Radio Mirchi posts Rs 14.5 million loss; revenues at Rs 502 million

MUMBAI: Entertainment Network (India) Ltd., (Radio Mirchi) has posted a net loss of Rs 14.5 million (Rs 1.45 crore) for the quarter ended 30 June, 2009.

The company posted revenues of Rs 502 million (Rs 50.2 crore) for the same quarter as compared to Rs 572 million (Rs 57.2 crore) in corresponding period of last fiscal year, down by 12.2 per cent.

The company’s earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs 92.5 million (Rs 9.25 crore). EBITDA margin improved from 18.2 per cent in Q1FY09 to 18.4 per cent during the current quarter. The reported EBITDA also includes a one time cash flow neutral charge of Rs 13.6 million (Rs 1.36 crore). On a consolidated basis, ENIL reported revenues of Rs 873 million (Rs 87.3 crore) during Q1FY10 compared to Rs 1.07 billion (Rs 107.1 crore) during Q1FY09. The loss before interest, tax, depreciation and amortization for the quarter was Rs 64 million (Rs 6.4 crore).

ENIL managing director A P Parigi said, "Our two large business segments- radio and OOH Media – are dependent largely on the ad market. The cyclical decline in the ad market impacted these business segments. We have taken a number of measures to structurally improve our businesses. We believe these measures augur well for the long term health of all our businesses."

Radio Mirchi CEO Prashant Panday added, "In very trying times, I am happy to state that we have managed to stem any further de-growth on a sequential basis over Q4 of last year. Our market share has also climbed up to 42 per cent now. The brand is performing very well in terms of listenership. First it was IRS that showed our listenership to be double than our nearest private FM competitor. Now even RAM has shown us to be the #1 brand in all the four metro markets for the last seven weeks in a row. I believe the advertising industry will start to grow again from Q3 and Mirchi is well poised to take advantage of that."

Times OOH managing director Sunder Hemrajani said, "The worst is behind us as there is visible improvement in the OOH market scenario post the election results largely due to marked improvement in business confidence and a significant shift in the revenue trends towards the end of the quarter. The company continues to acquire new customers and would benefit from this trend positive impact of some revenue initiatives is becoming noticeable."