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Radio One grows by 70 per cent in the last quarter

By afaqs! news bureau , afaqs!, New Delhi | In Media Publishing | January 31, 2011
Revenues were at Rs 12.31 crore for Q3 10-11, 70 per cent higher, from Rs 7.23 crore for the same quarter last year.

94.3 Radio One, the joint venture between Mid-Day Multimedia and BBC Worldwide has recorded a growth in revenues and EBIDTA (earnings before interest, depreciation, tax and amortization) for Quarter 3 (Q3), as compared to the same period in the previous year.

Revenues were at Rs 12.31 crore for Q3 10-11, 70 per cent higher, from Rs 7.23 crore for the same quarter last year. EBIDTA profit for the quarter was at Rs 3.13 crore positive, a jump from the 0.47 crore loss in the same period last year. The industry revenue growth recorded in Radio One's seven metro markets was at 22 per cent since last year.

At the year-to-date levels April to December 10-11, Radio One revenues grew 49 per cent at Rs 33.41 crore, as against Rs 22.4 crore, last year. EBIDTA at the year-to-date level is now positive at Rs 3.5 crore, against a loss of 1.6 crore, marking a 319 per cent jump.

Vineet Singh Hukmani, managing director, Radio One says, "We have recorded an exceptional revenue performance because we are a focussed metro player. Our monetization of innovation and excellent growth in local revenues has allowed us to grow at more than double the market rate. Our cost structure is the most efficient in the industry, resulting in a significant EBIDTA jump, and our collections in the market are equal to our revenues in the period resulting in the lowest debtor days in the industry."

Speaking about the growth, Hukmani adds, "We invested in a strong music focus as 'India's only music station', strengthened by our brand ambassadors Shankar Ehsaan Loy. Our clients have appreciated our music specialisation, and our music led activations have recorded over 100 per cent growth in revenues from last year."

Talking about the announcement of phase 3, he adds, "Since, phase 3 licensing is now inevitable, there is heightened investor interest in our revenue approach, and we would like to expand to only lucrative metro and large cities."

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