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DB Corp higher PAT on higher print, radio, and digital media ad revenue, business adjustments in FY-2014
BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported improved results in Q4-2014 and its board has recommended a final dividend of Rs 4.25 per share for FY-2014.
Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.
The company reported a higher PAT at Rs 306.6 crore in FY-2014 as compared to the Rs 218.1 crore in FY-2013, which includes a onetime tax gain of Rs 14.9 crore, on account of demerger of digital media business.
The company says that its FY-2014 consolidated advertising revenue grew by 17.4 per cent to Rs 1417.8 crore as against Rs1270.5 crore is FY-2013. The company says further that its radio business ad revenue grew by 19.2 per cent to Rs 80.1 crore from Rs 67.2 crore in FY-2013 and that its digital media ad revenue grew by about 54 per cent to Rs16.3 crore in Fy-2014 from Rs10.8 crore in FY-2013.
Let us look at the figures for FY-2014 and Q4-2014 reported by DB Corp
DB Corp’s Total Operating Income (Op Inc) in FY-2014 at Rs1895.76 crore was 16.8 per cent more than the Rs 1592.32 crore in FY-2013. Q4-2014 Op Inc at Rs 454.17 crore was (-12.36) per cent lower than the Rs 518.20 crore in Q3-2014 and 14.08 per cent more than the Rs 398.10 crore in the last year quarter Q4-2013.
Total Expense (Tot Exp) in FY-2014 at Rs 1423.72 crore was 11.94 per cent more than the Rs 1271.91 crore in FY-2013. In Q4-2014, Tot Exp at Rs 366.02 crore was (-3.48) per cent lower than the Rs 379.21 crore in Q3-2014 and 14.67 per cent more than the Rs 319.19 crore in Q4-2013.
Raw Material consumption (RM cost) forms a major portion of DB Corp’s expense (Between 33 and 37 per cent of Tot Inc). In FY-2014, DB Corp’s RM cost at Rs 632.95 crore (34.03 per cent of Op Inc) was 16.4 per cent more than the Rs 544.54 crore (34.20 per cent of Op Inc) in FY-2013. RM cost in Q4-2014 at Rs 166.59 crore (36.68 per cent of Op Inc) was (-3.37) per cent lower than the Rs 172.41 crore (33.27 per cent of Op Inc) in the immediate trailing quarter Q3-2014 and 24.57 per cent more than the Rs133.74 crore (33.57 per cent of Op Inc) in the corresponding quarter of last year.
PAT in FY-2014 at Rs 306.64 crore (16.49 per cent of Op Inc) was 40.58 per cent more than the Rs 218.14 crore (13.7 per cent of Op Inc) in FY-2013. In Q4-2014, PAT at Rs 7.59 crore (1.67 per cent of Op Inc) was 1.67 per cent more than the Rs 9.45 crore (1.82 per cent of Op Inc) in Q3-2014 and (-86.26) per cent less than the Rs 55.26 crore (13.88 per cent of PAT) in Q4-2013.
Segment Results
Printing and Publishing of Newspaper and Periodicals segment
Printing and Publishing of Newspaper and Periodicals (Printing) segment contributes more than 94 per cent to DB Corp’s total revenue. During FY-2014, Printing segment revenue of Rs 1762.16 crore (94.75 per cent of Op Inc) was 17.02 per cent more than the Rs 1505.86 crore (94.57 per cent of Op Inc) in FY-2013. Printing segment revenue in Q4-2014 at Rs 421.21 crore (94.28 per cent of Op Inc) was (-12.37) per cent lower than the Rs 488.63 crore in Q3-2014 and 13.87 per cent more than the Rs 376.06 crore (94.46 per cent of Op Inc) in Q4-2013.
DB Corp’s Printing segment results in FY-2014 at Rs 458.9 crore was 32.63 per cent more than the Rs 345.97 crore in FY-2013. The company’s Q4-2014 result at Rs 95.5 crore was (-32.38) per cent less than the Rs 488.63 crore in Q3-2014 and 2.35 per cent more than the Rs 93.31 crore in Q4-2013.
Radio Business segment
DB Corp’s radio segment reported revenue of Rs 79.45 crore (4.27 per cent of Op Inc) in FY-2014 was 19.2 per cent more than the Rs 66.65 crore (4.19 per cent of Op Inc) in FY-2013. This segment’s Op Inc in Q4-2014 at Rs 21.37 crore (4.99 per cent of Op Inc) was (-10.28) per cent lower than the Rs 23.83 crore (4.88 per cent of Op Inc) in Q3-2014 and 17 per cent more than the Rs18.27 crore (4.59 per cent of Op Inc) in Q4-2013.
This segment returned a positive result of Rs 20.56 crore in FY-2014 which was 89.18 per cent more than the Rs 10.87 crore in FY-2013. In Q4-2014, DB Corp’s radio business reported a result of Rs 7.19 crore which was (-15.47) per cent less than the Rs 8.51 crore in Q3-2014 and 75.73 per cent more than the Rs 4.09 crore in Q4-2014.
The other segments –events, internet and power have reported very low numbers and have eroded the profits generated by DB Corp’s Printing and Radio business segments.
