India’s Music Broadcast Limited (MBL), which owns the Radio City network, has reported its Financial Results for the Quarter ended June 30, 2018.
According to the company, key highlights include: rate hike in all core markets, improving Utilizations in Phase III Markets with a positive contribution to EBITDA and 34.4% operating margin delivery testimony of fixed costs and operating leverage playing out.
In continuation of Group's philosophy to reward shareholders, promoters & key managerial personnel will not participate in buy back, buy back route is through open market at a price up to Rs 385 and buy back will be to the extent of Rs 570 million against cash PAT of Rs 780 million.
Commenting on the results Apurva Purohit, Director said: “I am pleased to inform you that our Company continued its trend of delivering stronger than expected EBITDA Margins with this quarter's margin being 34%. Our topline showed a growth of 8%, on the back of rate hikes in all 12 core markets and improved utilizations in the Phase III stations in accordance with our strategy formulated for the year. Our PAT growth which is more than 3 times of the top line growth at 25% reiterates the fixed cost nature of our business as well as validates the strategic choices we made while bidding, i.e. to expand our geographic footprint, rather than deepen it at unviable costs. Continuing our Group's philosophy of rewarding Shareholders without compromising with the liquidity that may be needed in future for inorganic growth, the Board of Directors have approved the share Buy Back programme of Rs.57 Cr at a price upto Rs. 385 per share. Even post the Buy Back our Balance Sheet remains strong to support future inorganic growth. Going forward, the growth would be contributed by a mix of yield improvement & inventory growth with Phase III markets increasing their share in Company's revenues and profits. Additionally, the enhancement of our footprint to 72% of the FM reach, through the recent acquisition of Friends FM in a key market like Kolkata, becomes a more formidable network for our advertisers.”