Music Broadcast Limited (RADIOCITY) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Music Broadcast Limited Q4 FY '20 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. [Operator Instructions] Please note this conference is being recorded. I'd now like to hand the conference over to Ms. Apurva Purohit, Director, Music Broadcast Limited. Thank you, and over to you, ma'am.

Thank you. Good afternoon, all. I welcome you to the earnings conference call for quarter and year ended March 31, 2020. I hope you and your families and colleagues are safe and taking care of yourself in these trying times. When we look at how the year '19/'20 panned out, COVID and its shock is likely to overshadow everything that happened hitherto. However, the fact remains that for the entire year, a weak macroeconomic environment continued to impact consumption in India. This directly caused the advertising industry to lower or withhold spends. And of course, the situation got hugely aggregated with a sudden lockdown announced by the government of India when the economy came to a complete and grinding halt. Advertisers had already started canceling confirmed and ongoing ad campaigns from the second week of March. And as we are all aware, continue to remain off-grid with most agencies and offices still closed down, especially in the 2 largest advertising markets, Bombay and Delhi. On the operational front, we were seamlessly able to transition our radio operations from studio to work-from-home environment and have been fully operational and on-air since day 1 of the lockdown without any stoppages whatsoever. The central and state government utilized the power of radio during these times, and we have been assisting them to communicate with listeners on various COVID-19 awareness campaigns and relief measures. In this period, the association of radio operators also commissioned an independent survey to understand the impact on media consumption during COVID, which I would like to share with all of you. Radio listenership actually increased from 48 million listeners to reach 51 million listeners, second only to TV reach of 56 million. The average time spent on radio, again grew by 30 minutes or 23% from 2 hours and 7 minutes to 2 hours and 36 minutes. And this time spent increased across all SEC segments. The total daily hours of radio consumption, therefore, were around 131 million, up from 102 million. This research also validated something that we have been aware for a long time, and other researches have also shown that radio is considered as one of the most reliable sources of information. Mode of listening to radio during these times was mostly mobile. Now moving to our financial performance. The revenue for the year has been INR 247.8 crores with an EBITDA of INR 66.6 crores, excluding onetime charges of INR 9.5 crores accounted for in Q4 FY '20. The onetime charge of INR 9.5 crores is towards the additional provision on doubtful debts considering the future recoverability due to COVID impact, provision for doubtful security deposit given to lessor for property located at Bombay and legal and professional fees towards the proposed investment in RBNL. To minimize the financial impact, we continued with our cost rationalization initiative, which has resulted in a total cost saving of approximately INR 30 crores on an annual basis last year, and half of that will continue because it is in fixed cost even in the coming year. To tide over the current crisis, the industry association has requested the government to waive off regulatory payments including license fees for the entire year, clear overdue payments by various government agencies, which have significantly added to our net outstanding and restore advertising to earlier levels, which, as you all know, accounted for nearly 12% of the FM industry revenue. On the balance sheet front, we have been able to reduce our nongovernment outstanding from 114 days as on March 31, 2019 to 109 days, a positive impact of 5 days as on March 31, 2020. During the quarter, we repaid INR 66.5 crores comprising of NCDs and other borrowings. Post the repayment, our balance sheet is now completely debt-free, and we have a strong cash reserve of INR 220 crores, which will clearly go a long way in helping us weather out the current testing times to emerge even stronger than earlier. With these opening remarks, I open the floor for questions.

[Operator Instructions] We have our first question from the line of Jinesh Joshi from Prabhudas Lilladher.

I want to know what was the industry revenue in the month of April and corresponding period last year?

Are you talking about April 2021? This April?

Yes. Yes. Yes.

So if you look at the volumes of the top 15 markets, where -- which is where the industry data is available for all of us to access, the volumes reduced to just approximately 15% of the normal volumes. So that's a surrogate. That's the only data that's available to us. So that's a surrogate for both the larger market and revenues. So if you think that -- if you look at volumes are 15% of the normal, advertising would be around 15% to 20% -- revenues would be around 15% to 20%.

Okay. Okay. And if I understand correctly, there are lot of smaller players with 2 to 3 frequencies in the market. So in this environment, if some of them are unable to sustain, can they surrender their license and get a refund for the balance period? Or being bought over by a larger player is the only exit available to them?

So you're absolutely right that people who have multiple licenses in the same city will have a bigger problem because, obviously, they have twice or thrice the amount of inventory to sell in these trying times. They can certainly surrender, but there is no refund option available.

