ENIL net rises 53.6 per cent, to pay 10 per cent dividend

NEW DELHI: Entertainment Network (India) Ltd, which operates the popular FM radio channel Radio Mirchi reported 53.6% higher net profit for the quarter ended June 30, 2013 at Rs 19.9 crore compared to Rs 13 crore a year ago. Revenues for the quarter were 23.8% higher at Rs 85.2 crore as compared to Rs 68.8 crore a year ago.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 35.1 crore, up 34.1%. The company's EBITDA margin improved from 38.1% in Q1 FY13 to 41.2% during the current quarter.

On a consolidated basis, ENIL reported revenues of Rs 85.2 crore, up 21.7% from 70 crore a year ago. The EBITDA for the quarter stood at Rs 35.3 crore compared to Rs 26.6 crore in the corresponding period of the previous year. PAT stood at Rs 20 crore, up 49.6%.

Prashant Panday, executive director and chief executive officer, ENIL said, "It's been a surprisingly strong quarter for media, especially radio broadcasters including Mirchi. It appears advertisers are responding to the slowdown by launching new products, and even more promotional offers. This helps radio. We expect this to continue, even though we expect growth rates to taper off eventually. On Phase 3, the radio industry is seeking a rationalisation of reserve fees on the same lines as is happening with 2G reserve fees, as well as an extension of Phase 2 licences. We expect policy clarity in the next few months. Lastly, I am happy that the shareholders have approved ENIL's maiden dividend of 10%."