Radio Mirchi operator ENIL posts 50% jump in revenues

While the radio business recorded a strong 45.7% growth, the solutions business witnessed 57.7% jump compared to the year ago quarter.

With continued cost economisation initiatives, the operating cost (excluding digital business and direct variable costs) were lower than Q2FY20, the company said.

During the quarter, the company invested ₹5.8 crore in the digital platform. Without this, EBIDTA for Q2FY23 stood at ₹18.1 crore and profit before tax (before exceptional items) stood at ₹6.2 crore.

EBITDA is just 7% short of the pre-pandemic Q2FY20 number.

“After two consecutive Covid-impacted years, we had a good Covid-free Q2 this year,” said Prashant Panday, MD, ENIL. “Mirchi’s business rebounded strongly with solid growth of 50% in revenues and 186.3% in EBITDA over last year.”

Panday said that Mirchi’s market share has grown by nearly 4% since Q2FY20. “It is heartening to note that core EBITDA is now just 7% 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,” he said.

ENIL made an impairment provision of ₹15.15 crore in its Mirchi US and Bahrain businesses on account of Covid, the weak global economic situation and the business environment in most countries. The company clarified that this impairment has no impact on ENIL consolidated results as losses were already booked in earlier years.

Further, the company has made a provision of ₹2.63 crore for the relevant onerous contracts in international markets which it intends to discontinue from its operations. As a result of the impairment provision, loss for the quarter came in at ₹12.6 crore, compared to a net loss of ₹7.9 crore in the corresponding quarter last year.

Balance sheet remained strong with cash reserves of ₹227.1 crore.