94.3 FM Radio One, the joint venture between MID-Day Multimedia and BBC Worldwide grew 48% in revenues over last year. A company release stated that the company grew 79% at the operating profit level (before license fee) and a growth of 49% at the EBIDTA level (earnings before interest depreciation tax and amortization). The industry de-grew at the top 10 city level by over 12% due to the last 4 months which saw a huge meltdown.
‘We have grown due to a focus on the highest business efficiency (revenue and cost management) and a thorough understanding of what works for ‘our business’ versus following so called industry norms blindly. This has resulted in the strongest ROI focus across our business heads in each city. Every member of our operations team is capable of realizing huge value for every rupee spent’ said Vineet Singh Hukmani, Managing Director, Radio ONE.
The media industry is expected to see a very challenging period at least up to the second quarter of the year. Even though the elections have thrown up positive results for the economy in general, it is the financial results of companies in Q1 and Q2 which will determine their bullishness on advertising spends which will decide the fate of media companies in the current financial year.
‘In a situation where value growth in the radio industry is going to be almost non existent in the top 10 cities, given that increasing volumes are not generating value due to the lowest rates, it is imperative for our business to focus on innovative value growth engines that differentiate our offering and at the same time curtail all non essential and speculative expenditure till the end of Q2. We have sufficiently trained our operation teams with the necessary know how to cope with the situation and take advantage of the opportunities in the market’ said Vineet.
We have also realised client expectations from us are quite different from most of the other radio players and we have aligned ourselves to the needs of our clients and are geared up to offer significantly higher and relevant value to their businesses. It is going to be a challenging year for the radio industry and we are prepared to face it confidently but cautiously, he added.
Radio one completed its full 7 city metro footprint during the last financial year and in this year will attempt to monetize its full metro focussed network to grow further. It’s operating in Delhi, Mumbai, Bangalore, Chennai, Pune Ahmedabad and Kolkatta.