Press Release

Performance highlights for Q1 FY 2017-18

Next Mediaworks Limited reported its Q1 FY 2017-18 results in the Board Meeting held on August 29, 2017. The company operates 7 FM radio licences in the metro cities of Mumbai, Delhi, Bangalore, Kolkata, Chennai, Ahmedabad and Pune under the Radio One brand through its subsidiary Next Radio Limited and has seen tremendous response from listeners and advertisers for its differentiated programming format in each city.

The radio industry has been undergoing some challenging times in the past 9 months. A combination of demonetization, The Real Estate Regulation Act (RERA), GST implementation and a general weakness in consumer demand have combined to put large marketers and the retail trade under pressure. This has translated to lower advertising spends in all media categories, and radio is no exception.

Financial Highlights

Consolidated Result for Q1 FY 2017-18

As compared with the same period last year, revenues have declined by 20.4% from Rs 20.29 crores to Rs 16.15 crores. EBITDA has declined by 103.7% from Rs 3.33 crores to negative Rs 0.12 crores.

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd.

The latter part of 2016 and now 2017 has witnessed several changes in government policies. Demonetization, GST and RERA have had a direct impact on several sectors, including advertising on radio. But on a hopeful note, radio players are looking forward to the second half of 2017, which they believe will bring better fortunes due to the festive season and the diluting effects of GST implementation.

We continue to be bullish about the long term viability of the FM radio business and are riding out the present storm by focusing on our core capabilities. The Promoters have also underlined their commitment to the business by bringing additional funds in the form of Preference equity and debt to the company.

All businesses are cyclical. This down-cycle will turn and when it does Radio One will be poised to take advantage of it.

Performance highlights for Q4 and YTD March, 2017

Next Mediaworks Limited reported its Q4 and YTD financials for March 31, 2017 in the Board Meeting held on May 4, 2017. The company operates 7 FM radio licenses in the metro cities of Mumbai, Delhi, Bangalore, Kolkata, Chennai, Ahmedabad and Pune under the Radio One brand through its subsidiary Next Radio Limited and has seen tremendous response from listeners and advertisers for its differentiated programming format in each city.

Financial Highlights

Consolidated Result for YTD March 2017

Tepid ad-industry environment dragged revenues

The media industry is still facing impact of deferment of advertising spends that kicked-in from November-December 2016 due to demonetization and witnessed likely slow-down in consumer spending during Q4. However, the effects of demonetization are being felt in the economy and the company is confident of healthy growth in the second half of this fiscal.

• Overall the revenue has grown by 0.2% from Rs 78.72 crores to Rs 78.90 crores.
• EBITDA generated during this period was Rs. 12.86 crores.
• EBITDA margin is at 16%.
• During the year we have invested higher in people and new talent to address new competition in our cities and to sustain our position of being differentiated in each city where we operate. This has led to an increase in our cost base, which will help us navigate competitive pressures as the economy lifts.

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd

This has been a pivotal year in our radio business. New competition and a choppy economy have led to some challenges in the business but we have continued to invest in people and our core strengths of differentiation and audience super engagement while delivering extraordinary returns on marketing investments to our advertisers. Our Bengaluru station turned international in this year and we have the only International network in the three largest cities in the country – Mumbai, Delhi and Bengaluru. The coming year will be one of consolidation, and we are looking forward to building resources for the next phase of explosive growth.

Performance Highlights for Q3 and YTD December: FY 2016-17

Revenue for the quarter up by 15.5 % to Rs 21.23 Cr

Next Mediaworks Limited reported its Q3 and YTD financials for period and quarter ended December 31, 2016 in the Board Meeting held on February 2, 2017. The company operates 7 FM radio licences in the metro cities of Mumbai, Delhi, Bangalore, Kolkata, Chennai, Ahmedabad and Pune under the Radio One brand through its subsidiary Next Radio Limited and has seen tremendous response from listeners and advertisers for its differentiated programming format in each city.

Financial Highlights

Consolidated Result for YTD Dec 2016

• The key positives despite demonetization the revenue has grown by 4.82% from Rs 58.06 crores to Rs 60.86 crores
• EBITDA generated during this period amounts to Rs. 10.45 crores.
• EBITDA margin is at 17%, During the year we have invested higher in people and new talent to address new competition in our cities and to sustain our position of being differentiated in each city where we operate.

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd

Next Radio Limited has re-launched our Bangalore station with an International format. This creates India’s first and only International network across the three largest cities of the Country-Delhi, Mumbai and Bangalore.

This has been an extremely well recorded by the listener and advertiser and we are optimistic of significant benefits from this strategy.

