Radio One 94.3, the joint venture between Mid-Day Multimedia and BBC Worldwide, has announced its quarter and first half financial results for 2009. Net revenue for H1 was stood at Rs 15.16 crore, a growth of 3 per cent over the corresponding period last year, which stood at Rs 14.66 crore. At the quarter level, the figures for H1 last year and this year were identical at Rs 8.02 crore.
EBIDTA (Earnings before interest Depreciation Tax and Amortization) was up 2 per cent over H1 last year despite adding a full station cost of Kolkata. Company sources revealed that this was an encouraging performance given that the radio industry had dipped in revenues by 6.5 per cent all India, and by over 13 per cent in the seven cities that Radio One operates.
In a release issued, Vineet Singh Hukmani, Managing Director, Radio One, said, “We have achieved our stable financial performance based on a ‘sound sales strategy’ and excellent cost management. Apart from growing in net revenues in a difficult time, we have been declared the No. 1 radio brand and No. 7 media brand from a list of 125 brands in the media space (Pitch magazine survey on media planners and buyers) on the strength of our innovative idea solutions for clients and agencies.”
He further said, “We are the only radio player to start an education revenue stream in partnership with Symbiosis International University, which includes a radio management course to be extended to three cities soon. We are the only focused ‘music leader’ in the FM market where we average 34 per cent more songs per hour than any competitor, allowing our ‘maximum music fataafat’ proposition to be tangible to our listeners.”
“For the radio business to grow, it is imperative that the Government extend the license fee period from 10 years to 15 years, given that no player has or is likely to break even in the first five years. This extension of license fee period will make the industry lucrative for investment both with Indian and foreign investors. It is this simple step that will allow Phase III to be an attractive investment opportunity. Allowing an FDI limit of 49 per cent is really crucial as there are many foreign media entertainment brands interested in the Indian radio metro markets. We need a quick solution to very high music costs that are preventing radio companies from making healthy profits,” Hukmani noted.
Radio One operates in seven cities – Mumbai, Delhi, Bangalore, Chennai, Kolkata, Ahmedabad and Pune.