Next Radio (Radio One), the joint venture between Next Mediaworks and BBC Worldwide, has reported revenues of Rs 14.52 crore in Q1 FY2015, a growth of 4.3 per cent from Rs 13.93 crore in the corresponding period of the previous fiscal.
Operating expenses were up 6 per cent due to programming innovation and digital engagement expenses. EBIDTA was flat at Rs 4.28 crore as compared to the same period last year, but at a margin of 30 per cent.
Profit before tax grew 68.8 per cent from Rs 0.28 crore in Q1 FY14 to Rs 0.47 crore in Q1 FY15 due to lowering of interest cost by 58 per cent arising out of reduced debt. (The profit was higher at Rs 0.83 crore, but had to factor in the increase in depreciation charge as per the new Companies Act). Cash generated by the business grew by 15 per cent as compared to the same period.
Commenting on the company’s performance, Vineet Singh Hukmani, MD & CEO, Next Radio said, “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. We are happy with the support that our existing banking partners are giving us, and the renewed interest from current shareholders and prospective investors is heartening. 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 3, which is a huge turning point for FM radio, the Government (Rs 1,800 crore to be raised from bidding), listeners and advertisers.”