Radio One operating profit grows exponentially

29 Apr,2013

By A Correspondent

 

Radio One Ltd, now renamed Next Radio Ltd, the joint venture between Next MediaWorks Ltd and BBC Worldwide, has declared its audited financial results for the year ended March 31, 2013 at the annual board meeting held recently.

 

Revenue grew 16 percent to Rs 50.41 crore for the year ended March 31 as compared to Rs 43.48 crore in the corresponding period last year.

 

EBIDTA profit grew exponentially to Rs 18.41 crore in the year ended March 31, as compared to Rs 0.25 crore in the corresponding period last year. The EBIDTA margin for the year ended March 31 was at 36.5 percent which is in line with the best in the media industry.

 

Profit before tax (before exceptional items) improved to a positive of Rs 0.58 crore in the year ended March 31 as compared to a loss of Rs 17.78 crore in the corresponding period last year.

 

The operations were sufficiently cash positive for the first time.

 

Radio One MD & CEO Vineet Singh Hukmani said ‘We have transformed our business with strategic restructuring. Our focus on profiled educated audiences helped us move 100% advertising revenue to our ‘on air’ product. Led by our international formats in Mumbai and Delhi, we are delivering high quality differentiated products in each of our 7 cities at the lowest cost. Added to this we have initiated up to a 30% increase in advertising rates successfully.’

 

Radio One, which runs 94.3FM, is keen to participate in Phase 3 bidding and is looking to expand to high value metro markets. “We are hopeful that the MIB will soon allow existing players with 10 year licenses to extend to 15 year licenses before phase 3 bidding. This will result in confident bidding by existing players,” added Mr Hukmani.

 

 

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