Mumbai: Music Broadcast Limited (MBL), India’s 1st Private FM Radio Broadcaster, has reported its Financial Results for the Quarter ended June 30th, 2018.
PAT of MBL went up 25% YOY with margin improvement by ~240 bps to 17.8% and Continued improvement in Operating Profit, by 17.5% YOY growth. The Topline of the company grew by 8% to Rs. 75.7 Crs.
During Q1FY19 MBL has implemented Rate hike in all core markets. Moreover, Improving Utilizations in Phase III Markets contributed positively to EBITDA. Delivery of 34.4% operating margin is a testimony of bettering fixed costs and operating leverage.
In continuation of Group’s philosophy to reward share holders Promoters & Key Managerial Personnel will not participate in Buy Back. The company Bought Back shares to the extent of Rs. 57 crores as against Cash PAT* of Rs. 78 crores from Open Market at a price upto Rs.385.
Commenting on the results Ms. ApurvaPurohit, 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 uptoRs.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.
