MOSL: MUSIC BROADCAST (Buy)- Asset monetization phase to drive growth
​Music Broadcast:Asset monetization phase to drive growth
(RADIOCIT IN, Mkt Cap USD0.3b, CMP INR387, TP INR469, 21% Upside, Buy)
Weak market conditions: Revenue increased 9.5% YoY to INR758m. Growth could have been better if not for the impact of GST, demonetization and RERA. EBITDA plunged 16% YoY (+9% QoQ) to INR242m (in-line) as the base quarter had a favorable impact of INR37m due to provision reversal. Adjusted for the same, EBITDA declined 3% YoY due to higher opex in new stations. Adj. margin shrunk 390bp YoY. Adj. PAT increased 10% YoY, benefiting from finance income.
Old stations garner healthy margins: The 28 legacy stations grew ~5% YoY, attributed to a yield improvement with ~70% utilization, while the new stations contributed additional INR48m of revenues led by volume growth. EBITDA for the legacy stations stood at INR256m (~36% margin), while the new stations reported EBITDA loss of INR13m.
Yield improvement, new station break-even to support earnings: The company is gaining market share, as other players are focusing on consciously reducing inventories. This is evident from the legacy stations' pricing-led growth without any impact on inventories. New stations remain on track to turn profitable by FY19E. Our estimates are largely intact: 15%/20% of revenue/EBITDA CAGR over FY17-20E.
Music Broadcast Limited, formerly known as Music Broadcast Pvt Ltd, owns and operates Radio City 91.1FM, which is a frequency modulation (FM) radio brand, and PlanetRadioCity.com, which is a music portal. Apart from Radio City Fun Ka Antenna, PlanetRadiocity.com has around 20 other Web radio streams, which include Radio City Indipop, Radio City Freedom, Radio City Smaran, Radio City Hindi, Radio City Tamil, Radio City Malayalam, Radio City International, Radio City Love, Radio City Classics, Radio City Dance, Radio City Fusion, Radio City Kannada, Radio City Rock, Radio City Electronica, Radio City Ghazal, Radio City Ishq, Radio City Metal, Radio City Faith, Radio City Wellness and Radio City Sufi. The PlanetRadioCity.com Website also features, news, videos, access to Radio City radio jockeys (RJs), Shows, Radio City properties and scoops on celebrities at Radio City. The Company has operations in around 20 cities in India.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.