RADIOCITYNSENovember 04, 2025

Music Broadcast Limited

2,263words

47turns

6analyst exchanges

2executives

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Management on call

Abraham Thomas

CHIEF EXECUTIVE OFFICER, MUSIC BROADCAST LIMITED

Rajiv Shah

CHIEF FINANCIAL OFFICER, MUSIC BROADCAST LIMITED

Key numbers — 24 extracted

rs,

r CFO, and our Investor Relations Partner, Strategic Growth Advisors. Before we get into the numbers, we would like to update you that the company has carried out certain strategic initiatives at our

10%

ur end to emerge stronger and more profitable. In manpower, we have rationalized manpower between 10% to 15% in head count. We have moved to a more asset-light network with 13 live stations and the b

15%

to emerge stronger and more profitable. In manpower, we have rationalized manpower between 10% to 15% in head count. We have moved to a more asset-light network with 13 live stations and the balance

Rs. 6 crore

and reloaded our content plan. All these initiatives should help us reduce the operating cost by Rs. 6 crores to Rs. 7 crores a quarter, and this without any impact on the operational efficiency of the comp

Rs. 7 crore

r content plan. All these initiatives should help us reduce the operating cost by Rs. 6 crores to Rs. 7 crores a quarter, and this without any impact on the operational efficiency of the company. During th

Rs. 37.8 crore

the operational efficiency of the company. During the quarter, the company reported a revenue of Rs. 37.8 crores and an operating EBITDA of Rs. 1.4 crores. This moderate performance was primarily due to subdue

Rs. 1.4 crore

During the quarter, the company reported a revenue of Rs. 37.8 crores and an operating EBITDA of Rs. 1.4 crores. This moderate performance was primarily due to subdued demand as advertisers deferred

18%

dual improvement in advertising activity thereafter. For the quarter, our market share stood at 18%. Radio City continued to remain the preferred platform for advertisers, reaffirming our strong po

42%

on in the industry. We upheld our leadership status by capturing the highest total client base at 42% across the radio sector, a clear testament to the strength of the brand, the quality of our conte

34%

the strength of the brand, the quality of our content and the depth of our client relationship. 34% of all new advertisers entering the radio space chose Radio City as their platform of choice, und

Rs. 87.2 crore

or the quarter ended, revenue stood at Rs. 37.8 crores, while for the half year, revenue stood at Rs. 87.2 crores. EBITDA for the quarter was Rs. 1.4 crores. And for H1 FY '26, EBITDA was Rs. 9.3 crores. Adjust

Rs. 9.3 crore

od at Rs. 87.2 crores. EBITDA for the quarter was Rs. 1.4 crores. And for H1 FY '26, EBITDA was Rs. 9.3 crores. Adjusted profit after tax accounting for interest on NCRPS amounting to Rs. 2.3 crores stood at

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Guidance — 5 items

Payal Shah

“My second question is, could you share any broad guidance or outlook on the cost savings resulting from the realignment strategy that we have implemented in last quarter?”

Rajiv Shah

“So basically on the revenue front, as the market pans out, we do not want to give any guidelines on that, but we should be looking at a better profitability going forward.”

Yug Modi

“And when can like we might expect to see some improvement in it?”

Rajvi Shah

“And what kind of number should we expect going forward?”

Abraham Thomas

“Before we conclude, I would like to repeat that thanks to the strategic realignment we have done to drive operational efficiency and strengthen our long-term resilience, we expect an immediate advantage in our reduction of our cost to Rs.”

Risks & concerns — 4 flagged

The period leading up to the announcement saw advertisers adopt a cautious stance, resulting in a temporary slowdown in advertising volumes across all categories.

— Abraham Thomas

Sir, the margins have been under pressure for a few quarters now?

— Yug Modi

So that's one reason for the pressure on rates, which is why we are seeing a volume growth, but rates are under pressure.

— Abraham Thomas

So the digital revenues at a stand-alone level are under pressure.

— Abraham Thomas

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Q&A — 6 exchanges

Thank you so much for the opportunity. I have two questions. First, I just wanted to understand how was the current festive season? And have we seen any upturn in the current festive season with respect to ad rates and volumes?

