Entertainment Network (India) Ltd — Call Transcript 2025

May 23, 2025

entertainment network (India) limited

23 May 2025

BSE Limited, National Stock Exchange of India Rotunda Building, P. J. Towers, Limited, Dalal Street, Fort, Mumbai- 400001 Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai – 400051

BSE Scrip Code: 532700/ Symbol: ENIL Sub: Transcript of the Investors’ call FY25

Dear Sir/ Madam,

Please find enclosed herewith the transcript of the Investors’ Call / Earnings Conference Call - FY25, held on 17 May 2025.

The same has been uploaded at: - - - https://www.enil.co.in/stock exchange filings fy2025.php

and

• • https://www.enil.co.in/financials investorp fy2025.php

For Entertainment Network (India) Limited

Mehul Digitally signed by Mehul Rasiklal Rasiklal Shah Date: 2025.05.23 Shah 10:01:43 +05'30'

Mehul Shah EVP– Compliance & Company Secretary (FCS no- F5839)

Encl: a/a

Registered Office : The Times Group, Sunteck Icon, CTS 6956 VLG, Kolekalyan Vimantal, CST Link Road, Kalina, Near Mercedes Show Room, BKC Junction, Santacruz East, Mumbai - 400098, Maharashtra, India. Tel: 022 68896222. E-mail: mehul.shah@timesgroup.com www.enil.co.in Corporate Identity Number: L92140MH1999PLC120516

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“Entertainment Network (India) Limited Q4 FY’25 Earnings Conference Call”

May 17, 2025

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– MANAGEMENT: MR. YATISH MEHRISHI CHIEF EXECUTIVE OFFICER, ENTERTAINMENT NETWORK (INDIA) LIMITED. – MR. SANJAY BALLABH CHIEF FINANCIAL OFFICER, ENTERTAINMENT NETWORK (INDIA) LIMITED.

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Entertainment Network (India) Limited May 17, 2025

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Moderator: Ladies and gentlemen, good day and welcome to Entertainment Network (India) Limited Q4 FY'25 Earnings Conference Call.

As a reminder, all participant lines will be the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Runjhun Jain from EY IR. Thank you, and over to you ma’am.

Runjhun Jain:

Thank you, Hamshad. Good morning, everyone, and welcome to the Q4 and FY'25 Earnings Call of Entertainment Network (India) Limited.

To take you through the results and answer your questions today, we have the Management Team from the Company represented by Mr. Yatish Mehrishi – Chief Executive Officer, and Mr. Sanjay Ballabh – Chief Financial Officer.

Please note the financial results and the presentations have been uploaded on the Company's website and on the exchanges. Should you need any further information, you can get in touch with us at EYIR. Before we begin, I would like to remind you that today's discussion might include forward-looking statements based on the current expectations and assumptions. These statements are subject to risks and uncertainties that could cause actual results to differ materially. The Company undertakes no obligation to update these statements after today's call whatsoever.

With that said, I will hand over to Mr. Yatish.

Yatish Mehrishi:

Thank you Runjhun. Good morning, ladies and gentlemen. On behalf of Entertainment Network (India) Limited, I extend a warm welcome to our Q4 and FY’25 Earnings Call. We appreciate you joining us on a rainy Saturday, thank you very much.

We announced our Results yesterday, and I hope you had a chance to review them. I will now take this opportunity to walk you through the key highlights and provide context around our performance.

On the Financial Overview:

During the year, our domestic revenue reached Rs.526 crores, reflecting a 9.4% growth year-onyear. This was primarily driven by strong performance in our digital and non-FCT segments. Excluding digital, our core business recorded a 2.6% growth year-on-year with a revenue of Rs.465 crores.

Let me take you through the segment performances:

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The Radio industry faced significant headwinds during the quarter, and we are not immune to these challenges. Additionally, Quarter 4 of the previous year benefited from the extraordinary government and political ad spending due to the general elections, resulting in a higher base. Despite this, we remain relatively better insulated than our peers and continue to maintain a healthy 26% volume share in the Radio segment.

On the non-FCT segment, we maintain a very strong momentum, growing 20% year-on-year to Rs.151 crores. This was driven by the sustained success of our solution-based initiatives and key on-ground events such as Green Marathon, Spell Bee and Boom Box. For FY’25 the EBITDA margins for the non-FCT business stood at a strong 33%.

Let me take you through the Digital Business:

Our digital segment delivered a stellar growth with revenue reaching Rs.61 crores up a strong 122% year-on-year growth largely driven by the strong performance of Gaana. We are encouraged by the positive customer response to the revamped Gaana 2.0 platform, despite the revised upward pricing. Revenues have been improving quarter-on-quarter, and we anticipate the full impact to reflect in FY’26.

