17 December,2014 06:40 AM IST | | A Correspondent
Radio City, a leading radio network with 20 station across seven states, will be acquired using internal accruals and investments; the radio business will complement the group’s print, outdoor, activation, and digital businesses
New Delhi: During its meeting yesterday, board members of the Jagran Prakashan Limited (JPL) approved the entry of the company into the radio industry via acquisition of the Music Broadcast Private Limited (MBPL).
The acquisition is subject to regulatory approvals, including the ones received from the Ministry of Information and Broadcasting, and execution of binding agreements. As part of its acquisition, JPL is acquiring MBPL's holding company and its subsidiary that provides activations.
MBPL runs India's leading radio network under the name Radio City 91.1 FM, and is present in 20 stations across seven states. The network has a strong national presence, including the top 14 out of 16 advertisement revenue generating markets with a focus on SEC AB audience.
MBPL's FY-14 revenues were pegged at R161.8 crore, while the H1-FY-15 (unaudited) revenues exhibit a healthy growth of 28 per cent in ad revenues. MPBL's current operating margins are approximately 28 per cent. Though the acquisition will primarily be funded from internal accruals and investments, it will not impair the company's ability to distribute dividends.
Commenting on their latest venture, JPL CMD Mahendra Mohan Gupta said, "The radio business has witnessed a significant growth in the recent past and is expected to grow at over 18 per cent CAGR in the coming years, as per KPMG-FICCI. This deal will catapult JPL into a leadership position in the radio industry, and enable it to benefit from the rapid growth in radio advertising.
Acquisition of Radio City further consolidates our position as India's leading media and communications group. The radio business will complement our print, outdoor, activation, and digital businesses, and enable deeper inroads with advertisers both at national and local levels."
About JPL
The group publishes 12 newspaper brands with over 100 editions and 250 plus sub-editions from 36 different printing facilities across 15 states in five different languages. With a total readership of 68.01 million for all its publication brands, the group is the largest print media group of the country.
