Music Broadcast Limited (NSE: RADIOCITY) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Unidentified Speaker
Ashit Kukian — Chief Executive Officer
Analysts:
Unidentified Participant
Payal Shah — Analyst
Pooja Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q4FY25 Music Broadcast Limited earnings conference call. This conference call may contain forward looking statements, statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is then recorded. I now hand the conference over to Mr. Ashid Kukian, CEO from Music Broadcast Limited. Thank you. And over to you sir.
Ashit Kukian — Chief Executive Officer
Thank you. Good afternoon everyone and a very warm welcome to the Q4 and FY25 Earnings Conference Call of Music Broadcast Limited. Joining me on the call is Mr. Prashant Dumadia, our CFO, Mr. Rajiv Shah from our IR team and our investor relations partner, Strategic growth advisors. In FY25 the company achieved a total revenue of 234 crores, making a year on year growth of 3%. With an operating EBITDA at 40 crores at 16.8% margin. In terms of volumes, the industry degrew by 2%. We have been able to make notable strides in our performance on the back of our efforts on the digital side.
Through the year, our digital business delivers an impressive 36% year on year growth, fully embracing the digital era where every tap and swipe unlocks new opportunities. Digital business contributes 11% to the revenues versus 9% in the year FY24. This results highlight the success of our strategy which focuses on creating premium content, optimizing distribution channels and cultivating deep, meaningful connections with our audience. This segment has shown a meaningful increase in the contribution to the overall revenue, underscoring both the scalability and the resilience of our approach. This strong and consistent momentum not only reinforces our standing as a leading player in the competitive digital media landscape, but also empowers us to capitalize on emerging opportunities in the rapidly evolving media environment.
In FY25 we achieved an inventory utilization of 77% reflecting our strong operational efficiency and strategic resource management. Radio City continues to lead the industry as a preferred platform for advertisers, attracting 40% of the total client base across the sector. Notably, 32% of all new clients entering the radio advertising space have chosen Radio City, reaffirming our position as a trusted and effective partner. These accomplishments are a testament to the enduring strength of our brand, the confidence placed in us by the advertisers and the success of our targeted marketing efforts in delivering measurable value. We are also proud to have diversified revenue streams for the year, 27% of our income now coming from a variety of sources including properties, proactive pictures, digital ventures, sponsorship and special events.
This balanced approach strengthens our overall financial resilience and stability. During the quarter, the industry was impacted due to the global economic uncertainties arising from the ongoing trade war which adversely impacted market demand and overall business sentiment. Despite uncertainties, we are able to sustain our market share at 19%. This underscores the strong trust and loyalty that our customers place on us. This achievement reflects our unwavering commitment to executing a diversified set of strategies aimed at strengthening our leadership position in the radio industry. During the year we have met significant strides in our digital segment, achieving several key milestones.
Sminco, which is a data driven influencer marketing platform Mozart Disco, which helps indie artists distribute their music in 120 plus countries exclusive partnership with Spotify, which steadily growing over 4 trade boosting our influence in the digital music ecosystem. All the initiatives that we have undertaken collectively opens the door to a vast 48,000 crore market, highlighting the immense growth potential for our organization. By steadfastly committing to digital innovation, we are transforming the way we engage with audiences, creating deeper connections. This strategic focus not only drives sustained growth but also solidifies our position as a leader in the rapidly evolving media and entertainment landscape.
Radio at its core is evolving, maintaining its vibrancy and relevance while amplifying positive energy like never before. This smooth fusion of the digital technology has forged a dynamic synergy between traditional radio and digital platforms, taking it to a new era of innovation and expansion. At Radio City, we remain committed to generating sustainable value throughout every facet of our operations. Our holistic business model is designed to create meaningful value for our listeners, strategic partners and the wider community. Our mission centers on empowering brands by delivering innovative and tailor made media marketing solutions that leverage the latest advancements in technology.
