D B Corp: Quarter dragged by lower ad spend from key sectors, but sanguine print outlook provides comfort
Consolidated revenue declined 4.6% YoY to INR6.0b (8% miss) due to subdued print ad revenue growth. Consequently, EBITDA fell 30% YoY to INR1.4b (32% miss). Excluding last year???s one-offs related to festival billing and private treaty, ad revenue grew in mid-single-digits. EBITDA margin shrunk sharply by 830bp to 23.3%. EBITDA disappointment boiled down to PAT, which fell 34% YoY to INR781m. Print ad revenue fell 6% YoY to INR3.8b, led by (i) lingering effects of GST and (ii) preponement of festive season to 2QFY18. Sector-wise, real estate ad revenue declined 40%, while education/electronic ad revenue fell 7%/20%. Circulation revenue grew 6% YoY to INR1.3b, with overall circulation copies growing 5.3% YoY to 5.64m. Radio ad revenue declined 7% YoY to INR336mdue to weak ad spend from the real estate and government sectors.