Home >> Media-Radio >> Article

Beating the slowdown, Radio One reports 72 pc growth in revenues

21-January-2009
Font Size   16
Beating the slowdown, Radio One reports 72 pc growth in revenues

Amid the slowdown gloom Radio One, the joint venture between Mid-Day Multimedia and BBC Worldwide, has something to cheer about. The FM player has reported a 72 per cent growth in revenues for the period April to December 2008 as it declared its Q3 results on January 20, 2009.

The company’s PBT operations (before license fee) for April to December 31, 2008 period is positive and has grown by 108 per cent over the corresponding period last year. Radio One has reported a 49 per cent growth in Q3 FY09, as compared to the corresponding quarter of the previous fiscal. In comparison, the radio industry has dipped 6 per cent in the six metro cities in Q3, according to the company.

Commenting on the Q3 results, Vineet Singh Hukmani, CEO, Radio One, said, “Despite a great H1 and the subsequent slowdown in Q3 in the industry this year, we have maintained our performance from Q2 to Q3, essentially due to focus on targeted listenership, efficiency pricing and stringent cost control. Our new stations – Ahmedabad, Pune and Kolkata – operate efficiently with an average of less than 14 people each, and our all India costs are lower than the industry average by 39 per cent. Our all India headcount in seven cities is 144 people against the industry average of 235-250 people across seven metro cities. Our marketing and advertising costs are not even 20 per cent of the industry average.”

On the future of the radio industry, Hukmani said, “Performance of radio companies would have improved drastically, but recession is driving rates of all media down (led by print), as everyone is chasing outlays and not rates. Even stations that are ranked high in RAM have gone into survival mode and have cut their rates drastically, thereby allowing an irreversible commoditisation of the industry. This commoditisation further nullifies their past and present expenditure on brand building. The cost of music continues to be very high, which further restricts PBT growth. The I&B Ministry has to wake up to the genuine requests made by the AROI for support on these fronts, especially on extension of license fee period from 10 years to 15 years. No player would be looking at getting into Phase III if these Phase II problems prevail. 2009 is the year that the I&B Ministry will make or break the radio industry.”

Radio One is positioned as a metro specialist and operates in seven cities – Mumbai, Delhi, Bangalore, Chennai, Pune, Ahmedabad, and Kolkata, where it launched in December 2008 to complete its metro footprint.

Tags Media-Radio News

In an interaction with exchange4media, PC Musthafa, CEO & Co-Founder iD Fresh Food shares how the brand deals with competition and marketing strategies followed by them.

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

right
left
EXCHANGE4MEDIA’S LOUDEST.IN HOSTS INAUGURAL EDITION OF MUSIC INC. IN MUMBAI EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS PORTER PRIZE & INSTITUTE FOR COMPETITIVENESS RECOGNIZE STRATEGIC ACUMEN IN COMPANIES DELHI AD CLUB-SAARC AWARDS 2018 RECOGNIZE EXCELLENCE ACROSS CREATIVE, MEDIA & DIGITAL AGENCIES BSNL & CALL2ACTION COMMUNICATION INDIA LAUNCH MOBILE ADVERTISING PLATFORM, INFOMO IN NEW DELHI CHILDREN’S RIGHTS ACTIVIST KAILASH SATYARTHI LAUNCHES BOOK ‘EVERY CHILD MATTERS’ SENIOR JOURNALIST VIJAY TRIVEDI LAUNCHES BOOK ‘YADA YADA HI YOGI’ BASED ON YOGI ADITYANATH EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS PORTER PRIZE & INSTITUTE FOR COMPETITIVENESS RECOGNIZE STRATEGIC ACUMEN IN COMPANIES DELHI AD CLUB-SAARC AWARDS 2018 RECOGNIZE EXCELLENCE ACROSS CREATIVE, MEDIA & DIGITAL AGENCIES MARK TULLY, OTHER JOURNALISTS HONOURED BY MUMBAI PRESS CLUB AT ANNUAL REDINK AWARDS TALENTED YOUNGSTERS GET TO PRESENT THEIR WORK BEFORE STALWARTS IN THE AD INDUSTRY INDIA RADIO FORUM 2018 RECOGNIZES EXCELLENCE IN RADIO INDUSTRY OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI

Guest Column: Co-founder & Strategy Director at Reptile FX dissects the endless possibilities of how an explainer video can meet various communication objectives

‘Do What Moves You’ campaign aims to shine a spotlight on the brand’s belief in the power of self-expression

Mathrubhumi Media School will offer PG diploma courses in print & broadcast journalism