Through a strategic blend of cutting edge digital tools, dynamic social media engagement and sophisticated content distribution methods, we aim to foster extraordinary connections between brands and their audiences, driving unparalleled consumer interaction and loyalty. Looking ahead, we are committed to fostering sustainable long term growth and delivering lasting value to all our stakeholders. Guided by dedication to innovation, adaptability and strategic excellence, we navigate the fast changing media landscape with confidence. Now let me take you through the financial highlights of Q4 and FY25. For the quarter ended revenue stood at 54.7 crores while for the full year revenue stood at 234.5 crores.
For Q4.25 operating margin stood at negative rupees 3.5 crores and for FY25 operating EBITDA stood at rupees 40 crores with the margins at 16.8%. Operating EBITDA is after adjusting for an one time impairment of non financial assets to the tune of 34.9 crores as of March 31st, 2025. The carrying amount of the company’s net assets Requirement for the company to assess the carrying amount of non financial assets, property, plant and equipment, right of use assets and intangible assets including under development for potential impairment in line with the India’s 36, the company determined the recoverable amount of its assets by calculating the value in use and conducted that impairment loss needs to be recognized in the financial statement.
Thus, the reduction in the value of 34.9 crore has been provided for India’s financial results. During the quarter year March 31st, 2025, reported path stood at minus 38 crores for Q4.25 and minus 33.8 crores for FY25. As of March 31st, 2025 our cash reserve stood at 349 crores. Our liquidity position continues to be strong, granting us the agility to seize both present and future opportunities. This solid financial foundation allows us to respond effectively to market changes and actively pursue strategic initiatives as they emerge. With this, I would request the moderator to open the floor for Q and A.
Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press Star in one on the touchdown telephone. If you wish to remove yourself from question queue, you may press Star into. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Ranu Deep s from MAS Capital. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. It’s interesting to see that the industry has grown de grown actually 2%. And in that backdrop we’ve done better though it’s very marginal, just 3%. Is the management looking at the changing landscape? Case in point Is are we studying the business models of Pocket FM or Cuckoo FM example? Because the reason I’m picking on these companies because Pocket FM in FY24 has kind of clogged the revenue of 1050 crore and they have this affordable subscription plan which is penetrating into tier 2 and tier 3 cities. Is business thinking about these new ways of looking at FM.
Ashit Kukian
Pocket FM is not cloud revenues of 2050crores. I think the valuation of the company is of 1050 because the revenues are far less, if I’m not mistaken. Having said that, to respond to your question, you’d be happy to know that your company has launched a podcast platform called RC Swapper just about three weeks back. So we are looking at the changing consumption and as we speak we are creating almost close to about 350 to 400 hours of original podcast content which will be distributed to RC Swapper. And RC Swapper not only allows the content to be distributed in India, but through a global tier.
RC Swapper can now be distributed to 120 countries plus globally. As far as podcast content is concerned, this platform will not only be distributing content created by us, but we will also be aggregating content created by other podcast creators who don’t have the distribution model. So in line with your thoughts and like I said, happy to announce that we have launched our podcast platform.
Unidentified Participant
Another interesting observation, we say that 7.4k clients are new out of 10.8k total clients. Now it indirectly also means that lot of clients who were actually in the industry are not coming back to radio. Is this something.
Ashit Kukian
Historically, if you see the mix, you know, every year 40% of your clients are retained or who come with a value close to about 60, 65% of the value for the next year. And 60% of newer clients come in who test radio who bring in 35 to 40% of the client of the revenues. So I’m repeating myself. Historically there is a huge churn when it comes to number of Advertisers. So usually 40% of your core advertisers, which is your large advertisers get retained who contribute anywhere between the 60 to 65 crores. So 65% of your revenues, the balance 35% comes from almost close to 60% newer advertisers.
And that is the kind of map that has been going around for radio for years.
Unidentified Participant
Sure. And one last question. It’s been five years since we struck the deal with Spotify. Are we seeing a ramp up in that?
