Entertainment Network India Ltd (ENIL), popularly known as Radio Mirchi, has announced reported a net loss of Rs 3.27 crore in the second quarter ended September 30, as against a net profit of Rs 63 lakh in the corresponding quarter last year. According to ENIL, this loss due to amortisation of license fee and depreciation charges on equipment in 22 new stations.
The total income of the company, however, saw a growth of 15 per cent to Rs 61.56 crore as compared to Rs 53.52 crore last year. The company achieved a revenue growth rate of 39.4 per cent despite the economic slowdown.
Commenting on the Q2 results, Prashant Panday, CEO, Radio Mirchi, said, “Most of the companies in the media industries, be it print or television, have witnessed a slowdown in their growth rates this year. For this reason, a growth of 15 per cent brings a certain amount of resilience in the business. These are not happy times for the radio industry, however, the impact of the slowdown in India has had a less impact on the radio industry as compared to any other media company in the country.”
On his expectations in the next quarter, Panday said, “The radio industry has emerged only stronger in the last few months. The first half of this year shows that the industry has grown by 52 per cent, in fact, Radio Mirchi alone has grown by 25-26 per cent. Either way, clients have spent about 52 per cent more on radio than they did last year in the first half.”
He further said, “The belief, however, is that television has de-grown, while print has barely grown by 10-12 per cent, making radio emerge far more powerful in comparison to other mediums. Although these are turbulent times for all mediums, I believe the radio industry will grow faster than any other mediums in the country.”
Panday was highly optimistic about the future of Radio Mirchi and the overall radio industry. He said, “The advertising spends are under pressure and will remain under pressure for the next six to 12 months, therefore, all growth rates in the media industry will remain relatively moderate compared to last year or last several years. However, both Radio Mirchi and the radio industry will remain stronger than either print or television. The only other player that will grow faster than Mirchi would be the small players simply because of the low base that they have.”
Radio Mirchi plans to invest heavily and participate in a big way in the Phase III expansion after a profitable experience in the Phase II expansion of FM radio.
Now the question remains when Phase III would be rolled out.