Entertainment Network (India) Ltd., India’s leading Private FM Radio operator, popularly known as Radio Mirchi, has reported revenues of Rs. 60.0 crores for the quarter ended December 31, 2008 as compared to Rs. 67.8 crores in corresponding period of last fiscal year, down by 11.5%. The Company’s earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs. 18.3 crores. EBITDA margin for Q3 FY09 was at 30.6% as against 28.1% in Q3 FY08, an improvement of 249 bps.
Revenues for the nine months ended December 31, 2008, grew by 10.1% to Rs. 178.7 crores as compared to Rs. 162.3 crores in the corresponding period of last fiscal year. EBITDA for the period was Rs.37.2 crores, up 9.8%.
On a consolidated basis, ENIL reported revenues of Rs. 110.3 crores during Q3FY09 compared to Rs. 135.0 crores Q3FY08. The EBITDA for the quarter stood at Rs.5.9 crores. For the nine months ended December 31, 2008, revenues grew by 12.7% to Rs. 327.3 crores.
Commenting on the results, A. P. Parigi, Managing Director, ENIL said “the general economic slowdown has hurt advertisement revenues. Our emphasis currently is on enhancing market share, innovation, productivity increases and cost optimization.”
Radio Mirchi website was recently voted the best website in the TV and radio space by Metrix and AC Nielsen. Its Corporate Social Responsibility efforts were also recognized with a silver medal at the Pegasus Awards. Prashant Panday, CEO of Radio Mirchi added: “It has been a trying quarter. Client advertising spends have been under pressure. In this environment, Mirchi has outperformed its competitors – our market share has grown by 1%. We expect this to continue, even as the market itself contracts. ENIL’s competitive position will continue to strengthen going forward, as it gains further ground over competitors, in listenership as well as brand recognition. With efforts to rationalize costs already initiated, we expect to protect margins going forward. We are also confident that as the market improves, ENIL is best placed to take advantage of the growth.”
Commenting on the Times OOH performance, Sunder Hemrajani, Managing Director said “During the quarter, the impact of the economic downturn on ‘Out Of Home Media’ sector was quite severe. In the challenging media environment, the company was able to grow marginally in Q3 vs Q2 through addition of new business in IT/ITES, Hospitality and Infrastructure sectors. This compensated for the loss of revenue in Aviation, Real Estate & Financial Services sectors. Overall, YTD December, the revenue was up 29% over the corresponding period last year.”