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Entertainment Network (India) Ltd Interim / Quarterly Report 2020

Jun 22, 2020

60835_rns_2020-06-22_dffa25f8-af3d-414c-9b5f-6033abed20a3.pdf

Interim / Quarterly Report

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INVESTOR UPDATE

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PERFORMANCE REVIEW: Q4 FY20 June 22, 2020

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Presentation Path
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 Financial Review

 Business Review

 Strategic Direction

 Investors Contact

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Financial Review

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Standalone

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%age of %age of
₹ In Millions Q4 FY20 Total Income Q4 FY19 Total Income [Growth (%)]
Income from Operations 1,472.1 98.5% 1,731.8 98.7% (15.0%)
Other Operating Income 22.1 1.5% 22.8 1.3% (2.9%)
Total Income 1,494.2 100.0% 1,754.6 100.0% (14.8%)
Operating Expenditure 1,269.3 84.9% 1,317.1 75.1% (3.6%)
EBITDA 224.9 15.1% 437.5 24.9% (48.6%)
Depreciation 123.0 8.2% 52.6 3.0% 133.6%
Amortisation 131.6 8.8% 127.3 7.3% 3.4%
EBIT (29.6) (2.0%) 257.6 14.7% (111.5%)
Other Income 35.9 2.4% 47.0 2.7% (23.6%)
Finance Cost 44.3 3.0% 4.4 0.3% 908.6%
Profit Before Tax (PBT) (38.0) (2.5%) 300.2 17.1% (112.7%)
Taxation (16.5) (1.1%) 102.2 5.8% (116.1%)
Profit After Tax (PAT) (21.5) (1.4%) 198.0 11.3% (110.9%)
Other Comprehensive Income (net) 1.9 0.1% (0.5) (0.0%) (505.1%)
Total Comprehensive Income (19.6) (1.3%) 197.5 11.3% (109.9%)
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(All comparisons with corresponding period of previous year)

  • FCT revenue de-grew by 16.1% [Adverse Impact of Covid 7.4%]

  • Non-FCT

  • Revenues de-grew by 13.1% [Adverse Impact of Covid 11.3%]

  • Gross Margins register strong growth: 30.8% (Q4 FY19 : 27.9%)

  • EBITDA margin: 15.5% (Q4 FY19 : 19.6%) [Adverse Impact of Covid 3.9%]

  • Revenue of Migrated stations (35) declined by 15.1% during the quarter

  • Batch 1 revenues during the quarter: Rs.158.2 million ( 28.7%)

  • EBITDA: Rs. 2.3 million (Q4FY19 profit: Rs. 75.4 million)

  • Revenues from Batch 2 stations: Rs 54.7 million ( 142.3%)

  • EBITDA: Rs.14.5 million (Q4FY19 : Loss Rs. 11.7 million)

  • Adverse Impact of Covid on EBITDA Rs 137.4 million (Includes additional PDD of Rs. 46.5 million)

  • Impact of IND AS 116 : EBITDA Rs. 89.1 Million and PAT Rs.16.8 Million

  • Net Cash as on Mar 31, 2020 : Rs 2.3 Billion

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Standalone

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%age of %age of
₹ In Millions FY20 Total Income FY19 Total Income [Growth (%)]
Income from Operations 5,306.0 98.2% 6,134.5 98.9% (13.5%)
Other Operating Income 100.0 1.8% 70.4 1.1% 42.0%
Total Income 5,405.9 100.0% 6,204.8 100.0% (12.9%)
Operating Expenditure 4,170.9 77.2% 4,806.7 77.5% (13.2%)
EBITDA 1,235.1 22.8% 1,398.1 22.5% (11.7%)
Depreciation 461.8 8.5% 168.1 2.7% 174.8%
Amortisation 528.9 9.8% 503.0 8.1% 5.1%
EBIT 244.4 4.5% 727.1 11.7% (66.4%)
Other Income 127.6 2.4% 149.3 2.4% (14.5%)
Finance Cost 183.9 3.4% 39.8 0.6% 362.1%
Profit Before Tax (PBT) 188.1 3.5% 836.6 13.5% (77.5%)
Taxation 42.5 0.8% 297.4 4.8% (85.7%)
Profit After Tax (PAT) 145.6 2.7% 539.2 8.7% (73.0%)
Other Comprehensive Income (net) (0.7) (0.0%) (2.0) (0.0%) (66.7%)
Total Comprehensive Income 144.9 2.7% 537.2 8.7% (73.0%)
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(All comparisons with corresponding period of previous year)

  • FCT revenue de-grew by 13.4% [Adverse Impact of Covid 1.8%]

  • Non-FCT revenues grew by 2.6%* [Adverse Impact of Covid 4.7%]

