Music Broadcast jumps ~5% on strong growth in Q3FY22 results

Music Broadcast Limited (MBL), India’s first Private FM Radio Broadcaster branded as Radio City, has reported its financial results for the quarter ended December 31, 2021.

The company maintained a leadership position with a 22% volume market share in Q3FY22. Topline of Rs60cr; 47% growth yoy from 40.66cr in Q3FY21. EBITDA at Rs21.6cr and EBIDTA Margin at 36.1%. Profit After Tax (PAT) at Rs9cr in Q3FY22, up 23% yoy, compared to Rs7.32cr in Q3FY21.

In 9MFY22, the company maintained a leadership position with a 21% volume market share. Topline of Rs122.4cr; 44% growth yoy. Positive EBIDTA at Rs21.7cr; EBIDTA Margin at 17.7%.

At around 10.04 AM, Music Broadcast Ltd was trading at Rs24.70 per piece up Rs1.15 or 4.88% from its previous closing of Rs23.55 on the BSE.

Commenting on the results Shailesh Gupta, Director said: “The festive season brings with it cheer and positivity and that is exactly what was observed in the company’s performance, with the revenue growing 47% yoy and 42% qoq, while maintaining a lion’s share of the volume and extending the lead in market share. The groundwork laid over the past few quarters and return of ad spends led to a significant rise in profitability, with EBIDTA margins standing at 36.1% and PAT margins at 15.0% for the quarter.

Ad spends across most sectors saw a bounce back, amidst the opening up of malls, multiple international sporting events, product launches, and resumption of movie screenings, which provided the much-needed boost for the sector. While the traditional lines of business held strongly and recovered lost ground, multiple digital initiatives, complemented the same and witnessed a sharp growth of 219% yoy and 43% qoq, which is in line with the multi-channel approach the company has embarked upon.”

He further added, “New revenue opportunities have contributed substantially to our overall performance, accounting for 38% of the revenue this quarter, and are expected to drive steady growth going forward as well leveraging the talent pool and infrastructure in the organization. The company has further cemented its strong liquidity position by increasing its cash reserves, which now stand at Rs248cr, as on December 31, 2021.

Regarding the bonus issue of the non-convertible non-cumulative preference shares, SEBI has accorded its approval and we have filed the scheme with NCLT in February 2021 and are awaiting approval from them.”