Radio City reports revenue of Rs 40.66 cr in Q3
The company revealed that it has achieved an operating cost saving of Rs. 40 crore YTD till December
Total expenditure stood at Rs 45.57 crore compared to Rs 59.45 crore in the previous fiscal. During the quarter the company achieved PAT break-even as well as becoming EBITDA Positive. EBITDA stood at Rs 4.2 crore as against Rs 21.6 crore. Net Profit for the period stood at Rs 7.32 lakh compared to Rs 10.18 crore.
The company clarified that due to Covid-19, the figures do not represent normal quarter/operations and to that extent are not strictly comparable with last year or the preceding quarter.
On the radio industry, the company said that there has been a consistent growth in ad volumes since July 2020. Volumes grew by 1.6 times in Q3 FY21 as compared to Q2 FY21. 4200 clients advertised on radio in Q3 of which 2200 clients used the radio platform for the first time.
It also said that there has been a negligible impact of IPAB order on Royalty Cost. The Intellectual Property Appellate Board (IPAB) had passed an order on 31st December fixing statutory licensing rate for radio royalties.
The company revealed that it has achieved an operating cost saving of Rs. 40 crore YTD till December. Further, there has been a 29% cost reduction compared to the same period last year. The company had improved its collection efficiency by collecting Rs. 33 crore during the quarter of which collection from the government was Rs 5 crore.
Commenting on the results, MBL director Apurva Purohit, Director said, “I am very pleased with the resurgence of Radio City’s ad volumes which showed a growth of 9% over the previous year. The economy has continued to see sustained recovery since the opening up of lockdown and with the commencement of the vaccination programme, we expect the growth momentum to accelerate going into next year. The media and entertainment sector echoed the same momentum and has been seeing continuous improvement in operational parameters.
"Radio City has been able to continue its growth trajectory from the last quarter in terms of both revenue and volumes. Our continued cost-saving initiatives have helped us to report a positive EBITDA of Rs 4.2 crores and reached break-even at PAT level. We also continued to work on improving our collection efficiency and have collected Rs. 33 crores in Q3.
"The radio industry has witnessed healthy growth in new client addition at more than 2,200 clients in Q3and we continue to be a major beneficiary with a market share of 34% of these clients. Towards the end of the quarter, the IPAB released its order with regards to royalty payment by FM broadcasters and based on the same, we do not anticipate any major impact on our royalty payments. The bonus issue of the non-convertible non-cumulative preference shares is going through various regulatory approvals and is currently being reviewed by SEBI."
The company's cash and cash equivalents stood at Rs. 235 crore as of 31st December 2020.
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