Entertainment Network (India) (ENIL) Q4 21/22 earnings summary

Executive summary

• FY22 delivered a partial recovery from FY21: standalone revenue from operations rose to ₹30,591.70 lakh; net loss narrowed to ₹2,748.06 lakh.

• COVID-19’s Delta and Omicron waves disrupted the first and fourth quarters; expanded digital activity and cost controls supported recovery.

• Strategy broadened beyond FM radio through Mirchi Plus, digital content, live events and international markets.

Financial highlights

• Standalone total income was ₹32,190.19 lakh vs ₹28,454.64 lakh; EBITDA before exceptional items was ₹5,864.74 lakh vs ₹3,398.80 lakh.

• Standalone loss before tax narrowed to ₹3,635.59 lakh from ₹15,339.68 lakh; net loss improved to ₹2,748.06 lakh from ₹10,926.71 lakh.

• Consolidated revenue from operations was ₹32,330.41 lakh vs ₹27,208.84 lakh; consolidated loss for the year narrowed to ₹3,621.03 lakh from ₹11,050.31 lakh.

• Operating cash flow was ₹3,932.51 lakh standalone and ₹4,044.82 lakh consolidated; closing cash and cash equivalents were ₹497.16 lakh and ₹1,189.99 lakh, respectively.

Outlook and guidance

• FY23 outlook was described as stronger as lockdowns eased; leaner cost structures were expected to support higher profit margins as revenue recovered.

• Solutions was positioned for strong double-digit growth over the next five years; management targeted digital products at 25% of revenue over time.

• Digital contribution had been 6%-10% in each of the prior eight quarters; management said the 25% target was unlikely within the next 2-3 years.