ENIL Q3 rev grows sequentially to Rs 84.1 cr due to digital push, festive season
The company's revenue stood at Rs 46 crore in Q2 FY21 and Rs 144 crore in Q3 FY20
Entertainment Network India Ltd (ENIL), the operator of India’s leading FM radio channel Radio Mirchi, has reported 80% sequential revenue growth to Rs. 84.1 crore in Q3 FY21, led by strong growth in volume due to the festive season. The company's revenue stood at Rs 46 crore in Q2 FY21 and Rs 144 crore in Q3 FY20.
The company said that its digital products grew handsomely, marking a significant increase in its digital orientation. Recently, the Company had dropped 'Radio' from its brand name to become just 'Mirchi' in line with its strategic shift towards digital and solutions.
The company's India revenues stood at Rs 82 crore compared to Rs 46 crore in Q2 FY21 and Rs 144.7 crore in Q3 FY20. Outside India, revenues stood at Rs 3.5 crore as against Rs 2.3 crore in Q2 FY21 and Rs 3.5 crore in Q3 FY20. ENIL's expenses stood at Rs 92.13 crore compared to Rs 82.44 crore in Q2 and Rs 135 crore in Q3 FY20.
The company achieved positive EBITDA after two consecutive quarters of losses. Net profit for the quarter was Rs. 16.7 crore, rising 57% mainly on account of reassessment of royalty provisions and reduction of total costs by 37%. In the trailing quarter, the company had posted a net loss of Rs 23.71 crore. It had posted a net profit of Rs 10.63 crore in the year-ago period.
The company said that its balance sheet remains strong with cash reserves of Rs. 197 crore aannous of December 2020.
Commenting on the results, ENIL MD & CEO Prashant Panday said, “The quarter marked a strong ad volume growth of 11.5% over last year, positive EBITDA of Rs 20.9 crores, and strong demand for our solutions, especially digital solutions, products. Solutions margins expanded to 48% from 35% last year on the back of a higher share of digital products. Share of digital solutions in quarterly revenues stood at 10%, marking a strong pivot towards digital. It is clear that the worst is behind us. The future holds the promise of strong growth."
In the balance sheet notes, the company said that the write-back on the reassessment of performance royalty liability recorded in earlier years and no longer required, post the Intellectual Property Appellate Board (IPAB) order dated December 31, 2020. The write-back amounted to Rs 26.7 crore for the quarter ended December 31, 2020.
Further, an additional amount of Rs 2.61 crore in the consolidated financial results for the quarter and nine months ended December 31, 2020, in respect of fee received consequent to termination of time brokerage arrangement to broadcast radio programmes and content in New York and New Jersey with N J Broadcasting, a US-based broadcaster. However, the time brokerage arrangement entered into with Touchdown Ventures Inc for another frequency to broadcast radio programmes and content in New Jersey shall continue.
ENIL operates FM radio broadcasting stations in 63 Indian cities and is headquartered in Mumbai.
