ENIL Q1 net profit grows 6.5%, revenue rises 9.1%

NEW DELHI: Entertainment Network (India) Ltd (ENIL), which operates the popular FM radio channel Radio Mirchi, reported 6.5 per cent higher net profit for the quarter ended June 30, at Rs 25.9 crore. Revenue for the quarter grew 9.1 per cent at Rs 101.6 crore, compared with Rs 93.1 crore a year ago. This was the first time that the company’s revenue crossed the Rs 100-crore mark in the first quarter.

EBITDA (earnings before interest, taxes, depreciation, and amortization) growth, however, was muted at 1.8 per cent at Rs 35.4 crore, largely because of enhanced marketing and Phase-3 related expenses.

Prashant Panday, managing director and chief executive officer of ENIL, said: “It’s been a sombre quarter for radio companies, largely on account of the high base of election advertising last year. Overall, advertising growth remains satisfactory, though below expectations, possibly because of the sluggish economy. The good news is that Phase-3 auctions have finally started. This will spur new growth in the years to come.”