Radio Mirchi reports revenue growth of 33.9% in Q2 FY20
Mirchi’s core radio revenues have declined 7% but the solutions business has provided a cushion, ENIL has said
ENIL has reported a revenue decline of 5.7% YoY to 1,139 million, much lower than the estimate due to weak consumption trends and ad spend cuts by key verticals which was largely offset by the growth in solutions business which now contributes almost over 25% of total revenues.
The market share for Radio Mirchi has improved by 1% during the quarter, a statement released by the company said.
Mirchi’s core radio revenues have declined 7%, but the solutions business has provided a cushion in the difficult times reporting a strong revenue growth of 33.9% and with higher margins pricing in the radio segment has improved marginally YoY whereas the inventory reported sharp decline due to sharp ad spend cut across all major verticals, including Auto, BFSI, Real Estate and Govt.
The EBITDA margin has improved 190bps YoY to 24.2% despite programming cost and marketing expenses together growing 19% YoY as other expenses declined significantly by 35% YoY due to impact of Ind AS-116 whereby rent expense was lower, depreciation grew 57% YoY and finance costs were 3.5x primarily due to IND-AS. However ex-Ind AS impact, the EBITDA margins have dropped significantly to 16.6%, down 600bp YoY.
PAT has declined sharply by 98% YoY to Rs 2 million consequent to a surge in interest and depreciation costs due to Ind AS-116 and higher effective tax rates (59.4% vs 31% of last year).
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