In Q4 FY’25 Digital revenues comprise 32% of our total Radio revenues, up from 24% last year. For the full year, digital contribution reached 26% compared to 15% last year. This is in-line with our strategic vision for evolving from a traditional Radio Company to a diversified Multimedia Entertainment Enterprise. I am very happy to share that our digital cash burn is steadily declining, registering a 15% drop sequentially over the last quarter, with a total investment of Rs.47 crores in FY’25.

Just to reiterate some Key Financial Metrics:

Q4 FY’25 EBITDA, excluding digital stands at Rs.37.4 crores, with EBITDA margin at 27.5%. PAT for Q4 FY’25 is Rs.21.4 crores, a 21% increase over Q4 last year. Full year EBITDA excluding digital, stands at Rs.118.8 crores with EBITDA margin at 25.5% and our PAT for the full year stands at Rs.48.1 crores. Our international operations remain EBITDA positive, contributing Rs.19.2 crores in the revenue for FY’25. The Company continues to maintain a strong balance sheet with a cash balance of Rs.368 crores as of March 31st, 2025.

Lastly, I am very pleased to announce that the Board has recommended a dividend of Rs.2 per share, up from Rs.1.5 per share last year.

With that, I will now hand over the call to the moderator. I look forward to your questions. Thank you.

Moderator:

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Khushi an Individual Investor. Please go ahead.

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Khushi:	My first question to you is, what is the Gaana revenue for the quarter and for the full year?
Khushi:	Also, the revenue growth Y-o-Y and quarterly?
Yatish Mehrishi:	On Gaana only?
Khushi:	Yes.
Yatish Mehrishi:	So, our Gaana revenues for full year increased to Rs.46.2 crores against last year’s revenue of
	Rs.12.78 crores.
Khushi:	And what was the profitability of Gaana?
Yatish Mehrishi:	So, Gaana, as we said it's an investment phase. We are reducing cost, and we believe Gaana will
	become profitable in the next 5 to 6 Quarters.
Khushi:	Could you please specify the number?
Yatish Mehrishi:	I will be happy to share the numbers in detail on a side call with our CFO, please.
Khushi:	Yes, sure. My other question to you is, what is the market share?
Yatish Mehrishi:	On Gaana or on Radio?
Khushi:	Overall?
Yatish Mehrishi:	So overall, as I said, on the volume share we have almost a 26% volume share in the Radio
	business and from a value point we are upward of 30%.
Khushi:	Also, please give us split on Gaana and Radio?
Yatish Mehrishi:	The market share you said Khushi?
Khushi:	Yes.
Yatish Mehrishi:	Khushi, market share on digital on Gaana is very difficult to put up because, every platform has
	a different way of doing business. For example, YouTube is largely available free, and they have
	a very less paid service. Spotify also does free and a subscriber service while Gaana, we don't
	offer free music, it's a paid service platform, so you have to pay in order to listen to music. So,
	if I was to look at a paid share, we are a very healthy share compared to Spotify, but since nobody
	shares the numbers, it's very difficult to ascertain. So, we have our own internal metrics on
	Gaana, and we believe we have a very healthy share in the paid market music streaming service.
Khushi:	Okay. My other question is, what is the inventory utilization for the quarter and for the year?

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Yatish Mehrishi: So, our inventory utilization for the quarter has been about 81%. And for the full year, has been about 78%. Khushi: Alright. My other question is, what is the volume growth for both the quarter and for the year? Yatish Mehrishi: So, as we said, last year there were elections and a lot of government spending, so there has been a drop in volume growth of about 4%. Khushi: Okay. My other question for you is, what is our effective rate growth for the quarter and for the year, also how it is compared to pre COVID levels? Yatish Mehrishi: So, pre-COVID levels, as we have always spoken about, the price has not come back to preCOVID levels. They stand at about 25% less than pre COVID levels. It used to be 40% down, there has been some arrest in the de-growth, it's as of now stable at 25%. Khushi: Okay. Could you please tell me again the revenue of Gaana? Yatish Mehrishi: About Rs.18 crores on the digital. Khushi: That's for the quarter? Yatish Mehrishi: Yes. Khushi: And for the year? Yatish Mehrishi: We spoke about it there in the investor presentation, Khushi you will have all the details on that.

Moderator: Thank you. The next question is from the line of Prashant, an Individual Investor.

Prashant: My question is related again with Gaana, since it is a digital platform, how can we prepare for the peers like Spotify, and is there any strategy, or what's the plan for going forward to growth about the Gaana. So please, can you elaborate more on the future plan or future growth about the Gaana in digital platform?

