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Entertainment Network (India) (ENIL) held a conference call to discuss quarter and year ended March 2017 result.
Highlights of the call
Consolidated revenues grew 19% to Rs 162.29 crore. Net Profit declined by 42% to Rs 13.79 crore.
Retained market leadership with over 30% market share.
For Q4, Revenue from new stations is Rs 15.94 crore and EBITDA loss in new stations of R 6 crore
For Q4, Total effective realization up by 12.4% for existing stations, capacity utilization at 94.9% (basis 13 min. per hour and 17 hours a day)
De-monetization hit the media industry adversely in Q4. ENIL's core radio business was also impacted.
4.3% entire industry growth in Q4. and 9% in FY17.
Non radio business did well. 36% growth in Q4.
Legacy station growth in Q4 – 1/3rd of growth came from it. New station contributed 12%.
For FY17, Total effective realization up by 7.6% for existing stations, capacity utilization at 97.9% (basis 13 min. per hour and 17 hours a day). Capacity utilization in FY17 for the top-8 cities: 118%, the rest: 95%, newstations: 15%
FY17 revenue breakup – 70% is radio and 30% is non radio
The company launched its 2nd frequency band at a 5-10%pricing premium to the present frequency, though capacity utilization is now under ~15-20%.
The blended realization rates for FY17 and Q4FY17 were Rs 10727 and Rs12000 respectively. For the 13 new stations, the realization rate in FY17was Rs 6700
At present, ENIL has 19 radio stations online. It plans to increase that to 50 in the next couple of years.
Digital radio – its more than music playing. The company do lot of content, lot more video. It is more of entertainment station
Dont see any cannabilsation from second station,
Expects profitability from new station to come in FY18.
Ad inventory - To improve the consumer experience, it would be cutting its average ad inventory (of 13 minutes per hour for 17 hours a day) to 10 minutes/hour within three years. ENIL is confident that the inventory cuts would be accompanied with increase in overall yields and hence revenue growth would not come under strain
H1FY18 growth would be impacted because of sluggishness due to GST implementation.
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