Jagran forays into radio segment with the acquisition of Radio City which is present in top 14 of top 16 advertising revenue generating markets
BestMediaInfo Bureau | Delhi | December 16, 2014
Jagran Prakashan is set to enter the radio industry via acquisition of Music Broadcast Private Limited (MBPL). The acquisition is subject to regulatory approvals, including from Ministry of Information and Broadcasting, and execution of binding agreements. As part of the acquisition, the company is acquiring MBPL‚Äôs holding company and fellow subsidiary that provides activations.
MBPL runs India‚Äôs leading radio network under the name ‚ÄėRadio City‚Äô and is present in 20 stations across 7 states. The network has a strong national presence with a presence in the top 14 out of 16 advertisement revenues generating markets with a focus on SEC AB audiences. MBPL‚Äôs FY14 revenues were INR 161.8 Crores and the H1-FY14 revenues exhibit healthy growth of 28% in ad revenues. MBPL‚Äôs current operating margins are 28% approx.
Mahendra Mohan Gupta, CMD, Jagran Prakashan, said, ‚ÄúThe radio business has witnessed significant growth in recent past and is expected to grow at more than 18%¬† CAGR in the coming years, per KPMG FICCI. This deal will catapult JPL into a leadership position in the radio industry and enable the company to benefit from the rapid growth in radio advertising. Acquisition of radio finally consolidates our position as India‚Äôs leading media and communication group. The radio business will complement our print, outdoor activation and digital business and enable deeper inroads with advertisers both at national and local level.‚ÄĚ
Apurva Purohit, CEO, Radio City 91.1 FM,¬†said, ‚ÄúJagran Prakashan has entered into an agreement to acquire Radio City 91.1 FM, subject to the approval of the ministry of information & broadcasting. This augurs well for all the stake holders. Both Jagran and Radio City have been pioneers and leaders in their respective space and this partnership will help augment the growth aspirations of the brand. We look forward to exciting times ahead.‚ÄĚ
The acquisition will primarily be funded from internal accruals and investments. The acquisition will not impair the company‚Äôs ability to distribute dividends.