Yatish Mehrishi: Thank you, Prashant. See for Gaana for us, it's very clear it's a Made in India only product in the market right now, on the music streaming service if you look at largely the competition remains YouTube and Spotify. This year, I am very happy to say we have increased our subscriber base by almost 28% as compared to when we took over. We took over the business on 1st December last year, and from 1st April to this year there has been a healthy 28% growth in our subscriber base. You know that we increased our price from Rs.299 to Rs.599 in the month of August. So, we are seeing a very healthy growth, as I have mentioned earlier, we are committed to profitability on the Gaana business, and we believe in the next 5 to 6 Quarters, Gaana should become a profitable business for us with a healthy revenue and a bottom line.

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Moderator: Thank you. The next question is from the line of Ronak Shah, from Equirus Securities Private Limited.

Ronak Shah: Sir my first question is regarding the exception of the government, which are the other sectors which have supported the overall volume?

Yatish Mehrishi: So, thanks, Ronak. Actually, government business has gone down over last quarter, because last year was leading to the General Election, the government spends a lot of money, and there was also political business coming in, which will also reflect in Quarter 1, in the coming quarter also. So, in fact, government business has gone down, and political business has gone down. If you look at the business, which has done well traditionally in Quarter 4, the BFI segments do not spend a lot, and that's where the 16% growth has come on BFSI sector and the real estate sector has done well for us.

Ronak Shah: Okay, Sir, my next question is regarding the new prices, which you have reflected on July 1st. So as in the last call you have highlighted that around 27% of our subscribers are having the new rates. So, what is the status right now and are you witnessing any drop in the overall customer base because of the price hikes?

Yatish Mehrishi: So, Ronak, what we meant 27% was the profitable base, it was not Rs.599, the profitable base was 27% which now as of March 31[st] stands at about 35%. We will see the first turn because we increase the price on 1st August, we will see the impact only on 1st August. But we have not seen our growth rate go down. So, we are very confident that we will be able to deliver that number considering the way our product is and very, very good recommendation engine, the UIs are good, the catalogs are good. Remember, we are the first guys who have been curating music for the country for the last 20 years, correct. So, our Music Play Editors have also done an excellent job of that. So, we are very confident that our growth will sustain for the coming years also. And there is lot of headroom available in the market for paid market share. As I also mentioned earlier, there are 200 million free music subscribers and only, as per EY report, only 15 million pay for the music listing service. So, there's massive headroom available, massive growth opportunity available there, it's required to be patient and keep delivering value to the consumer. So, as we keep delivering value to the consumer, we believe this growth will be sustainable and our objective of making Gaana profitable in the 5 to 6 Quarters is on track. Our losses have also gone down quarter-on-quarters.

Moderator: Thank you. The next question is from the line of Kavesh Parekh from B&K Securities.

Kavesh Parekh: Could you help me with the absolute number of paid subscribers on Gaana and how has this number moved over the past few quarters?

Yatish Mehrishi:

Thank you Kavesh, as I said our numbers have grown almost 28% from the beginning of the year, which is very healthy growth if you look at EY growth, we have outperformed the subscriber growth in the market. And we don't reveal the numbers over a period, still if you require anything on our individual calls, we can have a larger discussion on it. But having said that, it's a very healthy paid market share which we have right now.

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Kavesh Parekh:

And secondly, music labels have maintained the view that all audio details will move behind the pay wall. Spotify and JioSaavn offer free services. You have, of course, been very clear about transitioning to the paid mode of consumption, leading to profitable growth. What are your thoughts on these two platforms moving to paid and if it were to happen, what gives the industry the confidence that subscribers will pay rather than moving their consumption to a free platform like YouTube?

Yatish Mehrishi:

See, it's a very good question if that happens, we will see a hockey stick growth in the subscriber markets. I will just take you back, I am assuming you will be about 35 years, if you just go back to your younger days. People used to buy CDs, people used to buy cassettes, even for pirated music, people would go to a next-door shop and pay Rs.100 to get their own playlist. So, it's not that people have not paid for music earlier days. People have always paid. If you look at you bought a CD of Kabhi Khushi Kabhi Gham for about Rs.300 or Rs.500 also. And today you are getting almost Rs.700, or Rs.600 for our cost a full library, global library at a click of a button, at a convenience different playlist. So, I don't it's about value, because it has been available for free, people have not been valuing it. As services stop that will be a hockey stick growth for the industry, and that's where music labels also believe in. The future lies in subscription and not doesn't lie in the freemium. You have seen the advertising headwinds across the media are being there. So, there is no way a medium can sustain only on advertising. The subscriber growth will play it, we saw in video OTT in the COVID times, the way the growth happened, and we believe that similar numbers will happen here, also. Now coming to competition, Spotify started putting lot of restrictions on free product, even if you look at YouTube also, when you watch anything on YouTube, there is so much of ads now coming on YouTube that they are also looking at paying more focus on subscription. In fact, YouTube music, if you are not a paid subscriber, will not play music in the background. So that itself is a nudge to grow some subscribers. Even Saavn is looking at that, so it's a very healthy thing there is, as I said, if everybody goes paid, the headroom is because 200 million people does subscribe music free. So, there is no way people may not subscribe to this and, as I said, the last EY report says about only 15 million pay. So, the amount of growth opportunity which is available for all the players is massive. So, I am very, very confident, very optimistic it's great business, a great time to be in. We have developed a great product. It’s the only Bharat product, Gaana means songs. It's very, very close to the Indian consumers. The search optimization is massive. So, we are very confident that this product and platform for us will deliver a lot of great revenues and profitability for us in the coming years.

