ENIL Posts .₹ 4.4-cr Profit
Operating revenue for the April-June quarter was at ₹ 104 cr
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.