Radio One reports strong operating profits in fiscal 2013

Format 'differentiation' strategy pays handsome dividends 

BestMediaInfo Bureau | Delhi | April 26, 2013

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 on April 25, 2013.

Revenue grew 16 per cent to Rs 50.41 crore for fiscal 2013 compared to Rs 43.48 crore in the corresponding period last year. EBIDTA grew exponentially to Rs 18.41 crore for the year compared with Rs 0.25 crore last year. The EBIDTA margin for the fiscal year was at 36.5 per cent 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 fiscal 2013 compared with a loss of Rs 17.78 crore last fiscal.

The operations were sufficiently cash positive for the first time.

Vineet Singh Hukmani

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 per cent 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 seven cities at the lowest cost. Added to this we have initiated up to a 30 per cent increase in advertising rates successfully.”

Radio One is keen to participate in Phase 3 bidding and is looking to expand to high value metro markets. “We are hopeful that the Ministry of Information & Broadcasting will soon allow existing players with 10-year licences to extend to 15-year licences before Phase 3 bidding. This will result in confident bidding by existing players,” added Hukmani.

Next Radio Ltd owns the '94.3 Radio One' brand and runs International Radio formats in Mumbai and Delhi, 100 per cent Hindi Retro formats in Kolkata and Ahmedabad (95 FM), premium Bollywood formats in Bangalore and Pune, and Chennai's only 100 per cent request station.

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