Radio City EBITDA jumps 10x as cost cuts stick
Revenue still down 10% YoY but created business rebounds to ₹9.8 cr. With cost savings largely achieved, the next catalyst is ad revival or cash deployment.
— 3 earlier stories on Music Broadcast Ltd. →What's new
- Revenue ₹44.5 cr, down 10% YoY but up 9% QoQ.
- Created business rebounds to ₹9.8 cr.
- Digital remains only 4% of total revenue.
- Cost savings largely achieved; limited room for further improvements.
Why this matters
Radio City has swung to profit, but the core radio ad market remains subdued. The company sits on net cash of ₹270 cr — more than its market cap — yet management has no plans for a buyback. With cost levers exhausted, growth depends on the ad cycle turning or a strategic move.
What we're watching
- Whether the ad revenue decline stabilises in coming quarters.
- Any update on cash deployment — buyback, dividend, or acquisition.
- If digital revenue can meaningfully grow beyond single digits.
The full read
Radio City swung from a near-zero EBITDA base a year ago to ₹8.9 cr this quarter. That is a 10x jump. But revenue still fell 10% YoY, and the core ad market remains soft. The created business recovered to ₹9.8 cr, and cost savings are largely tapped out. Digital revenue is stuck at 4% of total. The balance sheet holds ₹270 cr net cash, more than the company's market cap, yet management sees no immediate buyback. The transcript adds nothing beyond the numbers already known. The open question is what moves the needle next: an upturn in radio advertising or a decision on that cash pile.
Questions answered
- How did Q1 revenue compare to the prior year and quarter?
- Revenue was ₹44.5 crore, down 10% year-on-year but up 9% sequentially, indicating a sequential recovery despite a subdued ad environment.
- What drove the sharp improvement in EBITDA and PAT?
- Operating EBITDA improved to ₹8.9 crore from ₹0.9 crore a year earlier, aided by cost savings and rebound in the created business. PAT of ₹9.2 crore also benefited from ₹8.2 crore in other income.
- What is the status of the created business?
- The created business rebounded strongly to ₹9.8 crore in Q1, from a low base in the year-ago quarter, as per management commentary.
- Why is the company not using its large cash balance?
- Management stated there are no immediate plans for a buyback or deployment of the ₹270 crore net cash, despite the cash being greater than the company's market cap.
- Is there room for further margin expansion?
- Cost savings were described as largely achieved, leaving limited room for further margin improvements. Core radio advertising remains subdued.
- How significant is digital revenue for Radio City?
- Digital revenue contributed only 4% of total revenue in Q1, indicating a nascent digital business that has yet to meaningfully diversify the revenue stream.
Music Broadcast Ltd.
Latest quarter · Jun 2023
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All notes on RADIOCITY →- 28 Jul 2026 · 4:05 PM IST Radio City EBITDA jumps 10x as cost cuts stick
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- 68d ago Music Broadcast net loss widens to ₹53 cr as revenue falls 26%