Entertainment Network dives 9% despite Mirchi recording stable Q4 earnings

The jump was driven by the Solution business which grew 76.7% sequentially.

Jun 16, 2021 10:06 IST India Infoline News Service

Entertainment Network (India) Ltd, the operator of India’s #1 FM radio channel Radio Mirchi, has announced results for the 4th quarter & year ended 31st March, 2021.

The Company reported 17.2% sequential growth in revenues, which amounted to Rs99cr 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. FY21 revenue was Rs266.8cr.

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 Rs24.0cr for the quarter and Rs16.3cr for full year. Balance sheet remains strong with cash reserves of Rs218.3cr as on March 31, 2021.

The Company’s PAT for the quarter without exceptional item was Rs.70.3 lakhs. The Company has made an impairment provision of Rs 97.5cr in its Mirchi Love and Kool businesses, because of the covid induced stress.

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 Rs65.7cr; Corresponding number for the full year is a loss of Rs109.3cr.

The Board has recommended a dividend of Re.1 per equity share of Rs10 each for the financial year 2020-21, at its Board meeting held on June 15, 2021.

Commenting on the results, Prashant Panday, MD & CEO, ENIL, 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”.

At around  10:00 AM, Entertainment Network was trading at Rs186.70 apiece down by Rs17.65 or 8.64% on Sensex.

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