Radio City's parent company records 16% revenue growth in Q2
Music Broadcast Limited's net profit nosedived by 65% to Rs 10 lakh from Rs 30 lakh
Music Broadcast Limited (MBL), the owner of Radio City, has posted 16% growth in revenue at Rs 48.6 crore for the quarter ended 30th September compared to Rs 42 crore in the same quarter of the last fiscal.
Operating profit for the quarter declined 5% to Rs 8.9 crore from Rs 9.4 crore. Net profit nosedived by 65% to Rs 10 lakh from Rs 30 lakh. Total expenses increased 15% to Rs 53.3 crore from Rs 46.3 crore.
The company recorded a market share of 18% (Aircheck 15 Markets), primarily due to the refusal of low ER Clients. It added that 40% of the total clients and 37% of the new clients on the radio platform have advertised on Radio City.
During the quarter, the company's collection stood at Rs. 56.47 crore, of which the collection from the government was Rs. 5.18 crore. MBL had cash and cash equivalents of Rs 284 crore, as of September 30th, 2022.
Commenting on the results, MBL Director Shailesh Gupta said, “The return of advertising volumes witnessed over the last quarter continued in the current quarter as well, with the industry growing by 20% YoY. Our resilience through the tough times has paid off, as we stand on a strong footing both in terms of market share and a strong omnichannel presence which helps us leverage our deep networks and relationships and offer maximum value to our customers. In line with our guidance over the quarters, some of the costs saved were permanent in nature, however, some business-related costs have come back as a result of resumption in the normal course of business, which has led to a slight reduction in EBITDA Margins.
"On a sectoral level, the core sectors of Real Estate and Pharma continued to show promise, while Education came back in a big way. Finance too contributed a significant portion of the total volumes. Government and Auto were the laggards during the quarter, degrowing marginally, however, we do expect to see that turnaround in the next quarter owing to upcoming elections and the festive season spending."
The digital revenue of the company grew by 60% over Q2FY22. "On the digital front, we have achieved substantial growth, owing to our strong presence and reach across multiple platforms and leveraging our incredible in-house talent to deliver high-quality content and greater engagement with our audiences. This is in line with our ‘Radigitalization’ strategy i.e., digital integrations with Radio at its core, and we see sustainable benefits accruing over time," he said.
MBL garnered 35% of the revenue from Created Business - Properties, Proactive pitches, Digital, Satellite & Special days. "With new revenue efforts accounting for 35% of revenue this quarter, they have begun to represent a sizable component of our overall top line and exhibit every indication of being sustainable and continuing to support steady growth moving forward. As of September 30, 2022, the company has cash reserves totaling Rs. 284 crores, staying true to its basic principles of maintaining a strong liquidity position as a war chest to weather any storm and grasp new opportunities," Gupta said.
Regarding the bonus issue of the non-convertible non-cumulative redeemable preference shares, Gupta said that the meeting of the Equity Shareholders and Unsecured Creditors of the Company was held on Thursday, June 23, 2022, wherein the Shareholders and Unsecured Creditors have approved the scheme and thereafter the Company has filed the petition with NCLT for further course of action. We will keep you posted on the developments as they unfold.
Operating profit for the quarter declined 5% to Rs 8.9 crore from Rs 9.4 crore. Net profit nosedived by 65% to Rs 10 lakh from Rs 30 lakh. Total expenses increased 15% to Rs 53.3 crore from Rs 46.3 crore.
The company recorded a market share of 18% (Aircheck 15 Markets), primarily due to the refusal of low ER Clients. It added that 40% of the total clients and 37% of the new clients on the radio platform have advertised on Radio City.
During the quarter, the company's collection stood at Rs. 56.47 crore, of which the collection from the government was Rs. 5.18 crore. MBL had cash and cash equivalents of Rs 284 crore, as of September 30th, 2022.
Commenting on the results, MBL Director Shailesh Gupta said, “The return of advertising volumes witnessed over the last quarter continued in the current quarter as well, with the industry growing by 20% YoY. Our resilience through the tough times has paid off, as we stand on a strong footing both in terms of market share and a strong omnichannel presence which helps us leverage our deep networks and relationships and offer maximum value to our customers. In line with our guidance over the quarters, some of the costs saved were permanent in nature, however, some business-related costs have come back as a result of resumption in the normal course of business, which has led to a slight reduction in EBITDA Margins.
"On a sectoral level, the core sectors of Real Estate and Pharma continued to show promise, while Education came back in a big way. Finance too contributed a significant portion of the total volumes. Government and Auto were the laggards during the quarter, degrowing marginally, however, we do expect to see that turnaround in the next quarter owing to upcoming elections and the festive season spending."
The digital revenue of the company grew by 60% over Q2FY22. "On the digital front, we have achieved substantial growth, owing to our strong presence and reach across multiple platforms and leveraging our incredible in-house talent to deliver high-quality content and greater engagement with our audiences. This is in line with our ‘Radigitalization’ strategy i.e., digital integrations with Radio at its core, and we see sustainable benefits accruing over time," he said.
MBL garnered 35% of the revenue from Created Business - Properties, Proactive pitches, Digital, Satellite & Special days. "With new revenue efforts accounting for 35% of revenue this quarter, they have begun to represent a sizable component of our overall top line and exhibit every indication of being sustainable and continuing to support steady growth moving forward. As of September 30, 2022, the company has cash reserves totaling Rs. 284 crores, staying true to its basic principles of maintaining a strong liquidity position as a war chest to weather any storm and grasp new opportunities," Gupta said.
Regarding the bonus issue of the non-convertible non-cumulative redeemable preference shares, Gupta said that the meeting of the Equity Shareholders and Unsecured Creditors of the Company was held on Thursday, June 23, 2022, wherein the Shareholders and Unsecured Creditors have approved the scheme and thereafter the Company has filed the petition with NCLT for further course of action. We will keep you posted on the developments as they unfold.
