Radio One 94.3 the joint venture between Midday Multimedia and BBC worldwide has announced its Quarter and first half financial results for '09
Net revenue for H1 was at Rs.151.6 million a growth of 3% of last year H1 which was at 146.6 million. At the quarter level the figures for H1 last year and this year were identical at Rs.80.29 million. At the EBIDTA (Earnings before interest Depreciation Tax and Amortization) there was an improvement of 2% over last year H1 despite adding a full station cost of Kolkata. Company sources revealed that this was an encouraging performance given that the Radio industry has dipped in revenues by 6.5% all India and by over 13% in the 7 cities that radio one operates.
'We have achieved our stable financial performance based on a 'sound sales strategy' and excellent cost management. Apart from growing in net revenues in a difficult time we have been declared the number one radio brand and number 7 media brand from a list of 125 brands in the media space (PITCH magazine survey on media planners and buyers) on the strength of our innovative idea solutions for clients and agencies. We are the only radio player to start an education revenue stream in partnership with Symbiosis International University which includes a radio management course to be extended to 3 cities soon. We are the only focused 'music leader' in the FM market where we average 34% more songs per hour than any competitor allowing our 'maximum music fataafat' proposition to be tangible to our listeners, said Vineet Singh Hukmani, Managing Director, Radio One.
For the radio business to grow, it is imperative that the government extend the license fee period from 10 to 15 years, given that no player has or is likely to break even in the first 5 years. This extension of license fee period will make the industry lucrative for investment both with Indian and foreign investors. It is this simple step that will allow phase 3 to be an attractive investment opportunity. Allowing an FDI limit of 49% is really crucial as there are many foreign media entertainment brands interested in the Indian Radio Metro Markets. We need a quick solution to very high music costs that are preventing radio companies from making healthy profits, added Hukmani.
Radio One operates in 7 cities namely Mumbai Delhi Bangalore Chennai Kolkata Ahmedabad and Pune.
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