Entertainment Network (India) (ENIL) Q2 24/25 earnings summary

Executive summary

• Domestic revenue reached INR 110 crores in Q2 FY25, up 9.4% year-over-year, driven by strong digital and non-FCP segment growth.

• Digital revenue surged nearly 300% year-over-year, with Gaana contributing INR 15.4 crores, now 21.4% of radio revenues.

• EBITDA (excluding digital) was INR 22.5 crores with a 23.2% margin; profit before tax rose to INR 11.2 crores from INR 8.5 crores year-over-year.

• Market share in radio held steady at over 24% despite a 2.9% volume decline, attributed to an industry-wide slowdown.

• Strong cash reserves of INR 391 crores as of September 30, 2024.

Financial highlights

• Domestic revenue grew 9.4% year-over-year to INR 110 crores in Q2 FY25.

• Digital revenue reached INR 15.4 crores, up from a 10.8% share to 21.4% of radio revenues year-over-year.

• EBITDA (excluding digital) stood at INR 22.5 crores (23.2% margin); profit before tax increased to INR 11.2 crores from INR 8.5 crores.

• International markets contributed EBITDA of INR 1.4 crores.

• Digital spending reduced to INR 12.8 crores from INR 15 crores sequentially.

Outlook and guidance

• Anticipates volume recovery in radio in upcoming quarters, with optimism around festive and wedding seasons.

• Guidance for Gaana digital revenue at approximately INR 60 crores for the full year, with break-even expected in 5–6 quarters.

• Cautious on Q4 government ad spend, which may impact growth.

• Expects continued cost control and stable EBITDA margins, contingent on radio segment recovery.