Highlights of the call

Revenues grew 18% to Rs 147.2 crore. Price and volume led growth. OPM declined by 160 bps to 26.2%. Net Profit declined by 21% to Rs 20.2 crores

The underline operating revenue growth was 13% for Q4 and 10% for FY16

32-33% market share retain.

Revenue growth achieved on back of price.

Effective ad rate increased 13.9% yoy to Rs10700 across stations per 10 sec

Inventory utilization on the other hand saw decline of 3% yoy. Blended inventory utilization was at ~100% while top-8 stations utilization was 130%. Focus remain on further inventory reduction across the network

Sector that registered strong growth in FY16 for radio industry were – FMCG - 20%, Government - 52%, Auto- 29%, Real estate- 37%, Durables- 19%. E-Commerce spends in 4Q declined 5% yoy.

The company now has a portfolio of 53 stations including 17 newly bagged Phase III stations and four Oye FM stations across cities. Of the newly acquired new channels, the company has launched a station in Guwahati, Kochi and Bangalore. The company is looking to launch the remaining new stations over FY17 and expects to turn EBITDA positive for the new stations in four to six quarters.

The launched second frequency in Bangalore which is Hindi channel with English speaking RJ. The company has seen lot of traction since the launch while it has decided not take any advertisement for one month of launch. Bangalore market has 75% listenership from Kannada and 25% from Hindi channels while ad rates are other way round. There categories like Real Estate, E-Commerce in Bangalore advertise only on Hindi radio channels.

The management doesn't believe there would be pressure on yields post new stations launches. With launch of new stations in Delhi and Mumbai, there has been limited price disruption. Being the cheapest medium of advertisement and ad rates lower than 2009 levels give confidence that ad rates would not be impacted in future

The company has net cash of around Rs 5.5 crore

Marketing expenses up due to high television campaign and for some research activity. Next 2 -3 yrs time , it will remain high.

Another auction of phase 3 will take 9 months or year.

20% market growth for radio industry for next 5 yrs. Overall ENIL is also expected to grow at par better than radio industry.

FMCG, Consumer Durable, Govt, Media & Entertainment, Telecom, Auto are the categories which help radio industry growth in FY17.

Capex for FY16 was Rs 725 crore, including Rs 680 crore towards payment to government. In FY17, incremental capex could be in range of Rs 20-25 crore for new station launches