MUMBAI: Music Broadcast Limited, which operates Jagran Prakashan Limited (JPL) owned Radio City, reported operating revenue of Rs 55.54 crores in Q2 2015-2016 from Rs 47.38 crores in Q1 2015-2016. The operating revenue of first half of FY 2015-2016 of the network stands at Rs 102.92.

JPL which reported consolidated operating revenues of Rs 519.51 crores, consolidated operating profit of Rs 146.89 crores and consolidated Net Profit (PAT) of Rs 91.28 crores for Q2 2015-2016, included the figures of Radio City from the date of acquisition, effective from 11 June, 2015 to 30 September, 2015. The figure of the radio business was consolidated for the first time from quarter FY 2016.

The operating profit of the radio business for first half of FY 2015-2016 stands at Rs 30.61 crores, as operating profit increased from Rs 14.52 crores in Q1 2015-2016 to Rs 16.09 crores in the same financial year of the Q1. Meanwhile, the expense of the company stands at Rs 72.31 crores for the first half of FY 2015-2016. Expenses for Radio City witnessed an increase of 20 per cent, with Rs 39.45 crores in Q2 2015-2016 from Rs 32.86 crores in Q2 2015-2016.

Radio City’s financial includes a special category termed as ‘exceptional item’ which represents incentives to the Radio City management team, in respect of their past services, and in terms of agreement with the erstwhile promoters, which stands at Rs 13.58 crores.

Radio City posted a net profit after tax of Rs 12.05 crore in Q2 2015-2016. The network witnessed a rise of Rs 12.05 crores for profit before tax.

Commenting on the performance of the company for the quarter ended 30th September 2015, JPL CMD Mahendra Mohan Gupta said, “It gives me immense pleasure to report that the Company has for the first time crossed the mark of Rs 500 crores in turnover in a quarter. Chasing unprofitable growth has never been our philosophy and this is where the team has done an incredible job by delivering still healthier growth in profits.”

Gupta further added that they are happy with the acquisition of one of the two strongest FM radio networks of the country; Radio City, which continues to perform on expected lines. He added, “Phase III auction has witnessed unrealistic bidding for metro as well as non-metro stations and I do not see the frequencies, taken at exorbitant prices, giving the return on investment. As far as we are concerned, we remained disciplined but could still manage to get what we had planned. We do not subscribe to the strategy of multiple-frequency as opposed to expansion to newer markets and therefore biding for multiple-frequency was never part of our plan.”

The network has expanded its footprint by adding 11 new markets to its existing list of radio stations. With the addition of the new towns, and the addition of Radio Mantra towns, Radio City reaches to 39 of the most important towns in India, dominating the most important states of Maharashtra, Uttar Pradesh and Rajasthan.

Further commenting on the digital arm of JPL, Gupta added, “Besides publication and radio businesses, digital business too continues to record steep growth in revenues and occupy a prominent market position. With strong franchise across various media platforms, market position and operating performance duly backed by financial prudence, the Company is very well poised to next level of growth and enhancing the wealth of shareholders.”