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Jagran Prakashan (JPL) is set to venture into the radio broadcasting space by acquiring Music Broadcast Pvt. Ltd (MBPL), which runs Radio City FM across seven states. The JPL board has agreed to acquire MBPL’s holding company and fellow subsidiary that provides activations in an all-cash deal, as per a communication to the stock exchange. Though financial details of the transaction were not disclosed, JPL said that the acquisition will be funded from internal accruals and investments.
Decisive move“The deal will catapult JPL into a leadership position in the radio industry and enable the company to benefit from the rapid growth in radio advertising. The radio business will compliment our print, outdoor, activation and digital businesses and enable deeper inroads with advertisers both at national and local level,” said Mahendra Mohan Gupta, Chairman and Managing Director of Jagran Prakashan.
JPL publishes 12 newspaper brands with over 100 editions and 250-plus sub-editions in 5 languages. For fiscal 2014, MBPL had reported revenue of ₹161.8 crore. Radio City, which presently operates in 20 stations, currently has operating margins of about 28 per cent.
According to a KPMG-FICCI report, the radio business is expected to grow at a compounded annual growth rate of 18 per cent in the coming years. Shares of JPL were down by 1.2 per cent to close at ₹140 on the Bombay Stock Exchange today.
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