to be the largest and most admired …...to be the largest and most admired language media brand...
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES – Trendsetting | Result-oriented | Analytical | Connected
July 2018
TO BE THE LARGEST AND MOST ADMIRED
LANGUAGE MEDIA BRAND ENABLING SOCIO-
ECONOMIC CHANGE
TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Some of the statements made in this presentation are forward-looking
statements and are based on the current beliefs, assumptions, expectations,
estimates, objectives and projections of the directors and management of
Dainik Bhaskar Group (DB Corp Ltd.) about its business and the industry
and markets in which it operates.
These forward-looking statements include, without limitation, statements
relating to revenues and earnings.
These statements are not guarantees of future performance and are subject
to risks, uncertainties and other factors, some of which are beyond the
control of the Company and are difficult to predict. Consequently, actual
results could differ materially from those expressed or forecast in the
forward-looking statements as a result of, among other factors, changes in
economic and market conditions, changes in the regulatory environment
and other business and operational risks. DB Corp Ltd. does not undertake
to update these forward-looking statements to reflect events or
circumstances that may arise after publication.
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
• Hindi Print has been growing at 8.76% CAGR over last 10 years
• Overall Print has been growing at 4.87% CAGR over last 10 years
2006 2016 Increase CAGR%
Overall Print Circulation 3.91 Cr. 6.28 Cr. 2.37 Cr. 4.87
Hindi Print Circulation 1.06 Cr. 2.45 Cr. 1.39 Cr. 8.76
No. of publishing Centre's 659 910 251 3.28
Source: Audit Bureau of Circulation Press Release dated 8th May 2017
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Source: Audit Bureau of Circulation Press Release dated 8th May 2017
Language CAGR %
Hindi 8.76
Telugu 8.28
Kannada 6.40
Tamil 5.51
Malayalam 4.11
English 2.87
Punjabi 1.53
Marathi 1.50
Bengali 1.49
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Read in Last 1
Month ALL INDIA URBAN RURAL
2014 2017 2014 2017 2014 2017
Dailies 31% 39% 47% 53% 22% 31%
Readers in Crore 29.5 40.7@ 15.2 19.3 14.3 21.4
+11 Cr +4 Cr +7 Cr
Source: MRUC Website - http://mruc.net/uploads/posts/a27e6e912eedeab9ef944cc3315fba15.pdf
@ = includes readers for which mastheads were not fielded (smaller titles)
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Dainik
Bhaskar
Group
12.6 Mn.
Readers
The
Times
of India
Group
11.9 Mn.
Readers
Dainik
Jagran
Group
11.2 Mn.
Readers
IRS 2017 - AIR – URBAN | Excluding Financial Dailies
Dainik Bhaskar Group : Dainik Bhaskar | Divya Bhaskar | Divya Marathi | Saurashtra Samachar
The Times of India Group: The Times of India | Vijaya Karnataka | Navbharat Times | Maharashtra Times | Ei Samay | Mumbai Mirror | Bangalore Mirror
Dainik Jagran Group : Dainik Jagran | Nai Dunia | Nav Dunia | Mid-day Gujarati | Mid-day English | Inquilab | Punjabi Jagran
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Madhya Pradesh Dominant
Chhattisgarh Dominant
Haryana Dominant
Chandigarh Dominant
Rajasthan
Dominant in Jaipur
At par in overall Rajasthan now
Investing to attain overall leadership
Gujarat Leader in Ahmedabad
Close No.2 overall
Bihar
Started investing last year
Now Close No.2
Further investing in copies for overall leadership
Punjab No.2
Currently, now routine growth
Maharashtra Limited to Central Maharashtra
Currently not expanding
Jharkhand No.2
Currently not expanding
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Looking at future opportunities, DB Corp has been investing in markets of Rajasthan, Gujarat and Bihar, to attain clear leadership.
Also investing in Other markets to further strengthen dominance with high quality product and stronger readership.
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Striving Dominance in 7 markets of DB Corp
Current Dominant Markets
- Madhya Pradesh
- Chhattisgarh
- Haryana
- Chandigarh
Targeted to be Dominant
in more 3 Markets
- Gujarat
- Rajasthan
- Bihar
• Adding 3 more new dominant markets, will result in improvement in
market share in volume and rate.
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
1. Kendra Mein Pathak
2. Knowledge Content to enrich the reader
3. Idea based Journalism
4. Differentiator
5. Content strategy + innovative reader
engagement initiatives
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
1. NNR : National News Room –
• We have a dedicated robust structure which churns out national-international News of the Day after thoroughly passing through Knowledge sieve.
• So that our Readers get most important items in Easy to read, Easy to understand format. With relevant knowledge.
• Clear and a new angle providing Headlines are discussed and delivered by NNR - they give Talking Points in the big news.
• NNR produces valued-packed Business, Sports, Desh-Videsh and the back page of the paper.
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
2. NINR : National Ideation News Room –
• Works centrally for Ideas. It brings out all Special and Different pages
and sections of Dainik Bhaskar.
• Main focus is to provide Knowledge content most relevant to the
Reader.
