BENGALURU: While announcing the quarterly results for Q2-2014 (last quarter), ENIL’s ED and CEO Prashant Panday had said, “The media sector witnessed a consolidation of sorts in Q2. The bigger brands have done well, while the rest languished, FM radio has again done better than all traditional media, growing at between 10-12 per cent over last year, as has Mirchi.”
The Bennett, Coleman & Co. Limited promoted Indian private FM player Entertainment Network (India) Limited (ENIL) which operates FM radio broadcasting stations through the brand Radio Mirchi in 32 Indian cities announced 37.7 per cent growth in PAT to Rs.25.88 crores in Q3-2014 as compared to Rs.18.79 crores in the corresponding quarter of last year. This quarter’s PAT was 58.1 per cent more than the Rs.16.38 crores in Q2-2014.
Over a nine month period ended December 31, 2013, ENIL reported 45.9 per cent growth in PAT to Rs.62.33 crores in Q3-2014 from Rs.42.71 crores in the corresponding nine month period of last year.
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For FY 2013, ENIL reported PAT of Rs.68.32 crores. Considering the consistent good performance of the company year-on-year and the strong cash position the ENIL board of directors had recommended a maiden dividend of 10 per cent i.e. Re.1/- per equity share of Rs.10/- for FY 2013.
ENIL’s Operating revenue for Q3-2014 grew by 12.9 per cent to Rs.98.21 crores from Rs.87.03 crores in the corresponding quarter of last fiscal and was more by 14.9 per cent than the Rs.85.51 crores in Q2-2014. YTD, ENIL’s operating revenue grew 15.6 per cent to Rs.268.57 crores as compared to the Rs.232.28 crores during the corresponding nine month period of last year. For FY 2013, ENIL reported Operating revenue of Rs.334.23 crores.
Let us look at the other Q3-2014 figures reported by ENIL:
EBIDTA for Q3-2014 grew 26.6 per cent to Rs.38.2 crores in Q3-2014 from Rs.30.18 crores in Q3-2013 and by 51.3 per cent from Rs.25.24 crores in Q2-2014. YTD, EBIDTA at Rs.93.31 crores was 34.3 per cent more than the Rs.69.5 crores in the corresponding nine month period of last year. For FY 2013, ENIL had EBIDTA of Rs.104.42 crores.
Total expense for Q3-2014 at Rs.68.4 crores was 4.7 per cent more than the Rs.65.33 crores for Q3-2013 and (1.25) per cent less than the Rs.69.27 crores for Q2-2014. ENIL reported YTD Total expense of Rs.200.85 crores which was 6.3 per cent more than the Rs.188.95 crores in the corresponding nine month period of last fiscal. ENIL’s Total expense for FY 2013 was Rs.266.86 crores.
License Fee at Rs.5.2209 crores was 10.3 per cent more than the Rs.4.734 crores in Q3-2013 and 12.3 per cent more than the Rs.4.6506 crores in Q2-2014. For the nine month period of the current fiscal, ENIL paid Rs.14.5598 crores towards license fee which was 14.5 per cent more as compared to the Rs.12.7171 crores in the corresponding nine month period of last year. For FY-2013, ENIL paid Rs.18.092 crores towards this expense head.
Marketing expense for Q3-2014 at Rs.13.85 crores was (1.4) per cent lower than the Rs.14.05 crores in Q3-2013 and (19) per cent less than the Rs.17.09 crores in the immediate trailing quarter. Over the nine month period of the current year, ENIL spent 15.2 per cent more at Rs.41.54 crores as compared to the Rs.36.06 crores in the nine month period of last year. For FY 2013, ENIL spent Rs.65.97 crores towards marketing.
Production expense at Rs. 4.39 crores for Q3-2014 was 3.6 per cent more as compared to the Rs.4.24 crores for Q3-2013 and 8.2 per cent higher than the Rs.4.06 crores for Q2-2014. During the nine month period ended December 31, 2013, ENIL reported production expense of Rs.12.28 crores, which was (6.15) per cent lower than the Rs.13.08 crores in the corresponding nine month period of last fiscal.
Commenting on the Q3-2014 results Panday said “Given the tough macroeconomic environment, our results should be seen as strong. Our EBITDA and PAT numbers are the highest ever since inception. Our revenues are the highest ever for Q3 since inception. While the going will remain tough in the months to come, we expect a gradual turnaround resulting in improving medium to long term growth prospects. There is good news on the regulatory front as well with TRAI expected to offer a formula for renewal of current Phase-2 licenses, and with MIB finally expected togo ahead with Phase-3 auctions”.
