Music Broadcast Q1 net profit plunges to Rs 8.43 cr
MUMBAI: FM radio operator Music Broadcast Limited’s (MBL) net profit for the quarter ended 30th June has dropped to Rs 8.43 crore compared to Rs 18.35 crore in the corresponding quarter of the previous fiscal.
EBITDA dropped to Rs 22.37 crore as against Rs 26 crore in the same period last year. Profit before tax (PBT) was Rs 14.50 crore compared to Rs 28.15 crore. Top-line for the quarter was Rs 69.78 Crores compared to Rs 81.87 crore. Expenditure remained flat at Rs 58.57 crore compared to Rs 58.33 crore.
During the quarter, the company signed an agreement with Reliance Broadcast Network Ltd (RBNL) and the application was submitted to the ministry of information and broadcasting (MIB).
Commenting on the results, MBL director Apurva Purohit said, “It has been a challenging start to the year with weak sentiments, slowing economic growth and poor consumption trends which directly impacted the overall advertising environment. Based on corporate results thus far, it is clear that the slowdown is broad-based and not confined to any specific sector.
“While national advertisers delayed their campaigns due to reduced demand and margin pressures, local advertisers sought low-cost opportunities to advertise. Political advertising was also lower than expected and was not able to compensate for the shortfall in Government and other categories. Despite these severe pressures MBL was able to deliver EBITDA margins of 32% and improve yield by 4% this quarter.
“With regards to our acquisition of RBNL, all the binding agreements have been signed and documents have been submitted for MIB approvals. We await a quick response from the ministry.”