ENIL Posts .₹ 4.4-cr Profit

Op­er­at­ing rev­enue for the April-June quar­ter was at ₹ 104 cr

The Economic Times - - Finance & Commodities - Our Bu­reau

Mumbai: En­ter­tain­ment Net­work (In­dia) Ltd (ENIL), a Times Group com­pany and op­er­a­tor of In­dia’s lead­ing FM ra­dio chan­nel Ra­dio Mirchi, has posted a 5.8% drop in op­er­at­ing rev­enue for the April-June quar­ter. ENIL clocked a rev­enue of ₹ 104.4 crore com­pared with ₹ 110.7 crore in the year-ago pe­riod. How­ever, the rev­enue, in­clud­ing other op­er­at­ing in­come, stood at ₹ 107.23 crore. The drop in rev­enue was on ac­count of mas­sive de­cline in gov­ern­ment advertising, cou­pled with the af­ter af­fects of de­mon­eti­sa­tion. Also, a fall in al­most all the top advertising cat­e­gories af­fected its per­for­mance.

“Q1 was a for­get­table quar­ter,” said Prashant Pan­day, man­ag­ing direc­tor of ENIL. “All the top advertising cat­e­gories on ra­dio recorded de­growth. The big­gest ad­ver­tiser, the Cen­tral Gov­ern­ment, cut its advertising by nearly 35% com­pared to last year.”

He added that in large part, the re­sults could be at­trib­uted to the lin­ger­ing ef­fects of de­mon­eti­sa­tion, the roll­out of RERA and the run-up to GST in June.

ENIL re­ported op­er­at­ing profit (EBITDA) of ₹ 16.7 crore and a net profit (PAT) of ₹ 4.4 crore for the quar­ter. Both EBITDA and PAT were lower com­pared to the cor­re­spond­ing quar­ter of the pre­vi­ous fis­cal due to the im­pact of de­mon­eti­sa­tion.

How­ever, Pan­day said the slow­down was tem­po­rary. “We be­lieve this is a tem­po­rary slow­down and business should re­turn to nor­mal from Septem­ber, when the fes­tive sea­son sets in. On the pos­i­tive side, our new sta­tions and our non-ra­dio ver­ti­cals have done well dur­ing the quar­ter,” he said.

ENIL posted an op­er­at­ing rev­enue of ₹ 549.5 crore and a PAT of ₹ 54.5 crore for the fi­nan­cial year-ended March 31, 2017. It op­er­ates FM sta­tions in 40 Indian cities. It is owned by Ben­nett, Cole­man & Co. Lim­ited (BCCL), which also owns The Eco­nomic Times. ENIL shares ended at ₹ 921.85 apiece, up 2.20% on BSE on Wed­nes­day.

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