Entertainment Network (India) Limited (ENIL), operator of Radio Mirchi and Gaana, reported its financial results for the first quarter, showing signs of resilience in a challenging market environment.

Financial Highlights

• Consolidated revenue from operations increased to ₹115.13 crore, up 1.5% from ₹113.47 crore in the same quarter last year.
• Standalone net loss narrowed to ₹5.15 crore, compared to a loss of ₹5.37 crore in Q1 of the previous fiscal year.
• Consolidated net loss improved to ₹5.26 crore from ₹5.45 crore year-over-year.
• Earnings per share (EPS) stood at negative ₹1.08 for standalone results and negative ₹1.10 for consolidated results.

Business Segment Performance

ENIL's strategic diversification efforts have started to bear fruit, with notable growth in its digital and non-FCT (Fixed Commercial Time) businesses:

• Digital business revenue surged by 41.2% year-over-year, now accounting for 40.7% of the company's core radio advertising revenue, up from 24.8% in Q1 of the previous fiscal year.
• Events and Solutions business grew by a robust 33% in Q1.
• Radio advertising segment remained subdued, partly due to a high base effect from political advertising in the previous year's general elections.

Operational Efficiency

The company has shown improved cost management:

• Investment in the digital business decreased to ₹9.8 crore from ₹14.2 crore in the same quarter last year, demonstrating better efficiency.
• EBITDA for the quarter grew by 3.6% to ₹6.2 crore.
• EBITDA excluding digital stood at ₹16 crore, with margins at 17.5%.

Strategic Focus

Mr. Yatish Mehrishi, CEO of ENIL, commented on the results: "In a quarter marked by industry challenges and market volatility, our strategy of transformation from only Radio to Multimedia company has delivered promising results. Our Events and Solutions business grew a strong 33% in Q1, supported by our continued focus on solution-based offerings."

He added, "Our digital business, which registered a 41.2% growth, continues to gain momentum. Gaana is witnessing robust subscription uptake and consumer engagement - signaling growing user alignment."

Financial Position

ENIL maintains a strong balance sheet with a cash reserve of ₹349 crore as of the end of the quarter, providing financial stability for future growth initiatives.

Legal Proceedings

The company continues to face ongoing legal proceedings with Phonographic Performance Limited (PPL), with the matter currently pending before the Supreme Court of India. Management believes, based on external legal advice, that the chances of a cash outflow related to this matter are remote.

As ENIL navigates through market volatility and industry challenges, its multi-platform expansion strategy and focus on digital growth appear to be positioning the company for potential opportunities in the evolving media landscape.

Note: All figures are in Indian Rupees (₹) and 1 crore = 10 million.

Entertainment Network , a prominent player in the media and entertainment sector, has announced impressive financial results for the fourth quarter, showcasing significant growth in both profit and revenue.

Profit Soars by 39%

The company reported a consolidated net profit of ₹121.00 crore for Q4, marking a substantial 39% increase from ₹87.00 crore in the same quarter of the previous year. This impressive year-over-year growth demonstrates the company's ability to enhance its bottom line effectively.

Quarter-over-Quarter Improvement

Entertainment Network also showed strong sequential growth, with Q4 profits rising by approximately 33% compared to the previous quarter's ₹91.00 crore. This consistent upward trend in profitability suggests the company's strategies are yielding positive results.

Revenue Growth and EBITDA Improvement

The company's top line also saw improvement, with Q4 revenue reaching ₹1.60 billion. This represents a year-over-year increase of about 6.67% from ₹1.50 billion in the same quarter last year. Additionally, the Q4 EBITDA increased to ₹295.00 million from ₹277.00 million year-over-year, with the EBITDA margin improving to 18.61% from 18.37% in the same period.

Financial Performance Overview

Dividend Announcement

In addition to the strong financial performance, Entertainment Network has recommended a final dividend of ₹2.00 per equity share, further rewarding its shareholders.

Conclusion

Entertainment Network's robust financial performance in Q4 reflects its resilience and ability to grow in the dynamic media and entertainment industry. The significant increase in profitability, both year-over-year and quarter-over-quarter, along with steady revenue growth and improved EBITDA, positions the company well for future success.

As the media landscape continues to evolve, Entertainment Network's ability to adapt and capitalize on market opportunities will be crucial for maintaining this positive momentum in the coming quarters.