Entertainment Network (India) Ltd (ENIL), popularly known as Radio Mirchi, has reported EBITDA of Rs 14.5 crore for the quarter ended June 30, 2010, a YoY growth of 56.8 per cent. For the quarter, revenues grew by 14.5 per cent to Rs 57.5 crore. The company’s net profit stood at Rs 4.3 crore against a net loss of Rs 1.4 crore in the Q1FY10.
On a consolidated basis, ENIL reported total income of Rs 115.0 crore, a growth of 31.7 per cent, as compared to the corresponding quarter of the previous fiscal. Consolidated EBITDA for the quarter stood at Rs 14.7 crore.
Commenting on the company’s performance, Prashant Panday, ED & CEO, ENIL, said, “Overall, the advertising markets are looking up. Those brands which have invested in brand building during the downturn of the last 18 months are likely to gain in the coming quarters. Our strong listenership has made Mirchi a permanent feature of most advertising plans. We look forward to a quick resolution of the music royalty issue, and thereafter to Phase III.”
On July 8, 2010, the Board of Directors of the company had in-principle approved the sale of ENIL’s entire equity stake of 83.44 per cent in Times Innovative Media Ltd to Bennett, Coleman & Company Ltd (BCCL). Commenting on the deal, N Subramanian, Group CFO, ENIL, stated, “The deal is positive for ENIL as it will release significant cash for the upcoming Phase III investments in the radio business. It will also improve the consolidated profitability of the company going forward.”