DB Corp Ltd. share price target

Flat earnings led by muted ad revenue: DB Corp's 4QFY16 EBITDA declined 4% to INR1.14b (in-line) and PAT remained flat YoY at INR642m, (7% above estimates). PAT beat led by lower-than-expected depreciation and higher...

Key highlights: The company will now shift its focus towards driving ad volume, as its strategytodriveyieldshasseeminglypaidoffandmostoftheclientsareonboard.Decline inprintadvolumehasreducedtosingledigitsinQ3.Radiobusinesscontinuestoperform...

Q3 was satisfactory (doubledigit), but after the festival season, response has been lukewarm.SectorssuchasFMCG,ecommerce,andautocontinuetooutperformwhilereal estateandeducationcontinuetostruggle;governmentadspendwasaverage.Thecompany...

Key highlights: The company continues with its focus on improving ad yield, which has resulted in higherthanexpected decline in ad revenue ad volume down 1720% in Q2 due to sluggish macroeconomic environment and reluctance to adopt higher yield by...

DBCL's circulation revenue is expected to grow faster than industry: DBCL's recent entry into Bihar and the efforts to strengthen its presence in the core markets will improve the circulation volume of the company. And also with the strong brand recall among its readers the company has been able to take several cover price hikes during the period FY09-15 registering 11.4% CAGR in its circulation revenue growth. We expect the company to continue on the same line and grow at 15% CAGR in FY16E-17E.

DB Corp Ltd (DBCL) reported a sluggish quarter with Q4 reported revenue of Rs 4586mn missing consensus expectations by 3%. Print advertising grew by only 1.3% on a yoy on account of weakness in multiple sectors. EBITDA margins improved by...