Entertainment Network India Ltd (ENIL), which operated private FM stations under the Radio Mirchi brand, has reported a 39.6 per cent drop in its standalone Q3 net profit to Rs 4.86 crore as against Rs 8.05 crore in Q3 of FY08. The standalone revenues also fell 11.5 per cent from Rs 67.8 crore to Rs 60.0 crore in the third quarter ended December 31, 2008.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 18.3 crore, while EBITDA margin for Q3 FY09 was at 30.6 per cent as against 28.1 per cent in Q3 FY08, an improvement of 249 bps.
On a consolidated basis, ENIL reported revenues of Rs 110.3 crore during Q3 FY09, as compared to Rs 135.0 crore in Q3 FY08. The EBITDA for the quarter stood at Rs 5.9 crore.
Commenting on the results, AP 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 optimisation.”
Prashant Panday, CEO, Radio Mirchi, said, “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 per cent. 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 rationalise 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.”