Music Broadcast FY21 revenue declines 49% at Rs 127.6 crore
The company achieved an operating cost saving of Rs. 52 crore for FY21. It managed to reduce cost by 27% compared to FY20
MBL said that the new revenue opportunities contributed Rs 29 crore of revenue for FY21. It also noted that it led the new client addition for the year with 34% share. It also claimed to have the highest client share in the industry at 43%, as of 31st March 2021.
The company achieved an operating cost saving of Rs. 52 crore for FY21. It managed to reduce cost by 27% compared to FY20. The company's revenue collection improved with collection of Rs 48 crore during the quarter of which collected from the government was Rs 9 crore.
Commenting on the results, MBL Director Apurva Purohit said, “I am pleased to say that our industry-best performance continued in Q4 FY21 as well. As the economy continued to show growth momentum, the Media and Entertainment sector also reflected the same with volumes going up across all media. However, the 2ndwave of COVID-19 has again led to lockdown restrictions being imposed by various states. Even as these measures are likely to affect economic activity temporarily, the impact will be much lower than last year, as containment measures are more specific and households, as well as businesses, have adjusted to this pattern. We believe that as the vaccination drive increases, local restrictions will start to ease out and the pick-up in consumption will call for higher spends on advertisements.
"The recent FICCI-EY report estimates a 64% growth for the Radio Industry in the next year. We have recorded a steady improvement in volumes for Radio City quarter by quarter over the last full year. The better than industry volume growth led to Radio City holding on to its pole position with 21% market share across all the operator’s main frequencies in the reported air check markets. The various initiatives that were planned and implemented throughout the year have helped us strengthen this leadership position. In the broader scheme of things, Radio as a platform continues to be an attractive proposition and out of the total of 6,700 new clients who advertised during the year, 2,266 were new clients who advertised for the 1sttimewith Radio City garnering a highest share at 34%. Our Balance Sheet continues to be robust with Zero Debt and a liquidity position of Rs 233 crore."
In Q4, the company's revenue grew 4% QoQ to Rs 42.5 crore compared to Rs 40.7 crore in Q3. The company posted a net loss of Rs 3.7 crore as against a net profit of Rs 10 lakh. Operating profit declined 95% to Rs 5.2 crore from Rs 9.2 crore.
The company said that it maintained leadership position in the FM radio segment with 21% volume market share in Q4 as well as FY21. It further stated that the ad volumes were up 11% for Q4 FY21. Even during the non-festive period, volumes in line with the festive quarter Q3FY21.
The radio industry has been reporting consistent growth in ad volumes since July 2020. The ad volume had grown 4% YoY for Q4 FY21. A total of 3700 clients advertised on Radio in Q4 of which 1700 clients used the radio platform for the first time.
The company had cash and cash equivalents of Rs. 233 crore as on March 31 st 2021.