In a challenging quarter Radio One has continued to grow revenues. This illustrates the strength of a differentiated engagement play. The re-launch of Bangalore Station has gone extremely well and we are excited to go ahead with Indian’s first and only International network. As the national economy recovers from the effect of demonetization we except radio industry to grow and Radio One to come back to the aggressive growth path.

Performance Highlights for Q2 and H1: FY 2016-17

Revenue for the quarter up by 15.5 % to Rs 21.23 Cr

Financial Highlights:

Next Mediaworks Limited reported its Q2 and H1 result in the Board Meeting held on November 4, 2016. The company operates 7 FM radio licences in the metro cities of Mumbai, Delhi, Bangalore, Kolkata, Chennai, Ahmedabad and Pune under the Radio One brand through its subsidiary Next Radio Limited and has seen tremendous response from listeners and advertisers for its differentiated programming format in each city.

Consolidated Q2 FY 2016-17

The key highlight for the quarter was the growth trajectory achieved by the business in an economically difficult time. Advertisement revenue for the Radio subsidiary grew by 13.2% from Rs. 18.37 Crores in Q2 last fiscal to Rs. 20.79 Crores.

EBIDTA has grown by 450% in this quarter due to the impact of following significant events:
In the last fiscal quarter we have taken the entire impact of increase in license fees in the second quarter of which Rs. 2.42 crore was pertaining to Q1 FY 2015-16.
In the last fiscal quarter we undertook a fund raising programme to fund the migration fees. All costs related to this fund raising activity (Rs. 1.75 crore) was taken in that particular quarter.

It is pertinent to note that in the absence of these items, on a like-for-like comparison with the last fiscal year, the company's EBIDTA for the quarter has increased by 15.5%.

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd

The first half of the current fiscal has been challenging for the radio industry. A combination of aggressive competition from new entrants and a general downturn in marketing spends have resulted in our revenue growth being less than what we had hoped. However, I am extremely heartened to see that our unique strategy of differentiation and innovation has allowed us to continue to grow both top line and EBIDTA. A good monsoon and early trends for the festive season indicate that marketers will increase spends in the second half of the year, traditionally more profitable for all media enterprises. We continue to 'stick to the knitting' of a differentiated strategy and tight cost controls in these difficult times and are confident of the strength of the enterprise to weather occasional storms.

Performance highlights for Q1: FY 2016-17

Revenue from operation up by 15.2% to Rs 19.82 Cr [Q1 F.Y 2016-17]

Financial Highlights:

Next Mediaworks Limited reported its Q1 result in the Board Meeting held on August 5, 2016. The company operates 7 FM radio licences in the metro cities of Mumbai, Delhi, Bangalore, Kolkata, Chennai, Ahmedabad and Pune under the Radio One brand through its subsidiary Next Radio Limited and has seen tremendous response from listeners and advertisers for its differentiated programming format in each city.

Consolidated Q1 FY 2016-17

• The key highlight for the quarter was the growth trajectory achieved by the business in an economically difficult time. Advertisement revenue for the Radio subsidiary grew by 15.82% from Rs. 17.21 Crores in Q1 last fiscal to Rs. 19.82 Crores.
• EBIDTA is depressed in this quarter due to the impact of following significant events:
  1. Annual fees payable for the FM licences have increased due to the high bids received for new licences in our cities of operation by Rs. 2.58 Crores. The matter is sub judice before the Delhi High Court in the writ petition filed by Entertainment Network Limited & Others vs. Union of India.
  2. Provisions written back included in other income in Q1 last year amounting to Rs. 1.12 crores.

It is pertinent to note that in the absence of these items, on a like-for-like comparison with the last fiscal year, the company's EBIDTA would have been 29.33%. As it stands, all costs have been taken in this year for a true and fair representation of the financial position of the company.

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd.

Radio One is growing from strength to strength. The first half of this year will be a period of consolidation as we transition to a new licence regime with higher costs and new competition. Despite a bumpy economy, our growth in advertisement revenue of 16% is extremely heartening and is ahead of the industry in metro cities. Radio is growing in popularity as a medium with both listeners and advertisers and Radio One's differentiated offerings and high audience engagement separate us from the pack in a competitive industry.

Performance highlights for Q4 & YTD March : FY 2015-16

Consolidated Annual Revenue at Rs.77.72 crores up by 15.6%

Financial Highlights:

Next Mediaworks Limited today declared its results for the quarter and full financial year ended March 31, 2016. The company operates 7 FM radio licences in the metro cities of Mumbai, Delhi, Bangalore, Kolkata, Chennai, Ahmedabad and Pune under the Radio One brand through its subsidiary Next Radio Limited and has seen tremendous response from listeners and advertisers for its mass differentiated programming format in every city.

