DB Corp: Print advertising cyclicality (from high base) hurts 1QFY13 : Kotak Sec, PDF link

DB Corp (DBCL)
Media
Print advertising cyclicality (from high base) hurts 1QFY13. DB Corp reported weak
1QFY13 financials with EBITDA at Rs850 mn (-15% yoy); the negative variance resulted
from weak national advertising (declined ~15% yoy) in (1) mature markets given high
base of 1QFY12 (~20% yoy growth then) and (2) dependence of print advertising on
cyclical sectors such as BFSI, durables and real estate (surprising in DBCL markets). BUY
but with reduced upside and 12-month forward FV of Rs260 (Rs290 previously) given
(1) advertising down-cycle is sharper-than-previously-envisaged and (2) expansions likely
to take more time to be completed and profitable.

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link: http://www.kotaksecurities.com/pdf/indiadaily/indiadaily20072012mk.pdf