Brightcom Group Ltd. (NSE: BCG): Q3FY23 Results Out; Total Income rise 42% YoY

Brightcom Group Ltd (NSE: BCG) is a digital marketing company that provides a range of marketing and advertising services, including programmatic advertising, video advertising, and search engine marketing. The company operates globally and has offices in India, the United States, and Israel. Its goal is to help its clients effectively reach and engage their target audience across various digital platforms.

The company reported strong results with consolidated revenues of Rs 2,865.1 crore and a net profit of Rs 543.9 crore, representing an increase of 42% and 46% YoY, respectively. The company’s focus continues to remain on improving its return on equity (ROE), which is currently at 25.16%. The main drivers of revenue were seasonality in the advertising business and a focus on impression-based and performance-based marketing.

During the period ended December 31, 2022, Brightcom Group reported total income of Rs. 2863.9 crores, an increase from Rs. 1680.4 crore during the previous quarter. The company’s net profit also increased from Rs. 320.6 crore in the previous quarter to Rs. 543.9 crores during the period ended December 31, 2022. The company’s earnings per share (EPS) also increased from Rs. 1.59 to Rs. 2.69 during the same period.

During the 9-month period ended December 31, 2022, Brightcom Group reported total income of Rs. 6021.8 crore, an increase from Rs. 3778.2 crore during the same period in the previous year. The company’s net profit also increased from Rs. 689.1 crore to Rs. 1141.8 crore during the same period. The company’s EPS decreased from Rs. 6.58 to Rs. 5.66 during the 9-month period ended December 31, 2022.

Brightcom Group’s revenue growth was mainly driven by seasonality in the advertising business, where the third quarter always contributes the most. The company also focused on impression-based and performance-based marketing to gain a larger market share. The company added seven new ad agencies, 13 new direct advertisers, and two new newspaper relationships for its local news platform ‘Blocal’ exchange during the quarter. Additionally, the company increased options for publisher networks by offering optimum solutions between CPM, CPC, and CPA spending to maximize their revenues. On an annualized basis, the ROE is nearly 25.16%, indicating a strong performance in this area. The company continues to focus on improving this metric.

Brightcom Group reported strong financial results in Q3FY23, driven by seasonality in the advertising business and a focus on impression-based and performance-based marketing. The company is focused on improving its return on equity and has begun to monetize its overseas subsidiaries. These results indicate that Brightcom Group is performing well and has a strong outlook for the future.