Ashit Kukian
Not five years, not five years. The deal with Spotify is just about close to just about a year. We have been giving content to Spotify earlier as content created by us to be distributed on a monetary basis. That obviously everywhere has been stopped because they have realized that it’s not working for them. What we are currently talking about, we are an outsourced sales model for Spotify because Spotify believes that the Radio City team understands audio better. So four stage they have outsourced where our team is selling the Spotify inventory and we get a revenue share out of that.
Unidentified Participant
Thank you.
Ashit Kukian
Thanks so much.
operator
Thank you. The next question is from the line of Khushi and individual investor. Please go ahead.
Unidentified Participant
Hi. Hello everyone. Hi, good afternoon. My first question to you is as you mentioned that 77% is your inventory utilization. So this number is a quarterly number or an annual number?
Ashit Kukian
It’s an annual number that we are talking about.
Unidentified Participant
So what would be the quarter number?
Ashit Kukian
I mean 77% is the quarter number. The quarter four number that we are talking about.
Unidentified Participant
Okay. Full year number would be.
Ashit Kukian
It’s only almost similar to that, you know, because I’ll give you the entire full year amount will be 78%.
Unidentified Participant
Okay, my next question to is what is the volume growth of the company for both the quarter and for the year ended?
Ashit Kukian
So volume growth like we said, no, we have shown a 3% volume growth as against a minus 2% industry degrowth. And at the yearly level there is a degrowth for us also as the industry also has degrees.
Unidentified Participant
Okay, my other question is what is the effective growth rate for both the quarter and full year and how is it compared to the pre Covid level?
Ashit Kukian
The truth answers the pre call. The quarter level, the revenue has shown as we have shown is a degrowth largely because last year had the political based government advertising that is that and that the overall level we have grown at 3%. From a revenue perspective you.
Unidentified Participant
Okay, so also my last question is what is the FCT and NFCT split?
Ashit Kukian
See, FCT pure FCT is around 65%, digital is 11% and the balance is NFCT.
Unidentified Participant
Okay, could you please again specify me the effective rate growth? Like I could understand the rate is.
Ashit Kukian
More or less the same last year. And this year to give you again, NFCT is around 24 to 25% of the overall numbers rate has been more or less the same between last year and this year.
Unidentified Participant
And the rate which you provided, how is it compared to the pre Covid levels?
Ashit Kukian
It’s almost at 80% of the pre Covid level. And that’s something which we have been Saying, you know, it is, it moved from a 65 to a 70 to 80%. Right now it’s hovering around 80 to 85%.
Unidentified Participant
Thank you.
Ashit Kukian
Thank you.
operator
Thank you. A reminder to all participants, you may press STAR in one to ask question. The next question is from the line of money, an individual investor. Please go ahead.
Unidentified Participant
Yeah, yeah, hi. Am I audible?
Ashit Kukian
I hear you audible. Yes.
Unidentified Participant
Yeah, yeah. I had a couple of questions regarding the non convertible redeem shares that you have the company has issued. So how does the schedule of events flow from now? I believe the redemption date is 2026 January. So does it mean on date specified the shares will get extinguished and the money will get credited into the accounts of the shareholders and it will get removed from the balance sheet of the company. Is that how it will flow or is there any approval spending? And what are the specific events that are there? If you can clarify, that will be helpful.
Ashit Kukian
No, no, no approvals. It will be that way only. There will be a redemption which is going to happen. And this borrowing will go out from the balance sheet.
Unidentified Participant
Okay, so on the day of 20th, so the number of shares will get reduced for the company and then the amount will get credited into the account of shareholders. Is that correct?
Ashit Kukian
Yes.
Unidentified Participant
Okay. Okay, fair enough. No, I mean, I just want to confirm that in terms of issue, we.
Ashit Kukian
Are talking about the preference shares, right?
Unidentified Participant
That’s correct.
Ashit Kukian
Yeah, yeah.
