Entertainment Network India Limited (ENIL) has reported a 50% growth in consolidated revenue at Rs 108.5 crore in Q2 FY23 compared to Rs 72.4 crore in Q2 FY22. The company said the revenue growth was primarily driven by a 45.7% growth in radio and 57.7% in solutions.
Operating expenditure increased 40.2% to Rs 88.37 crore from Rs 63 crore. The company noted that the cost economisation initiatives continued to reap benefits as operating costs (excluding digital business and DVC) were lower than in Q2 FY20.
EBITDA for the quarter jumped 115.6% to Rs 20.96 crore from Rs 9.72 crore. The company stated that the EBITDA would have been even better if it excludes the Rs 5.8 crore investment in the digital platform. The company's net loss shrank 95.1% to Rs 50 lakh compared to Rs 10.8 crore.
ENIL has made an impairment provision of Rs 15.15 crore in its Mirchi US and Bahrain businesses on account of Covid-19, the weak global economic situation, and the business environment in most countries.
It noted that this impairment has no impact on ENIL consolidated results as losses were already booked in earlier years. Further, the company has made a provision of Rs 2.63 crore for the relevant onerous contracts in international markets which it intends to discontinue from its operations.
Commenting on the results, ENIL MD Prashant Panday said, "After two consecutive Covid-impacted years, we had a good Covid-free Q2 this year. Mirchi’s business rebounded strongly with solid growth of 50% in revenues and 186.3% in EBITDA over the last year. Mirchi’s market share has grown by nearly 4% since Q2FY20. It is heartening to note that core EBITDA is now just 7% short of the pre-pandemic year FY20. We expect strong growth from here on. Our Solutions business and the new digital platforms – the Mirchi Plus app and the MPing audio ad network – have received a warm welcome and will drive Mirchi’s growth in the coming years.”
The company said its digital platform Mirchi Plus App, which was launched in India on July 1, 2022, has received an encouraging response.
It has signed an agreement to acquire an initial stake in Spardha Learnings.
ENIL has also expanded its digital products portfolio with the launch of MPing.
As on 30th September, the company's balance sheet remains strong with cash reserves of Rs 227.1 crore.