Okay. Okay. And this provision of doubtful allowance of INR 5 crores that we have created in this quarter, it pertains to which sectors? Can you highlight that?

If you look at it, most of it is coming out from real estate, travel, education and hospitality.

Typically, the sectors that have been hit the hardest. And if you'll divide this between national and regional players or local players, 75% is provided for amongst the local players. And as Jimmy said, they are typically hospitality, travel and real estate.

Okay. And out of the trade receivables of about INR 100 crores on the balance sheet, is there any portion which is due for more than 6 months?

We have a provisioning policy of whatever is due for more than 1 year to be provided for. So whatever you see on the balance sheet for the commercial one is more than 1 year outstanding. And for the -- yes, both government as well as nongovernment.

Okay. But can you share the figure out of INR 106 crores, what is the total portion, which is outstanding?

Everything is current. That's only provided for.

Okay. Okay. And I just -- okay. And I just -- one last question. I wanted the inventory utilization figures for legacy and batch 1 stations in 4Q and total revenue of the batch 1 stations for FY '20.

Yes. So for the batch 3 station, the total revenue earnings was around 9% annually. And the inventory utilization has been 54% for the legacy stations, 36% for the new stations and overall 49%.

Okay. The inventory utilization figure is for the fourth quarter, right?

Inventory utilization is annual.

We have next question from the line of Amitabh Sonthalia from SKS Capital.

Yes. I've not seen the presentation. So I'm not sure this question has been addressed in that. But my main question was regarding your -- the acquisition that you had announced some time back, I believe, Reliance Broadcast Network. I wanted to ask about, a, this update on the status of that? B, are we still committed to going ahead with the transaction, even if there is -- if you have the option of drawing or since the approvals haven't come yet? And if so, why are we committed, given the size of the transaction and given this -- and the changed scenario, it seems like if we go ahead with the transaction, it will be hugely value-destructive for your shareholders?

Mr. Agarwal?

Yes. Let me clarify. As of today, there is no commitment. There was a long stop date, which has gone. So let me clarify you this very important point. #2 is group has never done anything, which is value-destructive for any of the stakeholders. So be rest assured about it. MBL is also not going to do anything like that. #3, if you talk about size, yes, its size is mammoth. And clearly, if you acquire that, it is going to make you the largest player in the country. That fact still remains. But if you are referring the value, that value, of course, changes with the passage of time. So whatever value was there then, of course, that value cannot remain today.

So -- but are we still in discussions for going ahead with the transaction at revised?

Let me -- allow me to complete my answer.

Okay, sure.

#4, why we could not acquire so far, right? Because MIB permission is -- was not there, and it is still not there. So there is no question of discussing at the moment. We stand today where we stood when we signed the agreement. That is about a year ago. So there is no question of any discussion. When MIB permission comes, then we will see what is the way forward. Both the parties are now free.

Okay. So as of now, there's no deal, basically?

That is what I said. There is no commitment at this thing as on today because long stop date has expired and that has expired on September 30, '19. Understood? But -- so I have answered your specific questions. But in the end, I would like to add, we firmly believe whether it is COVID or not COVID, right, businesses do not get just wiped off because the businesses are bad. They get wiped off in case one becomes very ambitious or one goes beyond the capacity, that is what I mean being ambitious. Or one does not have necessary liquidity to manage that business. Business does not become bad. So we firmly believe in that. And we will evaluate once the permission comes, we will have discussions, and we will see if we can acquire that or we cannot acquire. That will all depend on the discussions at that time. Meaning, thereby our interest continues, subject to so many conditions. Including the renegotiation on valuation, which will be significantly and very, very significantly lower than what it was.

All right. And also wanted to ask you as to -- obviously, no one can predict the future and kind of know in terms of even the business-wise, what impact would be but -- and you mentioned that business -- I fully agree that the businesses are not wiped out by 1 bad year or whatever. What is the -- and you had a very good cash generation last year by given the level of cash on your books at the moment, which accounts for almost 40% of your market cap right now. What is the extent of cash burn in the worst-case scenario you think can happen this year for you?