  • Non FCT Margins * register strong growth:

    • Gross : 36.4% (FY19 : 32.1%);

    • EBITDA : 18.0% (FY19 : 16.3%) [Adverse impact of Covid 1.4%]

  • Revenue of Migrated stations (35) declined by 13.1% during the year

  • Batch 1 revenues during the year: Rs.710.6 million ( 25.8%)

  • EBITDA : Rs. 74.2 million (Q4FY19: Rs. 121.9 million)

  • Revenues from Batch 2 stations: Rs 179.8 million ( 274.2%)

  • EBITDA: Rs 22.7 million (Q4FY19 : Loss Rs. 45.9 million)

  • Impact of IND AS 116 : EBITDA Rs. 349.0 Million and PAT Rs.68.9 Million

  • Effective Tax Rate for FY20 : 26.7% (FY19 : 35.5% )

  • Excluding concerts featuring International Artists in FY19

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Summarized Balance Sheet
Standalone
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Rs. In Million As on As on As on As on
FY20 %age to
Total
FY19 %age to
Total
Shareholders' Funds
Capital
Reserves and Surplus
Net Worth
Deferred Tax Liability (net)
Financial liabilities
476.7
8,705.7
9,182.4
219.6
2,155.9
4.1%
75.3%
79.4%
1.9%
18.7%
476.7
8,845.6
9,322.3
346.1
38.4
4.9%
91.1%
96.0%
3.6%
0.4%
Total 11,557.9 100.0% 9,706.8 100.0%
Fixed Assets (Net)
Tangible & Intangibles
Right of Use assets
Capital Work in progress
Sub-total
Equity in ABSL & EN INC
Investment Properties
Other Long Term Assets (Net)
Net Short Term Assets
Cash & Cash Equivalents
6,536.6
1,790.5
8.5
8,335.6
141.7
23.1
327.4
454.2
2,275.9
56.6%
15.5%
0.1%
72.2%
1.2%
0.2%
2.8%
4.0%
19.7%
6,907.0
-
219.5
7,126.5
105.9
20.8
227.3
660.2
1,566.1
71.2%
0.0%
2.3%
73.5%
1.1%
0.2%
2.3%
6.8%
16.1%
Total 11,557.9 100.0% 9,706.8 100.0%

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Consolidated

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%age of %age of
₹ In Millions Q4 FY20 Total Income Q4 FY19 Total Income [Growth (%)]
Income from Operations 1,496.3 98.5% 1,734.9 98.7% (13.8%)
Other Operating Income 22.1 1.5% 22.8 1.3% (2.8%)
Total Income 1,518.4 100.0% 1,757.7 100.0% (13.6%)
Operating Expenditure 1,288.5 84.9% 1,326.7 75.5% (2.9%)
EBITDA 229.9 15.1% 431.0 24.5% (46.7%)
Depreciation 137.1 9.0% 44.3 2.5% 209.6%
Amortisation 131.6 8.7% 135.7 7.7% (3.0%)
EBIT (38.8) (2.6%) 251.0 14.3% (115.5%)
Other Income 37.5 2.5% 49.1 2.8% (23.5%)
Finance Cost 47.0 3.1% 4.4 0.3% 970.0%
Profit Before Tax (PBT) (48.3) (3.2%) 295.7 16.8% (116.3%)
Taxation (16.0) (1.1%) 101.8 5.8% (115.7%)
Profit After Tax (PAT) (32.3) (2.1%) 193.9 11.0% (116.7%)
Other Comprehensive Income (net) 3.4 0.2% (1.4) (0.1%) (338.5%)
Total Comprehensive Income (28.9) (1.9%) 192.4 10.9% (115.0%)
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Consolidated

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Business Review

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Key Operating Highlights
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  • Mirchi continues to be the No.1 Radio brand as per IRS Q4 2019

  • Mirchi launched its first App in USA on both IOS and Android;

Downloads crossed 36K with 29K followers

  • Mirchi Play has 24 online stations operating on Gaana platform

  • Released 5 Original Content shows on Mx Player [Always Khush (Hindi); Aani Kay Hava - 2 (Marathi); Tandoori Idli (Tamil); Asalem Jarigindante (Telugu); Mrs. and Mr. Kohli

(Punjabi)]

  • Mirchi has the largest social media footprint amongst private FM players

  • Management of employee well-being during Covid pandemic :

  • Implemented WFH from 16[th] Mar’20 with comprehensive guidelines. Robust IT setup helped smooth & uninterrupted work even during the lockdown

  • Unlock 1.0 : of offices with limited workforce as Govt norms & Re-opening per

  • guidelines

  • PAN India offices operating at 10 to 50% workforce

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Strategy : Three Pivots
All content
Strategy :Three pivots….
Programming
Solutions
Revenue All
platforms
Radio
Platform
FCT
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FM
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Mirchi Rules IRS Q4 2019 once again!!
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  • Mirchi No 1 in 25 markets

  • IRS covers 46 Mirchi markets

  • Mirchi weekly listenership 33.2mn and for the network 40mn

  • No 1 in 6 of the 8 top markets

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Mirchi continues to lead strongly in Delhi and Mumbai
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MIRCHI DIGITAL

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ONLINE RADIO
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Mirchi now streams 24 online radio stations .

