Music Broadcast Limited, which owns and operates Radio City FM, on Saturday said its advertisement revenue is severely impacted due to drop in economic activity on account Covid-19-induced lockdown.
In a regulatory filing to highlight the impact of the CoVID-19 pandemic on the business, the private FM broadcaster said, “During the lockdown period, advertisement revenue is lower by 80% to 85%. The loss of revenue is partly compensated by various cost saving initiatives. Impact of loss of revenue will further be reduced by reduction in other costs to the extent possible.”
“We expect that once lockdown is lifted, ad revenues will start picking up from the current low level,” it added.
Radio City, a subsidiary of Jagran Prakashan media network, is India’s first private FM station. It currently has 39 stations across 12 states.
“The future impact on the operations results and financial health of the Company cannot be ascertained,” the company said adding that, “We expect material adverse impact on revenues, profits and resultant cash flows, the extent of which will depend on containment of impact of CoVID-19 and the damage done by pandemic.”
The Company also said that all of its radio stations are running despite the lockdown, and delivered FM coverage to the listeners across the country, by complying with the advisories issued by the government.
In April, rating agency CRISIL reviewed and re-affirmed the credit rating for long term facilities as CRISIL AA/Stable and short term facility as CRISIL A1+, signifying high degree of safety regarding timely servicing of financial obligations.