ENIL Reports An Increase Of 50% Revenue In Q2: Report

The consolidated revenue of Entertainment Network India (ENIL), has been reported at INR 108.5 crore in Q2 FY23 as compared to INR 72.4 crore in Q2 FY22, which has increased by 50 per cent. According to the corporation, a 45.7 per cent increase in radio and a 57.7 per cent increase in solutions were the main factors in the revenue gain.

Operating expenses have risen from INR 63 crore to INR 88.37 crore, a 40.2 per cent rise. The company has reported that operating costs (excluding digital business and DVC) were lower than in Q2 FY20, demonstrating that cost-cutting strategies were still paying off.

EBITDA has increased 115.6 per cent to INR 20.96 crore for the quarter from INR 9.72 crore. According to the company, the EBITDA would have been even higher if the INR 5.8 crore investment in the digital platform had not been taken into account. The company's net loss has decreased by 95.1 per cent, from INR 10.8 crore to INR 50 lakh.

Due to Covid-19, the sluggish global economy, and the generally unfavourable business climate, ENIL has declared an impairment provision of INR 15.15 crore for its Mirchi US and Bahrain businesses.

It has stated that because losses were already recorded in prior years, this impairment had no effect on ENIL's consolidated earnings. Additionally, the company has set aside INR 2.63 crore for the pertinent burdensome contracts in international markets that it wishes to abandon.

Commenting on the results, ENIL MD Prashant Panday says, "After two consecutive Covid-impacted years, we had a good Covid-free Q2 this year. Mirchi’s business rebounded strongly with solid growth of 50 per cent in revenues and 186.3 per cent in EBITDA over the last year. Mirchi’s market share has grown by nearly 4 per cent since Q2FY20. It is heartening to note that core EBITDA is now just 7 per cent short of the pre-pandemic year FY20. We expect strong growth from here on. Our Solutions business and the new digital platforms – the Mirchi Plus app and the MPing audio ad network – have received a warm welcome and will drive Mirchi’s growth in the coming years.” 

The company's balance sheet was robust as of September 30th, with cash reserves of INR 227.1 crore.