ITV

Tag: Phase III

  • TRAI seeks industry comments on FM Phase III migration

    TRAI seeks industry comments on FM Phase III migration

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has released the consultation paper on the migration of FM radio broadcasters from Phase-II to Phase-III. As part of the consultative process, the stake holders have been requested to offer their comments and views by 17 December 2013.

     

    Accordingly, this Consultation Paper (CP) has been prepared to seek the comments/views of the stakeholders on the date of migration from Phase-II to Phase-III; duration of permission after migration from Phase-II to Phase-III; and the amount of migration fee to be charged from existing operators on their migration from Phase-II to Phase-III.

     

    It also states that in case of counter-comments it may be submitted by 24 December 2013. The Ministry of Information and Broadcasting (MIB) sent a reference dated 9 April 2013, to TRAI seeking recommendations. The clarifications sought by TRAI were provided by MIB by 22 November, 2013.

     

    The highlights of the Phase-III policy for FM Radio broadcast will be the validity of license is 15 years from the date of operationalisation of the Channel (10 years in Phase II); FDI limit have been raised to 26 percent in a private FM radio broadcasting company (from 20 per cent in Phase II); and it also allows the permission holder to carry the news bulletins of All India Radio in exactly the same format (unaltered) on such terms and conditions as may be mutually agreed with Prasar Bharati, no other news and current affairs programs will be permitted under the Policy.

     

    The other salient features of the policy are

    – Permission for the channels shall be granted on the basis of Non-Refundable One Time Entry Fee (NOTEF).

     

    – NOTEF shall be arrived at through an ascending e-auction process, on the lines followed by DoT in the auction of 3G and BWA spectrum in the year 2010.

     

    – Reserve Price for new channels in existing FM Phase-II cities, the highest bid price received for that city in Phase-II (Click here for more details); and for new cities, the highest bid price received during FM Phase-II for that category of cities in that region.

     

    – In case the benchmark from Phase-II for a particular region is not available, the lowest of the highest bid received in other regions for that category of cities.

     

    – For new cities in border areas with a population less than one lakh, the reserve price shall be Rs 5 lakh.

    – Annual licence fee will be four per cent of gross revenue of its FM radio channel for the financial year or 2.5 per cent of NOTEF for the concerned city, whichever is higher. For the permission holders in the States of North East, J&K and island territories (i.e. Andaman and Nicobar islands and Lakshadweep) – at 2 per cent of gross revenue for each year or 1.25 per cent of NOTEF for the concerned city, whichever is higher, for an initial period of three years from the date from which the annual license fee becomes payable and the permission period of 15 years begins.

     

    -Each applicant will be allowed to own more than one channel but not more than 40 per cent of the total channels in a city subject to a minimum of three different operators in the city.

     

    -No entity will be permitted to hold more than 15 per cent of all channels allotted in the country excluding channels located in Jammu and Kashmir, North Eastern States and island territories.

     

    -Networking of channels will be permissible within a private FM broadcaster’s own network across the country subject to 20 per cent of the total broadcast in a day is in the local language of the city and promotes local content.

     

    – The permission holder is required to follow the Programme and Advertisement Code as followed by All India Radio as amended from time to time or any other applicable code, which the Central Government may prescribe from time to time.

     

    In this phase, about 839 additional channels in about 294 cities across the country are being offered for the auction.

  • Radio Mirchi confirms maiden dividend; 53.6 per cent PAT growth in Q1-2014

    Radio Mirchi confirms maiden dividend; 53.6 per cent PAT growth in Q1-2014

    BENGALURU: The Bennett, Coleman & Co. Limited promoted Indian private FM player Entertainment Network (India) Limited (ENIL) which operates FM radio broadcasting stations through the brand Radio Mirchi in 32 Indian cities announced that its shareholders had approved a dividend of 10 per cent for FY-2013.

     

    ENIL’s net profit for the year ended 31 March 2013 was Rs 67.7 crore and total revenue for FY-2013 was Rs 338.4 crore. Considering the consistent good performance of the company year-on-year and the strong cash position in FY-2013, the ENIL board of directors had recommended a maiden dividend of 10 per cent i.e. Rs 1 per equity share of Rs 10.

     

    ENIL reported a 53.6 per cent PAT growth in Q1-2014 as compared to the corresponding quarter of 2013. ENIL’s PAT was Rs 19.92 crore for Q1-2014 and Rs 12.97 crore in Q1-2013.

    ENIL’s PAT for Q1-2014 was however lower by 22.5 per cent than the Rs 25.7 crore in Q4-2013.

     

    Note: Tax expense for the quarter/year ended 31 March 2013 was net of Rs 2.866 crore of excess provision in respect of earlier years and written back pursuant to conclusion of assessment.

     

    Let us look at ENIL’s other figures for Q1-2014

     

    ENIL’s revenue for Q1-2014 stood at Rs 85.2 crore on a consolidated basis, up 23.8 per cent over the Rs 68.87 crore in Q1-2013, but 18.9 per cent lower than the Rs 105 crore for Q4-2013.

     

    ENIL’s EBITDA in Q1-2014 stood at Rs 35.1 crore, up 34.1 per cent as compared to Q1-2013. The company’s EBITDA margin improved from 38.1 per cent to 41.2 per cent in Q1-2014.

     

    Expenditure for Q1-2014 at Rs 63.15 crore was 9.8 per cent more than the Rs 57.5 crore for Q1-2013, but 18.8 per cent lower than the Rs 77.85 crore for Q4-2013.

     

    ENIL spent Rs 10.61 crore towards marketing in Q1-2014, 36.7 per cent more than the Rs 7.76 crore in Q1-2013, but just a little more than a third (35.5 per cent) of the Rs 29.91 crore in Q4-2013.

     

    It paid license fees of Rs 4.688 crore in Q1-2014, 27.5 per cent more than the license fees of Rs 3.677 crore in Q1-2013, but lower by 12.8 per cent than the Rs 5.375 crore in Q4-2013. The company had paid license fees of Rs 18.092 crore in FY-13.

     

    ENIL’s production expense of Rs 3.82 crore in Q1-2014 was 19.7 per cent lower than the Rs 4.76 crore in Q1-2013, but was 8.7 per cent more than the Rs 3.51 crore for Q4-2013.

     

    Employee benefits at Rs 18.99 crore in Q1-2014 was 6.6 per cent higher than the Rs 17.82 crore in Q1-2013, but 8.7 per cent lower than the Rs 20.80 crore for Q4-2013.

     

    ENIL ED and CEO Prashant Panday said, “It’s been a surprisingly strong quarter for media, especially radio broadcasters including Mirchi. It appears advertisers are responding to the slowdown by launching new products, and even more promotional offers. This helps radio. We expect this to continue, even though we expect growth rates to taper off eventually. On Phase III, the radio industry is seeking a rationalisation of reserve fees on the same lines as is happening with 2G reserve fees, as well as an extension of Phase II licenses. We expect policy clarity in the next few months. Lastly, I am happy that the shareholders have approved ENIL’s maiden dividend of 10 per cent.”