afaqs!

Radio One quarterly results show success despite slowdown

By afaqs! news bureau , afaqs!, New Delhi | In Media Publishing | January 21, 2009
The percentage figures suggest that Radio One has managed to hold on despite the turbulence in the radio industry

Announcing & #BANNER1 & # its financial results for the third quarter ending December 31, 2008, Radio One claims that its profit before tax from April to December has grown by 108 per cent - not including licence fees - over the corresponding period last year.

As of now, the figures revealed are expressed as percentages of the previous year. The radio operator will disclose the actual numbers when its parent company, Midday Multimedia Ltd, announces its financial results. Radio One reveals that a revenue growth of 72 per cent has been registered from April 2008 to December 2008, and the last quarter has seen a growth of 49 per cent over the same period in the previous financial year.

Speaking to afaqs!, Vineet Singh Hukmani, chief executive officer, Radio One, says, "Our new stations (Ahmedabad, Pune and Kolkata) operate efficiently with an average of less than 14 people each and our all-India costs are lower than the industry average by 39 per cent. Our all-India head count in seven cities is 144 people against the industry average of 235-250 people across seven metro cities. Our marketing and advertising costs are not even 20 per cent of the industry average."

He adds that after a great first half of the financial year and the subsequent slowdown in the industry during the third quarter, Radio One has managed to maintain its performance from the second to the third quarter. All industry figures are based on company estimates.

The metro player credits its performance to three focus areas. First, having a targeted listenership has enabled it to approach advertisers who seek a specific audience. "We are targeting SEC A, B, 18-34 years' age group. This being the most refined listener base, the kind of advertisers we approach is also specific."

Second, it claims that its pricing formula is efficient and tailor made for the needs of a metro advertiser. "With the kind of rates we offer and the section of listeners we target, the advertiser gets a good deal to meet his requirements."

Lastly, the cost control measures followed by the radio operator has helped it maintain a lean figure during troubled times.