Music Broadcast goes out of tune after Q3 PAT slides 38%

Music Broadcast fell 1.43% to Rs 27.55 after net profit fell 37.9% to Rs 10.18 crore on a 20% drop in net sales to Rs 69.64 crore in Q3 December 2019 over Q3 December 2018.

On a standalone basis, profit before tax (PBT) slumped 42.4% to Rs 14.35 crore in Q3 December 2019 as compared to Rs 24.93 crore in Q3 December 2018. Tax expense fell 53.1% to Rs 2.56 crore in Q3 December 2019 over Rs 5.46 crore in Q3 December 2018. The Q3 result was announced after market hours yesterday, 27 January 2020.

Meanwhile, the company's board recommended issuing 1 bonus share for every 4 equity shares held by shareholders (1:4). The bonus shares would be dispatched within two months from the date of board approval i.e. on or before 26 March 2020.

EBITDA grew by 17% quarter-on-quarter (QoQ) at Rs 21.6 crore with 31% margins.

Commenting on the Q3 perfromance, Apurva Purohit, the director of Music Broadcast, said that, "Q3 brought some festive uptick with revenue growing at 11% as compared to Q2, however the economy continued to remain in turmoil and the season was very subdued when compared to last year. The company performance has been in line with the rest of the media and advertising industry's performance. Keeping in mind these conditions our focus to keep cost under check has remained resolute, leading to an EBITDA margin of 31%, both at the quarter and YTD level and a PAT margin of 18% at 9MFY20. As far as the RBNL acquisition is concerned, there is uncertainty on the MIB approval which is unaccountably delayed."

"With the budget around the corner, we hope that the government unveils urgent measures/policies which will kick start demand in the near-term, thereby inducing corporates and a local advertiser to increase investment in ad spends," he added.

Music Broadcast is engaged in the business of operating Private FM radio stations through the brand Radio City'. The company started its operations in India in July, 2001 in Bangalore and operates radio stations in 39 cities across India.

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