TRAI: FM Radio ad revenue moved up in third quarter

BENGALURU: After the slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been changed, albeit marginally for Q2-17 (quarter ended 30 September 2016)  and Q3-17 (quarter ended 31 December 2017) according to the data released by The Telecom Regulatory Authority of India (TRAI).

According to TRAI data for Q3-17, radio combined ad revenues reported by 272 of the 273 private operating FM radio stations were Rs546.72 crore or an average of Rs2.01 lakh per station for Q3-17. This washigher than the average of Rs 1.94 crore per station (combined revenue Rs502.13 crore from 259 stations)for the immediate trailing quarter. Q3-17 ad revenue was however short by about Rs12 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs533.7 crore from 240 radio stations (Average revenue per station of Rs2.22 crore per station). As a matter of fact, in Q2-16, the average revenue per station was highest at Rs 2.22 crore during the period commencing from end Q1-12 until the current quarter.

Please refer to the Figure below for FM Radio Ad Revenue over a five year plus period spanning a 23 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 31 December 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.


In absolute terms, combined Radio ad revenue in Q3-17 increased 8.9 percent and 3.4 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 9.6 percent y-o-y, but increased 3.7 percent q-o-q. The total number of stations in Q3-17 increased 13.3 percent y-o-y and 5 percent q-o-q.

Please refer to Figure B for y-o-y and q-o-q changes


Thirteen new private FM stations commenced operations to take the total number of stations at close of 31 December 2017 to 273 in the third quarter of 2017 according to TRAI. At the close of Q2-17 (previous quarter), there were 260 private FM stations operating in the country.

Here’s two of the major radio networks’ performed in Q3-17

One of the biggest players in the private FM radio business – Entertainment Network India Limited that runs the Radio Mirchi network among others, reported 4.9 percent y-o-y increase in consolidated Total Income from Operations or revenue (TIO) for Q3-17 of Rs 150.65 crore for the current quarter as compared to Rs 143.57 crore in the corresponding quarter of the previous fiscal. Q-o-q, revenue in Q3-17 also increased 16.2 percent from Rs 129.65 crore in Q2-17.The company’s consolidated profit after tax (PAT) in Q3-17 declined by 43.1 percent year-over-year (y-o-y) to Rs16.42 crore (10.9 percent margin) as compared to Rs28.86 crore (20.1 percent margin) and more than doubled (increased 2.18 times) q-o-q from Rs 8.05 crore (6.2 percent margin).

Commenting on the results, ENILmanaging director and chief executive officer, Prashant Pandaysaid, “We are poised on the cusp of a strong growth curve with the LoveNetwork – 8 ‘Mirchi Love’ channels of our own and 3 ‘Ishq FM’ channels of TV Today –now fully operational. This network, along with the original ‘Mirchi’ network, now comprising 42 channels, offer advertisers the widest coverage across the country. With thegovernment soon to announce the results of the second batch of auctions held recently, we willgrow even bigger. These are exciting times!”

Another player, DB Corp’s MY FM radio network which encompassed 26 live stations with the launch of nine new stations during Q2-17 and Q3-17 reported revenue increase in Q3-17 of 12.4 percent to Rs 36.32 crore as compared to Rs 32.32 crore in the corresponding year ago quarter.  DB Corp’s earnings press release said that its radio business operating profit (EBIDTA) grew 3 percent y-o-y to Rs 14.8 crore (41 percent margin), while profit after tax (PAT) also increased 3 percent y-o-y to Rs 8.1 crore (22 percent margin).

Unlike most of the other players in the media and entertainment, the major players of the radio industry were not as affected by the government’s demonetisation drive that commenced on November 8, 2016. With more stations to roll, the industry’s ad revenues can only grow.

Latest Reads
Bridge Music Academy launches the racist keyboard

MUMBAI: Earlier last month, Bridge Music Academy has launched the racist cover campaign aimed at educating children about racism and its effects. Conceptualised by Dentsu Webchutney, the campaign is supported by Culture Fox and Roland.

MAM Marketing MAM
QuikrHomes releases consumer sentiments report for 2018

MUMBAI: Leading digital real estate business QuikrHomes has released a comprehensive report that captures consumer sentiments for the year 2018. The report was conceptualised to understand consumer sentiments post regulatory changes in the real estate and what it means to the industry in 2018. 

MAM Marketing MAM
Law & Kenneth Saatchi & Saatchi appoints Delna Sethna as CCO

MUMBAI: Law & Kenneth Saatchi & Saatchi, Publicis Communications’ full-service creative agency, has named Delna Sethna as its chief creative officer across all its businesses. Prior to this, Sethna was leading some key global businesses such as P&G brands and Mondelez.

MAM Marketing MAM
2018 will be a year of video campaigns: WATConsult's Rajiv Dhingra

MUMBAI: If you see an advertisement on a website or your app, you are a well defined consumer of digital advertising. Thet ads on the website you visit are primarily revenue source for internet companies.

MAM Marketing MAM
Mother's Recipe undertakes initiative for war heroes

MUMBAI: India’s homegrown pickle brand Mother’s Recipe initiated a new campaign called, tribute to our motherland to salute the supreme sacrifice and selflessness of our brave men in uniform. Under this initiative, the company will contribute Rs 3 from the sale of every special edition Mothers...

MAM Marketing MAM
Is India ready for the impact of AI on marketing?

MUMBAI: From self-driving cars to voice assistants Siri and Alexa, artificial intelligence (AI) is expeditiously becoming popular. While one may think of AI only as intelligent robots or technology, it encompasses everything from Google’s search algorithm to e-commerce to geo-target and...

MAM Marketing MAM
Kajaria Ceramics touches patriotism with Akshay Kumar

MUMBAI: Kajaria Ceramics has launched another new ad campaign with its official brand ambassador and Bollywood actor Akshay Kumar. The company recently launched a TVC for its bathware solutions brand KEROVIT with Anushka Sharma.

MAM Marketing MAM
Duroflex launches sleep marathon with Milind Soman

MUMBAI: We are living in the time of the gig culture where staying up all night to meet project deadlines is celebrated. However, long term effects of lack of sleep are hardly discussed. Keeping this in mind, Happy mcgarrybowen, the creative agency from Dentsu Aegis Network, has conceptualised the...

MAM Marketing MAM
Ogilvy India makes key top-level appointments

MUMBAI: Advertising agency Ogilvy India has announced the appointment of Prem Narayan as its new chief strategy officer and Balagopalan Ganapathy as the new head of planning, Ogilvy Mumbai. Narayan and Ganapathy have started in their respective roles with immediate effect.

MAM Media and Advertising People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories