Radio City Q1 profit jumps 42% to Rs10.84 crore
New Delhi: Jagran Prakashan Group’s Music Broadcast Ltd (MBL), which runs the FM brand Radio City, recorded a net profit of Rs10.84 crore for the June quarter, a 42% jump from the year-ago period.
The company, which has a presence in cities like Mumbai, Delhi, Bangalore and Lucknow, had recorded a net profit of Rs7.62 crore in the June quarter of 2015-16. MBL currently runs 39 FM radio stations across the country.
In the quarter, the company reported a revenue Rs70.3 crore, up 12% from the year-ago period, fuelled by new web radio stations, on-ground properties and operationalization of 11 new FM radio stations (on the frequencies acquired in Phase III of radio privatization). In 2016-17, MBL had reported Rs62.8 crore in revenue.
“Radio is a fixed-cost model. Most of the growth goes down to the bottom line. We don’t have to invest more in order to get higher revenue. We can deliver more with the same level of cost/investment. Secondly, our amortization/depreciation costs are much lower,” said Apurva Purohit, president, Jagran Prakashan.
HT Media Ltd, publisher of Mint, operates radio channels under the Fever 104 FM and Radio Nasha brands that compete with MBL’s stations in some markets.