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Music Broadcast Ltd.

BSE: 540366 Sector: Media
NSE: RADIOCITY ISIN Code: INE919I01024
BSE 00:00 | 30 Sep 24.30 -0.10
(-0.41%)
OPEN

24.35

HIGH

24.45

LOW

23.80

NSE 00:00 | 30 Sep 24.30 -0.25
(-1.02%)
OPEN

24.55

HIGH

24.55

LOW

23.75

OPEN 24.35
PREVIOUS CLOSE 24.40
VOLUME 9497
52-Week high 27.60
52-Week low 21.20
P/E 115.71
Mkt Cap.(Rs cr) 840
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.35
CLOSE 24.40
VOLUME 9497
52-Week high 27.60
52-Week low 21.20
P/E 115.71
Mkt Cap.(Rs cr) 840
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Music Broadcast Ltd. (RADIOCITY) - Chairman Speech

Company chairman speech

ADVANCING WITH OPTIMISM. EXPLORING NEW AVENUES.

Radio is a creatively unique and personalised medium which swiftly adapts itself tothe tastes of the newer generation of listeners and evolves with latest technologies tostay relevant.

DEAR SHAREHOLDERS

The financial year in India began with the devastating second wave of COVID-19 causinga record number of cases and seeing our health infrastructure getting stretched to thelimit.

The massive nationwide vaccination drive taken up by the Government of India helped thecountry develop a fighting chance against the pandemic. Economic activity reboundedfollowing the rapid abatement of the third wave in February 2022 and the lifting of state-wise restrictions. Due to these efforts the Indian economy grew by 8.9% in FY 2021-22.The Indian Media and Entertainment 2021 industry growth was at 16.4% and 614 billion upfrom 386 billion in 2020 which is 89% of the pre-pandemic levels. The sector is expectedto be back to its pre-pandemic level and grow by 17% to 889 billion in 2022. FMCG was thelargest category contributing to advertising spends in the current year followed bye-commerce education and auto sectors.

Encapsulating our performance

We have shown strong recovery having started to recuperate our lost revenues.

It is expected to take one more year to achieve pre-pandemic revenues as the focus forthe year is to improve yield which continues to be lower than the pre-COVID level. Withthe growth in the economy and increase in advertising spends we witnessed revenue growthof 32% to Rs 168.4 crores from Rs 127.6 crores. Our EBITDA stands at Rs 11 crores and ournet loss reported is Rs 5.7 crores during the reporting period as against the net loss ofRs 24.2 crores in the previous financial year.

Overall collections for the year were Rs 180 crores. This in turn has boosted our cashand cash equivalent reserves to Rs 264 crores as of March 31 2022.

With regard to our industry ranking we maintained our leadership position with 21%market share for the entire FY 2021- 22. We are at 31% growth which is at par withindustry volume growth at 32% YoY in FY 2021-22. It saw 43% of radio platform advertisersand 36% of new advertisers advertising with Radio City from Radio New advertisers.Inventory utilisation has grown to 67% in FY 2021- 22 against 49% in FY 2020-21.

We are at the centre of the radio-digital strategy. We achieved digital revenue of overD9 crores with profits and the way this new revenue stream is shaping up it isanticipated to open novel doors for us becoming a significant contributor in the future.With a fixed cost base business model we have an edge compared to print or otherbusinesses because once it breaks even a substantial part of additional revenuetranslates into operating profits.

With regard to the issuance of the Non-Convertible Non- Cumulative RedeemablePreference Share to our non-promoter shareholders by way of Bonus (Scheme) we receivedthe Hon'ble NCLT order directing to hold the meetings of the shareholders and unsecuredcreditors on June 23 2022 to approve the Scheme.

Appreciations for team accomplishments

Radio is a creatively unique and personalised medium which swiftly adapts itself tothe tastes of the newer generation of listeners and evolves with the latest technologiesto stay relevant. We are focused on developing innovative campaigns and were bestowed with25 awards at ACEF Global Customer Engagement Forum & Awards 2022. The radio channelreceived 18 Gold 4 Silver and 3 Bronze awards across varied radio categories. We alsobagged the Most Admired Radio Station for Customer Engagement acclaim.

New York Festivals also announced the winners of Radio Awards 2022 where Radio City wontwo finalist certificates from the international forum for their entries Escape fromUkraine and Hosabelaku. These triumphs are a testament to the fact that we continue todevelop unique propositions that resonate with the audience's content consumptionpreferences.

Outlook

The outlook for the radio industry appears more than just bright as radio continues tobe one of the most relevant mediums to engage the masses. Metro cities such as MumbaiDelhi and Bangalore are expected to contribute higher revenues and yield better outcomesfor radio companies in this financial year. The growth of the sector will be driven by therecovery of the SME advertiser segment retail revival growth in bank credit reopeningof offices and focus on non-FCT revenues.

With COVID-19 taking a gradual backseat and pandemic led restrictions being upliftedmarkets are operating in full swing. This allows the industry to boost business fromon-ground events and activations to attain desired revenue numbers. As the world movestowards digitalisation the future of radio is focusing on the amalgamation of radio plusdigital. Globally digital radio surpassed 1.4 billion listeners and there is huge scopefor India to tap into this trend and create new revenue streams. Similarly RJ influencersare becoming popular choices for advertisers as they will continue building genuinerelationships by engaging incredible conversations. This transformative and effectivemarketing tool will empower advertisers to optimise their marketing spends. The radioindustry is confident that the state government will continue to contribute substantiallyin the coming years in the growth and progress of the sector.

Radio will consolidate to grow at 9% from 16 billion to 18 billion on the back of coreradio along with integration of digital credible influencers and content syndication. Allof this coupled with the restart of on-ground activities which augurs well for us andthe industry as a whole are expected to bring back the buzz and excitement.

Before I conclude I would like to thank our listeners advertisers shareholdersgovernment bankers and most importantly the Radio City team which has been contributingto our growth story. I am confident that Radio City will continue to deliver onstakeholders' expectations and live up to the trust reposed in it. COVID-19 is unlikely todisappear soon so continue to follow all safety norms.

Warm Regards
Vijay Tandon

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