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The company held its conference call on 27th Oct 2015 and was addressed by Prashant Panday MD and CEO
Key Highlights
Sep'15 quarter earnings include costs that are built in for Phase 3 auction. On like to like basis, Ebidta would have grown by 20% and PAT by 26% for Sep'15 quarter on YoY basis.
The entire revenue growth of 11.6% for Sep'15 quarter was led by price increase and better product mix. There was a price increase of about 7.5% in Sep'15 quarter and volume de-growth of about 3%.
Volumes in major metros were higher on YoY basis, while in other market were lower on YoY basis
The company operated at 97.5% capacity utilization led by Metros. The entire focus in Sep'15 quarter was on pricing and company let go some of the volumes. Also the company increased its distribution of frequency in late night stations. Distribution of delivery was planned very well during the quarter.
Metros have done stronger due to E-commerce sector. E-commerce contributed about 11% of total revenue as compared to 4.7% YoY. Other sectors that positively contributed include Government, Auto and Automobile sector, BFSI sector. Some sluggishness was seen in sectors like Retail, Durables, Telecom and Media and Entertainment etc.
The company bid very rationally in Phase 3 auction and there was no overbid. Entire migration of 36 stations was done at almost same license price. The company now holds license for next 15 years.
The company added new cities like Kochi, Chandigarh, Calicut, Gawahati, Jammu, Srinagar and 4 stations were acquired from TV today. With this, the company has now presence in more than 40 cities in the country.
The company also acquired 2nd frequency and 2nd brand in the 12 out of total top 13 markets in the country. These 13 markets contribute about 70% of total revenues. This 2nd frequency will generate higher Ebidta as most of the programming and other costs are more or less the same. The company plans to do more with the product and will launch gradually.
In all, the company spent about Rs 340 crore in Auctions of Phase 3 and on Migration led costs.
Overall, management expects the Radio industry should grow around 12% in FY'16.
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