| MUMBAI:
Entertainment Network India Ltd's radio business has slipped into the red as revenue
weakened in the first quarter in a tough advertising market. The
FM radio business, operating under the Radio Mirchi brand, has posted a net loss
of Rs 14.50 million as against a profit of Rs 0.70 million in the prior-year quarter.
Revenue declined
13.5 per cent to Rs 502.52 million amid stiff competition for market share and
an overall ad slowdown. Radio
Mirchi's operating margin, however, improved to 18.4 per cent, from 18.2 per cent
in the same quarter last year. The quarter's financial announcement includes a
one-time cash flow neutral charge of Rs 13.60 million. On
a quarter-on-quarter basis, the FM radio broadcasting company said it managed
to protect its revenue which took a knock in the fourth quarter of FY'09. Radio
Mirchi posted a revenue of Rs 503.02 million, dropping 22.72 per cent over the
prior-year quarter. Says
Radio Mirchi CEO Prashant Panday, "In very trying times, we have managed
to stem any further de-growth on a sequential basis over Q4 of last year."
Radio Mirchi
expects to claw back to its growth trajectory from the third quarter onwards.
"Our market share has also climbed up to 42 per cent now. I believe the advertising
industry will start to grow again from Q3 and we are well poised to take advantage
of that," says Panday. On
a consolidated basis, ENIL has posted a net loss of Rs 194.15 million for the
quarter ended 30 June 2009, as against a loss of Rs 80 million a year ago.
Revenue stood at
Rs 873.86 million, compared to Rs 1.08 billion in the first quarter of FY'08.
ENIL's consolidated
results combine the financial performances of the OOH business under Times Innovative
Media and the experimental marketing unit under Alternate Brand Solutions.
Explains ENIL MD
AP Parigi (who resigned today and is serving his notice period till 30 September),
"Our two large business segments - Radio and OOH Media - are dependent largely
on the ad market. The cyclical decline in the ad market impacted these business
segments. We have taken a number of measures to structurally improve our businesses.
We believe these measures augur well for the long term health of all our businesses."
ENIL
has kept its expenses under tight control. The company's consolidated expenditure
for the quarter was Rs 1.07 billion, as against Rs 1.16 billion in the prior-year
period. The
company expects the demand for advertising spend on OOH would pick up.
Says Times OOH managing director Sunder Hemrajani, "The worst is behind us
as there is visible improvement in the OOH market scenario post the election results,
largely due to marked improvement in business confidence and a significant shift
in the revenue trends towards the end of the quarter. The company continues to
acquire new customers and would benefit from this trend. Positive impact of some
revenue initiatives is becoming noticeable." | 
