| 30 May 2023
Radio City and Mirchi bottomlines hit by GST woes in second quarter?

BENGALURU: A number of media and entertainment companies claim that their revenues and profits have been hit by GST. Two major private Radio players – Radio City which operated the first private FM station in Bengaluru in the beginning of the new millennium and the Times group’s Entertainment Network India Limited (ENIL, Radio Mirchi) reported lower net profits for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter (Q2-17). Earlier, MY FM, the radio business of Indian media company DB Corp Limited has also reported lower profits for Q2-18 as compared to Q2-17. HT Media’s radio arm, Fever FM reported an increase in both topline and bottomline for Q2-18. Both MY FM and Radio City have reported revenue growth. Radio Mirchi has reported lower top and bottom lines for the current quarter as compared to the corresponding year ago quarter.

ENIL MD & CEO Prashant Panday said, “It’s been a tough quarter with GST related disruptions affecting all media businesses. July and August were severely affected. September saw a smart, albeit temporary, recovery on the back of an early festive season. We expect conditions to improve in the fourth quarter. We remain focused on increasing our listenership, improving our non-radio business profitability and strengthening our second brand, Mirchi Love”

HT Media in its investor presentation for the current quarter informed that its radio business continued robust growth and increase in profit margins. It says further there was revenue growth in core stations, while new stations continued to perform adding to top line in a profitable manner and those synergies in costs had brought in margin expansion.

Radio City – Music Broadcast India Limited financials

Music Broadcast India Limited (MBIL, Radio City) reported 9.5 percent y-o-y growth in revenue from operations at Rs 758.2 million from Rs 682.3 million. Total income including other income increased 15.3 percent y-o-y to Rs 808.1 million from Rs 700.7 million. The company’s Net Profit after Tax (PAT) declined 11.2 percent y-o-y to Rs 127.3 million from Rs 143.3 million. MBIL reported 9.3 percent y-o-y decline in total comprehensible income at Rs 123.3 million from Rs 135.9 million. The company’s simple operating EBDITA reduced 16 percent y-o-y to Rs 242.2 million in Q2-18 from Rs 288.5 million.

MBIL’s total expenditure for the current quarter increased 26.9 percent y-o-y to Rs 621 million from Rs 489.3 million. License fee increased 13.9 percent y-o-y in Q2-18 to Rs 54 million from Rs 47.4 million. Employee cost in the current quarter increased 8.9 percent y-o-y to Rs 171.2 million from Rs 157.2 million.

Finance Costs in Q2-18 declined 5 percent y-o-y to Rs 38.3 million from Rs 40.3 million. Other expenses in the current quarter increased 46.3 percent y-o-y to Rs 290.8 million from Rs 198.8 million.

Radio Mirchi or Entertainment Network India Limited financials

ENIL reported 3 percent decline in consolidated total revenue from operations for Q2-18 at Rs 1,257.37 million from Rs 1,296.46 million. Consolidated total income for the current quarter declined 5.1 percent y-o-y to Rs 1,280.12 million from Rs 1,349.07 million. Consolidated net profit for the period after tax declined 24.3 percent y-o-y to Rs 60.97 million from Rs 80.52 million. Consolidated total comprehensive income declined 20.1 percent y-o-y to Rs 60.62 million from Rs 75.91 million. Simple consolidated operating EBIDTA increased 22.8 percent to Rs 283.95 million from Rs 231.30 million.

ENIL’s consolidated total expenditure for the current quarter declined 7.2 percent y-o-y to Rs 1,144.61 million from Rs 1233.58 million. Consolidated license fee increased 4.8 percent y-o-y in Q2-18 to Rs 87.04 million from Rs 83.09 million. Consolidated employee benefits expense in the current quarter increased 20 percent y-o-y to Rs 322.27 million from Rs 268.63 million.

ENIL’s consolidated programming and royalty expenses in the current quarter increased 4.1 percent y-o-y to Rs 62.72 million from Rs 60.26 million. Consolidated marketing expenses in Q2-18 declined 44 percent y-o-y to Rs 182.45 million from Rs 325.81 million.

Consolidated finance costs in Q2-18 declined 56.2 percent y-o-y to Rs 12.52 million from Rs 28.61 million. Consolidated other expenses in the current quarter declined 2.6 percent y-o-y to Rs 318.85 million from Rs 327.28 million.