Mumbai-based Entertainment Network (India) Ltd (ENIL), which operates India’s leading FM radio channel Mirchi, reported a 37.3% YoY growth in its total revenue, including digital, for the fiscal year 2022-23, reaching INR 419.5 crore. The strong surge was driven by a healthy growth in radio of 35.7%, while non-radio revenue grew by 33.5%. For the fourth quarter ended March 31, ENIL reported total revenue growth of 5.6% YoY to INR 104.9 crore, led by strong growth of 13.2% in radio revenue.
ENIL has attributed its recent investments in the digital platform as one of the key drivers behind this success, with the segment beginning to contribute to the top line from this quarter onwards. ENIL invested INR 7.2 crore in the digital platform, which helped improve EBITDA margins to 22.6% in FY23, up from 16.2% in FY22. Without this, EBITDA for the quarter stood at INR 23.2 crore, while profit before tax was INR 6.1 crore. For the full year, without digital, EBITDA stood at INR 93.3 crore. ENIL’s balance sheet remains strong with cash reserves of INR 265 crore as of March 31, up from INR 227 crore as of December 31, 2022.
ENIL CEO Yatish Mehrishi said, “I am pleased to share that we have registered good growth this financial year, both in terms of top line and improved margins. We have witnessed an increase in radio revenues post-pandemic and a good traction in the non-radio business as well. We have consolidated our industry leadership by gaining volume market share by 300 basis points. Our digital platform Mirchi Plus continues to grow rapidly on key metrics of monthly active users and engagement. Our social media assets have seen massive growth, both in terms of engagement and virality.”
The company’s success can be attributed to the rapid growth of the radio industry post-pandemic, along with a significant traction in its non-radio business. The consolidation of its industry leadership and the improvement of EBITDA margins were other significant factors driving ENIL’s success. The company has also reported an increase in the volume market share of 300 basis points. Additionally, Mirchi Plus, ENIL’s digital platform, has witnessed rapid growth in its monthly active users and engagement.
Furthermore, ENIL’s social media assets have seen remarkable growth in terms of engagement and virality. The company’s balance sheet remains robust, with its cash reserves increasing to INR 265 crore as of March 31, up from INR 227 crore as of December 31, 2022.
ENIL’s performance is indicative of the resilience of the Indian radio industry and the company’s ability to adapt to changing market dynamics. With the pandemic leading to a significant shift in consumer behavior and the rise of digital media, ENIL’s investments in digital have paid off, contributing to its top line growth. The company’s success is also a testament to its leadership position in the industry and its ability to attract and retain listeners.
Overall, ENIL’s strong financial performance in FY23 demonstrates its ability to weather uncertainties and adapt to changing market conditions, providing a positive outlook for the future of the Indian radio industry.
ENIL’s impressive growth in revenue and profits is a clear sign of the radio industry’s recovery post-pandemic, as listenership has returned to pre-pandemic levels. The company has leveraged this growth to strengthen its position in the industry, increase its market share, and expand its digital platform offerings to capitalize on the growing trend towards digital media.
ENIL has been a pioneer in the Indian radio industry, with Mirchi being the country’s most popular FM radio channel. The company’s investments in its digital platform, Mirchi Plus, have been a significant driver of its success. The platform has witnessed a rapid increase in monthly active users and engagement, indicating its potential to become a significant revenue generator in the future.
