MUMBAI: Music Broadcast Limited (MBL), has reported its financial results for the quarter ended 30 June 2018.

Key Highlights

• Rate hike in all core markets
• Improving Utilizations in Phase III Markets with a positive contribution to EBITDA
• 34.4% operating margin delivery testimony of fixed costs and operating leverage playing out

Key Highlights – Buy Back Details:

• In continuation of Group’s philosophy to reward shareholders
• Promoters and Key Managerial Personnel will NOT participate in Buy Back
• Buy Back Route: Open Market at a price upto Rs. 385
• Buy Back to the extent of Rs. 57 crores as against Cash PAT* of Rs. 78 crores

*Cash PAT = PAT + Depreciation and Amortization

Commenting on the results Director Apurva Purohit, said, I am pleased to inform you that our Company continued its trend of delivering stronger than expected EBITDA Margins with this quarter’s margin being 34 per cent. Our top line showed a growth of 8 per cent, on the back of rate hikes in all 12 core markets and improved utilizations in the Phase III stations in accordance with our strategy formulated for the year.  Our PAT growth which is more than 3 times of the top line growth at 25 per cent reiterates the fixed cost nature of our business as well as validates the strategic choices we made while bidding, i.e. to expand our geographic footprint, rather than deepen it at unviable costs.

Continuing our Group’s philosophy of rewarding shareholders without compromising with the liquidity that may be needed in future for inorganic growth, the Board of Directors have approved the share Buy Back programme of Rs.57 Cr at a price upto Rs. 385 per share. Even post the Buy Back our Balance Sheet remains strong to support future inorganic growth.

Going forward, the growth would be contributed by a mix of yield improvement and inventory growth with Phase III markets increasing their share in company’s revenues and profits. Additionally, the enhancement of our footprint to 72 per cent of the FM reach, through the recent acquisition of Friends FM in a key market like Kolkata, becomes a more formidable network for our advertisers.”