Radio One EBIDTA grows 23.6% in Q3 FY17-18; raises ad rates by 18%
Next Radio Ltd (Radio One), the radio subsidiary of Next MediaWorks Ltd, has reported revenues of Rs 2,199 lakh in the third quarter ended December 31, 2017, compared to Rs 2,109 lakh in the corresponding quarter of the last fiscal, registering an increase of 4.3 per cent.
EBIDTA was up 23.6 per cent at Rs 620 lakh in the same period from Rs 502 lakh in Q3 FY16-17. Profit Before Tax was up 262 per cent from a negative Rs 65 lakh in Q3 of the previous quarter to a positive Rs 105 lakh in Q3 FY17-18.
Commenting on the performance this quarter, Vineet Singh Hukmani, MD & CEO, Next Radio Ltd, said, “We are happy to see a turnaround in our Q3 FY17-18 numbers that ride on highly improved cost efficiencies and a consistent improvement in performance across all our radio markets. Furthermore, these are ‘pure radio growth numbers’ as Radio One is the only ‘targeted’ radio player that does not do on ground events/ activations, thereby protecting the full value of our on air inventory.”
He further said, “We are seeing a glimmer of positivity in the economy, thanks to the rising manufacturing index numbers. We would like to believe that the problems faced by media due to demonetisation, GST and RERA are behind us and that the radio industry will be able to post a 9-10 per cent growth in the next financial year.”
Hukmani added that the company’s investments into its on-air radio product and its new online streaming product, www.1cast.in, were deepening its engagement with upscale audiences beyond its 7 FM radio metro markets. “Our new online business radio channel, ‘Business One’, is being loved by its premium listeners,” he claimed, adding, “We are also very happy to be adjudged ‘The Most Attractive Media-Radio’ brand by TRA research in an annual study that is conducted across 10,000 brands in 16 cities.”
He also said, “We feel the radio industry needs to raise rates, given the exorbitant amount of inventory utilisation and we are announcing an 18 per cent average rate increase across our 7 markets effective March 1, 2018, to meet our increased investments into upscale audience engagement on air and online.”'
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