Entertainment Network (India) (ENIL) Q4 09/10 earnings summary

Executive summary

• FY10 standalone total income was ₹2,311.9m and PAT ₹178.7m, up from ₹29.1m; consolidated results remained loss-making, with net loss of ₹153.2m.

• Radio remained the earnings engine, while OOH and events weighed on consolidated performance; the radio business was described as net debt-free.

• Cost reductions and signs of advertising recovery supported a more positive FY11 outlook, alongside prospective Phase III radio reforms.

Financial highlights

• Standalone revenue was ₹2,300.4m versus ₹2,282.8m; total income reached ₹2,311.9m versus ₹2,301.7m.

• Standalone PBT rose to ₹182.7m from ₹19.6m; PAT was ₹178.7m versus ₹29.1m, and EPS was ₹3.75 versus ₹0.61.

• Consolidated total income was ₹42,353.81 lakh versus ₹43,048.44 lakh; net loss narrowed to ₹1,532.14 lakh from ₹6,028.63 lakh.

• Consolidated sales were ₹4,220.1m versus ₹4,262.4m; airtime sales increased while event income declined and OOH income increased.

Outlook and guidance

• FY11 advertising-industry growth was forecast at 11%–14%; recovery to pre-downturn growth rates of 16%–18% could take another year.

• Radio industry revenue was projected to grow at a 16% CAGR for 2009–14; Phase III reforms were expected to widen coverage and create growth opportunities.

• Cost controls were expected to continue in FY11; the events business was expected to recover as the economy improved.