Radio City Q2FY24 revenue up 8%

Radio City’s parent company Music Broadcast (MBL) has reported its financial results for the quarter ended September 30, 2023.

As per the company, the radio channel has recorded a topline growth of 7.82% YoY for it clocked in Rs 52.44 crore in the quarter ended September 30, 2023. In the corresponding quarter of the previous fiscal year, it generated Rs 48.64 crore in the form of revenue from operations.

On a half-yearly basis, the Revenue from Operations of Radio City for the half-year ended September 30, 2023, stood at Rs 105.47 crore as against Rs 92.78. crore in the corresponding period of the previous fiscal, implying a 13.67% increase.

The total expenses for Q2FY24 stood at 56.82 crore. In the corresponding quarter of the previous fiscal year, the company reported its total expenses at Rs 53.32 crore.

The company also posted a Net Profit of Rs 0.36 crore in Q2FY24, against last year’s Rs 0.1 crore.

Similarly, Radio City’s Net Profit stood at Rs 1.30 crore in H1FY24. In the corresponding period of the previous fiscal year the same stood at Rs 0.11 crore.

In its regulatory filing, the company also mentioned that it maintained a strong position with 19% volume market share in Q2FY24.

Commenting on the quarterly results, Shailesh Gupta, Director, said, "I am pleased to report that in Q2 and H1FY24, our profit growth has exceeded our revenue growth. During this period, we achieved EBITDA margins of 23.1% in Q2 and 23.5% in H1, marking a 480 bps and 450 bps increase, respectively. These improved margins are the outcome of our continuous cost reduction initiatives over the past few years, combined with our revenue growth, leading to enhanced operational efficiency."

In terms of sectoral growth in advertising, the real estate industry observed a substantial 40% YoY increase in advertising spending. The pharmaceutical market expanded by 30%, while the auto industry grew by an impressive 56% compared to the previous year. Conversely, the finance industry experienced a decline of 6%. The food and beverages sector showed a 21% growth, and government advertising increased by 12% YoY, Gupta said.

"We are adapting to the evolving media landscape, one that is agnostic to platforms, with digital at the core of content creation, distribution, consumption, and engagement. To provide a seamless experience across platforms, we are enhancing our capabilities to be at the forefront of the digital technology revolution, delivering top-notch entertainment in line with the evolving preferences and needs of our audience. For the first half of the financial year, our digital business grew by 24% compared to H1FY23," Gupta said.

"In H1FY24, our inventory utilisation stood at 73%, a significant improvement from the 56% recorded in H1FY23," he added.

Gupta also said that Radio City continues to be a popular choice for both existing and new clients on the radio advertising platform. Out of the total clients on the Radio platform, 40% advertised on Radio City and amongst the new clients on the Radio platform, 35% chose to advertise on Radio City.

"We are proud to generate 36% of our revenue from diversified businesses such as properties, proactive pitches, digital ventures, sponsorships, and special events. Furthermore, we have secured the second-largest client count share in the industry, standing at 39% in Q2 FY24," Guota said.

"Our liquidity position remains robust. As of September 30, 2023, our company held cash reserves amounting to Rs 305 crores," he added.

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