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Radio Mirchi reports Q1 net loss of Rs 1.45 crore

03-August-2009
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Radio Mirchi reports Q1 net loss of Rs 1.45 crore

Affected by weakened revenue and a tough advertising market, Entertainment Network India Ltd’s (ENIL) radio business, Radio Mirchi, has reported a net loss of Rs 1.45 crore in Q1 of FY10, as against a profit of Rs 0.70 million in the corresponding quarter of the previous fiscal.

Revenue fell 13.5 per cent to Rs 50.25 crore amid stiff competition for market share and an overall ad slowdown, as against Rs 57.2 crore in Q1 of FY 09.

The Company’s earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs 9.25 crore. The company’s EBITDA margin improved from 18.2 per cent in Q1 FY09 to 18.4 per cent during the current quarter. The reported EBITDA also includes a one- time cash flow neutral charge of Rs 1.36 crore.

On a consolidated basis, ENIL reported revenues of Rs 87.3 crore during Q1 FY10, as compared to Rs 107.1 crore during Q1 FY09.

AP Parigi, who recently retired as the ENIL Managing Director, said, “Our two large business segments – radio and OOH Media – are dependent largely on the ad market. The cyclical decline in the ad market impacted these business segments. We have taken a number of measures to structurally improve our businesses. We believe these measures augur well for the long term health of all our businesses.”

Prashant Panday, CEO, Radio Mirchi, said, “In very trying times, I am happy to state that we have managed to stem any further de-growth on a sequential basis over Q4 of last year. Our market share has also climbed up to 42 per cent now. The brand is performing very well in terms of listenership. First it was IRS that showed our listenership to be double than our nearest private FM competitor. Now even RAM has shown us to be the number one brand in all the four metro markets for the last seven weeks in a row. I believe the advertising industry will start to grow again from Q3 and Mirchi is well poised to take advantage of that.”

Sunder Hemrajani, Managing Director, Times OOH, said “The worst is behind us as there is visible improvement in the OOH market scenario post the election results largely due to marked improvement in business confidence and a significant shift in the revenue trends towards the end of the quarter. The company continues to acquire new customers and would benefit from this trend positive impact of some revenue initiatives is becoming noticeable.”

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