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Radio Mirchi Q3 rev up 23%, net profit impacted by Phase III expenses
MUMBAI: Entertainment Network India Ltd (ENIL), which operates its FM radio business under the Radio Mirchi brand, reported strong revenue growth in the fiscal third quarter while net profit was impacted by Phase III expenses.
Revenue grew 22.9% to Rs 143.57 crore (Rs 1.44 billion) in the quarter ended 31 December 2015. This was led primarily by pricing growth. FMCG, e-commerce, media, government and auto were the key contributors to the revenue.
Net profit fell 18% to Rs 26.99 crore (Rs 269.9 million). However, excluding the impact of Phase III expenses minimum bonus and loss of interest income on cash deployment, net profit grew 18.7%.
Standalone EBITDA at Rs 49.7 crore (Rs 497 million) was up 11% from the year-ago period.
As on 31 December 2015, debt stood at Rs 289.81 crore (Rs 2.898 billion).
Commenting on the results, ENIL MD and CEO Prashant Panday said: “The festive quarter has been a terrific one for us! We have grown by 23% in Q3 this year after having grown at 19% in the same quarter last year. With the roll-outs of Phase-3 stations well underway, we hope to see rapid growth in the years to come. The next five years belong to radio!”.
After acquiring four stations from Oyee FM, ENIL has re-negotiated the ad pricing for them. With Phase III rollout, brand Mirchi will expand to 43 cities.
The company expects Phase III rollout to start from the first quarter of FY17 through to the exit quarter of the financial year. The management expects EBITDA break-even of the new channels by FY18.