MBL delivers strong margins at 36% in Q4 FY18; topline growth at 14%
Music Broadcast Limited (MBL), which owns Radio City, has delivered a topline growth of 14 per cent in the fourth quarter of FY2018, with a margin of 36 per cent. Profit after tax grew by 261 per cent.
MBL reported a 65 per cent growth in EBITDA, with EBITDA margins at 36 per cent. The FM broadcaster has achieved EBITDA breakeven in the Phase 3 markets.
For the financial year 2018, MB: reported strong revenue growth at 10 per cent, which was majorly contributed by volume increase in the new stations and robust value growth in the legacy markets. EBITDA margins for FY2017 stood at 32.6 per cent. Profit after tax grew by 41 per cent.
Commenting on the results, Apurva Purohit, Director, Music Broadcast Limited, said, “Our company delivered a robust topline growth of 14 per cent in Q4. The growth was majorly contributed by Phase III stations in terms of volume and by legacy stations in terms of yields. We reported margin of 36 per cent for the quarter and 32.6 per cent for the year end 2018, much better than expectations and, in fact, maintained consistent margins of above 30 per cent in all the four quarters despite a tough year and Phase III investments. This was on the back of a volume growth of 8 per cent; higher than the industry growth of 5 per cent, thereby gaining 1 per cent market share for Radio City.”
She further said, “Our Phase III stations have seen a breakeven for Q4, much before our estimates, and they will have a meaningful contribution to the EBITDA in the quarters to come. Our legacy stations are running at a healthy utilization levels. This gives us confidence that our strategy of being focussed will continue to deliver better than industry shareholder returns.”