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• Revenue (Q2 FY25): INR 54.8 Crores, a 5% year-on-year increase.

• Revenue (H1 FY25): INR 114.4 Crores, an 8% year-on-year increase.

• EBITDA (Q2 FY25): INR 9.5 Crores, a 21% year-on-year decline.

• EBITDA Margin (Q2 FY25): 17.4%.

• EBITDA (H1 FY25): INR 25.5 Crores, a 2% year-on-year increase.

• EBITDA Margin (H1 FY25): 22.2%.

• Adjusted Profit After Tax (Q2 FY25): INR 0.1 Crores, accounting for interest on NCRPS.

• Adjusted Profit After Tax (H1 FY25): INR 4.8 Crores, reflecting interest on NCRPS.

• Cash Reserves (as of September 30, 2024): INR 341 Crores.

• Digital Segment Growth: 33% year-on-year, contributing 11% to total revenue.

• Warning! GuruFocus has detected 3 Warning Sign with NSE:RADIOCITY.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revenue increased by 5% year on year to INR 55 Crores, indicating growth despite a challenging media environment.

• The finance sector experienced remarkable growth of 45%, contributing 9% to the total volume.

• The digital segment achieved an impressive 33% year on year growth, contributing 11% to total revenue.

• Radio City remains the top choice for advertisers, with 38% of the industry's client base selecting their platforms.

• The launch of India's first 24/7 video channel RC Studio on JIO TV has significantly expanded reach and audience engagement.

Negative Points

• EBITDA declined by 21% year on year, with margins at 17.4% for the quarter.

• The real estate sector, accounting for 17% of the industry, experienced a year on year decline of 20%.

• The Pharma sector saw a decrease of 4%, contributing 11% to the industry.

• Volume growth declined by 3% for both the industry and the company.

• Employee costs and other expenses surged by 16% and 12% respectively, impacting profitability.

Q & A Highlights

Q: Can you share insights on the industry slowdown and recovery expectations? A: The slowdown was primarily in July and August, with a slight recovery starting in September. The outlook for the third quarter appears positive, and we hope the recovery continues into the latter half of the year. - Ashit Kukian, CEO

Q: What guidance can you provide for the full year margins? A: We have achieved 8% growth in the first half of the year. We expect our digital initiatives to start showing results by the fourth quarter, aiming for double-digit growth if market conditions improve. - Ashit Kukian, CEO

Q: What is the current inventory utilization rate? A: Our inventory utilization for this quarter stands at 71%. - Ashit Kukian, CEO

Q: Can you elaborate on the digital business focus and goals for the next 2-3 years? A: We aim to enhance listener experiences and provide integrated advertising solutions. Our digital strategy involves creating and distributing content across platforms where consumers are active, ensuring a larger share of digital revenues. - Ashit Kukian, CEO

Q: What are the reasons for the increase in employee costs and other expenses? A: The increase is due to hiring for digital initiatives and investments in specialist roles for projects like our 24/7 streaming channel on JIO TV. These are long-term investments in our digital strategy. - Ashit Kukian, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.