BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL), which runs the Radio Mirchi radio network in India, reported 9 percent increase in Total Income from Operations (TIO) for the quarter ended 30 June 2016 (Q1-17, current quarter). The company reported consolidated revenue of Rs 110.76 crore for the current quarter as compared to Rs 101.56 crore in the corresponding quarter of the previous fiscal. Quarter-on-quarter (q-o-q), revenue in Q1-17 declined 24.8 percent from Rs 147.20 crore in Q4-16.

The company’s consolidated profit after tax (PAT) in Q1-17 declined by 41.6 percent year-over-year (y-o-y) to Rs 16.47 crore (15 percent PAT margin) as compared to Rs 28.51 crore (28.1 percent PAT margin) and declined 17.4 percent q-o-q from Rs 20.15 crore (13.7 percent margin).

Let us look at the other numbers reported by Radio Mirchi

ENIL’s consolidated Earnings before Interest, Depreciation, Taxes and Amortisation (EBIDTA) for Q1-17 declined 17 percent y-o-y to Rs 29.44 crore (26.6 percent margin from Rs 35.45 crore (34.9 percent margin) and declined 23.6 percent q-o-q from Rs 38.53 crore (26.2 percent.

ENIL total expense (TE) in Q1-17 increased 20.8 percent y-o-y to Rs 89.79 crore (81.1 percent of TIO) from Rs 74.30 crore (73.2 percent of TIO), but declined 23.6 percent q-o-q from Rs 117.57 crore (79.9 percent of TIO).

License fee in Q1-17 increased 34.4 percent y-o-y to Rs 6.87 crore (6.2 percent of TIO) from Rs 5.11 crore (5 percent of TIO) and increased 7.8 percent q-o-q from Rs 6.37 crore (4.3 percent of TIO).

Marketing expense in Q1-17 at Rs 15.28 crore (13.8 percent of TIO) increased 35.4 percent y-o-y from Rs 11.29 crore (11.1 percent of TIO), but declined 62.9 percent q-o-q from Rs 41.21 crore (28 percent of TIO).

Programming and royalty expenses in the current quarter increased 39.3 percent y-o-y to Rs 5.26 crore (4.7 percent of TIO) from Rs 3.78 crore 3.7 percent of TIO and increased 3.3 percent q-o-q from Rs 5.09 crore (3.5 percent of TIO).

Employee Benefit Expense (EBE) in Q1-17 at Rs 25.20 crore (22.8 percent of TIO) increased 14.1 percent y-o-y from Rs 22.08 crore (21.7 percent of TIO) and increased 0.6 percent q-o-q from Rs 25.06 crore (17 percent of TIO)

Other expenses in Q1-16 at Rs 28.71 crore (25.9 percent of TIO) increased 20.1 percent y-o-y from Rs 23.91 crore (23.5 percent of TIO), but declined 7.2 percent q-o-q from Rs 30.94 crore (21 percent of TIO) increased

ENIL won 17 stations in Phase 3 auctions and has launched Bengaluru, Guwahati, Hyderabad and Kochi stations. Bengaluru was Radio Mirchi’s first launch in the second frequencies network.

ENIL says that higher marketing expense was due to the launch of new stations and Mirchi brand jingle. Operating costs include expenses incurred for Phase 3 expansion. With Phase 3 rollout, brand Mirchi will expand to 53 channels in 43 cities.

Further, the company says that Total revenues for existing stations grew by 7.3 percent. Revenue without operating other income for existing stations grew by 8.9 percent. Radio advertising revenues grew by 23.9 percent, while growth in existing stations was 21.5 percent. De-growth in solutions led business primarily due to shifting of planned activities. Underlying EBITDA for existing stations grew by 11.9 percent

Note: (1) The unit of currency in this report is the Indian rupee - Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

(2) The numbers in this report are consolidated unless stated otherwise. Consolidated quarterly numbers for the quarter ended 31 March 2016 (Q4-16) have been arrived at by deducting the company’s reported consolidated numbers for the nine month period ended 31 December 2015 (9M-16) from its reported consolidated numbers for FY-16.

(3) Other income includes Rs 4.27 crore in Q1FY17 (Q1-16: Rs.3.55 crore) on

Account of fair value of investments as per Ind AS 109