afaqs!

Radio One posts positive EBIDTA for FY'11

By afaqs! news bureau , afaqs!, Mumbai | In Media Publishing | May 11, 2011
Company witnesses growth of 46 per cent in its total revenues. Radio One's revenue earnings for the fiscal stood at Rs 44.13 crore, as against the Rs 30.31crore that it had earned the year before.

Radio One, the joint venture between Next Media Works and BBC Worldwide, has posted a positive EBIDTA (earnings before interest, taxes, depreciation, and amortisation) for the fiscal ended March 31, 2011.

Radio One has witnessed an EBIDTA profit of Rs 4.05 crore during the fiscal period, as against a loss of Rs 1.74 crore that the company had registered in the last fiscal year.

Says Vineet Singh Hukmani, managing director, Radio One, in an official communiqué, "We have met our target of being EBIDTA positive this year. Our investors are showing a renewed confidence. Our critical destination is PBT (profit before tax) positive for next year, and we are geared up for the challenges that lie ahead."

Meanwhile, the company has seen a growth of 46 per cent in its total revenues. Radio One's revenue earnings for the fiscal stood at Rs 44.13 crore, as against the Rs 30.31crore that it had earned the year before.

The company stated that the improvement in operating numbers was also because of extraordinary income.

Additionally, Radio One's loss before tax has fallen to Rs 5 crore. In the last fiscal, the company's PBT (profit before tax) was Rs 21 crore.

And now, riding on an industry poised for rate increase and more new clients using radio as a cost-effective metro medium, Radio One the company expects to break even in the coming financial year.

Says Tariq Ansari, CMD, Next Media works, "We 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."

Hukmani further notes that Phase three 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," he adds.

Search Tags