The FM Phase III auctions concluded during the year and Next Radio Limited has renewed its existing licences for 15 years and maintaining a steady state of the business. Next Radio has exercised the option to migrate all 7 existing licenses by paying Nonrefundable One Time Migration fees to Ministry of Information and Broadcasting. These fees were funded by debt and through preference shares issued to Mr. Rakesh Jhunjhunwala in the subsidiary company. It has managed to grow revenues and margins through a strategy that has delivered consistent results over the past three years.

Capital Reduction by Subsidiary company:

To rationalize the balance sheet and to depict the true and fair position of its assets and liabilities, the Board of Directors of Next Radio Limited has approved the setting off of accumulated losses amounting to Rs.147 Crores against its equity paid up capital - Rs.109 crores and against Securities Premium Account - Rs.38 crores as on March 31, 2016.

Consequent to the above Next Radio Limited has cancelled 68.14 shares for every 100 shares had in the company. There is no impact on the profit and loss account of the subsidiary company Next Radio Limited.

In standalone financials of Next Mediaworks Limited the value of investment of shares in Next Radio Limited has been impaired to the tune of Rs.117.10 Crores.

In consolidated financials of Next Mediaworks Limited the goodwill recognized on consolidation of Rs.54.90 Crores has been written off.

Consolidated Revenue from Operations:

• Revenue from operations during Q4 stood at Rs.18.12 crores, up by 8.3% as compared to Rs.16.73 Crores of the corresponding quarter a year ago.
• Revenue from Operations for the year stood at Rs.76.18 crores, up by 16.4% as compared to Rs.65.43 Crores of the last year.
• EBIDTA margin for the year was depressed at 20.4% due to the impact of two significant events:
  1. Annual license fees payable for the FM licences to Ministry of Information and Broadcasting have increased due to high bids received for new licences in our cities of operation by Rs.9.97 Crores. The matter is subjudice before the Delhi High Court in the writ petition filed by Entertainment Network Limited & Others vs. Union of India.
  2. We undertook a fund raising programme to fund the migration fees. All costs related to this fund raise (Rs.1.89 crores) have been recorded in this year.

It is pertinent to note that in the absence of these two items, on a like-for- like comparison with the last fiscal year, the company would have operated at EBIDTA margin of 35.6%. As it stands, all costs have been taken in this year for a true and fair representation of the financial position of the company.

Key Quotes:

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd.

This is a very special juncture in time for our company. We have, in the last year, made the transition from Phase 2 to Phase 3 of FM privatization with all our 7 metro stations. Raising funding for the transition has been accomplished in a timely manner and we are excited to welcome Rakesh Jhunjhunwalla as a shareholder in Next Radio, our operating subsidiary.

The last year has also shown that our strategy of locally mass differentiated stations is bearing fruit. The dip in EBIDTA is largely due to three factors - an increase in annual licence fees of around Rs 10 crores (which is being challenged in the courts by the entire radio industry), fund raising costs of Rs 2 crores and investments made to meet new competition of Rs 2 crores. If it were not for these transitional costs we would have been at an EBIDTA of Rs 31 crores, a significant growth.

We have also undertaken a court-approved process of capital reduction in Next Radio. This adjusts our past losses against the share equity of the company to more accurately reflect the book value of the shares and makes way for enhanced shareholder value creation in the years to come.

With this year behind us we are now ready to embark on a sustained growth cycle over the next 15 years and are excited at the prospect.

Performance highlights for Q3 & YTD December: FY 2015-16

Q3 Total Income up by 18% to Rs. 22.50 Cr from 19.11 Cr same quarter last fiscal
YTD Total Income up by 21% to Rs 59.24 Cr from 48.90 Cr same period last fiscal

Next Mediaworks Limited reported its Q3 & YTD December consolidated results for FY 2015- 16 in the Board Meeting held on January 27, 2016.

Financial Highlights:

• Revenue for the Q3 up by 18% from Rs.19.11 Cr to Rs 22.48 crores as compared to same quarter last fiscal.
• EBIDTA margin is at 34%
• EBIDTA generated during the quarter amounts to Rs 7.55Cr.
• PBT margin is at 10.30%
• PBT generated during the quarter amounts to Rs 2.32Cr.

• Revenue up by 19% from Rs.48.70Cr to Rs.58.06Cr as compared to same period last fiscal.
• EBIDTA margin is at 22%
• EBIDTA generated during the period amounts to Rs 12.49Cr.

Our company is poised on the brink of a new chapter. In this last quarter we have migrated all our 7 radio stations to new 15 year licences through the payment of a one-time licence fee, raised from new equity and debt. We have already taken record of all transition costs and look forward to driving the company to new heights.

