Key Highlights

Volume was up by 3.5% in Mar 18 quarter in Radio. Overall, including non Radio, volume is down by 0.7% in Mar 18 quarter.

Non Radio constitute around 35% for Mar 18 quarter and for full year it's around 30%.

Whole category of radio was playing too many ads. And listeners were very irritated by constant ads. The company has taken a very strategic call to reduce ads in FY 18 which will benefit in long term. FY 18 volumes were reduced by 15% on YoY basis. It was a conscious call taken by the company due to consumer feedback as they get irritated due to too much ads. The company sacrificed the volumes for better listenership and image.

Listenership voted for the company. In the top 8 Metros, the company is ahead by 32% compared to its nearest peers.

Due to telecom operators providing various Apps for music and songs so far there is no such issues on company's market and future of radio in general.

Overall market pricing was under pressure in FY 18. There is a drop of 7-10% market price in the Radio industry.

In such a scenario, company was able to increase prices by 3% due to its strength of listenership.

So overall, drop in volumes by 15% in FY 18, value increase was only 3%, so overall revenues have reduced by 11.5%.

Top 8 markets capacity utilization stands at 103%, which translates to 13 min an hour. Ideal would be a 12 min an hour. FY 19 no need to cut volumes any further

Apart from top 8, capacity utilization stands at 73% which translate to 9.5 min per hour. Head room to grow. Benefit from both volume and price increase going forward.

Margins stood at around 22% in non radio business. Cautious call by the management on focusing on pricing rather than volumes. The company has lost some volumes in this segment, but margins have improved. Volumes will come back in this segment.

Top 8 radio stations gross margins stands at around 40%. Other radio stations have just broken even. Scope for margin improvement to 25%. However not much price increase expected immediately. It will be gradual.

High tax rate in FY 18 includes some onetime tax provisions.

The company had some problems with one big advertiser in FY 18. There was no ads form this large advertiser for 8 months in FY 18. For last 3 months, the issue has been put to rest, volume growth has happened particularly in other than top 8 stations, because of this large client.

The company has taken some price increase as well with this advertiser and will play a big role in increasing the volumes in other than top 8 markets which is currently 9.5 Min per hour.

Expects to achieve above industry growth for the company both in volumes and values in FY 19 for the company.

Lot of political advertising, FMCG advertising expected in H2 FY 19. Expects some price increases of around 7-10% in H2 FY 19.