Music Broadcast Ltd

Radio is a creatively unique and personalised medium, which swiftly adapts itself to the tastes of the newer generation of listeners and evolves with latest technologies to stay relevant.

DEAR SHAREHOLDERS,

The financial year in India began with the devastating second wave of COVID-19, causing a record number of cases and seeing our health infrastructure getting stretched to the limit.

The massive nationwide vaccination drive taken up by the Government of India helped the country develop a fighting chance against the pandemic. Economic activity rebounded following the rapid abatement of the third wave in February 2022 and the lifting of state- wise restrictions. Due to these efforts, the Indian economy grew by 8.9% in FY 2021-22. The Indian Media and Entertainment 2021 industry growth was at 16.4% and 614 billion, up from 386 billion in 2020, which is 89% of the pre-pandemic levels. The sector is expected to be back to its pre-pandemic level and grow by 17% to 889 billion in 2022. FMCG was the largest category contributing to advertising spends in the current year followed by e-commerce, education and auto sectors.

Encapsulating our performance

We have shown strong recovery having started to recuperate our lost revenues.

It is expected to take one more year to achieve pre-pandemic revenues as the focus for the year is to improve yield, which continues to be lower than the pre-COVID level. With the growth in the economy and increase in advertising spends, we witnessed revenue growth of 32% to Rs 168.4 crores from Rs 127.6 crores. Our EBITDA stands at Rs 11 crores and our net loss reported is Rs 5.7 crores during the reporting period as against the net loss of Rs 24.2 crores in the previous financial year.

Overall, collections for the year were Rs 180 crores. This in turn has boosted our cash and cash equivalent reserves to Rs 264 crores as of March 31, 2022.

With regard to our industry ranking, we maintained our leadership position with 21% market share for the entire FY 2021- 22. We are at 31% growth, which is at par with industry volume growth at 32% YoY in FY 2021-22. It saw 43% of radio platform advertisers and 36% of new advertisers advertising with Radio City from Radio New advertisers. Inventory utilisation has grown to 67% in FY 2021- 22 against 49% in FY 2020-21.

We are at the centre of the radio-digital strategy. We achieved digital revenue of over D9 crores with profits and the way this new revenue stream is shaping up, it is anticipated to open novel doors for us, becoming a significant contributor in the future. With a fixed cost base business model, we have an edge compared to print or other businesses because once it breaks even, a substantial part of additional revenue translates into operating profits.

With regard to the issuance of the Non-Convertible Non- Cumulative Redeemable Preference Share to our non-promoter shareholders by way of Bonus (Scheme), we received the Hon'ble NCLT order directing to hold the meetings of the shareholders and unsecured creditors on June 23, 2022, to approve the Scheme.

Appreciations for team accomplishments

Radio is a creatively unique and personalised medium, which swiftly adapts itself to the tastes of the newer generation of listeners and evolves with the latest technologies to stay relevant. We are focused on developing innovative campaigns and were bestowed with 25 awards at ACEF Global Customer Engagement Forum & Awards 2022. The radio channel received 18 Gold, 4 Silver and 3 Bronze awards across varied radio categories. We also bagged the Most Admired Radio Station for Customer Engagement acclaim.

New York Festivals also announced the winners of Radio Awards 2022 where Radio City won two finalist certificates from the international forum for their entries Escape from Ukraine and Hosabelaku. These triumphs are a testament to the fact that we continue to develop unique propositions that resonate with the audience's content consumption preferences.

Outlook

The outlook for the radio industry appears more than just bright, as radio continues to be one of the most relevant mediums to engage the masses. Metro cities such as Mumbai, Delhi and Bangalore are expected to contribute higher revenues and yield better outcomes for radio companies in this financial year. The growth of the sector will be driven by the recovery of the SME advertiser segment, retail revival, growth in bank credit, reopening of offices, and focus on non-FCT revenues.

With COVID-19 taking a gradual backseat and pandemic led restrictions being uplifted, markets are operating in full swing. This allows the industry to boost business from on-ground events and activations to attain desired revenue numbers. As the world moves towards digitalisation, the future of radio is focusing on the amalgamation of radio plus digital. Globally, digital radio surpassed 1.4 billion listeners and there is huge scope for India to tap into this trend and create new revenue streams. Similarly, RJ influencers are becoming popular choices for advertisers as they will continue building genuine relationships by engaging incredible conversations. This transformative and effective marketing tool will empower advertisers to optimise their marketing spends. The radio industry is confident that the state government will continue to contribute substantially in the coming years in the growth and progress of the sector.

Radio will consolidate to grow at 9% from 16 billion to 18 billion on the back of core radio along with integration of digital, credible influencers and content syndication. All of this, coupled with the restart of on-ground activities, which augurs well for us and the industry as a whole, are expected to bring back the buzz and excitement.

Before I conclude, I would like to thank our listeners, advertisers, shareholders, government, bankers and most importantly the Radio City team, which has been contributing to our growth story. I am confident that Radio City will continue to deliver on stakeholders' expectations and live up to the trust reposed in it. COVID-19 is unlikely to disappear soon, so continue to follow all safety norms.