Music Broadcast Expects A ‘Very Sharp’ Rise In Profit This Year
Radio broadcast company Music Broadcast Ltd. expects its profit and operating margin to increase sharply this year as the upcoming elections are likely to drive revenue growth in the third and fourth quarters.
“As an average, we expect a 14-15 percent revenue over the year, which means a very, very sharp increase in profit after tax and Ebitda (earnings before interest, tax, depreciation and amortisation),” said RK Agarwal, group chief financial officer of Jagran Prakashan—the parent company. Higher revenue, coupled with margins of about 33 percent, will drive profit growth above 35 percent, Agarwal said.
Music Broadcast’s revenue increased 8 percent year-on-year in the first quarter, while profit rose 25 percent. The company’s Ebitda grew 17 percent, he said.
The stock has fallen 20.6 percent so far this year compared to an 8.18 percent rise in the benchmark S&P BSE Sensex during the period.