BENGALURU: Indian FM Radio company Music Broadcast Limited (MBL) or Radio City reported higher revenue and improved profits for the quarter ended 30 June 2017 (Q1-18, current quarter) as compared to the corresponding quarter of the previous year (Q1-17). The company reported 17.3 percent higher total income for Q1-18 at Rs 703.1 million as compared to Rs 628.4 million in Q1-17. Total comprehensive income (TCI) for Q1-18 increased 42.3 percent to Rs 108.4 million (14.5 percent of Total Income) from Rs 76.2 million ((11.9 percent of Total Income) in Q1-17.

MBL’s operating profit (EBIDTA inclusive of other income) in the current quarter increased 13.7 percent to Rs 217.7 million (29 percent of Total Income) from Rs 191.5 million (30 percent of Total Income) in the corresponding quarter of the previous year. Profit after Tax or PAT in Q1-18 also increased 42.3 percent to Rs 108.4 million (14.5 percent of Total Income) from Rs 76.2 million (11.9 percent of Total Income) in Q1-17.

Total Expenditure for Q1-18 increased 11.7 percent to Rs 584 million (77.9 percent of Total Income) from Rs 522.7 million (81.8 percent of Total Income) in Q1-17. Other expense in Q1-18 increased 9.9 percent to Rs 258.2 million (34.4 percent of Total Income) from Rs 234.9 million (39.8 percent of Total Income) in the corresponding year ago quarter.

MBL paid 10.9 percent more towards license fees for Q1-18 at Rs 51.9 million (6.9 percent of Total Income) as compared to Rs 46.8 million (7 percent of Total Income) in Q1-17. Finance Costs in the current quarter declined 5.6 percent to Rs 38.6 million (5.1 percent of Total Income) from Rs 40.9 million (6.4 percent of Total Income) in Q1-17. Employee Costs in the current quarter increased 10.4 percent to Rs 171.3 million (22.8 percent of Total Income) from Rs 155.2 million (24.3 percent of Total Income) in the previous year.

The company added eleven new stations acquired during Phase III auctions. All the 11 stations were operational for the entire quarter with utilization levels in new stations of 25 to 35 percent. MBL says that 5 out of the 11 new stations were running at more than 30 percent utilization levels.

Company speak

Commenting on the results MBL director Apurva Purohit, said, “I am pleased to inform you that the performance of the company for the quarter has been better than expectation.

We have been able to deliver margins of approximately 32 percent and show growth of 16 percent despite the additional operating cost of the new stations. This is because of rate hike in the legacy stations as well as better than expected utilization in the new markets. Our strategy of profitable growth and not bidding high costs for acquisition in Phase III along with maintaining lowest cost per million is delivery results. Going ahead in the future I see better utilization in our new stations supported by increased utilization and price hike in our legacy stations. We are confident on maintaining our current level of EBITDA margins and achieve our long term goal of profitable leadership.”