Reliance Broadcast raises Rs 2.83 bn via preferential allotment

Reliance Broadcast raises Rs 2.83 bn via preferential allotment

MUMBAI: Reliance Broadcast Network (RBNL), the media entity from the Reliance ADA Group that houses the radio and Out-of-Home business, has raised Rs 2.83 billion by preferential allotment of 33.32 million equity shares at a price of Rs 85 per share.

The company has allotted 12.95 million shares to investors and 20.37 million equity shares to the promoter group.

As of 30 September, promoters? holding in RBNL is at 63.66 per cent, up from 61.47 per cent in the period ended 30 June. had reported earlier that RBNL is planning to raise up to Rs 4 billion by preferential allotment to boost its net worth and shore up its borrowing capabilities.

?Having raised funds from the market, we are uniquely poised to participate in prospective future growth opportunities across business verticals, including new radio licences in Phase III, adding to the bottom line as we grow further,? RBNL CEO Tarun Katial says.

RBNL has used Rs 331.6 million out of this to repay the debt and accured interest, while Rs 1.10 billion is kept as fixed deposit and remaining Rs 1.40 billion is kept as balance in the bank (as of 30 September).

Meanwhile, the company has posted its financial results for the year ended September 2010.

RBNL has posted a net loss of Rs 294.17 million for the year on a revenue of Rs 1.08 billion.

The expenses in the year stood at Rs 1.26 billion, while operating loss (from operations before other income, interest and exceptional items) was at Rs 179.23 million.

RBNL, formerly known as Reliance Media World, has a presence in various sectors like radio (Big FM), experiential marketing (Big Live) and OOH (Big Street) and digital advertising (Big digital). It recently made an entry into the television broadcasting business through a 50:50 joint venture with US-based CBS Studios International in a separate entity titled Big CBS.

From its radio broadcasting business, the company has incurred an operating loss of Rs 97.10 million for the 12 months ended 30 September. The revenue from the segment stood at Rs 793.72 million, while capital employed was Rs 2.65 billion.

From its outdoor business, the revenue for the fiscal was at Rs 89.62 million, while it suffered a loss of Rs 59.93 million from the segment. The company deployed Rs 306.73 million in the segment.

During the year, the experimental marketing business saw a revenue of Rs 182.15 million, while segment loss was a mere Rs 5.18 million. The capital deployed was Rs 46.49 million.

Meanwhile, the company noted that the figures for the previous year (12 months) are strictly not comparable to those of the current period, which comprises six months and have been regrouped/rearranged as necessary to conform to current year‘s presentation.

RBNL also said in a statement that it has witnessed highest quarter revenue of Rs 583.5 million during the three months ended 30 September, which is up by 12 per cent as compared to last quarter. It said Ebitda grew by 288 per cent from Q1 FY10-11 to Rs 19.1 million.

Radio operations remain Ebitda positive registering a 156 per cent increase compared to the trailing quarter, while inventory utilisation stood at 64 per cent.

The OOH business acquired significant inventories on a long term PPP basis. And the experiential marketing business posted a 144 per cent revenue growth over Q1 FY10-11 turning Ebitda positive.

The quarter also saw RBNL acquiring rights to becoming the single window access to Reliance ADA Group?s 200 million+ consumers base.

Katial said, ?RBNL?s strategic business blueprint, with play across media platforms has created a robust business model that is beginning to deliver value. We are encouraged by our Ebitda growth of 288 per cent over last quarter, which is commendable, given the traditionally lean quarter Q2 normally is. The experiential marketing vertical Big Live has turned Ebitda positive and reinforces our strategy to unlock value through the creation of IP properties support by our multi media play. The OOH business is poised to surge ahead, with several significant acquisitions, going live in Q3.?

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