Music Broadcast Limited (MBL), the proprietor of Radio City, has reported a 16% surge in revenue, reaching Rs 48.6 crore for the quarter ending on September 30, compared to Rs 42 crore in the corresponding quarter of the previous fiscal year.
Although the operating profit for the quarter experienced a 5% decline to Rs 8.9 crore from Rs 9.4 crore, the net profit witnessed a significant decrease of 65%, falling to Rs 10 lakh from Rs 30 lakh. Total expenses rose by 15% to Rs 53.3 crore from Rs 46.3 crore.
The company noted a market share of 18% (Aircheck 15 Markets), primarily attributed to the rejection of low ER Clients. MBL highlighted that 40% of the overall clients and 37% of the new clients on the radio platform have advertised on Radio City.
During the quarter, the company’s collection amounted to Rs. 56.47 crore, with the government contributing Rs. 5.18 crore to the total collection. As of September 30, 2022, MBL reported cash and cash equivalents of Rs 284 crore.
MBL Director Shailesh Gupta commented on the results, stating, “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.”
Gupta further mentioned that while some costs saved were permanent, certain business-related costs have returned due to the resumption of normal business operations, resulting in a slight reduction in EBITDA Margins.
Regarding sectoral performance, Gupta noted that the Real Estate and Pharma sectors showed promise, Education made a significant comeback, and Finance contributed substantially. However, Government and Auto sectors experienced marginal declines, with expectations of a turnaround in the next quarter due to upcoming elections and festive season spending.
The company’s digital revenue saw a remarkable 60% growth over Q2FY22. Gupta explained, “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.”
MBL derived 35% of its revenue from Created Business, including Properties, Proactive pitches, Digital, Satellite, and Special days. Gupta highlighted that these new revenue efforts, accounting for 35% of revenue in the quarter, have become a significant component of the overall top line and show indications of sustainability, supporting steady growth.
Regarding the bonus issue of non-convertible non-cumulative redeemable preference shares, Gupta mentioned that the Equity Shareholders and Unsecured Creditors of the company have approved the scheme, and the company has filed the petition with NCLT for further proceedings. Updates on developments will be shared as they unfold.