Yes. I'll also clarify to you on this point, first, the entire group has worked in 2 directions. #1 was, to cut down the requirement of liquidity as much as we can. That is reducing the fixed cost, especially in case of fixed cost-based model like radio model, right? So that was 1 direction. And that is not something which we started doing from yesterday. Adam initiated that action the moment there was a fear of thing like this happening, that is sometime in the month of November. That time, it was more triggered by economic slowdown. But then in -- since December, she became more worried because of this corona, which was announced by China in December. So Radio City took a lead and started working in that direction. And by the time the lockdown was announced, Radio City was able to rationalize its fixed cost, which was very, very difficult, I think to the extent of 20%, 25% even before the lockdown. Am I right madam? You can add first on this, then I'll talk about the second part.

Yes, yes. So as Mr. Agarwal is saying, 2 steps. So first step was cost rationalization, which had already started November, December, and we brought down the fixed cost. So as I've already explained, approximately a INR 30 crore overall saving on an annual basis, you would see last year. Continuing -- because then COVID came around February, March and it obviously became a very significant part of how the next year will be. Continuing cost management measures ensure that in the months where the lockdown is there, the cost has been brought down even further by 25% during the lockdown months.

So in other words, if Radio City was operating in March '19 on a fixed cost base of about [Audio Gap] per month, it was brought down to nearly INR 10 crore to INR 11 crore.

Correct.

Right? So that is 1 direction. Second direction is augmenting the liquidity, right, as much as we can. Whatever cash you see in the balance sheet that is INR 208 crore, right, which basis, that INR 10 crores, INR 11 crore is also good enough for 20 months. But that is not the only liquidity available to company. Company also has a cash credit limit of about INR 60 crores, INR 70 crores, which is completely unutilized. Whenever we wish, we can draw the money. Focus is clearly on recoveries. And whatever I am saying, that is being applied across the group. So focus on recoveries. Then on the top of it, as it is, and we are self-sufficient and we're in a position to help in fact even the holding company, but holding company itself has a liquidity of about INR 700 crore -- INR 600 crore and INR 700 crore. I think I have answered.

[Operator Instructions] We have next question from the line of Sarvesh Gupta from Maximal Capital.

2, 3 questions. So one is on the revenue part, it seems that even though the lockdown was for 15 days of March, we have barely covered 2 months of revenues of the quarter 3. So that even if I take into account March has been -- so this is almost like 1 month of nil revenues rather than 15 days of some revenue impact. So it's looking revenue loss, so if you can explain that point a bit.

Yes, sure. So actually, it's not just 1 month. I would say it's around approximately around 2 months. Because if you look at the average figures that we were doing, we were doing approximately INR 62 crores a quarter. So that's around INR 20 crores, INR 23 crores, INR 24 crores.

Yes, so it is 2 months. Correct, with 1 month of loss.

Yes. Correct. So -- and clearly, what happened is as we've always been saying that there has been a slowing down that we had started witnessing November, and we were not seeing any recovery, which is when really we started putting cost cuts in measure, right? So the slowdown had already started at quarter 4 where we had thought we would end up doing around INR 62 crores, we ended up actually doing INR 46 crores, that INR 14 crore shortfall came completely in March. So March, which was supposed to be around INR 23 crores, INR 24 crores, we did only INR 10 crores.

Mr. Gupta, March, I mean, like by no stretch of imagination, it can be assumed that it is March was 1/3. The damage done by March, for example, in case of JPL, if I had lost INR 120 crore revenue as compared to 2018, '19 and '19, '20, out of that, 60% has come only in Q4. INR 75 crore out of INR 120 crore, the growth has come only in Q4.

Okay. Understood. And secondly, now you are saying that current run rate is around INR 10 crores, INR 11 crores of -- so your cost, all-inclusive cost, including fixed and variable, is INR 10 crore, INR 11 crore monthly right now?

Yes.

Okay. So if I see quarter 4, you are at around INR 40 crores, INR 40 crores, INR 41 crores, excluding the onetime expenses. So which is like a INR 14 crore run rate, but that has been further decreased to INR 10 crores, INR 11 crores?

Correct. That's right.

Okay. Understood. And you have mentioned that there is some improvement in the listenership, but I think as per your -- the statement, which was released by the company on the COVID impact, so advertisement revenue continue to be like 80%, 90% down?