• Like the Sunday Jacket - now in it's 7th year. Yet so refreshing. Consists
Special reports. Investigation. Research-based stories. Interesting
content making rich Sunday reading.
• Also works on our goal of making Bhaskar reader a Global Citizen.
• Through exclusive tie-ups with world’s greatest titles like: Time
magazine, The New York Times, The Economist, Harvard Business
Review (HBR)
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
• Launched in 2006, 94.3 MY FM operates from 30 stations in 7 states
• 94.3 MY FM continues to be no.1. in markets of Madhya Pradesh, Chhattisgarh
and Rajasthan and largest network in Chandigarh, Punjab and Haryana.
• Consolidating presence in line with strategy to be market leader in
“Unmetro” geographies with strong DBCL presence.
• With the 13 New frequencies acquired, during the Phase III Radio auctions,
94.3 MY FM to be:
o Biggest player in Rest of Maharashtra with 10 frequencies including Nagpur
o Biggest player in Chandigarh / Haryana/ Punjab with 4 frequencies
o Biggest Player in Rajasthan with 6 frequencies
o Strengthened Gujarat with presence in Rajkot
• Phase 3 stations turn profitable on the back of growing popularity and
prudent cost controlling initiatives.
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
FY 2012 FY 2014 FY 2016 FY 2018
555
801
1076
1358
Revenue (Rs. In mn)
FY 2012 FY 2014 FY 2016 FY 2018
124
318
400 362
EBIDTA (Rs. In mn)
22% 40%
37% 27%
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Presently digital market has two types of traffic:
• Social
• Brand / Search
Company focus: 1. How to drive Social traffic?
2. How to drive Brand / Search traffic?
as needs for both are different
Accordingly we are focusing on Dainik Bhaskar & Divya Bhaskar - content
team being build up separately to drive traffic – as we continue to be
number 1 in Hindi and Gujarati segment
Brand / Search
• traffic comes from App and Web
• Build up a separate team on the lines of DB Corp brand experience
• In future, also focusing on major app downloads
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Over the last 3 years
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Particulars FY 16
(Rs.)
FY 17
(Rs.)
YoY
Growth
(%)
FY 18
(Rs.)
YoY
Growth
(%)
Advertising Income 14812 15973 7.8% 16425 2.8%
Circulation Revenue 4356 4814 10.5% 5145 6.9%
==> PO Copies (in lacs) 52.15 52.28 0.2% 55.20 5.6%
==> Avg Cover Price
(Rs. per copy) 3.65 3.96 8.7% 4.08 3.0%
Total Income 20735 22750 9.7% 23522 3.4%
(Rs. million)
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
Particulars FY 16
(Rs.)
FY 17
(Rs.)
YoY
Growth
(%)
FY 18
(Rs.)
YoY
Growth
(%)
Newsprint Cost 6186 6609 6.8% 7307 10.6%
==> Newsprint Rate per MT 33470 34989 4.5% 36159 3.3%
==> Newsprint Qty (in MT) 184833 188880 2.2% 202091 7.0%
(Rs. million)
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
(Rs. million)
Particulars FY 16
(Rs.)
FY 17
(Rs.)
YoY
Growth
(%)
FY 18
(Rs.)
YoY
Growth
(%)
Personnel Cost 3909 4258 8.9% 4364 2.5%
Admin, Selling & Other Exp 2680 2851 6.4% 3357* 17.7%
Other Operating
Expenditure 2369 2440 3.0% 2619* 7.3%
Total 8958 9549 6.6% 10340 8.3%
* Increase on account of circulation expansion drive in legacy markets of Rajasthan, Gujarat and
Madhya Pradesh and new market of Bihar.
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
(Rs. million)
Particulars FY 16
(Rs.)
FY 17
(Rs.)
FY 18
(Rs.)
EBIDTA 5590 6592 5875
EBIDTA Margin 27% 29% 25%
Net Profit 2921 3748 3240
Net Profit Margin 14.1% 16.5% 13.8%
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
(Rs. million)
Particulars FY 16
(Rs.)
FY 17
(Rs.)
FY 18
(Rs.)
Net Worth 13945 15930 19291
Secured Long Term Gross Loan 536 262 -
Cash & Bank Balance 926 1754 3223
Working Capital Loan 631 288 301
Net Block (Fixed) 9128 8833 9634
ROCE 29.9% 33.1% 24.3%
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE
• The Board of Directors at its meeting held on May 26, 2018 approved the
proposal of buyback of 92,00,000 equity shares of Rs. 10/- each
(representing approximately 5% of total equity share capital) from the
shareholders of the company through the “Tender offer” route as
prescribed under the Securities and Exchange Board of India (Buyback of
Securities) Regulations at a price of Rs. 340/- per equity
share, aggregating to approximately Rs 312.80 Crores.
• The buyback has been approved by the shareholders on July 6, 2018. The
public announcement was published on July 10, 2018. The draft letter of
offer was filed with SEBI on July 17, 2018.
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TO BE THE LARGEST AND MOST ADMIRED LANGUAGE MEDIA BRAND ENABLING SOCIO-ECONOMIC CHANGE VALUES – Trendsetting | Result-oriented | Analytical | Connected