Our distinctive strategy and talented people make Radio One a very special place in the industry. We are looking forward to the future with great excitement.

Background

Next Mediaworks Ltd is the holding company of Next Radio Ltd (Radio One) which operates FM Radio stations in seven cities in India namely Mumbai, Delhi, Kolkata, Chennai, Bangalore, Ahmedabad and Pune.

Performance highlights for Q2 and H1 FY 2015-16

Next Mediaworks Limited reported its Q2 and H1 financials for FY 2015-16 in the Board Meeting held on October 28, 2015. The company operates 7 FM radio licences in the metro cities of Mumbai, Delhi, Bangalore, Kolkata, Chennai, Ahmedabad and Pune under the Radio One brand through its subsidiary Next Radio Limited and has seen tremendous response from listeners and advertisers for its differentiated programming format in each city.

The FM Phase III auctions concluded in the current quarter. Next Radio Limited has chosen a path of conservatism in the current choppy economic climate and declined to bid for unreasonably high metro frequencies. Instead, we are focused on renewing our existing licences for 15 years and maintaining a steady state of the business, continuing to grow revenues and margins through a strategy that has delivered consistent results over the past three years.

• The key highlight for the quarter was the growth trajectory achieved by the business in an economically difficult time. Advertisement revenue for the Radio subsidiary grew by 22% from Rs.15.06 crores in Q2 last fiscal to Rs.18.37 crores, which is the best amongst comparable peers. Revenues for H1 have grown 20% from Rs 29.58 crores to Rs 35.58 crores
• Next Radio has exercised the option to migrate all 7 existing licenses by paying Nonrefundable One Time Migration fees to Ministry of Information and Broadcasting. These fees were funded by debt and through preference shares issued to new investor Rakesh Jhunjhunwala in the subsidiary company.
• EBIDTA is depressed in this quarter due to the impact of two significant events:
  
  • a. Annual fees payable for the FM licences have increased due to the high bids received for new licences in our cities of operation. We have taken the entire impact of increased fees for H1 (Rs 4.78 crores) in this current quarter
  • b. We undertook a fund raising programme to fund the migration fees. All costs related to this fund raise (Rs 1.89 crores) have been taken in this quarter

It is pertinent to note that in the absence of these two items, on a like-for-like comparison with Q2 of the last fiscal, the company would have grown EBIDTA by 34%. As it stands, all costs have been taken in this quarter for a true and fair representation of the financial position of the company.

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd
The growth in our revenues at 20% for the first half of the current fiscal is extremely heartening. Our consistency in implementing a strategy of differentiation and innovation is clearly bearing fruit in a metro radio market which is growing in single digits. In normal circumstances our earnings would also have shown a significant rise but we have chosen to take the charge of an increased annual fee and fund raising in this quarter. The process of cleaning up the financials in order to take on Phase 3 with a clean slate will continue over the next few months. I am delighted to welcome a savvy new investor, Rakesh Jhunjhunwala, as a stakeholder in the business and we look forward to working with him to enhance value for all shareholders. By staying away from unremunerative bidding in the Phase 3 auctions and opting to stay the course of pragmatic and innovative growth we have ensured stability of the business at an uncertain time in the Indian economy. We are convinced that this approach will stand us in good stead as we embark on a new chapter in our history.

Next Mediaworks PBT grows by 707.7% in Q1 FY 2015-16 as against Q1 of last year

Next Mediaworks Limited reported its Q1 financials for FY 2015-16 in the Board Meeting held on August 6, 2015.

• Operating Revenue from Radio subsidiary up by 18.52 % from Rs.14.52Crs in Q1 last fiscal to Rs.17.21Crs.
• The Radio subsidiary has reversed Deferred tax asset amounting to Rs 37.25 Crs on the advice of auditors and to comply with a more rigorous accounting standard. As a consequence, PAT on a consolidated basis has declined from Rs (0.85)Cr to Rs (35.65)Cr.
• EBIDTA margin at 35% compared to 26% for Q1 last year.

Quote from Tarique Ansari, Chairman & MD, Next Mediaworks Ltd
We are extremely excited to see the continued growth of our radio business, ahead of the market. Both sales and EBIDTA have seen tremendous traction in the quarter, a performance that we hope to replicate in the year ahead. On the eve of FM Phase 3 we are also "cleaning up" our balance sheet to put the difficulties of the past behind us and take the company forward on a new trajectory. These are exciting times and we are navigating them with both passion and caution.

Background
Next Mediaworks Ltd is the holding company of Next Radio Ltd (Radio One) which operates FM Radio stations in seven cities in India namely Mumbai, Delhi, Kolkata, Chennai, Bangalore, Ahmedabad and Pune.