Music Broadcast Limited (RADIOCITY) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Music Broadcast Limited Q2 FY '27 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abraham Thomas from Music Broadcast Limited. Thank you, and over to you, sir.

Good afternoon, everyone, and welcome to the quarter 2 FY '27 Earnings Conference Call of Music Broadcast Limited. Joining me today is Mr. Rajiv Shah, our Chief Financial Officer. The second quarter reflects the continued benefits of the strategic and operational initiatives undertaken by the company, while revenue moderated sequentially in a softer operating due to earlier start of festive last year, we remain focused on cost discipline, operational efficiency and strengthening profitability. Our focus remains on building a resilient business model, improving monetization across our platforms and sustaining the benefits of the structural measures implemented over the past few quarters. As highlighted in our previous interactions, the company continued to focus on 4 key priorities: strengthening monetization across Radio and Radio Plus platforms, enhancing advertiser engagement through integrated offerings, delivering sustainable and profitable growth, driving operational efficiency and cost efficiency. Radio City continued to pursue diversified revenue opportunities through branded content, events, sponsorships, digital solutions, and integrated advertiser offerings. Our focus remains on deepening relationships with key clients, increasing wallet share and improving monetization across platforms. The financial performance for quarter 2 FY '27. Revenue for quarter 2 FY '27 stood at INR 41 crores compared to INR 37.8 crores in Q2 FY '26, representing a year-on-year growth of approximately 8%. Sequentially, the revenue moderated to INR 44.5 crores in quarter 1 FY '27. The company continued to benefit from disciplined cost management and operational efficiency. Total expenses stood at INR 34.8 crores compared to INR 43.3 crores in quarter 2 FY '26, a reduction of approximately 20% year-on-year. As a result, operating profit before tax stood at INR 1.5 crores compared with an operating loss of INR 13.3 crores in Q2 FY '26. Reported profit before tax stood at INR 8.9 crores compared to a loss of INR 6.4 crores in quarter 2 FY '26. H1 FY '27 performance. For the first half of FY '27, revenue stood at INR 85.5 crores compared to INR 87.2 crores in H1, representing a year-on-year decline of approximately 2%. Total expenses stood at INR 70.4 crores compared to INR 91.7 crores in H1 FY '26, a reduction of approximately 23%. Operating profit before tax stood at INR 5.6 crores compared with an operating loss of INR 20.2 crores in H1 FY '26. Reported profit before tax stood at INR 21.2 crores compared with a loss of INR 6.3 crores in H1 FY '26. The first half performance reflects the cumulative impact of cost optimization and improved operating leverage. Going forward, our focus will be on translating this stronger operating foundation into sustainable revenue growth. The advertising environment continues to require a measured and client-focused approach. We remain focused on leveraging Radio City's strong regional presence, established advertiser relationships, and integrated media capabilities to capture available opportunities. Our priorities include strengthening core radio monetization, increasing engagement with strategic advertisers, expanding non-FCT revenues, and building further traction in branded content, events, sponsorships and digital integrations. We will continue to maintain financial discipline and operational agility while pursuing revenue opportunities. Our growth remains to sustain -- our objective remains to sustain profitability, strengthen operating leverage and create long-term value for all stakeholders. With this, I open the floor for questions and answers.

[Operator Instructions] The first question is from the line of Meghana Saradha, an Individual Investor.

Am I audible?

Yes, you are, ma'am.

Yes. I have a couple of questions. I wanted to know the FCT and NFCT split for the quarter.

NFCT -- 80/20 is the split right now for the quarter.

Okay. Okay. What was your market share this quarter?

24%.

Okay. And how have you been able to curtail employee costs and other expenses this quarter versus the previous quarter?

Can you be a little louder on the third question?

How have you been able to save up on employee cost and other expenses this quarter?

So if you see, we are basically INR 1 crore -- INR 50 lakhs less than the quarter 1 in the total cost, around INR 1 crore. That is what we have saved compared to Q1.

And other expenses?

Total, I said. The employee expenses actually have gone up by INR 60 lakhs, but the other expenses saving is INR 1.6 crores. So roughly, we have saved INR 1 crore on the total expenses for the quarter.

The next question is from the line of Ronak Shah from Equirus Securities.

Yes. Sir, my question is regarding the non-FCT front. So the regions wherein you are strongly available, we are expecting a larger concert kind of thing plus larger events likely to happen. So are we expecting any participation -- larger participation which can accelerate non-FCT revenue into the second half?

Yes, we are actually in the process of doing a lot of experiential activities in the Tier 2, Tier 3 markets. We see a lot of traction there. We also have a strong presence there. So we are exploring concerts and other events in the Tier 2, Tier 3 markets to leverage our strength there.

Any ballpark number indication?

Ballpark number in terms of number of events or?

Sir, so in terms of the growth, how we are expecting it to accelerate just from any quality stuff you can highlight?

So currently, 18% to 20% of our revenues come from non-FCT contribution. So we are looking at shoring that up and therefore, the effort is to actually do as many as is are -- so long as they are profitable. So we're very conscious about the cost of the events and the revenue we're able to derive.