1. Revenue for the quarter declined by 41.6% YoY to Rs 407mn (Elara E: Rs 453mn) owing to continued pressures on the traditional mediums & loss towards digital since COVID-19 lockdown, however it grew 35.2% QoQ largely as ad volumes showed some resilience with growth of 9% YoY with economy sustaining recovery since the opening up of lockdown and with the commencement of the vaccination programme.
2. In terms of major verticals, Government(contributing 8% of volumes) degrew 10% YoY, Real estate(contributing 13% of volumes) grew 28% YoY, Auto(contributing 11% of volumes) grew 18% YoY, Finance/BFSI (contributing 9%) grew of 18% YoY, Electricals(contributing 8%) saw growth of 19% YoY and F&B(contributing 10%) surged 63% YoY.
3. Radio City maintains its leadership position at 21% market share led by multiple ongoing initiatives like Special Campaigns, Govt. Proactive pitches, RC Bazaar, long term deals, digital first integrations, big ticket content integrations etc. which led to 34% of the new clients & 26% of the revenues for the quarter. New initiatives taken during the quarter included Radio City Super Singer 12th season – Kailash Kher, City Ki Tech Shaala -2, Iss Diwali gale nahi, dil milne do’ – Diwali campaign, Santa Ka Naya Jhola – Christmas campaigns etc.
4. Radio City social reach via digital media increased to 120mn comprising of 4.2 Mn Likes on Facebook 0.3mn likes on Twitter, 0.15mn likes on Instagram, 225mn Views on Youtube & 1.08mn subscribers largely driven by the prank videos by RJ Raghav.
5. Company returned to EBITDA positive territory reporting EBITDA of INR 42mn, on back of QoQ revenue recovery along with savings in operating expenses (License fees down 5% YoY, employee cost down 18% YoY and other expenses down 31% YoY) helped in offsetting the revenue decline of 41.6% YoY.
6. Company also achieved breakeven at PAT level reporting INR 1mn PAT, on the back of decent operational performance enabling positive EBITDA, higher other income by 21%, decline in finance cost by 67% YoY and depreciation by 7% YoY during the quarter.
7. Cost prudency with savings of INR 400mn YTD & 29% cost reduction YoY and improving collections enabling INR 330mn of total collections of which INR 50mn from government has helped us strengthen the Balance Sheet. Cash as on Dec’20 was INR 2350mn.
8. In terms of performance of Radio(grew 63% QoQ & declined 2% YoY) v/s traditional mediums, TV ad volumes grew 17% QoQ & 19% YoY, while print volumes grew 55% QoQ but declined 13% YoY clearly showcasing outperformance to print, but underperformance v/s TV.

Await Concall for more details which is to held on tomorrow at 12pm

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–By Karan Taurani, VP, Elara Capital