Mumbai: Entertainment Network (India) Ltd (ENIL), which operates India’s leading private FM brand Radio Mirchi, on Wednesday posted a 30% increase sequentially in second-quarter standalone operating revenue at Rs 47.04 crore. The growth was led by the core radio business, where revenue grew 132%, and digital products that posted a 67% expansion. The solutions business, which includes digital, accounted for 27% of the second-quarter revenue, with a gross margin of 53%.
Compared with a year earlier, revenue was down 59%, hurt by the impact of Covid-19 on advertising income. “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,” ENIL MD & CEO Prashant Panday said. ENIL’s net loss narrowed to Rs 23.71crore in the past quarter from Rs 36.61 crore in the previous three months. The company cut costs drastically during the quarter. Overall operating cost dropped 35% over the corresponding quarter last year. Direct variable costs, related to onground events and activations, fell 63%.
Panday said smart cost management would help the company see strong positive Ebitda in the second fiscal half which could be better than that a year earlier. “We remain confident about all our products – radio, solutions and digital in the months to come,” he said. The company’s balance sheet remained strong with cash reserves of Rs 240.8 crore as on September 30. ENIL, which is part of The Times of India Group that also publishes The Economic Times.