx of INR 19,250 crores in year 2023.
It signifies a commendable performance, and one of the key factors contributing to this steady performance is the unwavering support from major advertisers across various sectors. Industries like real estate, auto, automobile, education, jewelry, government, and health sector, all of them have continued to invest significantly in print advertising, thereby helping us sustaining the advertising volumes.
Looking ahead, we must remain vigilant and proactive in our efforts to innovate and evolve with the changing times. While print advertising continues to hold its ground, we must leverage emerging technologies and embrace digital integration to enhance the effectiveness and reach of our offering. May I open up the floor for the question answers from all of you. We will be happy to answer you. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, if you wish to ask questions, please press star and one. The first question is from the line of Jahnavi Dodai from Aequitas Investments. Please go ahead.
Hi. Sir, I wanted to ask in the advertising segment, the contributions from auto, has it reached the pre-pandemic level? If you could signify the amount or percentage.
Automobile is growing. Like this year, if you see the entire year, we have seen the automobile growing almost 30%, but it has not yet reached the pre-pandemic level.
Okay. Just a follow-up question. What would be the amount of AdEx revenue on account of elections for 2024?
See, the overall government, as a category, which includes the political, has grown by almost 70% plus this year for us, which includes the assembly elections of Madhya Pradesh, Rajasthan, Chhattisgarh, and as well as the Lok Sabha elections up till 31st March, advertising what we got from the government and the political parties.
Okay. Thank you, sir. Thank you so much.
Thank you.
I will come back in the queue.
Thank you. A reminder to all the participants, if you have any questions at this moment, please press star and one. The next question is from the line of Himanshu Shah from Dolat Capital. Please go ahead.
Hello.
Yes, Himanshu.
Sir, congratulations on great set of numbers.
Thank you.
So just continuing with the previous question, can you just let us know what would be the share of government plus political advertising in FY 2023 and FY 2024? You have already highlighted that it grew by 70%. So government as a category, and then separately, how much would be national and local, excluding government?
Sir, let me give you this way, that normally government used to stay with us in the range of around 15%-16% overall. On a normalized year, if I see the government advertising revenue in the range of 15%-16%. This year being the election year in the States and the central both, this number has shot up to almost 25%.
Okay. This might drop since government advertising or government plus political may not repeat in the same fashion in FY 2025. Can you provide some color on advertising revenue growth outlook?
So I think color is very clear. Out of our 18%, 19% growth, almost, I would say 9% growth has come because of the election year and such. If I take that out, I am almost at 10% growth apart from the election revenue. That is the number, which is our double-digit number. We must work harder to achieve that same going forward also.
That is very, very helpful. And sir, on newsprint side, can you provide what would be the exit rate of newsprint or some color or outlook for next two quarters on the newsprint front?
Last year, full year average was INR 61,800 in the year 2022, 2023. While this year, 2023, 2024, we have closed on average of INR 52,000 per ton. But the last quarter, which is Q4, this rate has been as low as INR 49,500.
And going forward, which we believe in the Q1, this rate may further go down by around 4%. But we will have the advantage of annualizing the number going forward, because our last year average number was 52, while the Q4 was 49, and Q1 will be maybe 3%, 4% less. So the benefit of that will continue for this year also.
Okay. And so we were seeing somewhere and coming across some media articles that at least the writing and printing paper side, when the prices have again started inching upward. Are we seeing any headwinds on the newsprint front, or do we foresee that maybe a quarter or two down the line?
This is a commodity business. Nobody can predict.
Okay, fair. Lastly, on digital front for a longest period, four, five years, we haven't provided any color or any outlook. Some color possible on digital side in terms of what kind of revenue run rate it would be clocking, and what kind of an outlook we are seeing over there, maybe from a medium-term perspective, two to three years perspective. I believe we are also expanding in U.P. and few other markets where we are not present physically.
You are right. We are taking on U.P. in a big way for our digital business, and we have got a very great traction in the initial months from Uttar Pradesh. As far as the overall digital is concerned, we are at around 15 million monthly active users with us on our app, and the time spent is also almost 14, 15 minutes.
The number two, if at all, we have to take the comparison in picture. Number two would be at around 3 million monthly active users and a time spent of around four, five minutes. Compared to the competitor in the market, I think we are doing a far, far superior job, which we are very excited about, and we'll continue investing our time and effort to achieve more numbers going forward also.
As far as the further detail of revenue and monetization is concerned, if you remember, we took the approval from the board and all our investors also that since this is a very competitive market and we don't want to disclose too much of information in this, that's the reason we don't want to divulge much more right now. But going forward, whenever we feel that the things are happening, we will certainly inform you.
Sure. Sir, just qualitative color in next 2-3 years, should it be closer to high single digit or low double digit in terms of revenue contribution from a digital perspective? Only on the revenue side.
Let the time tell, sir.
Can I have one more follow-up on circulation side?
Go ahead.
Sir, can you just let us know what would be the circulation numbers. I believe last count it was around 40 or 41 lakh, broadly this range for FY 2024. Is the number correct and are we looking for any kind of increase in circulation numbers?
