ENIL Q2 Results Review – Volumes Recover But Yields Lag: Prabhudas Lilladher

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While Entertainment Network India Ltd.’s top-line of Rs 1,031 million was in-line with our estimate, there was a miss at bottom-line level due to an exceptional loss of Rs 178 million pertaining to impairment provision in the U.S. and Bahrain businesses on account of Covid.

Going ahead, revival in radio business will be led by volumes which have shown signs of improvement (up 20% during H1 FY23 in top-21 markets over pre-Covid base) while yields would take longer to recover.

In order to diversify out of radio business (low growth market), ENIL is taking steps to increase exposure to core solutions and digital business which is expected to form ~50% of the top-line in FY25E.

While Mirchi’s diversification efforts are commendable we await green shoots on delivery front as losses on digital business will have to be absorbed in the initial phase.

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