Unidentified Participant
Okay, so there will be no dividend applicable. That.01% will also not be applicable for next year because the date appears before. So there’s no fresh, fresh direction from our balance sheet.
Ashit Kukian
No, no, no.
Unidentified Participant
Perfect, perfect. Thank you. Thank you so much.
operator
Thank you. A reminder to all participants, you may press star and one to ask question. The next question is from the line of Ravish Shah from VRs Capital. Please go ahead.
Unidentified Participant
Hi, sir. Am I audible?
Ashit Kukian
Yeah, you are audible.
Unidentified Participant
So I have two questions. My first question would be on our employee cost and other expenses. So they have risen quite sharply by 13 and 16% respectively. So can you give some understanding why this has happened?
Ashit Kukian
You know, the increase in cost is at two levels. One, the standards are, you know, nominal 8% regular increment that most media companies take is what has been taken. Also like you remember, you know, we are expanding our digital presence. So there has been some investment in people that we are doing keeping the future in mind. And you know, these two put together is resulting in the growth that we are talking about.
Unidentified Participant
Understood. So my second question would be on the growth rate. So our growth has been quite moderate. So what is driving us, reason behind this, what is impacting our business?
Ashit Kukian
See so see there are two ways to look at it. You know I think the industry in the last quarter of this year for some reason overall has tanked and that I’m referring to entire media, not just radio as an industry. So if you do a peer group, I mean evaluation, you’ll see that overall quarter four has been a little dampener for us. And that is the only reason why the overall growth. Because if you see at the YTD level we were showing a 12% growth. It’s just that last one quarter which of course in the previous year had a huge impetus of the political advertising that has happened now everything has been come to normal and we hope our growth should be nominal and the clip that we had in the Q4 of year last is not there and this is a regular year for us.
Unidentified Participant
Understood sir, thank you for the detailed answers and all the best.
Ashit Kukian
Thank you so much.
operator
Thank you. The next question is from the line of Sakshi Paraf from securities. Please go ahead.
Unidentified Participant
Hi sir, thanks for the opportunity. I have a question on our digital side. Can you give me some information how much we’ve invested this year and what would be the number for FY26?
Ashit Kukian
See that is only on the platform of Minco. We had invested roughly around a crore. That is only investment that we have done from the platform perspective. The rest of the investment which is reflected in the staff cost is on people because as you know that we have launched multiple platforms to create content to distribute those content. Like for example we’ve got RP Studio which is the 247 streaming platform on GOTV. We’ve got Nozartisco which is an artist and music discovery platform in which an Indian artist, indie artist can distribute songs in 150 countries. Plus we have launched AI RJ Sia which is a virtual AI RJ that we have launched and the last one of course is RC Swapper which is our podcast platform that we have launched.
So the only investment at the capex level, I mean at the product level is being at Spinco. All other is people investment, that is that and they’re all accounted as part of the whole people cost and there’s nothing more. And about that.
Unidentified Participant
Understood also on the same how much cash are we burning and is it increasing or decreasing? If you can go some light that’s burning on. On the digital side there is no.
Ashit Kukian
Cash burnout because it’s only a people call that is that that is there because if you see There are two ways we are operating. One is of course there is generating revenues from our own assets, whether it’s the social media assets or our own RGS who we are using as influencers. And the third party representation is just the value of the business share revenue share that we have. So there is no cash burnout apart from the people cost that we are talking about.
Unidentified Participant
Understood sir. Thank you so much for your answer.
operator
Thank you. The next question is from the line of Payal Shah from Brilliant Securities. Please go ahead.
Payal Shah
Yeah, good afternoon everyone. Thank you so much for the opportunity. I have two questions. First, we have witnessed a steep decline in our margins for full year 25. So just wanted to know what number should we expect going forward and what are the steps that we’ll be taking to improve our margins in FY26?
