Next Radio Ltd which owns the 94.3 Radio One brand announced its Q1 2015-16 financial results as declared the board meeting on 6th August 2015.
Radio One’s operating revenue grew from 14.52cr in Q1 14-15 to 17.21cr in Q1 15-16, an impressive 18.5% growth in a radio industry where the average has been lower than 8%.
Furthermore the healthy topline growth contributed to a 51% growth in EBIDTA from 4.28cr in Q1 14-15 to 6.49cr in Q1 15-16 due to cost efficiencies of the business thereby garnering an EBIDTA Margin of 38% which is again best in industry. Profit before tax grew 364% from 0.48Cr in Q1 14-15 to 2.2cr in Q1 15-16 again the highest in the radio industry.
“Large networks have seen their Q1 volume growth largely due a spurt in DAVP advertising but our ‘value’ growth has come from existing and new clients offering us better rates for our innovations across our 7 ‘differentiated’ cities. In a slow economy clients prefer better targeting that Radio One offers as compared to generic reach offered by others. Our effort in consistent digital engagement of a well profiled audience has established a new currency with our advertiser said Vineet Singh Hukmani, MD & CEO Next Radio Ltd”
Future strategies in the radio industry can only be revealed once the phase 3 auctions are over. But it is evident that escalating auction prices especially in Delhi, Mumbai and Bangalore will certainly affect the profitability of many large network players in the short term even though it ‘may’ mean improved topline. Multiple frequencies owned by a single player could also be subjected to discounting by agencies and advertisers.
Radio One runs differentiated formats in each of our seven cities – International in Delhi and Mumbai, Bollywood in Bangalore, Pune and Chennai and Retro Bollywood in Ahmedabad and Kolkata. Ace investor Rakesh Jhunjhunwala has recently committed an investment into the company and the company has also raised debt in order to fund its plans in Phase 3.