Music Broadcast PAT up 25% in Q1 FY2019; topline grows to Rs 75.7 cr
Music Broadcast Limited (MBL), which owns Radio City, has reported a 25 per cent growth in its Profit After Tax (PAT) for the first quarter ended June 30, 2018. PAT margin improved by ~240 bps to 17.8 per cent.
The private FM radio broadcaster saw continued improvement in its operating profit, which was up by 17.5 per cent YOY. Topline increased by 8 per cent to Rs 75.7 crore in Q1 FY2019. This was due to the rate hike seen by Music Broadcast in all its core markets. Improved utilisations in Phase 3 markets had a positive contribution to the FM radio broadcaster’s EBITDA. The 34.4 per cent operating margin delivery is testimony of fixed costs and operating leverage playing out.
The Board of Directors have approved the share Buy Back programme of Rs 57 crore at a price up to Rs 385 per share.
Commenting on the results, Apurva Purohit, Director, Music Broadcast, said, “I am pleased to inform you that our company continued its trend of delivering stronger than expected EBITDA margins, with this quarter’s margin being 34 per cent. Our topline showed a growth of 8 per cent on the back of rate hikes in all 12 core markets and improved utilisations in the Phase 3 stations in accordance with our strategy formulated for the year. Our PAT growth, which is more than 3 times of the topline growth at 25 per cent, reiterates the fixed cost nature of our business as well as validates the strategic choices we made while bidding, that is, to expand our geographic footprint, rather than deepen it at unviable costs.”
“Going forward, the growth would be contributed by a mix of yield improvement and inventory growth with Phase 3 markets increasing their share in the company’s revenues and profits. Additionally, the enhancement of our footprint to 72 per cent of the FM reach, through the recent acquisition of Friends FM in a key market like Kolkata, becomes a more formidable network for our advertisers,” Purohit added.