Mirchi revenues grow 80% sequentially on digital push, festive season

Entertainment Network (India) Ltd, the operator of FM radio channel Mirchi, has reported 80% sequential revenue growth to Rs 84.5 crore in the third quarter ended December 31, 2020.

This was led by a strong growth in volume due to festive season. The company’s digital products grew handsomely, marking a significant increase in its digital orientation. Recently, ENIL had dropped ‘Radio’ from its brand name to become just ‘Mirchi’, in line with its strategic shift towards digital and solutions.

The company achieved positive EBITDA after two quarters of losses. Profit After Tax (PAT) for the quarter was Rs 16.7 crore, rising 57% mainly on account of reassessment of royalty provisions and reduction of total costs by 37%.

Balance sheet remains strong with cash reserves of Rs 197 crore as on December 31, 2020.

Commenting on the results, Prashant Panday, MD & CEO, ENIL, said, “The quarter marked a strong ad volume growth of 11.5% over last year, positive EBITDA of Rs 20.9 crore, and strong demand for our solutions, especially digital solutions, products. Solutions margins expanded to 48% from 35% last year on the back of a higher share of digital products. Share of digital solutions in quarterly revenues stood at 10%, marking a strong pivot towards digital. It is clear that the worst is behind us. The future holds the promise of strong growth.”