Radio City delivers 64% EBITDA growth QoQ
Mumbai, January 25, 2023: Music Broadcast Limited (MBL), India’s 1st Private FM Radio Broadcaster, has reported its Financial Results for the quarter and nine months that ended December 31st, 2022.
· Key Highlights – 9MFY23:
9M FY23 Top line of Rs 147.5 Crores; 20% Growth YoY
Maintained a strong Position with a 19% Volume Market Share
EBITDA* at Rs. 32.2 Crores; EBIDTA Margin at 21.8%
*Includes other income
· Key Highlights – Q3FY23:
Q3 FY23 Top line of Rs 54.7 Crores; 12% Growth QoQ
Maintained a strong Position with a 19% Volume Market Share
EBITDA* at Rs. 14.5 Crores; EBIDTA Margin at 26.6%
*Includes other income
Commenting on the results Mr. Shailesh Gupta, Director said:
“We are pleased to report healthy growth in EBITDA QoQ, with margins improving to 26.6% in Q3 FY 2023 compared to 18.3% in Q2 FY 2023.
As per a recent research report – 8 in 10 are listening to Radio in Tier-II and Tier-III cities, which is our key growth market, giving a reason to be optimistic about the effectiveness and growth of our medium. In terms of market share, we stand at 19% as against 18% last quarter, and has established a strong omnichannel presence we are in a good spot to leverage our deep networks and relationships and offer maximum value to our customers.
In terms of sectoral ad spending, the core sector of the real estate continued to show promise, while the auto industry made a strong comeback. Pharma, which makes up a sizeable share of the total volumes, also experienced a significant rise. Finance, along with the sector of food and soft drinks, saw a degrowth that slowed the predicted growth trajectory. The Government sector continues to decline and shrank significantly, but we are optimistic that it will rebound in light of the impending elections.
On the digital front, owing to our strong presence as well as reach across multiple platforms and by leveraging our incredible in-house talent to deliver high-quality content and build greater engagement with our audiences, we have set the right foundations. This is in line with our ‘Radigitalization’ strategy i.e. focused on digital integrations with Radio at its core. Digital revenues accounted for an 8% contribution to the topline and have a large headway for growth going forward.
With new revenue efforts making up 31% of revenue this quarter, they have started to account for a significant portion of our overall top line and show every sign of being sustainable going forward. As of December 31, 2022, the company has cash reserves totaling Rs. 288 crores, according to its fundamental philosophy of maintaining a strong liquidity position as a war chest to weather any storm and seize new opportunities.
With regards to the bonus issue of the non-convertible non-cumulative redeemable preference shares (“NCRPS”), the scheme was approved by the Hon’ble NCLT on 23rd December 2022. The Company had fixed the record date as 13th of January 2023 to determine the eligible non-promoter equity shareholders to receive Bonus NCRPS. The Bonus Committee allotted the NCRPS to the eligible shareholders on 19th January 2023. As per the terms of the scheme, the shares will be listed at both stock exchanges and will be readily tradable. Further, the NCRPS shall be redeemed at the price of Rs 120 per NCRPS after the period of 36 months from the date of allotment.”