Yes. So I think let's separate out the 2 things. Obviously, listenership has gone up. Media consumption itself has gone up across the board during the lockdown. And we are very happy that radio listenership in that went up pretty dramatically. So that currently, it is only #2 to the television reach. So that is the significant coverage that FM is able to give especially during these times and otherwise also. So I think that's 1 important point to note. The -- however, did the listenership translate into revenues, obviously not. So it is not only about the reach that we can deliver, it is also about what is happening to the advertiser and his brand. During the lockdown phase, supply chains were broken, shops were closed. So even if he wanted to, what would the advertiser advertise for, which is why advertising has come down across board to 10%, 15%, whether it is radio, whether it is digital, whether it is television, it's just come down to that 15%, 20% because there is no advertiser, except a very limited segment, which could be possibly the health and sanitization and a little bit of government advertising on COVID. There was absolutely no advertising because there are no brand in the market.

Understood. Understood. And on the transaction, I think while we are saying that now if we get the MIB permission, then we will sort of renegotiate on various parameters, including valuations. So that I understood. But any other incremental opportunities or any other things, which are coming out? Because we are a stronger player, so any other opportunities that we are seeing in this crisis for our business?

At the moment, we are not looking for any opportunity. And unfortunately, in radio space, I mean, like whichever opportunity one may try, you have to clearly depend on the government, right? So of course, when we said we will evaluate if MIB permission comes, whether to go ahead with the transaction, at what value to go head and et cetera, et cetera, but at the same time, we are not too keen to look for being aggressive at the moment. We just want to do the maintenance and something if comes at appropriate time, maybe 6 months, 8 months down the line when we sense the business has normalized, we are always open.

Correct. So that is about the acquisition, but we mentioned on all our key markets, around 8, 9 players. So are there some players which we are seeing folding up now? Or anybody going out of the business because of which our market shares can improve or something like that?

That will, of course, happen. It is not only about radio industry, it is not about any particular industry. The businesses with the weaker balance sheets, businesses which have aspirations to go aggressive even during these times will really find it difficult to survive. At that stage, we'll see what happens.

We have next question from the line of Manish Poddar from Nippon India AIF.

Just had 2 things. First thing is, so if you've called out, let's say, this deal is not going to happen or the likelihood of this deal at this current valuations will not happen, why don't you mention it explicitly? Or is my understanding not right?

Sorry, I did not get your question.

So I'm saying, sir, if we have -- if we are not going ahead with the deal in the existing frame and structure, and we are not willing at this current valuations. Why don't we explicitly mention that in the press release or in the updates, which we keep on sending that we are not going ahead with the deal? As in why need this ambiguity because for me, still as an investor, it's still not clear whether you want to go ahead with the deal or you don't want to go ahead with the deal?

I'm also not yet clear no. How will I say, I will not go ahead with the deal? There is no legal commitment on my part, right? But it is not that we dislike the asset. Supposing after 6 months, when the things get normalized, MIB approval comes and the seller is ready to give it at appropriate value, and we get ready to acquire that, then in that case, what would I have told you?

In that case, probably, if the thing happened then you had then put out a press release like we did in the last case. In the interim, if the deal is clearly not going to happen, that's my view, and I can be wrong on that. I think calling out or giving out clear communication is probably what at least would give us a lot of comfort. That is where I'm coming from. And I -- probably, that is where my limited point is, frankly.

You see if I had given a statement that the deal is called off, right, wherever we have a long stop date, right? We part -- both the parties have a right to forgo that right of remission, right? And accordingly, I could not have said the deal is off. Because I mean, like effective, deal is not yet off. Legally we are not bound. It would have been very, very demoralizing for the other person also no. Because till the time, both of us call off the deal, and I go on my own and announce that I have called off deal, right? So this may not be an appropriate thing to do.

Okay. And just one more thing, if I may. So in this environment, I understand you've done a lot of for cost savings. So can you highlight probably, Apurva, just a couple of things, measures which you can look to drive revenue in the interim? Or can you do some ad-for-equity or some other measures probably campaigns or some stuff like that to let's say, to drive up revenues? I understand the macros and the backdrop of ad environment. But what measures can one drive to, let's say, gain market share or get some per month revenue to cover up the per month cost? That is what I'm trying to understand.