Abraham Thomas

Yes, ad volumes have shown an upswing compared to the previous quarter. Having said that, last year the festive spilled over two months, whereas this year both the festivals, Dussehra and Diwali happened in the same month. But there is an uptick in volume over the last year. Sir, can we put any numbers to it, as in can you highlight in a quantitative way? So basically, we are at Q2 level at 74% of volumes. Okay, sir, that's helpful. My second question is, could you share any broad guidance or outlook on the cost savings resulting from the realignment strategy that we have implemented in last q

Sir, I wanted to ask about the inventory utilization this quarter.

Rajiv Shah

So as I told you, it’s 74%. And what was the volume growth that we see, Y-o-Y? It is all the same level. Last year also similar levels. And what was that? Last year, it was around 70%. We are now at 74%. No, the volume growth, year-on-year growth. That's what I am saying. Last year, volume was -- utilization was 70%. Currently, we are at 74%. So basically, 4% additional volumes. And has there been any uptick in the effective rate if we compare it year-on-year? Effective rates are at very similar levels. Okay. And when compared to pre-COVID, has it changed? No. We are still at 75% to 80% of the

Sir, thank you for the opportunity. Sir, I just had two questions. Sir, the margins have been under pressure for a few quarters now? Could you highlight the key factors driving this trend? And when can like we might expect to see some improvement in it?

Abraham Thomas

Yes. So there are quite a few changes that is happening in the environment. And clearly, the growth is coming from the Tier 2, Tier 3 markets, whereas the Tier 1 markets are subdued. So this is resulting in a different product mix, which is also driving yields because the yields from the Tier 2, Tier 3 markets are obviously much lower than the yields in the top markets. So that's one reason for the pressure on rates, which is why we are seeing a volume growth, but rates are under pressure. Okay. Sir lastly, sir, there was a proposal that DAVP is going to revise the ad rates in upwards of 25%.

Are you migrating to the digital radio spectrum license?

Abraham Thomas

See, currently the recommendation has come from TRAI, and as an industry, we are talking to both TRAI and the ministry to make it more sustainable for us. So it's still early days to decide on that. We will definitely be part of any new technological change that will come in. But currently, it's still early days because the recommendation from TRAI is under discussion. There were talks about something like Rs. 130 crores for a city like Mumbai and all. Is that sustainable to pay that kind of money and then just generate revenue out of this? Or is it meant for telecom operators and other operat

Thank you for the opportunity. I just had one question, which is we have seen a dip in digital contribution to total revenue even this quarter, so what's driving that trend? And what kind of number should we expect going forward? And lastly, what was the year-on-year growth in our digital business?

Abraham Thomas

So the digital revenues at a stand-alone level are under pressure. What we are aggressively now doing is to sell radio plus digital as a combined solution to our clients, so we are using digital to amplify the radio message as well. And we are seeing more traction coming in the radio plus digital rather than pure digital alone. Okay, sir. Thank you very much.

Thank you, everyone, for being part of this call. Before we conclude, I would like to repeat that thanks to the strategic realignment we have done to drive operational efficiency and strengthen our long-term resilience, we expect an immediate advantage in our reduction of our cost to Rs. 6 crores to Rs. 7 crores a quarter starting immediately. And this, we believe, will help us sharpen our focus and reinforce sustainable profitability. Through prudent resource allocation and streamlined operations, we are addressing the near-term challenges while positioning Radio City as a more agile and futu

Management

Speaking time

Abraham Thomas

Moderator

Rajiv Shah

Meghna

Payal Shah

Kumar

Yug Modi

Rajvi Shah

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Opening remarks

Abraham Thomas

Good afternoon, everyone. And a very warm welcome to the Q2 FY '26 Earnings Conference Call of Music Broadcast Limited. Joining me on the call is Mr. Rajiv Shah – our CFO, and our Investor Relations Partner, Strategic Growth Advisors. Before we get into the numbers, we would like to update you that the company has carried out certain strategic initiatives at our end to emerge stronger and more profitable. In manpower, we have rationalized manpower between 10% to 15% in head count. We have moved to a more asset-light network with 13 live stations and the balance 26 stations being virtual. This has no impact on the audience experience or in terms of the advertiser deliverables. We have rationalized some of our digital initiatives. For example, RC Studio has been discontinued. RC Swapper, which was our podcast platform is being synergized with radiocityindia.in. Muzartdisco, which was our independent artist discovery platform, has been reworked into a zero cash investment model. And SMINC

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Music Broadcast Limited

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