Music Broadcast Q1 net up 25%; board approves Rs 57 cr share buyback plan
MUMBAI: Music Broadcast Limited (MBL), the parent company of Radio City, has recorded 25% growth in net profit at Rs 25 crore for the quarter ended 30 June 2018. The company had reported Rs 15 crore net profit in the same quarter of the previous fiscal.
Operating profit rose 17% to Rs 17 crore compared to Rs 22.2 crore in the year ago period.
The company’s revenue increased 8% to Rs 75.7 crore from Rs 70.3 crore. The company said it had implemented rate hike in all 12 core markets in Q1. It also said that there has been a drop in variance between peak and non-peak time bands in legacy markets. The company is also improving utilisations in Phase III markets.
Commenting on the results, MBL director Apurva Purohit said, “I am pleased to inform that our Company continued its trend of delivering stronger than expected EBITDA Margins with this quarter’s margin being 34%. Our top line showed a growth of 8%, on the back of rate hikes in all 12 core markets and improved utilisations in the Phase III stations in accordance with our strategy formulated for the year. Our PAT growth which is more than 3 times of the top line growth at 25% reiterates the fixed cost nature of our business as well as validates the strategic choices we made while bidding, i.e. to expand our geographic footprint, rather than deepen it at unviable costs.”
Purohit further stated that the growth going forward would be contributed by a mix of yield improvement & inventory growth with Phase III markets increasing their share in company’s revenues and profits. “Additionally, the enhancement of our footprint to 72% 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,” she added.
Meanwhile, the MBL board has unanimously approved a buyback proposal for the purchase of its fully paid up equity shares of face value of Rs 10 each, at a price not exceeding Rs 385 per equity share through the open market provided that buyback will not exceed Rs 57 crore representing 9.87 % of the aggregate of total paid-up equity share capital.
“Continuing our Group’s philosophy of rewarding Shareholders without compromising with the liquidity that may be needed in future for inorganic growth, the Board of Directors have approved the share Buy Back programme of Rs. 57 crore at a price up to Rs. 385 per share. Even post the Buy Back our Balance Sheet remains strong to support future inorganic growth,” Purohit added.