In This Article:
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Revenue (Q3 FY25): INR65 crores, an 8% year-on-year growth.
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EBITDA (Q3 FY25): INR18 crores, a 15% year-on-year increase.
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EBITDA Margin (Q3 FY25): Expanded by 160 bps to 27%.
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Revenue (Nine-month FY25): INR180 crores, an 8% year-on-year increase.
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EBITDA (Nine-month FY25): INR43 crores, a 7% year-on-year growth.
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EBITDA Margin (Nine-month FY25): 24%.
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Digital Segment Growth: 53% year-on-year, contributing 12% to total revenue.
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Adjusted Profit After Tax (Q3 FY25): INR5.7 crores.
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Adjusted Profit After Tax (Nine-month FY25): INR10.5 crores.
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Cash Reserves (as of December 31, 2024): INR342 crores.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Music Broadcast Ltd (NSE:RADIOCITY) reported an 8% year-on-year revenue growth for Q3 FY25, reaching INR65 crores.
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EBITDA grew by 15% year-on-year, with margins expanding by 160 basis points to 27%.
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The digital segment achieved a remarkable 53% year-on-year growth, contributing 12% to total revenue.
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Radio City maintained a strong market share of 19% and is the top choice for advertisers, with 40% of the industry's client base.
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The company has a robust liquidity position with cash reserves of INR342 crores, providing flexibility for future opportunities.
Negative Points
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The effective rate for advertising remains stagnant at 75% of pre-COVID levels, impacting profitability.
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High-yield markets like Bombay, Delhi, and Mangalore are not yet saturated, limiting the ability to increase advertising rates.
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Employee costs have increased significantly, affecting operating margins, due to investments in digital initiatives.
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The company faces ongoing litigation in the Madras High Court, with potential financial implications if the outcome is unfavorable.
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The radio industry is experiencing challenges with inventory utilization, affecting the ability to increase pricing.
Q & A Highlights
Q: Could you share insights into how the radio industry is expected to evolve and grow in FY26, and what are the company's plans for future growth? A: The radio industry is expected to grow at a double-digit rate, assuming favorable conditions. Music Broadcast Ltd is strategically positioned with both radio and digital initiatives, which should place us ahead of the competition. However, a clearer perspective on the next year will be available by the end of this year.
Q: What factors contributed to the company's exceptional performance compared to Q2? Was it mainly due to the festive season? A: The growth was a combination of festive season demand and digital growth. Our digital initiatives, launched earlier in the year, began to show results this quarter, contributing to the higher share alongside festive demand.