Okay. So the first point I want to make is that whatever measures I may put in place, the reality is the advertiser doesn't have his brand or sales or services out in the market because the markets are locked down. So for him also, it is a waste of advertising unless his products are out there. But as and when the market started opening out, we started putting a lot of pressure in those kind of markets. So even the minimal revenue, the 20% revenue that we have got as of now has all come out from the green zone markets, which started opening out. And obviously, the moment the markets opened out much before that, we have already started closing deals and taking on advertising. So that process will be a process of as the lockdown opens out, the brands start getting available in shops and services, that's when advertising will. So that's a natural flow that will happen. As far as Radio City is concerned, what can we do to hasten this flow? What can we do to grab a larger market share? Already, we ended quarter 4 last year with a 1% increase in market share to the rest of the year. So we had already started putting in several measures there, our market share position would improve. So for example, many more long-term deals, I would go so far as to say that even currently, all the effort in the last 2 months the sales team has taken has been working from home to talk to clients, keep engaged with clients and close long-term deals. So there are a lot of long-term deals that have been closed. The second thing is we would have sent out at least 100 different creative proposals out to clients, which is either Radio City plus some creative integration or Radio City and some of our other vertical brands in order to give them 360 solutions. And all the advertisers are keen to close those deals. However, again, their point is that let our brands start becoming visible in the market. The third bit, of course, is are there any opportunities to sell not just advertising space? Is there anything else? And sure enough, that's where we did the Spotify deal, whereas the deal is a INR 2 crore deal for our content, which Spotify will play on its platform.

And just 1 smaller thing, if I may. I understand it's a difficult one. So our revenues are back, let's say, at least 4 or 5 years, the quarterly run rate, which we used to do, let's say, in FY '15 beginning. So when do you envisage, let's say, probably this INR 60 crores, INR 70 crores run rate, which you're clocking, let's say, a quarter back, when do you achieve this quarterly run rate back?

So the first answer I would give is, let us not start even thinking about what has happened in these 2 months as a trend, okay? It is not a trend. I mean, let us understand very, very clearly that the markets were closed, the product was on, we are very happy about it. Our reach has gone up. However, the markets were closed. So this is not a run rate to look at, at all, point 1. So -- and therefore, we should not say, now look at this figure, it is 20%. So now when will you go back to 100% basis this 20%, let's not look at it like that. Let us wait for the markets to open, which they've already started doing. Delhi opened out, Bombay should open out, hopefully, in the next 10 days, et cetera. The smaller markets have already opened out.

Bangalore. Bangalore, which is so key market for you, is also opened up now.

Thank you. Thank you, Mr. Agarwal. Yes, absolutely. So now that the market -- let us look at a month of the markets being open. That figure, we should look at to start even thinking of the trend, okay? So I would say that let's look at how June goes. And let's start building on June. My surmise is that by June, we should be around 50% of the normal revenues. And if it is 50%, then of course, we will work as hard as possible to reach back to the run rate of last year within this year itself in H2.

So clearly, you do not expect any miracle to happen. Once the wheel is blocked, it cannot start running at a speed of 100 kilometers per hour immediately. But of course, it is not going to take so long a time that before it reaches destination, it is another age. #1. #2, as the historical data have shown, and I'm sure you may have had an opportunity to look at, one of the recent reports which CRISIL has got out, yes. Empirical data show that, there is always a V-shaped recovery whenever crisis like this happens. So let us back ourselves up by that because otherwise, these 2 months, are very, very misleading when you have economic activity just 30%. So we -- I mean, like it is not only for radio, we -- one may start believing that country's GDP has contracted by 70%.

[Operator Instructions] We have next question from the line of Anuj Sharma from M3 Investment.

Yes, sir. I had a question on the government spends. Now you see a lot of OOH advertisement been being taken up by government. Do you see same trends playing out in the radio?

So that OOH advertising that you're seeing is all pro bono, it's free. There is no paid advertising.

Okay. But do you see any shifts in the government trend towards using this as creating an awareness or using this medium for its future?

Yes. So as I've mentioned, I think in practically every call in the last 1 year...

[Foreign Language].

The big issue has been that government completely stopped advertising on radio the entire year last year. So 12% of all spends on radio just vanished because government stopped advertising. This year, however, the -- or towards the end of last year, what started happening is state governments slowly and surely started coming back and increasing spends on radio, of course, not to the extent of central government at all, but we are seeing certainly 3%, 4% of spends, which are state government spend on radio. Especially during COVID, there has, again, been no spend, a bit marginal spend by state governments again around COVID, but no central government spend. In fact, they have been requesting because they do understand that radio is a very powerful medium, which reaches out to the common man. They have been requesting for free information to be shared, which we have been helping the government because we recognize this is a crisis situation.

Okay. Okay. And my second question is you partly touched upon it regarding the long-term deals. Now you would have an opportunity to have mass selling of your inventory. And you could also use this medium to entice customers who were not part of radio, for example, FMCG sell them a large part of inventory because it's a 1-year deal. Do you see new clients and maybe take a price little bit down but have inventories sold out for some time. Is that something which you see happening currently?