Ashit Kukian
I mean we are looking at, you know, trying to be a healthy, close to double digit growth. When we look at the industry and our own future prospects that we talk about of course realizing that the industry still he seeing some kind of challenges. Because while we are yet waiting for the shocks that we’ll get from the government in terms of our licensing and so on and so forth, we are very prudently looking at our own cost. So as we go forward you will see that we are having a tighter control on the cost which is in our hands and will ensure that our margins will be much more than what we have demonstrated in the past year.
Okay.
Payal Shah
Okay. So my next question then is on the industry front. So we have seen the degrowth in volumes for FY25. So are people moving away from radio, advertisement or what is it like? If you can share what kind of trend are we expecting for the next two, three years?
Ashit Kukian
People are not moving. Radio had that percentage share of the overall advertising and that that share of radio continues to be. I think the way we would look at it is that there is a shift in the consumer behavior in terms of media consumption both in terms of time spent and in terms of the overall behaviour that we are talking about now. That’s a concept which not only affects radio, but if you are closely monitoring media you will see that is affecting print, it is affecting television to an extent, it may also affect ott. So it’s a combination of all that.
So I think what is reflective right now is the shift in the consumer consumption medium media pattern. And that is the reason why you have seen that your companies along with radio also developing digital presence which allows us to encash a part of that opportunity that is there and that’s why like I said, radio today is about a 2,700, 2,800 crore company. Sorry industry, but when I opening remark I said through these various digital efforts that we are doing, including our social media presence, we are looking at roughly around 47,48,000 crore of opportunity area in the current one 10,000 crore advertising market.
So that is what we are looking at and ensuring that we don’t get stuck with the fact that if radio continues to be this percentage of the overall advertising we will have opportunities beyond radio also with radio at its core. Because radio brings in the credibility, the storytelling and the various strength that it shows as a medium.
Payal Shah
Thank you so much for the detailed explanation. That’s helpful. That’s it from my side.
Ashit Kukian
Thank you.
operator
Thank you. A reminder to all participants, you may press Star in one to ask questions. The next question is from the line of Pooja Mehta from JK Securities. Please go ahead.
Pooja Mehta
Yeah. Hello sir. Good afternoon sir. So I have couple of questions. First is what kind of numbers are we seeing on the influencer marketing on our digital side of the business? And the second is if you can give some guidance for FY26 for marketing.
Ashit Kukian
If you remember we just started about six months back and right now we are consolidating as we speak. We have got about 60,000 influencers on the platform and this is a business which will gain traction. And right now, like I said, six months of the play and three months of getting into the act, hardly any revenues is there at this point in time when you look at the overall base. But as we go forward, however, I’m sure with a market opportunity of close to about 7 and a half 8,000 crores, we are looking at some play coming to us also and that is what will add up to the overall digital growth that we are talking about.
So if you see last year we did a 36% growth. We are confident we will possibly show similar kind of growth this year too.
Pooja Mehta
Sure. And do you give some guidance for FY26?
Ashit Kukian
I told you, I mean we are running for a close to double digit growth unlike in the past two years where the industry has shown growth which is not in tune with what I’m talking about. But that roughly comes from the fact because most of us have really realigned our business prospects beyond radio and the way do you digital is growing and the way the digital contribution to the overall media advertising is happening, I’m sure we’ll be very close to the aspirations that we carry for ourselves with like I told close to that double digit growth that we want to see.
Pooja Mehta
Sure, sure. That was helpful. Thank you sir.
operator
Thank you. Participants may press Star and one to ask questions. If there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you sir.
Ashit Kukian
We sincerely thank you for your active participation in today’s earnings calls. As media consumption patents in India’s walls fueled by by a variety of content choices, the radio industry stands at a unique crossroads to blend the digital platform while preserving radio as its foundation. Our commitment remains steadfast in enhancing the digital landscape by harnessing our resources and partnership to deliver the greatest value to our customers. The presentations, earnings release and results are all available in the corporate website and stock exchanges. If you have any further inquiries, please get in touch with anyone of us or with Strategic Growth advisors or investor relations partner.
Thank you.
operator
Thank you on behalf of Music Broadcast Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.