Mumbai, India (PressExposure) June 30, 2011 -- (L) to (R) - Nikhil Mirchandani, AsheeshChatterjee, AnandChakravarthy, Praveen Malhotra, TarunKatial, Meenakshi Roy, SoumenGhoshChoudhury and RabeIyer at RBNL Annual Round Table Meeting
Brand BIG, was born with the launch of India's biggest ever radio network of 45 stations across the country, 92.7 BIG FM, built in under 18 months. Inspired by the Chairman's belief 'think BIG', the brand name stood for magnitude, size and scale and has over the last 5 years grown its business from a pure radio company, to television, intellectual properties and out of home, offering marketers an integrated media platform for their brands. The Company, 5 years hence, stands as a multi-media entertainment conglomerate which is now entering a new era of its growth, with radio and television broadcasting being the key growth pillars for Reliance Broadcast Network Ltd., poised to grow 5 times.
Key financial highlights:
Last month, RBNL reported its financial results with standalone revenue of Rs 251 crore for the fiscal ended March 31, 2011, up 36 per cent from the previous fiscal. This performance reflected strong growth in business operations under the aegis of BIG FM, which remained EBIT positive.
The radio business is at a mature stage and has delivered good results, continuing to demonstrate the confidence of advertisers in the brand. The business recorded revenue of Rs. 175 crore, a growth of 15 per cent over previous fiscal. Radio remained EBITDA positive at Rs 28 crore, a growth of 732 per cent.
The Intellectual Property business revenues grew by a remarkable 232% to Rs. 46 Cr having executed over 23 properties in the last year.
The OOH business posted a robust 35% growth sales performance driven by innovation and marquee properties.
This 5 year old Company has showcased speed to market like no other Indian media company, created a mark for itself and is today, a powerhouse to be reckoned with. As it enters its new growth phase, the Company is confident of being able to maintain a 30%+ growth rate, through a strategic and well planned business plan, taking the Company to newer heights over the next 5 years.
The radio story: The Impending Phase III rollout will be an exciting time for the Company which has already built a robust radio network, and will get an opportunity to further increase its reach with the opening up of 223 new towns. The opening of news and sports will be an impetus to further growth for the category. Multiple frequencies are also a booster and will enable category expansion, improve reach, effective rates and bring higher share of media spends to radio. Growth will come from the Company's ability to leverage networking in a significant way, allowing for low cost expansion in Tier II and III locations.
The radio business currently contributes to around 70% of RBNL's revenues. Going forward, while the base will grow, its contribution over the next 5 years to the company's revenue mix will be 40%, though growing 4 times its current top-line. The Company also sees a healthy revenue stream from the internet and mobile radio space for which RBNL has already deployed.
Television story: The Company currently has 4 Channels LIVE, the 3 BIG CBS Channels - BIG CBS PRIME, international entertainment targeting 25-44 yrs men in metros, BIG CBS SPARK, India's first international youth entertainment channel andBIG CBS LOVE, international entertainment channel targeting 25-44 yrs Women in metros.
The Company also launched BIG MAGIC, positioned as India's only variety entertainment channel exclusively for the Hindi Heartland - UP, MP and Bihar, featuring locally relevant entertainment around humor, Music, Movies and Bollywood. BIG MAGIC has already established itself as the No 1 regional channel in these key regions for marketers.
RBNL's television business strategy is to target the top end audiences in metros through focused offering and mass audiences in India through locally relevant channel offerings while seamlessly integrating our other business verticals.
HD and 3D is the way forward and RBNL will soon be launching the BIG CBS mother channel in HD with cross pollination of the content from the 3 different channels.
Additionally, 2 television channels with the RTL Group will launch in the current fiscal, in the reality and action entertainment genres. Unlike the CBS channels, the RTL channels will have language feeds. The Company is exploring opportunities to grow its bouquet of channels to a significant number and also take them global over a period of time, targeting emerging markets. Over the next 5 years, we would see around 40% of RBNL's revenue coming in from the television play.
IP Story: Over the last year, BIG LIVE has executed 23 properties and will continue to build the IP portfolio across various markets, entertainment platforms and consumer segments. Going forward, this division will develop IPs focusing on Entertainment, Branded Content, Sports & Rural markets in this fiscal.
OOH Story: BIG STREET markets key properties along with all out of home inventory assets of the Reliance Group, focusing on premium marquee properties e.g. Delhi Airport Metro Express - which gives advertisers access to the hard to reach air traveler, Mumbai Metro and others. Going forward, the Company will continue to develop its footprint in organized & regulated markets with focus on improving yields and occupancy. The division will also actively leverage technology, packaging and innovation for its clients.
Speaking on the occasion TarunKatial, CEO - RBNL said, "We are very excited to be leading Reliance Broadcast into its next growth phase. With a clearly articulated road map for each vertical, we are confident of them delivering to expectations, with radio and television paving the way for an augmented broadcast success story. We are currently growing at the rate of 30%+ and we intend to maintain this momentum, over the next 5 years, making us one of the largest entertainment media conglomerates. We are committed to offering greater value to investors and shareholders, as we turn to a new chapter of the Company's growth curve."
With clearly articulated future plans for each business, an excellent management team at the helm, an execution team with an average age of 27 years, that has been handpicked and trained to imbibe our core values of service leadership, excellence in execution, constant innovation, team work and a sense of urgency, Reliance Broadcast Network, one of India's youngest entertainment conglomerates is poised to grow exponentially.