Digital products drive Mirchi's 30% sequential revenue growth

Entertainment Network (India) Ltd, the operator of India's #1 FM radio channel Radio Mirchi, today announced results for the quarter ended September 30, 2020.

The company reported 30% sequential revenue growth to Rs 47.0 crs in Q2, led by core radio which grew by 132% and digital products which grew by 67%. The company's Solutions business, which includes digital, accounted for 27% of Q2 revenues, with gross margins of 53%. Compared to a year ago however, revenues were down 59% on account of Covid.

The company cut costs drastically during the quarter. DVC (direct variable costs), related to onground events and activations, fell by 63%. Overall operating costs, including DVC, reduced by 35% over the same quarter last year.

EBITDA loss during the quarter was Rs.6.2 crores, lower than the Rs.26 crores in the June quarter. Net loss for the quarter was Rs.23.7 crores, lower than the Rs.36.6 crores in June quarter. Balance sheet remains strong with Cash reserves of Rs.240.8 crores as on September 30, 2020

Commenting on the results, Mr. Prashant Panday, MD & CEO, ENIL, said: "With the lockdowns gradually lifting in Q2, we saw a strong sequential growth in overall revenues during Q2. The festive season of the year has begun with gusto and we see revenue performance improving further in H2. Smart cost management will see strong positive EBITDA in H2, with a likelihood of positive growth over H2 EBITDA of last year. We remain confident about all our products - radio, solutions and digital in the months to come".

Shares of ENTERTAINMENT NETWORK (INDIA) LTD. was last trading in BSE at Rs.144.5 as compared to the previous close of Rs. 141.85. The total number of shares traded during the day was 437 in over 34 trades.

The stock hit an intraday high of Rs. 149 and intraday low of 141. The net turnover during the day was Rs. 62934.

Source : Equity Bulls

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