Radio Mid-day records 70% growth in Revenues and Positive EBIDTA
* In listener terms, Radio One grew a consolidated 24% from IRS Q1 to Q3, where industry fell by 2%
* 2010-11 3rd Qtr Revenue up 70% and EBIDTA profit up 319% over YTD
* MD Vineet Singh Hukmani cites monetization of innovation and local revenues, efficient cost structure, efficient collections that equal period revenues as key factors for excellent performance and heightened investor interest
MUMBAI: 94.3 Radio One, the joint venture between Mid-day Multimedia and BBC worldwide, has recorded exceptional growth in revenues and EBIDTA (earnings before interest, depreciation, Tax and Amoritzation) for Q3 as compared to the same period in the previous year.
Revenues were at Rs.12.31Cr for Q3 2010-11 -- 70% higher from Rs.7.23Cr for the same quarter last year. EBIDTA profit for the quarter was at Rs.3.13 Cr positive a huge jump from the 0.47Cr loss in the same period last year. The industry revenue growth recorded in Radio One's 7 metro markets was at 22% from last year.
At the year to date levels April to December 2010-11, Radio One revenues grew 49% at Rs 33.41Cr as against revenue of Rs 22.40Cr last year. EBIDTA at the year to date level is now positive at Rs 3.50Cr against a loss of 1.6 Cr, a 319% jump.
Vineet Singh Hukmani, Managing Director, said, We have recorded an exceptional revenue performance because we are a focused metro player. Our monetization of innovation and excellent growth in local revenues has allowed us to grow at more than double the market rate. Our cost structure is the most efficient in the industry resulting in a significant EBIDTA jump and our collections in the market are equal to our revenues in the period thereby resulting in the lowest debtor days in the industry....
On Radio One's growth, Hukmani said, In listener terms, Radio One grew a consolidated 24% from IRS Q1 to Q3 where the industry fell by 2%. We invested in a strong music focus as �India's only music station' strengthened by our brand ambassadors Shankar Ehsaan Loy. Our clients have appreciated our music specialization and our music led activations have recorded over 100% growth in revenues from last year....
On the announcement of Phase 3 and expansion plans, Hukmani said, Since Phase 3 licensing is now inevitable, there is heightened investor interest in our revenue approach and we would like to expand to only lucrative metros and large cities. This, provided the I&B ministry and the government ensure license extensions to 15 years for existing licenses so the industry can recover accumulated losses. The government also must ensure the e-auctions do not allow bidding to spiral out of control as Radio is free for the aam aadmi (common man) unlike telecom. The music royalty issue must reach a conclusive solution with strong govt mediation as this will single handedly decide the success of Phase 3 licensing. An unresolved royalty problem can result in a huge loss to the exchequer if Phase 3 fails....
