Focused Strategy yields high EBITDA Margin of 33.6 % despite Investment in 11 New Stations for MBL

Screenshot_20170531_001503

•Operating Revenue : Rs. 271 Crs; Growth of 20%
•PAT : Rs. 37 Crs; Growth of 33%

Mumbai, May 29, 2017 (GPN) : Music Broadcast Limited (MBL), India’s 1st Private FM Radio Broadcaster, has reported its Audited Financial Results for the Quarter and Year ended March 31, 2017.

Screenshot_20170531_001650Key highlights for FY2017 :

Successful Listing of Music Broadcast Limited

– Issue subscribed 40x

– Primary Issuance of Rs. 400 Crs

Maintained Leadership position as per Third Party Research

– # 1 in Mumbai, Bengaluru and Delhi in terms of ‘Top Of Mind’ brand recall for the last 12 months period ended Jan 2017, as per AZ Research Report

– Radio City reaches over 52.5 mn listeners in 23 cities covered by AZ Research

– Advertisement volume increased at CAGR of 12.1% compared to Industry CAGR of

9.1 % in past 6 years in case of legacy stations as per AirCheck Data (14 Markets)

Radio City Legacy Stations

– Mumbai, Delhi, Bangalore, Chennai, Pune, Hyderabad, Ahmedabad, Surat, Nagpur,Lucknow, Jaipur, Baroda, Coimbatore, Vizag, Ahmednagar, Sholapur, Sangli, Nanded,Jalgaon and Akola
– Agra, Bareilly, Gorakhpur, Varanasi, Jalandhar, Ranchi, Hissar and Karnal (Earlier Radio Mantra to Radio City)

– Annualized Average Utilization level: 65-75% offering enough head room for increase in volume

Operationalized 11 New Stations acquired in Phase III

– Kanpur, Patna, Madurai, Nasik, Kolhapur, Udaipur, Ajmer, Kota, Bikaner, Jamshedpur and Patiala

– Capital Expenditure for setting up these stations completed

– Annualised current Utilization levels of 20-30% in initial period itself

Awards & Accolades

– Received 28 awards in 2016 and 33 awards so far in 2017

– Awarded under the category ‘Best Talk/Interview Special’ and ‘Community

Service by the New York Festival Radio Awards in 2016

– Awarded under the category ‘Best Breakfast Programme – Telegu’, ‘Best Radio

Programme – Inhouse’, ‘Best Radio Programme Packaging’, ‘Best Interactive Idea’,

‘Best Media Campaign’, Excellence in Radio Awards in 2016 by IRF.

Commenting on the results Ms. Apurva Purohit, Director said: “I would like to thank everyone for being a part of our IPO and the continued support and confidence whichyou have demonstrated  in us. We assure you that we will always endeavour to live up to, and maintain the legacy of our parent Jagran Prakashan Ltd and work tirelessly in the interest of all of our stake holders.I am happy to report that we not only did sustain our EBITDA Margins at 34% despiteinvestments in the 11 New Stations but we did better than what we had envisaged. All our newly acquired stations became operational by Q4 and we expect them to break even earlier than we expected. Our legacy stations are also continuing to perform incredibly well registering revenue growth superior to the industry in line with our past trend on the back of our leadership position in most of our markets including Mumbai, Bengaluru and Delhi.I would also like to stress on our policy of prudence and profitable growth in line with our Group’s policy which is evident in all our actions. Accordingly, our bidding strategy for Phase III stations centred around continuing our emphasis on being an efficient and relevant  network for our advertisers and on delivering return on capital.I am happy that the team has delivered higher than targeted profits and also a higher growth rate than the industry;despitedemonetization whichderailed the momentum built in the first half of the year and which flattened revenues in Q4. However, growth has started coming back and we expect a far better year ahead.”Ends.

 

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.

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