ICICI Securities: DB Corp’s Circulation Normalising; But Advertisement Revenue Is Key
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ICICI Securities Report
DB Corp Ltd.’s Q1 FY21 Ebitda loss has come in higher and advertisement revenues weaker than expected. However, circulation has been recovering fast and cost savings have helped the company reach positive Ebitda.
Advertisement revenue is still not out of the woods and is key to watch (Q3 FY21 would be critical for bounce-back).
DB Corp is yet to disclose key performance indicators on digital segment, but its efforts to drive direct volumes is appreciable. We would however wait to see the entire print before forming a view.
Dividend distribution policy remains unchanged (at 65% payout). Promoters’ plan to release pledged shares in 12 months should remove a persisting overhang.
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