Music Broadcast Limited (MBL), the parent company of India’s first FM radio broadcaster Radio City, has reported a 116% growth in revenue at Rs 44.1 crore in Q1 FY23 against Rs 20.5 crore in the same quarter last year.
The company reported an operating profit of Rs 8.8 crore against a loss of Rs 9.3 crore in Q1 FY22. Net loss reduced to zero from Rs 12.9 crore.
MBL’s volume shares dipped from 21% to 18% primarily due to an increase in rates resulting in a reduction in low ER volumes. It also stated that 38% of the total clients on the radio platform advertised on Radio City. Further, 30% of new clients on radio platform advertised on Radio City.
The company’s collection for the quarter stood at Rs 51.7 crore, of which collection from the government was Rs 4.89 crore. MBA had cash and cash equivalents of Rs 273 crore as of June 30th, 2022.
Commenting on the results, MBL Director Shailesh Gupta said, “The recovery in Radio Adex, was seen across all the major sectors, which even on a low base have risen phenomenally and augur well for the industry. With Real Estate and Electricals growing by over 300% and strong growth in other core sectors such as Pharma, Auto, and FMCG, we are extremely optimistic about the growth trajectory that lies ahead, especially with the festive season upcoming around the corner and multiple sporting events and product launch lined up.”
Gupta added that Radio City’s adoption of the ‘Radigitalization’ strategy (digital integrations with Radio) has paid off well. “Traditional and OTT mediums are also feeding off this differentiated offering and reach by tapping into our resources and brand solutions, as consumers seeking excellent content on digital platforms are expected to draw more businesses to take advantage of the convergence of radio and digital. With 32 percent of the revenue this quarter coming from new revenue initiatives, they have started to make up a sizeable portion of our total top line and show every promise of being sustainable and continuing to fuel consistent growth going forward.”