  • 4 new stations added in the year

  • 2 web-first radio stations

  • • 2 city online radio stations

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Mirchi Radio Tuner for Whatsapp
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Just install the tuner and enjoy radio live on your phone

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Presence on YouTube
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Mirchi now has three YouTube channels with more than 1Mn Subscribers

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India’s Biggest Independent Bollywood channel

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India’s Biggest Prankster channel

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Digital stars Meet
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Mirchi Movie Nights
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Times Women’s Drive
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Max Family Run Created awareness for Mirchi Delhi Punjabi (online station)

Mirchi Digital Stars Meet Period – 21[st] Jan 2020 Achievements – Cross promotion with Major TikTokers, garnered 1.8 mn views

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MULTI MEDIA SOLUTIONS

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Me for My City
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Railway station in 7 cities were beautified with wall paintings to enhance the overall experience.

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Perfetti – Center Fruit - Promotion
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Awareness of the new communication of Center FruitMood Ting Tong. Digital Contests were organized where the RJ’s took up the Mood Ting Tong challenge

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Impact Properties

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SBI Green Marathon
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Mirchi Get Active Expo – Tata Mumbai Marathon
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Mirchi Get Active Expo for Tata Mumbai Marathon attended by 45,000+ runners

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Mirchi Neon Run
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Mirchi Neon Run – Bangalore, Indore, Kochi, Surat

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Mirchi Swachh Walk - Nagpur
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  • A concept of 3 Km Walk with entertainment like Pre and post run Zumba Session.

  • Around 700 participated and were gratified with T-shirts, Jute bags and “Swachh Warriors” Certificates.

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Mirchi Uttarayan Safety Week
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A week long activity to provide safety neck belts to provide protection against Manjha threads during Uttarayan.

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Mirchi Young Masterminds 2020
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Quiz Competition of Pan Punjab School level students, covered 125+ schools each physically for promotions & participations & on-ground 70 schools participated with 1000+ school students gathering, hosted by National Quiz Master- Barry O'Brien

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Mirchi LOL – Vipul Goyal
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Mirchi hosted stand-up comedy night with comedian Vipul Goyal at Vega City mall in Bengaluru

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Mirchi Live with Hari Prasad Chaurasia
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• Mirchi Live concert with Pandit Hari prasad Chaurasia at The Forum Prestige Shanti Niketan Mall, Bangalore.

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Mirchi Live with Javed Ali
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This musical event was organized in Pune and had famous names like Javed Ali, Sachet & Parampara

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Mirchi Dhol Festival - Delhi
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• The first edition featured Jass Manak & Sunanda Sharma at Pacific Mall, Rajouri Garden which saw a turnout of 2000+ Punjabi music lovers.

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Max Field with Mirchi Live - Mumbai
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Mirchi Music Awards (Hindi) – 12th Edition
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Smule Mirchi Music Awards 2020 was telecasted on 22nd March on Zee TV

Total reach Nos: 3.35 crs* ~20% more than Filmfare TY TVR of 1.06. Growth of 34% over LY ratings

A night graced by the biggest stars of Bollywood & Indian Music industry

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Mirchi Music Awards (South) – 10 [th] edition
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Mirchi Top 20 (Season 7)
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India’s most authentic music countdown, where celebrities come to perform top 20 songs of the year.

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Mirchi Cover Star (Season 2)
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PAN India cover hunt for all the HSM markets. Top 100 participants went through the voting phase on the website, of which 5 got to perform in front of the jury

On-ground jury meet for selecting the winner from the Top 5, who will take the center stage at MMA

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Spell Bee (Season 12)
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More than 1000 schools and more than 3 lakh students participated . in this spelling competition

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Mirchi Programming and Marketing Activities

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Road Safety – World Series Partner
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Kolkata Shubho Bhoot Bibaho
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First digital campaign of Kolkata - a digital series that captured prewedding shoot to final reception of “Ghost Wedding”. The series of 20 videos garnered 9.72Mn views on Facebook.

