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Radio One operating profit in Q1 flat as rev sees tepid growth
MUMBAI: Next Radio Ltd (94.3 Radio One), the joint venture between Next Mediaworks and BBC Worldwide, recorded a strong 68.8 per cent increase in profit before tax (PBT) to Rs 4.7 million in the quarter ended 30 June.
The company witnessed a rather tepid growth in revenue during the quarter under review. Revenue grew 4.3 per cent to Rs 14.52 crore ( Rs 145.2 million), reflecting moderate earnings from advertisements.
Faster growth in operating expenses led to a stagnation of operating profit (EBIDTA) at Rs 4.28 crore (Rs 42.8 million), same as the corresponding period of the previous fiscal.
Programming innovation and digital engagement expenses grew 6 per cent to Rs 10.24 crore (Rs 102.4 million).
Increased provisioning for depreciation as required under the reformed Companies Act somewhat negatively affected the company’s financial performance.
Interestingly, the company maintains that it has generated cash 15 per cent more than what it did in the corresponding period last year and believes this to be sufficient to meet all payouts.
Next Radio Ltd MD & CEO Vineet Singh Hukmani states, “We are happy to see our differentiation and innovations using digital engagement reap high profit due to a higher price despite a commoditised non-differentiated metro market.”
Sounding optimistic about future prospects, he goes on to add, “We anxiously await the announcement on the acceptance of TRAI formula for migration and auction dates by the Ministry of Information & Broadcasting. This will set the tone for Phase III, which is a huge turning point for FM radio, the government ( Rs 1,800 cr to be raised from bidding), listeners and advertisers.”