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ENIL Q2 net down 70.9% due to new channel launches
MUMBAI: Entertainment Network India Ltd’s (ENIL) fiscal second quarter net profit fell 70.7% to Rs 7.89 crore (Rs 78.9 million) due to new channel launches and higher marketing expenses. The company had posted net profit of Rs 26.99 crore in the corresponding quarter of the previous fiscal.
EBITDA for the quarter ended 30 September 2016 was down 39% to Rs 23.13 crore compared to Rs 37.95 crore a year ago.
Revenue grew 11% to Rs 128 crore from Rs 115.43 crore.
Operating expenditure increased 36% to Rs 106.5 crore from Rs 78.32 crore due to higher brand spending and launch of Love Network. Operating costs included expenses incurred for Phase III expansion.
The company had launched Mirchi Love stations in Ahmedabad, Surat, Jaipur and Lucknow. Radio Mirchi had also launched in Chandigarh, Guwahati and Kochi.
The company claimed that it had retained market leadership with over 30% market share. Total revenue for existing stations grew by 6.4% on the back of volume-led growth, revenue-driven government business.
ENIL also stated that the four stations acquired from TV Today Network last year turned profitable.
Commenting on the results, ENIL MD and CEO Prashant Panday said, “It’s been a busy quarter for us! We are in the midst of many exciting launches of core brand Mirchi in cities like Chandigarh, Guwahati and Kochi and our second brand Mirchi Love in Ahmedabad, Surat, Jaipur and Lucknow. We are offering new innovative content and recruiting existing and new listeners. We have stepped up marketing spend and early research indicates that we have made a strong start and have in fact become leaders in key markets. I am confident this will translate into a stronger business in the years ahead!”