RadioandMusic
| 23 Jan 2020
FY-2014: Radio Mirchi board encores dividend of 10 per cent

BENGALURU: The board of Indian private FM player Entertainment Network (India) Limited (ENIL) has recommended a dividend of 10 per cent or Re1 per equity share of Rs 10 each, buoyed by the 23.32 per cent increase in standalone PAT in FY-2014 to Rs 83.45 crore (21.69 per cent of Total Income of Operations or revenue) from Rs 67.67 crore (19.75 per cent of revenue) in FY-2013. Last year, the company had announced a divided of Re 1 per equity share, and created a history of sorts by being one of the first and probably the only Indian standalone publically listed radio-company that rewarded the faith of shareholders.

The company’s PAT for Q4-2014 at Rs 21.24 crore (18.55 per cent of revenue) was (-17.90) per cent lower than the PAT of Rs.25.88 crore (26.35 per cent of revenue) in Q3-2014 and was (-17.22) per cent lower than the PAT of Rs 25.66 crore (24.43 per cent of revenue) in the year ago quarter Q4-2013.

Note: 100, 00,000=100 Lakhs = 1 crore = 10 million.

ENIL operates FM radio broadcasting stations through the brand Radio Mirchi in 32 Indian cities and has been promoted by the Indian media giant Bennett, Coleman & Co. Limited.

Let us look at the other numbers reported by ENIL for Q4-2014 and FY-2014

ENIL standalone Total Income from Operations (revenue) in FY-2014 at Rs 384.81 crore was 13.72 per cent more than the Rs 338.39 crore in FY-2013. Revenue in Q4-2014 at Rs 114.54 was 16.62 per cent more than the Rs.98.21 crore in the immediate trailing quarter and was 9.05 per cent more than the Rs 105.03 crore in Q4-2013.

ENIL standalone Total Expense (Tot Exp) for FY-2014 at Rs 291.64 crore (75.79 per cent of revenue) was 9.68 per cent more than the Rs 265.90 crore (78.58 per cent of revenue) in FY-2013. Total Expense in Q4-2014 at Rs 90.88 crore (79.34 per cent of revenue) was 32.90 per cent more than the Rs 68.38 crore (69.62 per cent of revenue) of Q3-2014 and 16.73 per cent more than the Rs.77.85 crore (74.12 per cent of revenue) in Q4-2013. The company says that other expenses in Q4 of last year included brand capital writeback of Rs 9.4 crore.

The company paid Rs 20.241 crore (5.26 per cent of revenue) towards license fees in FY-2014, which was 11.88 per cent more than Rs 18.092 crore (5.35 per cent of revenue) in FY-2013. During Q4-2014, ENIL paid Rs 5.6812 crore (4.96 per cent of revenue) towards license fees which was 8.82 per cent more as compared to the Rs 5.2209 crore (5.32 per cent of revenue) q-o-q and 5.7 per cent more than the Rs 5.3749 crore (5.12 per cent of revenue) y-o-y.

ENIL's production expense (PE) at Rs 17.11 crore (4.45 per cent of revenue) in FY-2014 was 3.15 per cent more than the Rs 16.59 crore (4.9 per cent of revenue) in FY-2013. PE for Q4-2014 at Rs 4.83 crore (4.22 per cent of revenue) was 10.02 per cent more than the Rs 4.39 crore (4.47 per cent of revenue) and 37.88 per cent more than the Rs 3.51 crore (3.34 per cent of revenue) in Q4-2013.

The company's Employee Benefit Expense (EBE) of Rs 75.22 crore (19.55 per cent of revenue) in FY-2014, was 2.27 per cent more than the Rs 73.56 crore (21.74 per cent of revenue) in FY-2013. ENIL's EBE in Q4-2014 was 3.6 per cent more at Rs 9.17 crore (16.74 per cent of revenue) as compared to the Rs 18.51 crore (18.84 per cent of revenue) in Q3-2014 and (-7.82) per cent less than the Rs 20.80 crore (19.8 per cent of revenue) in Q4-2013.

ENIL spent Rs 81.10 crore (21.07 per cent of revenue) towards marketing expense (Mkt Exp) in FY-2014, 22.19 per cent more than the Rs 66.37 crore (19.61 per cent of revenue) in FY-2013. Marketing Expense in Q4-2014 at Rs 39.56 crore (34.53 per cent of revenue) was more than double (2.32 times) the Rs 13.85 crore in Q3-2014 and 32.25 per cent more than the Rs 29.91 crore in Q4-2014.The company explains that Mkt Exp was higher due to introduction of a new TV property – Mirchi Top20.

ENIL claims to have retained market leadership with approximately 33 per cent to 35 per cent share of the private FM radio industry in the country. It says that its revenue growth was led by volumes and multiple income streams. It claims further that as per the last Indian Readership Survey (IRS), Radio Mirchi is a clear leader with a number one position in 22 out of the 32 markets in which it operates.

ENIL says further that it has transformed from a pure radio company to a media agnostic solutions company which will develop multi-media solutions for clients. It plans to maintain market leadership in the FM radio industry by developing new business streams. It also plans to exploit new revenue opportunities on digital and other platforms and it intends to take the Mirchi brand to global markets.