This year number what we have closed on average is 41 lakh something. Largely, we are trying our best to increase the circulation and our teams are working on it. Hopefully, we are targeting some growth this year.
Yes, sir. That's it from my side, and all the best.
Thank you.
Thank you. The next question is from the line of Amit Doshi from Care PMS. Please go ahead.
Thank you. Congratulations on the great set of numbers. Sir, just wanted to understand about this digital part. Since last few quarters, the number of average monthly user has been slightly flattish. Do you believe that, in terms of further penetration, how much more is possible or is it because that some parts that have been probably you have gone under paywall or you have started subscription-based model. If you can give some idea about that, and what is it that, probably a number that you would look before you go for, so to say, a monetization. Just a bit on that.
In digital, if you look at the overall total addressable market is huge, because anybody who has a smartphone and is in the age bracket of, say, 25 to 60 is our customer. 80% male, I would say, because not every female wants to know about the news. So I would say 20% of the female audience and 80% of the male audience. So the total addressable market is huge. We are doing 15.
A lot of improvement has been done. As you rightly mentioned, we are experimenting with certain paywalls also. We have launched in U.P., Uttar Pradesh also. So I think we are working steadily on that. But we are not looking at anything to happen in a day. We are going very steady and faithful in that.
Yeah. No, that absolutely. It will take probably few more quarters. What I'm trying to understand is that since that MAU stopped growing for last few quarters or they are growing by just minor percentages. Just wanted to understand what is your expectation in terms of users. I'm still not going into the monetization part, so just before that.
And what could probably trigger those MAU growth further, because of course the first post-COVID jump was exceptional, and then you are maintaining that growth. That is also sufficient this thing, but I'm just trying to understand what would be a number that would be comfortable for you before you jump to monetization.
Just as you rightly mentioned, in MAU, we have been able to maintain the number, in fact, grow a little bit while the industry, all the players have seen a 30%-60% decline. I think that way I would call it that we have grown by 60% rather than declining that way. Give us some more time on that.
Okay. Second question about this, you mentioned about this government breakup. In terms of government, auto, jewelry, if you can just this quarter, this Q4 as well as annual, what would be the breakup of that?
For Q4 specifically, Mr. Prasoon Pandey will get in touch with you, because I do not have a Q4 exactly right now with me. But on the full year basis, as I mentioned, the government contribution has gone up to 25%, which normally used to stay at 15%, 16%. While jewelry has grown in again a double digit.
Lifestyle category has grown in a single digit. Healthcare has grown by double digit. Automobile has grown almost 30%. This time, in this year, I have noticed most of the categories have grown, some in single digits, some in double digit.
Okay. Sir, in terms of circulation, while you mentioned that, what are the areas that you believe there is a possibility so that we could reach to that pre-COVID number of 43, 44 lakhs? Because post-COVID, I think you would have given the kind of whatever probably users would had to get back to the paper, probably has already back. Now, since you mentioned that we are doing more efforts to get some growth in the circulation part, what could be those areas or where do you expect that additional growth to come from?
So three areas. One is the offices. So what has happened post-COVID, most of the offices have cut down the newspaper as a part of this cost-cutting exercise. So we are getting back to those offices to see how we can start that again. Second is the hotels. If you remember, pre-COVID, all the hotels used to provide a copy in the room. Post-COVID, they have not yet gone back. So we are talking to this. These are the two large areas.
Furthermore is the new nuclear families. So for example, in last five years' time, every year, people get married or branch out from their joint family and start living in a separate house, living in different houses, high-rise buildings and all that. So over there also, since it's a new market, vendors are not able to reach out that quickly.
So we are seeing how can we reach out to these markets also. So there are constant efforts. Also one important thing, pre-COVID, if you remember, we used to do a lot of schemes for the circulation. Post-COVID, because the newsprint prices are very high, we decided not to do any kind of subsidized copy, not to do any kind of schemes, unless and until it's 100% on our cover price. So that's also a difference that happened. So we may have to create some environment again for enticing the reader for the newspaper for that growth.
Okay. And in terms of the ad rates, would you believe that we are now back to pre-COVID ad rates?
In some categories, yes.
Okay. Still there is some room to grow, or you believe there's-
Sure
considering that print as overall AdEx pie has significantly shrunk.
Personally believe in the ad space, ad rate, there's always much to be desired.
Okay. Fair. Thank you and all the best. We'll join back with you for more questions.
Thank you. The next question is from the line of Pranav Shrimal from PINC Wealth Advisory. Please go ahead.
Hello.
Yes, sir.
Hello.
Yes.
Yeah. Sir, I have just a simple question. Now that the election season is almost over in all the states, are you seeing a little downtime on advertisement on certain segments, or is it still as strong as before?
Sorry, I am not able to understand your question. I think you are using a speaker phone. Can you
Yeah.
That's fine.
Yeah. Am I audible?
Yeah.
Yeah. After Q4, that is within April, and now that May is almost over, are we seeing a little downturn in any segments?
