Fever FM Q3 operating profit shrinks

MUMBAI: Fever FM, the radio arm of HT Media, has seen its operating profit shrink to a mere Rs 0.1 million for the quarter ended 31 December.

The private FM company had posted an Ebitda profit of Rs 39 million in the corresponding quarter of the previous fiscal. In the trailing quarter, however, it had reported an operating loss of Rs 45.4 million.

Fever FM?s revenue saw a marginal decline to Rs 174 million, from Rs 180 million in the year-ago period.

HT Media has employed a capital of Rs 814.1 million in its radio business, according to data provided till 31 December 2011. Fever FM operates FM stations in Delhi, Mumbai, Bangalore and Kolkata.

Meanwhile, HT Media, the publishers of Hindustan Times, has posted a net profit of Rs 482 million for the quarter under review, marginally higher over the year-ago period (Rs 478 million).

HT Media chairperson and editorial director Shobhana Bhartia said, "We are happy to report continued growth in a tough economic environment resulting in slowing advertising spend and a weakening rupee. We are confident that our strong and resilient business model, established brands and sustained cost optimisation will continue to create value and show good leverage as the macro economic environment improves."

Consolidated revenue went up 14 per cent to Rs 5.27 billion, from Rs 4.64 billion a year ago. The company said it has witnessed a 11 per cent increase in print advertising to Rs 4.07 billion (from Rs 3.69 billion in Q3 FY?11), while circulation revenue saw 7 per cent hike to Rs 503 million (from Rs 471 million).

Total expenditure jumped 20 per cent to Rs 4.41 billion, from Rs 3.75 billion a year-ago. The company said it suffered a 13 per cent increase in consumption of raw material, 23 per cent increase in employee cost and 25 per cent rise in other expenditure.

Consolidated Ebitda stood at Rs 945 million, compared to Rs 947 million.