Big FM Will Continue To Operate As Individual Brand, Says Music Broadcast
The proposed equity infusion of Rs 202 crore will be used to repay Reliance Broadcast Network Ltd.’s debt, says Jagran Prakashan.
Music Broadcast Ltd. will not merge its Radio City and Big FM channels after the acquisition receives necessary approvals, according to its parent Jagran Prakashan Ltd.’s President Apurva Purohit.
“There is no question of re-branding happening as Big FM itself has great equity and recall in the market,” Purohit told BloombergQuint. “We see synergies in revenue maximisation and costs but otherwise the brands will operate differently and individually.”
The proposed equity infusion of Rs 202 crore will be used to repay debt of Reliance Broadcast Network Ltd., Purohit said, adding that Rs 500-crore worth of debt will be carried in the company’s books.
The company board approved the acquisition of entire stake of Reliance Broadcast Network (Big FM) for Rs 1,050 crore, according to its stock exchange filing. Initially the company will acquire 24 percent stake in the target company via preferential allotment for Rs 202 crore, the statement said. The company also announced its March quarter results on Monday.
Key Highlights: (YoY)
- Revenue up 7.9 percent to Rs 81.9 crore.
- Net profit up 12.9 percent to Rs 18.4 crore.
- Ebitda up 16.8 percent to Rs 32 crore.
- Margin at 39.1 percent versus 36.1 percent.
Shares of the Mumbai-headquartered company rose as much as 6.2 percent to Rs 62.50 apiece compared with a flat Nifty Index.
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