ENIL's FY21 operating revenue drops 50.2% to Rs. 264.4 crore
The company reported a net loss of Rs 109.2 crore compared to a net profit of Rs 14.5 crore
FM radio brand Radio Mirchi's parent company Entertainment Network India Ltd (ENIL) reported 50.6% drop in FY21 operating revenue at Rs. 264.4 crore due to the pandemic compared to Rs 530.6 crore in the previous fiscal.
The company's EBITDA crashed by 86.8% to Rs 16.2 crore from Rs 123.5 crore. The company reported a net loss of Rs 109.2 crore compared to a net profit of Rs 14.5 crore. ENIL's operating expenditure dropped 40% to Rs 250.5 crore compared to Rs 417 crore.
FCT revenue de-grew by 51.5%, while the Non-FCT revenue dropped by 49%. Non-FCT Gross Margins 51.5 % as against FY20 36.4%. Non-FCT EBITDA margin came in at 34.8%, compared to 19.9% in FY20. The Batch 1 revenues declined 61.6% to Rs 27.29 crore. EBITDA loss stood at Rs 5.36 crore, compared to a EBITDA profit of Rs 7.42 crore in FY20.
Batch 2 revenues during the year came down by 30.5% to Rs 12.5 crore. The EBITDA loss from Batch 2 station was Rs 2.13 crore, compared to an EBITDA profit of Rs 2.27 crore in FY20.
The company also said that its revenue from digital during the year was Rs 31.49 crore, which is 11.8% of overall revenue.
Meanwhile, ENIL has reported 17.2% sequential growth in revenues, which amounted to Rs. 99 crore in Q4. The jump was driven by the Solution business, which grew 76.7% sequentially. Compared to the year ago, revenues were down 33.7% on account of Covid-19.
The company’s cost-cutting initiatives continue to yield savings, with other operating costs (including event related DVCs) down by 39.0% over the same quarter last year. FY21 overall cost including DVC reduced by 37.4% over last year.
The company has reported EBITDA of Rs. 24 crore for the quarter. The company’s net profit for the quarter without exceptional item was Rs.70.3 lakh.
The Company has made an impairment provision of Rs 97.5 crore in its Mirchi Love and Kool businesses, because of the Covid-19 induced stress. The core Mirchi Brand continues to be strong even in these troubled times. As a result of the impairment provision, loss for the quarter came in at Rs. 65.7 crore; the corresponding number for the full year is a loss of Rs. 109.3 crore.
Commenting on the results, ENIL MD & CEO Prashant Panday said, “It was a tough quarter, but one with several positive news. Ad volumes grew over last year, indicating a return of advertisers to the medium. The solutions business turned in higher gross profits than last year, despite lower revenues. A very exciting feature is the share of digital revenues, which grew to nearly 11.5% of revenues, indicating strong traction for the company’s digital assets. Operating costs fell by 32%. And while the impairment provision is unfortunate, we will strive to overturn its impact as the economy revives."
ENIL said its balance sheet remains strong with cash reserves of Rs. 218.3 crore as on March 31, 2021.
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