MUMBAI: Radio One has posted a revenue growth of 48 per cent over last year.
The joint venture between Mid-day Multimedia and BBC Worldwide grew 79 per cent at the operating profit level (before license fee) and a growth of 49 per cent at the EBIDTA level (earnings before interest depreciation tax and amortization), says a company release.
Saying that ‘the industry de-grew at the top 10 city level by over 12 per cent due to the last four months which saw a huge meltdown’, it is the financial results of companies in Q1 and Q2 which will determine their bullishness on advertising spends which will decide the fate of media companies in the current financial year, the release says.
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According to Radio One managing director Vineet Singh Hukmani,â€?We have grown due to a focus on the highest business efficiency (revenue and cost management) and a thorough understanding of what works for â€?our business’ versus following so called industry norms blindly. This has resulted in the strongest ROI focus across our business heads in each city. Every member of our operations team is capable of realizing huge value for every rupee spent.’
â€?In a situation where value growth in the radio industry is going to be almost non existent in the top 10 cities, given that increasing volumes are not generating value due to the lowest rates, it is imperative for our business to focus on innovative value growth engines that differentiate our offering and at the same time curtail all non essential and speculative expenditure till the end of Q2. We have sufficiently trained our operation teams with the necessary know how to cope with the situation and take advantage of the opportunities in the market,’ adds Hukmani.
Radio One completed its full seven city metro footprint during the last financial year and in this year will attempt to monetize its full metro focussed network to grow further, the release says. Radio One operates in Delhi, Mumbai, Bangalore, Chennai, Pune Ahmedabad and Kolkatta.
