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Trouble Continues To Brew For Radio

All the data provided by Elara is in line with the expectations, with revenue remaining 70% down v/s pre-COVID levels

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Going by the estimates of Elara Capital, radio's revenue grew by mere 42.6% YoY to INR 205mn, missing their estimate of INR 349mn, despite a low base, remaining 70% down v/s pre-COVID levels(Q1FY21 revenues were down by 79% YoY). This was led by the COVID wave II impact & localized lockdowns, impacting realisations severely as volumes grew 71% YoY as against the 42.6% revenue growth.

In terms of major verticals, Government (contributing 11% of volumes) grew 8% YoY, while F&B (contributing 13% of volumes) grew by 138% YoY, Auto (contributing 7% of volumes) grew 139% YoY,  Real estate(contributing 9%) grew of 289% YoY, Pharma (contributing 12%) saw growth of 172% YoY. On the contrary, BFSI vertical(contributing 10%) declined 40% YoY.

43% of the total clients & 37% of new clients on the radio advertised on Radio City. The company reported an EBITDA loss of INR 132mn v/s loss of INR 153mn in Q1FY21 & positive EBITDA of INR 229mn pre-COVID, as revenue recovery QoQ until Q4FY21 was again hit with Wave II, which was partially offset by continued cost rationalisation measures enabling savings v/s pre-COVID levels for license fees, employee costs & other expenses by 9%, 20% & 38% respectively during the quarter.

"The company reported a loss after Tax of INR 129mn v/s loss of INR 139mn in Q1FY21 & PAT of INR 84mn in Q1FY20, on back of weak operational performance, lower other income by 18% YoY, partially offset by the decline in finance cost & depreciation by 3% & 4% YoY respectively during the quarter. 

Cash and Cash Equivalents were INR 2420mn as of June’21," informed Karan Taurani, SVP – Research Analyst (Media, Internet & Consumer Discretionary), Elara Capital.

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Elara Capital Karan Taurani radio