Radio Mirchi posts Q1 results: Reports revenue of Rs 37 crore as radio industry suffers from Covid-19 blow

Mumbai: Entertainment Network (India) Ltd (ENIL), a Times Group company and operator of India’s leading FM radio channel Radio Mirchi, has posted standalone operating revenues of Rs 37 crore during the quarter ended June 30, 2020, even as the entire industry was hit hard due a crash in advertising spends by cash-choked corporates.

ENIL’s total income from operations stood at Rs 131.57 crore in the corresponding quarter of the previous fiscal.

A demand contraction due to the movement restrictions enforced by the government led to a crash in advertising spends as companies curtailed discretionary spends to deal with cash flow problems.

ENIL’s cost control initiatives resulted in a 27% drop in other operating costs.

Due to the topline dip, EBIDTA also reflected a Rs 26 crore loss.

The combined impact of Covid-19 and IND AS116 adjustments led to a net loss of Rs 36.6 crore for the quarter.

As per the results, the non-revenue impact of Covid-19 on bottom-line was Rs 1.6 crore.

ENIL said its balance sheet remains strong with cash reserves of Rs 236.4 crore as on June 30, 2020.

“Media companies have all been hit very badly by Covid-19. Mirchi’s strategy of providing solutions and building digital products has protected us and in fact lifted our revenue market share to 33% in a 30+ player market,” said Prashan Panday, MD & CEO, ENIL.

He added that Mirchi’s leadership in listenership, strong position in cash, and rationalisation of operating costs give the company confidence that when the economy recovers, ENIL will stand to gain the most.

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ENIL operates FM stations in 63 Indian cities. It is owned by Bennett, Coleman & Co. Limited (BCCL), which also owns The Economic Times.

The shares of ENIL ended at Rs 128.55, up 0.04% on BSE on Friday.



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