So obviously, it's always of a balance, right? So if you discount during these stressed times and say, okay, let me reduce the rate so dramatically...

[Foreign Language].

It is very difficult to pull it back up again.

[Foreign Language].

Right? It's very difficult to pull it back up again. So we have to balance inventory fills with keeping the rates also reasonably average. So what we have done to balance this that in the -- in this particular time, we are offering very attractive deals to clients that in case you want to advertise, we are giving you very, very one-plus-one kind of offers, et cetera, et cetera. But these are obviously not translating into long-term offers. So that's the kind of balance that we are doing. But as I again repeat, at this moment, it's not about our offers or our rates or our reach for any medium, it is more about whether it is the appropriate time for advertisers to advertise.

We have next question from the line of Jayesh Shah from Ohm Portfolio.

This is Jayesh. Number one is the cost-cutting measures that you have done. Now the way I understood is that you are at a cost base of, let's say, INR 10 crores per month and revenues may be around INR 10 crores or whatever. Let's say when things improve and if your revenues, as you are saying from June onwards should go up, would your cost base stay here? Or how would it would rise? Because I believe part of it, maybe you will have to ramp up the cost base as well.

Yes. So you're right. And the thing that approximately our cost base has been brought down from an average of around INR 14 crores, INR 15 crores last year to INR 10 crores. And as I said in the -- in my opening remarks, half of this is a permanent cost saving. So it has come through rationalization of various costs that we have -- that were there last year, and they are permanent in nature in the fixed cost. So that will remain. Half of this is linked to revenue. So if the revenue goes up, the cost will go up. So broadly, I'm saying that if revenues go like-to-like on an annual basis, there is an additional cost benefit of around INR 15 crores, INR 15 crores, INR 16 crores, that will come into play in the coming year.

Okay. So the INR 15 crore cost savings actually stay irrespective of the revenues?

Yes. Yes. Yes.

Okay. And secondly, I didn't understand this very well. When you talk of long-term contracts, is this -- does this mean that you're locking in very long-term revenues at current depressed rates?

No.

Or is it just the one-on-one offer that you talked about?

Yes. So I said, made 2 separate points when the earlier question was asked that are you giving price to fill up -- low price to fill up the inventory. So my answer was as follows that during the COVID period, we have made very attractive offers to our advertisers, which are these one-plus-one kind of things, but they are only limited to the lockdown phase. That's part 1. The other part is what are the additional things we are doing to work on annual revenues that's where we have used these 2 months to sit across the table. So all of us have been working from home, right? Lockdown is just official lockdown, but we've all been working from home. So we have used this time to, a, offer a lot of packages and proposals out in the market so that once the -- once business restarts, the clients already have ready proposals with them. And b, tie in long-term deals with the larger agencies and larger clients.

Okay. Okay. And my last question is, would you be wary of government and smaller regional customers, purely because of the credit risk involved? I mean we do know that several state governments are under tremendous pressure. So even if they're going to give you business, one would not really expect them to pay on time. And similarly, lot of these smaller regional players would be stressed because of their own funding constraints.

So I mean, one has to be wary when they spend in the first place. Government is not at all spending. So I think whether we should be wary comes as a second step. Having said that, now we have been working with government for the last, I mean, 2 decades, we've never had a -- of course, they're delayed. And in the recent past, as you've seen in the last 1.5, 2 years, they've been delayed far more than ever. But the money always comes, the money always comes. So I would not worry about government too much. Yes, the smaller players are -- smaller advertisers are a cause of concern, we've taken appropriate provisions right now. But again, in the last couple of decades, very little of it has actually gone bad as far as Radio City is concerned. We've barely written-off on an yearly basis around, what, INR 30 lakhs, INR 40 lakhs a year. So -- but having said that, this is not a normal situation, right? This is a crisis that all of us will learn as we go along.

We have next question from the line of Yogesh Kirve from B&K Securities.

So Apurva, you alluded to that revenues which we are currently generating are mostly coming from the green zones. So if you can provide any useful estimate, if you just focus on these green zones, where are we compared to the normal levels in terms of the ad volumes or ad revenues?

I think I answered that question by talking about how we are around 15%, 20% of our normal revenues because the fact is that April was practically locked down across the country. It's only in May that the green zone started opening out, which is actually just the last 15, 20 days. And again, the green zones that first started opening out were all the smaller markets.

