Entertainment Network (India) (ENIL) Q4 16/17 earnings summary

Executive summary

• FY17 revenue from operations grew 9.4% to ₹556.6 crore, while operating EBITDA fell 20.5% to ₹125.9 crore and PAT declined 49.5% to ₹54.5 crore amid Phase 3 expansion costs and demonetization.

• Multi-platform activity supported growth during the demonetization-affected period; 21 additional FM licenses expanded the eventual network to 73 frequencies across 63 cities.

Financial highlights

• Standalone total income was ₹57,611.13 lakh vs ₹54,286.03 lakh; PBT ₹7,831.22 lakh vs ₹15,662.03 lakh; PAT ₹5,447.40 lakh vs ₹10,792.53 lakh.

• Consolidated total income was ₹57,680.10 lakh vs ₹54,354.01 lakh; PBT ₹7,896.17 lakh vs ₹15,727.66 lakh; PAT ₹5,516.96 lakh vs ₹10,852.25 lakh.

• Revenue from operations was ₹54,946.46 lakh vs ₹49,214.34 lakh; operating and other expenses rose to ₹32,524.95 lakh from ₹25,629.88 lakh.

• Finance cost increased to ₹1,356.98 lakh from ₹3.59 lakh and depreciation and amortisation to ₹5,360.46 lakh from ₹3,606.73 lakh, reflecting Phase 3 expansion financing and asset charges.

Outlook and guidance

• FY18 expected to remain disrupted in H1 by demonetization after-effects and GST-related volatility; GST effects could persist for several quarters.

• Longer-term growth outlook rests on new station launches, network expansion, digital activity, concerts and on-ground activations; growth is expected to outpace the radio industry.

• Batch 2 auction stations were expected to become operational toward FY18-end; launch plans also included further online, concert and activation scaling.