Entertainment Network (India) (ENIL) Q4 19/20 earnings summary

Executive summary

• FY20 results weakened amid economic slowdown and COVID-19: standalone revenue from operations fell 12.9% YoY and PAT declined to ₹1,455.76 lakh from ₹5,391.85 lakh.

• Strategy broadened beyond radio under the Mirchi master brand; solutions accounted for 34% of revenue, while radio contributed 66%.

• Revenue market share increased during FY20, and the business entered FY21 with ₹228 crore in cash and no net debt.

Financial highlights

• Standalone revenue from operations was ₹54,059.28 lakh vs ₹62,048.47 lakh; total income ₹55,335.46 lakh vs ₹63,541.42 lakh.

• Standalone EBITDA before exceptional items was ₹13,626.97 lakh vs ₹15,474.32 lakh; PAT ₹1,455.76 lakh vs ₹5,391.85 lakh.

• Consolidated total income was ₹56,153.32 lakh vs ₹63,648.69 lakh; PAT was ₹1,071.21 lakh vs ₹5,389.92 lakh.

• Standalone EPS was ₹3.05 vs ₹11.31; consolidated EPS was ₹2.25 vs ₹11.31.

• Operating cash flow was ₹11,769.63 lakh standalone and ₹11,896.86 lakh consolidated; year-end cash and equivalents were ₹200.48 lakh and ₹408.22 lakh, respectively.

Outlook and guidance

• Management expected advertiser activity to stabilize by Q3 FY21 and media businesses by Q4 FY21, conditional on COVID-19 containment and no winter resurgence.

• Ad-spend recovery was expected in FY22 and beyond, subject to the pandemic running its course by FY21-end.

• Solutions margins were expected to improve with scale and better cost negotiations; scaling digital and solutions remained a strategic priority.