ENIL Profit Up 16 Per Cent in Sept Quarter

Entertainment Network (India) Ltd (ENIL), the operator of India’s number one FM radio channel Radio Mirchi, has posted a 15.8 per cent jump in quarterly net profit amounting to Rs 27 crore in the quarter ending September 30, as compared with Rs 23.29 crore a year earlier.

ENIL revenues grew 11.6 per cent to Rs 116.3 crore as against 1041 crore in Q2FY15. The EBITDA growth stood at 13.6 per cent amounting to Rs 35.7 crore as against Rs 31.41 crore in Q2FY15.

For six months, ending September 30, 2015, the company’s net profit at Rs 52.85 crore, rose by 10.5 per cent Y-o-Y. The company's revenue at Rs 217.84 crore registered growth of 10.4 per cent Y-o-Y.

Among the most recent developments in the company, ENIL’s participation in the first batch of Phase - 3 auctions has resulted in a substantial expansion of footprints into seven new towns - Chandigarh, Kochi, Kozhikode, Jammu, Srinagar, Guwahati and Shillong. This in turn is expected to bolster its strength further with a deeper network presence, during the coming months.

In addition, the company has received the permission from the Ministry of Information & Broadcasting (MIB) to acquire four stations from TV Today Network Ltd - Amritsar, Patiala, Shimla and Jodhpur - which will be re-branded and re-launched shortly as Mirchi, adding to its North India network strength. With these 11 stations, the core Mirchi brand will now be available in 43 cities as against currently 32.

In Phase-3 bidding, the company focused its efforts on building a strong "2nd frequency" network in the biggest A+ and A category towns. ENIL has won a 2nd frequency in Bangalore, Hyderabad, Ahmedabad, Pune, Kanpur, Lucknow, Jaipur, Nagpur and Surat. It also hopes to get MIB’s approval for TV Today's three metro stations in Delhi, Mumbai and Kolkata. ENIL has also acquired a 3rd frequency in Hyderabad. This makes ENIL the only company to have three frequencies in any city. With this, Mirchi will cement its position of being the leader in the radio space.

Commenting on the results, Mr. Prashant Panday, MD & CEO, ENIL, said: “We are extremely happy with our results. Despite a sluggish economy, we have grown our revenues and profits substantially. With Phase-3 auctions over, we are gearing up to launch brand Mirchi into exciting new towns like Kochi and Chandigarh, as well as launch our 2nd brand of radio in most of the major markets of the country. Radio is going to boom in the next five years, and Mirchi will surely be at the forefront."

Yesterday, the stock price declined by 1.62 per cent to Rs 696.7. Currently, the stock was marginally down 0.96% to Rs 690 on the BSE.