Entertainment Network (India) (ENIL) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated income rose 76% YoY to Rs 41,684.34 lakh as 22 radio stations launched and OOH expanded to eight cities; expansion costs drove a consolidated net loss of Rs 1,708.92 lakh.

• Radio Mirchi retained close to 48% of private FM revenue share and leadership in Delhi, Mumbai and Bangalore; Times OOH and 360° were scaled as complementary businesses.

Financial highlights

• Consolidated total income was Rs 41,684.34 lakh vs Rs 23,646.71 lakh in FY07; EBITDA was Rs 3,549.12 lakh vs Rs 4,483.88 lakh.

• Consolidated PBT was a loss of Rs 1,818.81 lakh and PAT a loss of Rs 1,708.92 lakh, vs prior-year PAT of Rs 2,514.14 lakh.

• Standalone income increased 36.54% to Rs 2,293.91 million; standalone PAT was Rs 161.93 million vs Rs 290.79 million in FY07.

Outlook and guidance

• Radio focus: manage network scale and increase listenership; OOH plans selective asset investment and a pan-India network to offer advertisers greater scale.

• Phase III policy was expected shortly, potentially in Q3 FY09; recommendations included district licenses, networking, multiple frequencies, tradable licenses and restricted news broadcasting.

• Management expected no adverse revenue impact in FY09 under its base macroeconomic view, while warning a prolonged downturn could weaken media and advertising demand.