Kavesh Parekh:

Thanks a lot for that, for your thoughts. Just one last thing from my side, could you share some engagement matrix, or maybe the time spent on the platform on Gaana by a few free users versus a paid user?

Yatish Mehrishi:

So, we don't have a free user Kavesh, so there is no comparison and that's the reason those numbers will not make sense, because if you compare them with a Spotify, which is a freemium model, the numbers will always look different. So, it will be difficult to share, at the engagement what we track is how the engagement is growing as the subscriber numbers are growing. Our engagement metrics is also growing, and it's been just 4 Quarters if you look at Kavesh, we have

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not been handling Gaana for years. It's been just 4 Quarter, or a full one year if you look at it, the way we are looking at the business and we are very, very happy with the way engagement has gone up. And the way we count is the listening data, now both numbers are very, very healthy.

Moderator: Thank you. The next question comes from the line of Harshad Gadekar from Elara Securities.

Harshad Gadekar: So, would it be possible to share any color on the growth outlook for FCT and non-FCT segment, and what would be the key priorities for us in FY’26? Yatish Mehrishi: Thank you Harshad. See the way we look at this Quarter 1, we thought it started well, but because of the border tensions, it took a beating on both on ad media and everything, because it was not a great time for any Company to look at it. Now, since it's behind our back, the ceasefire has happened, it's good. The way we look at it is, the ad environment business will remain a little muted. There will be growth because of a base effect in the second half. It might because it still continues to look muted, hoping with the more macroeconomic conditions, even though if you look at the US tariff paused, settling down, rains going to be great, we believe that will drive some growth on the pure advertising sales. Having said that, we are very bullish in our non-FCT Solution business and the event business. Event business in Quarter 4 has grown almost 80% for us, and we believe this year also, it will lead the growth even our Solution business has done reasonably well, and we believe that growth will come from the non-FCT segments, and we are double downing on that, and we are very confident that this year also the Event, Concert business will do really well for us. Moderator: Thank you. The next question is from the line of Meghna, an Individual Investor. Meghna: I just wanted to clarify one thing you said, Gaana revenue is Rs.46.2 this is for Quarter 4, right? Yatish Mehrishi: No, full year. Meghna: Okay, and for Quarter 4, how much is it? Yatish Mehrishi: Rs.17 crores. Only Gaana is about, just one second. Meghna: I think digital is around Rs.18 crores, so Gaana. Yatish Mehrishi: Yes, so digital is Rs.18 crores, and Gaana will be about Rs.14.6 crores. Meghna: And last year in the same quarter, it was around Rs.9.5 crores, as I gather. Yatish Mehrishi: Yes. Meghna: Okay. And for the full year FY’24 how much was it?

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	Entertainment Network (India) Limited
	May 17, 2025
Yatish Mehrishi:	Fully year last year as I said, it may not be comparable, because we took Gaana only on 1st
	December. So, the full year number for four months was about Rs.12.78 crores against that this
	year it is Rs.46.22 crores.
Meghna:	And my next question was, the volume declined by 4% this is for the quarter, right?
Yatish Mehrishi:	Yes, both quarter because if you look at last year Quarter 4, there was massive government and
	political spends, which has led to the de-growth. So, whenever a new government comes, the
	government spending is always lower. And impacts, if you look at past general elections trend
	also, the government business goes down. But last year there was massive government and
	political spending that resulted in the volume de-growth.
Megna:	Okay. And for the full year, how is the volume fairing?
Yatish Mehrishi:	Same thing, it's almost the same actually Quarter 4 led to the larger number drop also.
Moderator:Thank you very much. Ladies and gentlemen, as there are no further questions from the participants, I now hand
	the conference over to the management for closing comments.
Yatish Mehrishi:	Thank you very much, it’s a pleasure to have you all, and thank you much for joining on a
	Saturday. As we have been always saying, we are committed to delivering profitable growth for
	our stakeholders, and we remain committed. We are very excited about our business on Gaana
	and overall event business. Thank you very much again. Thank you.
Moderator:Thank you. On behalf of Entertainment Network (India) Limited, that concludes this conference. Thank you for
	joining us and you may now disconnect your lines.

(This document has been edited for readability purpose)

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