ENIL Q3 net down 19.8% as rev falls

MUMBAI: FM radio company Entertainment Network India Ltd (ENIL) has seen a 19.8% dip in standalone net profit to Rs 13.06 crore for the quarter ended 31 December as against Rs 16.28 crore in the corresponding quarter of the previous fiscal.

EBITDA has fallen 6.6% to Rs 35.6 crore compared to Rs 38.1 crore in the year-ago period. The company generated an operating cash flow of Rs 40.17 crore.

Income from operations fell 2% to Rs 147 crore from Rs 150 crore. Operating expenditure remained flat at Rs 112.7 crore compared to Rs 112.5 crore.

The company said that it followed the long-term strategy of inventory ad cap to improve listenership. Gross effective rate (ER) for 35 legacy stations grew 8.6% while CU de-grew by 13.4% to 83% basis 13 minutes per hour and 17 hours a day.

ENIL also said that it secured unsecured commercial papers (CPs) of Rs 102.6 crore post the third quarter. The proceeds were utilised to repay outstanding CPs of Rs 130 crore.

Commenting on the results, ENIL MD and CEO Prashant Panday said, “While our revenues dropped a notch, it was because of some issues with one single client. Had that not happened, we would have reported a 4.6% growth. Fortunately, the issue has been resolved recently. There was also the impact of early Diwali which advanced as much as Rs 12 crores from this quarter into the previous one.

“With all this behind us, we remain confident about rapid revenue and profit growth in FY19 and beyond. We are delighted that our new Phase-3 stations have started making a profit within just a year and a half of launch.”

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