Music Broadcast Ltd. share price target

Revenue grew 6% YoY (6% QoQ; 3% miss) to INR801m primarily due to the festive season shifting to 3QFY19 and on sluggish retail advertiser spends. Both volume and yield improvement contributed equally to the overall growth. Higher contribution from new stations aided healthy 10% YoY growth in overall EBITDA to INR266m (in- 26 October 2018 line). Yet, PAT at INR134m grew by 5% YoY (in-line) at a slower pace than EBITDA growth due to high tax expenses. PAT grew 7%/13%/14% YoY in 1HFY19. Revenue contribution from new stations saw an uptick to 10% (INR80m, +66% YoY). (1) Shifting of festive season to 2H and boost from pre- election spends should drive mid-teens growth in 2HFY19, (2) maintain 12- 14% revenue growth guidance in FY19, outperforming radio industry (8-10%) growth, (3) expect Ministry of Information and Broadcasting (MIB) approval for acquisition of Friends 91.9 FM radio station by 3QFY19.

As per management, the current low growth is largely due to weak retail/local, real estate and government advertisements, which is witnessing slow recovery post demonetization/GST. Management also reaffirmed that over the next three years, company should grow revenues at 13-15 % CAGR and PAT at 20-25 % led by steep operating leverage coming from 90 % fixed cost.b.)TV players have seen swift recovery from demonetization/GST due to FMCG companies, which contribute less than 10 % to the radio sector v/s over 50 % for the TV industry. However, radio has not lost its sheen in India where listenership remains steady at 54mins for 5.1days/week-radio is viable for advertisers due to its reach and also because it's a cost efficient medium.

MBL reports revenue growth of 7.6% YoY led by rate hike in all 12 core stations and improving utilization in Phase III markets. EBITDA margin improved 290bps YoY to 34.4% as Phase III markets contribution to EBITDA came in earlier than anticipated and Yield & inventory improvement translating into operating leverage. EBITDA margin is estimated to move towards the upper end of the band (33%-35%) over the next three years due to lower marketing/promotion expenses as there is no new station slated for launch. We largely maintain our estimates and our BUY recommendation;...

For 1QFY2019, Music Broadcast (MBL) posted mixed bag results. Top-line reported modest growth, however on the bottom-line front, the company registered healthy growth. Revenues grew by ~8% yoy. The company's operating margins improved by robust 290bps yoy. On the bottom-line front, MBL reported growth of ~25% yoy to `14cr on the back of s..

Reiterate BUY with revised TP of Rs 468 (vs. Rs 492 earlier) at 30x Jun-20E FCFE per share. Music Broadcast Limited (MBL) 1QFY19 was in-line with 8% revenue, 18% EBITDA and 25% PAT growth YoY. Revenue growth was bit soft. Stringent control on costs led to healthy EBITDA and PAT growth.

BUY with TP of Rs 492 (+47%) at 30x FY20E FCFE per share. Recent correction in MBL's stock price makes risk-reward even more favourable. Music Broadcast Limited (MBL) reported upbeat 4QFY18 with 14% revenue, 30% adjusted EBITDA (reported 65%) and 117% APAT growth (reported 261%) YoY. FY18 revenue/EBITDA growth was modest at 10%/6%. Launch expenses on new stations dragged EBITDA. FY18 PAT growth was 41% owing to Rs 4bn IPO proceeds (Mar17 @ Rs 333/sh) and thus higher other income.

Traction in Govt. ad spends to drive outperformance; Maintain BUY MBL reports revenue growth of 14.1% YoY led by Phase III stations in terms of volume and by legacy stations in terms of yields. EBITDA margin improved 1100bps YoY to 36.0% is also helped by better collection as no provision for RDD had a positive impact of 200 bps on the margin; balance of the margin improvement (+900bps) was due to absence of losses/launch expenses of new stations. We upgrade our EBITDA estimates by 7%/5% for FY19/FY20 led by better revenue growth in new stations, coupled with...

Revenue grew 14% YoY (flat QoQ) to INR759m, in line with our expectation, led by (1) volume growth at new (Phase III) stations, and (2) volume and yield growth at legacy stations. (1) In FY19, EBITDA margin should be higher than 33% (FY18); (2) 8-10% yield improvement likely in FY19; (3) After empanelment on DAVP list, revenue from Phase III stations should grow; (4) EBITDA margin for Friends 91.9 FM should increase to 30% (from current 20%), driven by increase in national advertisers share (through network efficiencies) and growth in listenership (led by content integration). EBITDA should grow at a CAGR of 26%, with EBITDA margin reaching 39% by FY20, led by (1) inherent operating leverage play, (2) higher contribution from new stations (which turned EBITDA breakeven in 4QFY18), and (3) fillip in EBITDA margin of Friends 91.9 FM, driven by revenue and cost synergies.

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 75.9 crore (up 14.1% YoY), in line with our estimates. Growth was driven by a mix of volume (largely new stations) and pricing. The company reported 10% revenue growth in FY18, out of which ~8% was volume growth EBITDA came in at | 27.4 crore, up 64.8% YoY, better than our estimate of | 23.5 crore, owing to flattish employee expenses as well lower other expenses (the company had IPO related and new station...

ICICI Securities Ltd | Retail Equity Research Music Broadcast has announced the acquisition of Kolkata based radio station Friends 91.9 FM for a cash consideration of | 35 crore from Ananda Offset Pvt Ltd (AOPL). The transaction is also subject to adjustments with respect to any external debt as on date of acquisition and differential in working capital over and above normalised levels of | 9.2 crore. The deal is expected to be consummated in the next three months, post approval of Ministry of Information and Broadcasting (MIB)....