Normally what happens in the election month, when the election ground activities are on, there are a lot of restrictions in the markets and all that. That's the reason April and May are not a very great month when it's the election month. We are hopeful that from June onwards, the activities will start in the market again.
Okay, Q1 will be a little flattish, and from Q2 we can see a little bit improvement.
No, I'm not saying Q1 will be muted. Q1 will be also good, but will not be substantially good.
Okay, got it, sir. Thank you so much.
Thank you. Participants, if you wish to ask questions, please press star and one to join the question queue. The next question is from the line of Hrishikesh from RoboCapital. Please go ahead.
Yeah. Hi, thank you for the opportunity.
Yes.
Sir, if you could please comment on the yields for our newspaper business. How much have they increased in FY 2024?
I'm sorry, I couldn't hear you. I think you are using the speaker phone. Can you please talk on the hand phone so we can listen to you properly?
Am I audible now?
Yes, better.
I am sorry. Could you please comment on the yields for your newspaper business? How much have they increased in FY 2024? Also, if we had to compare it to pre-COVID levels, where exactly we are, how much percentage have we reached there?
Sorry, I did not get your question. What are you saying? Repeat again, please.
Yeah, sure. Am I audible to you?
Yeah. Go ahead, please.
Yes. I was asking if you could comment on the yields of the newspaper business, how much have they increased in FY 2024 and-
One second. When you think yield for the business, means advertising or-
Ad yields.
Exactly. Advertising yield, you are talking about, sir?
Yes, sir.
Yeah, it has already gone there. It already reached there.
So it has reached pre-COVID levels, you are saying?
Yes, sir.
I'm sorry, I missed you.
Yes, it has reached, sir.
Okay. Got it. For FY 2025, what sort of revenue growth and EBITDA margin are we looking for, sir?
Company doesn't give any forward-looking assumptions and projections. We have achieved 31% margin in print and in radio, our EBITDA margin is 34%, and we are hopeful that the entire team is working towards it so that we are able to perform.
Okay. No problem. Thank you very much.
Thank you. Participants, you may press star and one to ask a question. The next follow-up question is from the line of Jahnavi Dodai from Aequitas Investments. Please go ahead.
Sir, I wanted to ask that the operating cash flow of about INR 589 crores, how are we planning to utilize it since the major investment in digital is now over?
Company is sitting on a cash balance of INR 1,017 crores as on March 31, 2024. This year, as you are aware, that company board has announced a dividend of INR 13 per share, which total amounts to including the earlier dividend announced for this year was INR 233 crore. I am sure board will take a more prudent call how to deploy this money going forward.
Great. Thank you.
Thank you. A reminder to all the participants, if you have any questions at this moment, please press star and one. For any further questions, please press star and one on your phone. The next question is from the line of Sakshi Chhabra from Svan Investment. Please go ahead.
Yeah. Hi, sir. Congratulations on the great set of numbers.
Thank you.
I'm trying to understand that your circulation copies overall for the entire year, what would it be? Because I think you mentioned around 41 lakh.
Yes.
But last year the same number was 42.5. That means has there been a drop? If so, what would be the reason for that?
Yes, you are right. Last year we were at around 42 lakh, this year around 41 lakh. We have lost around 1 lakh copy in last one year's time. There are various reasons in this, what we've been trying to do. Maybe some copies we have lost in, again, the hotels and the offices which we were able to start last year. Some copies in the rural market also we have lost. This 2.5% loss in circulation, that's the target this year we have that we must grow it and take it back.
Okay. But we've also expanded to newer regions, right? Are we expecting any growth in those regions?
We have not expanded to any new geography in terms of physical copies. We still operate in the same geographies.
Okay. All right. Do we plan to now expand to further geographies to increase circulation?
In terms of Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Haryana, Chandigarh, Bihar, Maharashtra. We will continue to grow here only.
Okay. What would be the strategy then to grow this circulation copy?
See, that's a big question. To go out in the market and to get more readers because people are moving into the As I mentioned in the call earlier, that the newer market, what we call the new high-rises which are being built in the city, where our vendors are not able to reach initially.
And because generally what happened in these societies, the new societies, the vendors are not allowed in and to use the lift to go up to deliver the copies, unless until he's already registered there. So there's a whole process of security in these things which we are trying to work out with the vendors to see how can we capture that market also.
Okay. And my second question was on the cover price. So what has been the increase in the cover price for the entire year?
Cover price, there's been hardly any increase, around 2%.
2%. Okay. Thank you so much, and all the best.
Thank you very much.
Thank you. Ladies and gentlemen, due to time constraint, we will close the call. I now hand the conference to the management for closing comments.
Thank you everyone for your participation and time on this earnings call today. I hope we have responded to your queries. We will always be happy to be of assistance through our investor relations department, headed by Mr. Prasoon Kumar Pandey, for all your further queries. Thank you, and have a great evening.
Thank you, members of the management. On behalf of D. B. Corp Limited, that concludes this conference. Thank you for joining us. You may now disconnect your.