Entertainment Network (India) Ltd (ENIL), the company that owns Radio Mirchi, has reported a net profit growth of 53.6 percent.
According to a company statement, profit after tax (PAT) for the quarter ended June 30, 2013 stood at US$3.3 million (Rs. 19.9 crores) compared to US$2.1 million (Rs. 13.0 crores) in Q1FY13.
Revenues for Q1FY14 stood at US$14 million (Rs. 85.2 crores), up 23.8 percent over the previous year.
ENIL’s earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) stood at US$5.8 million (Rs. 35.1 crores), up 34.1 percent.
EBITDA margin improved from 38.1 percent in Q1FY13 to 41.2 perecent during the current quarter.
“It’s been a surprisingly strong quarter for media, especially radio broadcasters including Mirchi,” said Prashant Panday, ED & CEO, ENIL.
“It appears advertisers are responding to the slowdown by launching new products and even more promotional offers. This helps radio.”
Panday said he expected growth rates to taper off eventually.
He also described how the radio industry was seeking a reduction in reserve fees relating to Phase III of private FM radio licensing in India, which is expected to see hundreds more frequencies awarded.
Industry pundits don’t expect Phase III, which is already overdue, to be approved until after next year’s general elections.