So basically, I wanted some sense of how the things have improved within these 2 months. So post the relaxation, has there been a definite improvement in the ad volumes wherever they are allowed?

No. No. April and May have mostly remained the same. It is expected that June onwards. Or let's say, the last 10 days of May and June onwards, we should see some better traction.

[Operator Instructions] We have next question from the line of Rahul Jagwani from Insync Capital.

Hope everyone is safe. I just want a clarification, of the INR 106 crores receivables on the balance sheet, how much is government? How much is nongovernment?

So government is INR 40 crores, rest is nongovernment.

Government is INR 40 crores, rest is -- okay. And I mean, just on the risk, is there any, I mean, further risk or we've taken all the -- I mean, whenever we say you've taken the provisions there?

Yes. Yes. In fact, we have to overboard of ensuring that we went plan by plan to understand whether they have a capacity to pay debt. Thereafter, the INR 4.9 crore has been derived.

Okay. Okay. And in the initial comments, you alluded to, we've requested the government to basically give a repression on the license fees this year. So I mean, what sort of a reaction have we got from the government? I mean, are they willing to do this? Or I mean, anything on that?

So we did get a deferment, but it was just a deferral of a quarter. So that's about it as of now. But our request is still pending with the government. And let us see where it goes, let us see where it goes. Right now we don't have an answer either this way or that way.

We have next question from the line of Depesh Kashyap from Equirus Securities.

So most of the questions have been answered. Ma'am, can you please talk more about the Spotify deal? What kind of commercial arrangements you have got with them?

So it's a content deal. So we have a library of very good content with us, right, our Babber Shers and other shows. And we've done lots of radio plays and radio serials, et cetera, et cetera. So from that library, they have picked up content that they find appropriate to their platform and bought it, and it will play out on their platform over the next year, and that's what the content deal is.

No, is there a minimum guarantee kind of revenues that you will get or?

No, no, no, it's linked to -- no, there's no minimum guarantee. It's linked -- it's a INR 2 crore deal linked to the content that they have bought the library that they have picked up from us.

Okay. Any other such deals that you are in talks right now? Any other platforms?

So we are in talks with several other platforms. But as of now, nothing has been closed.

Okay. Just lastly, Jimmy, if you can highlight like what was the volume and pricing decline in the last quarter, please?

See, in fact, most of it has come from volume decline only. So whatever quarter 4 numbers you go to you see is largely volume decline.

We have next question from the line of Kunal Vora from BNP Paribas.

You mentioned that government ads have been largely missing in fiscal '20. Can you give us some sense on who are the large advertisers in FY '20? And how that changed compared to FY '19?

See, when you look at it in FY '20 government -- central government was the largest advertiser who have dipped by 90%. Having said that, the next category, government has been very active end of the fiscal of FY '20, which have grown followed by pharma. All the other categories have shown a degrowth.

Okay. But broadly, what will be the breakup, if you can, like say, talk about the large categories, large funders?

Sure. So the top 5 categories, which I spoke about, would contribute to around 40% of the volume. So government, real estate, auto, finance and pharma in the descending order I'm talking about.

Yes, okay. That's helpful. Second one, how do you see the work-from-home trend impacting your business? How is the listenership while traveling versus at home, if you can give us something?

So if you remember when we had presented the research, I think last -- in the last earnings call, approximately 25% is out-of-home, and 75% are still at home. And out of that 25%, largely, it was people traveling by buses and trains, et cetera, and listening to it through their mobile device. So that's 1 research figure we have. Having said that, if you marry it to the research that we got done during COVID, at -- the at-home share went up. And overall, listenership itself went up from 48 million listeners to 51 million listeners, and time spent went up by 25%. So basically, time spent has gone up by 25%, reach has gone up. All of it is happening at home.

As there are no further questions from the participants, I'd now like to hand the conference over to Ms. Apurva Purohit for closing comments. Ma'am, over to you.

Thank you, friends, for joining us in this earnings call. As you know, the presentation is uploaded on the website. And should you have any further questions, please feel free to get in touch with any of us or with SGA. I wish you all the best, stay safe and take care of yourself. Goodbye.

Thank you. Goodbye.

Thank you. Ladies and gentlemen, on behalf of Music Broadcast Limited this ends the conference call. Thank you for joining with us, and you may now disconnect your lines.