DB Corp managing director Sudhir Agarwal, said, “We have delivered a robust operating performance this year amidst a challenging market environment. Our focus on sustaining and extending leadership in core markets, consistent focus on operational efficiencies as well as strong performance across non-print segments have enabled us to report significant growth.
The Bhaskar way of journalism places the reader at the center. Our growth strategy revolves around this philosophy and as we have successfully done in the past – we have ensured that our strategies combine ‘knowledge enhancement’ for the reader and ‘product differentiation’ towards growth. Therefore, our earlier associations with leading media brands for exclusive, unique content have started delivering exciting results. This quarter, we re-aligned our corporate sales and marketing strategy supported by key senior management appointments – with the aim of providing greater focus to advertisers at every state level. Our Un-Metro – Markets Driving India initiative extensively analysed the potential of high-growth non-metro regions with inspiring participation by marketing stalwarts across Bengaluru, Mumbai and New Delhi, have also contributed significantly towards broadening our horizons. Our Bihar-Patna launch was an exciting challenge in that region and we are encouraged by an overwhelming response and wide acceptance; while our progress in Maharashtra continues well on course.
DBCL’s non-print media segments have been making strong headway as we report commendable
developments across our digital and radio properties. We have been leveraging our leadership strengths in print media – extending our editorial excellence and deep readership insights to make steady progress across digital and radio platforms. We are excited with the potential of post Phase 3 licensing and are well poised to strengthen our radio footprint.
While the macro outlook does remain undefined, we are hopeful that, as we move towards political
certainty, the consumer sentiment will become more positive and result in better growth across sectors. I am confident that with our clear strategic focus, strong business fundamentals, superior execution capabilities supported by a talented team, we will strive towards our vision to be the largest and most admired media brand as well as active socio-economic change agents.”
Brands
Adobe CEO Shantanu Narayen to step down after 18 years in role
Board begins CEO search as Narayen prepares to move to chair role
SAN JOSE: After nearly two decades at the helm, Adobe’s long-serving chief executive Shantanu Narayen is preparing to pass the baton.
The company announced that Narayen will transition from his role as chief executive officer once a successor is appointed, ending an 18-year run that reshaped Adobe from a boxed software seller into a global cloud and AI powerhouse. He will remain chair of the board following the leadership transition.
Adobe’s board has formed a special committee to oversee the succession process, led by lead independent director Frank Calderoni. The committee will evaluate both internal and external candidates.
“Shantanu’s leadership has been instrumental in Adobe’s transformation and in positioning the company for the AI-driven era,” Calderoni said in a statement. “As we begin the next phase of succession planning, our focus is on identifying the right leader for the company’s next chapter while ensuring a smooth transition.”
In a note to employees, Narayen described the moment not as a farewell but as a pause for reflection after a long journey with the company.
“I love Adobe and the privilege of leading it has been the greatest honour of my career,” he wrote, adding that he will continue to work closely with the board over the coming months to ensure a seamless leadership change.
Tributes from the technology industry quickly followed the announcement. Microsoft chairman and chief executive officer Satya Nadella congratulated Narayen on what he described as a “legendary run” at Adobe.
“Congrats Shantanu, on a legendary run at Adobe! You’ve built one of the most important software companies in the world, and expanded what’s possible for creators, entrepreneurs, and brands everywhere,” Nadella wrote on LinkedIn.
“What has always stood out to me is the empathy you’ve brought to the creative process and the example you’ve set as a leader. Grateful for your friendship, mentorship, and for all you’ve done for Adobe and for our industry.”
Narayen’s career at Adobe spans nearly three decades. He joined the company in 1998 as vice president and rose steadily through the ranks before becoming chief executive officer in December 2007.
During that time, he orchestrated one of the most significant reinventions in the software industry. In 2013, Adobe made the bold decision to abandon traditional boxed software sales and move its flagship creative tools such as Photoshop to a subscription-based Creative Cloud model. The shift initially rattled investors but ultimately transformed Adobe into a predictable recurring revenue business and a case study in digital reinvention.
Narayen also pushed Adobe beyond creative tools into the world of marketing technology and data-driven customer experience, spearheading acquisitions such as Omniture and Marketo. Those moves helped build Adobe’s digital experience division and broaden its reach far beyond designers and photographers.
The numbers tell the story of that transformation. When Narayen took over in 2007, Adobe generated roughly $3 billion in annual revenue. Today the company reports more than $25 billion. Over the same period, its workforce expanded from around 3,000 employees to more than 30,000.
In recent years, Narayen has steered Adobe into the generative AI era with the launch of Adobe Firefly, aiming to keep the company ahead in a rapidly evolving creative technology landscape.
Born in Hyderabad in 1963, Narayen studied electronics and communication engineering at Osmania University before moving to the United States for a master’s degree in computer science from Bowling Green State University. He later earned an MBA from the Haas School of Business at the University of California, Berkeley.
Widely regarded as one of Silicon Valley’s most steady and effective leaders, Narayen has earned multiple honours during his career, including India’s Padma Shri in 2019.
For Adobe, the upcoming leadership change marks the end of a defining chapter. For Narayen, however, the story is far from finished. As he told employees, the company’s next era of creativity, powered by AI and new digital workflows, is only just beginning.
