DB Corp, which prints and publishes newspaper in four languages across 13 Indian states, is expected to delay its entry in Bihar due to decline in revenues from advertisements.
"We met DB Corp's management to get an update on its print business...New launches are on backburner. The slowdown in ad revenues during the last few quarters is expected to delay DB Corp's entry in Bihar, at least by a year," Amit Patil, analyst with Angel Broking, wrote in his note to clients.
The company, however, may still go ahead with smaller launches in Maharashtra at Akola, Amravati and Latur if there is any improvement in the advertising revenue market.
DB Corp has an advertising focused revenue model with average cover prices being the lowest among peers. The company believes there is still scope to increase circulation even in its mature markets and hence is still following the penetration strategy, the analyst said.
However, cover prices have been marginally increased in selective markets such as Haryana, Chhattisgarh and a few regions of Madhya Pradesh where the scope for further penetration is limited.
"The company's advertising revenue growth is expected to pick up from the third quarter of the current financial year, aided by the festival season as well as lower base effect. The national advertising revenues which had witnessed a decline in the first quarter of 2012-13 are also expected to bounce back going forward," Patil said.