MUMBAI: Radio One, the FM brand under Next Mediaworks Ltd (earlier Mid-Day Multimedia), has turned Ebidta positive for the full fiscal 2010-11.
The company has posted an Ebidta profit of Rs 40.5 million for the year ended 31 March 2011, as against a loss of Rs 17.4 million in the year ago period.
The company also reported a 46 per cent jump in its total revenue during the fiscal. It posted revenue of Rs 441.30 million, as against Rs 303.1 million in the year ago period.
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However, the company said that improvement in operating numbers is also because of extraordinary income. Radio One said that it was able to extract value from the market… and it did the best cost management… in the radio industry.
Meanwhile, the loss before tax has come down to Rs 50 million from a loss of Rs 210 million in the previous fiscal, the company said.
The company said that it is expecting a PBT (profit before tax) breakeven in the coming financial year, riding on an industry poised for rate increase and more new clients using radio as a cost effective metro medium.
Next Mediaworks CMD Tariq Ansari said, I am pleased with the performance of Radio One in this year. We continue our growth in revenue numbers and hope to meet cash breakeven in the next fiscal. The promoters have decided to make an infusion of funds to strengthen the balance sheet on the basis of this performance and we will now build the radio business of the future with a stronger financial base….
Radio One MD Vineet Singh Hukmani added, We have met our target of being Ebidta positive this year. Our investors are showing a renewed confidence. Our critical destination is PBT positive for next year and we are geared up for the challenges that lie ahead….
On the Phase III, Hukmani said, Phase III is only an opportunity if the government does its homework and makes it lucrative as regards return on capital. Extension of license to 15 years is the only solution for this. The royalty situation needs to be brought to fair global norms so that costs can further be brought under control….