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Kolkata PREM.COM – Valentine’s Day Campaign
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Mirchi Kolkata is now a music studio, producing Bengali originals

Digital Promotion – produced 5 music videos in collaboration with “TheBongStudio”

Satellite Broadcast – leading Bengali Music channel “Sangeet Bangla” broadcasted these 5 songs

Calbunka 2020 (Digital Partner) – live acoustic performances by our RJs Somak, Lajvanti & Ayantika

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Share It With Swapnil -Season 2
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– Share it with Swapnil featuring Marathi superstar Swapnil Joshi was bigger and better in its 2nd season. The show with its theme of confessions struck a chord with listeners and celebrities alike

1400+ registrations

46 Celebrity Guests

2.5 Million+ YouTube views

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Kerala : Hot Beyond Radio
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March: Launched new celeb chat show Namuk Choychu Choychu Pokam (popular dialogue from a Mal movie) . The series is a professionally produced video interview planned fortnightly The first episode (in 2 parts) featured actress Ahana Krishna and was hosted by the night jock Varsha. It received 200K+ views on YT

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Jan- Mar Oct- Dec
‘20 ‘19
Views 1.9MN 433.3K
Watch time
158 15
(hours)
New
14.1K 2.2K
subscribers
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Mirchi Social Initiatives

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StayHomewithMirchi
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Women’s Day #Free Period
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  • Not so long ago, TV ads for sanitary pads would refer to periods as “un dino mein” (those days), not even mentioning the word Period.

  • Mirchi RJs shared their thoughts on Periods and challenged their counterparts to share their views under the #Free Period, and we were delighted to see more people joining us on social media! We received 250+ posts and stories under the hashtag Free Period.

  • We at Mirchi Gujarat made conscious effort at normalizing discussions around this biological process called Periods/Menstruation a week preceding Women's Day.

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Mumbai - Aman Ka Rang Safed
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  • In the wake of the unrest over the issue of CAB and NRC the campaign was targeted at encouraging people to celebrate peace

  • We asked listeners to post pictures of their Holi celebrations with the colour white in it and use #AmanKaRangSafed

  • This became Mirchi’s national campaign for Holi

FB Views: 30K total + 350 Reactions

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Instagram: 5200 views & 100+ shares

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MP Ne Chalayi Mirchi Ki Paathshaala
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Amidst the lockdown we collaborated with UNICEF at Raipur and came out with a Radio Schooling Program

We took language, science & innovation, mathematics, value based as the core of our learning content and ran the content on air

This Program was put on-air Monday to Friday between 5 to 6 in & pm Raipur, Durg Raigarh. This was covered all program by Media nationally

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Bhopal Ne Sabko Dho Daala
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  • Bhopal jock Sukriti started a handwash challenge as part of Corona awareness and the CM Shivraj Singh Chouhan took the challenge on his Intragram account with 1M followers and Twitter with 6.2M followers

  • He also spoke on air about his plans to fight Corona in MP

  • Bhopal jock Kullu was nominated as a cowarrior by the government to share official updates

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MIRCHI USA

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PROGRAMMING SHOWS
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On Air activities like ‘Ghar Baithe Concert’ and ‘Calling Karan’ were aired in the USA.

‘Ghar Baithe Concert’ featured appearance of top notch Bollywood singers like Atif Aslam and Neha & Tony Kakkar.

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‘Calling Karan’ is the biggest show on Radio. In this show, Karan gave relationship advice and was a huge hit in India and in the USA as well.

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Radio Mirchi SUPER HERO
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An initiative by Radio Mirchi USA by forming Mirchi SUPER HERO, to help distribute food, water, clothing, medical and sanitation supplies to the hospitals, delivering Groceries to the senior citizens & supporting vulnerable people who are helpless during this global pandemic

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5

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Smartphone APP and listenership growth
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Radio Mirchi launched it’s first basic App in USA available on both IOS and Android..

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New York stream live overview

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29,000 Indian followers from New York Metropolitan area Total APP downloads - 36,000

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INVESTOR CONTACT
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Entertainment Network is committed to improving its performance every fiscal and continuously enhance shareholder value through successful implementation of its growth plans. The Company’s investor relations mission is to maintain an ongoing awareness of its performance among shareholders and financial community. This update covers the company’s financial performance for Q4FY20

We thank you for your support and welcome your feedback and comments regarding this update and other investor issues

For further information please contact: N. Subramanian, ED & Group CFO, ENIL Mb: +91 98927 65555; Email: [email protected]

Kailash Yevale, Adfactors PR Tel: +91 (22) 67574444 ; Email: [email protected]

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Disclaimer
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Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in our business segments, change in governmental policies, political instability, legal restrictions on raising capital, and unauthorized use of our intellectual property and general economic conditions affecting our industry. ENIL may, from time to time, make additional written and oral forward looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.

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THANK YOU

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