Volume & realisations drive Q2 FY19 topline growth for Music Broadcast by 6%

Music Broadcast Limited (MBL), which runs the Radio City network, has reported topline growth of 6 per cent YOY at Rs 80 crore for the second quarter ended September 30, 2018. For H1 FY2019, the company reported a topline growth of 7 per cent at Rs 156 crore. Growth in topline was equally driven by volume and realisations. 

EBITDA grew by10 per cent YOY to Rs 27 crore in Q2 FY2018, with EBIDTA margin at 33.2 per cent, an improvement by ~121bps. Profit Before Tax (PBT) grew by 18 per cent YOY to Rs 22 crore, with the margin at 27.6 per cent, an improvement by ~290bps. 

Legacy markets and Phase 3 markets saw healthy utilisations at ~70 per cent and ~50 per cent, respectively. 

In H1 FY2019, EBITDA stood at Rs 53 crore, recording a growth of 13 per cent, while EBIDTA margin was at 33.8 per cent, an improvement by ~202 bps. 

PBT recorded a 20 per cent growth at Rs 42 crore, with the margin at 27.2 per cent, an improvement by ~309 bps. 

During the first half, Music Broadcast undertook a rate hike in top 12 markets. 

New expansion markets grew 3 times faster compared to multiple frequency markets. 

Commenting on the results, Apurva Purohit, Director, Music Broadcast Limited, said, “In this challenging economy, which has uncertain economic growth and an increasing liquidity crunch, I’m pleased to inform that our performance was encouraging and we were able to show a topline growth of 7 per cent, which is equally contributed by volumes and realisations. Key sectors like government, real estate and durables performed better than last year. Our operating margins saw healthy improvement of ~202 bps in H1 FY2019, whereas PBT margin grew at high pace at ~309 bps indicating better operating leverage. We have been able to maintain a healthy liquidity position, which in the current economic scenario will help us to sustain our growth. We look forward to a healthy H2 as festive season picks up and the consumption improves in rural and urban areas.”