Entertainment Network (India) Limited

Prashant Panday

MD & CEO, ENTERTAINMENT NETWORK INDIA LIMITED

Sanjay Ballabh Entertainment Network India Limited.

HEAD

Rs.95 crore

As you may have seen from the Investor Presentation, our overall Standalone Company revenues were Rs.95 crore compared to Rs.39 crore last year approximate numbers, which shows a growth over of 145% over las

Rs.39 crore

m the Investor Presentation, our overall Standalone Company revenues were Rs.95 crore compared to Rs.39 crore last year approximate numbers, which shows a growth over of 145% over last year. However, compare

rs,

l Standalone Company revenues were Rs.95 crore compared to Rs.39 crore last year approximate numbers, which shows a growth over of 145% over last year. However, compared to the pre-pandemic quarter of

145%

e Rs.95 crore compared to Rs.39 crore last year approximate numbers, which shows a growth over of 145% over last year. However, compared to the pre-pandemic quarter of FY20, the recovery is only 2% st

2%

145% over last year. However, compared to the pre-pandemic quarter of FY20, the recovery is only 2% still in Solutions, which means that we still have a 28% deficit in FCT, which we need to bridge

28%

mic quarter of FY20, the recovery is only 2% still in Solutions, which means that we still have a 28% deficit in FCT, which we need to bridge in the coming quarters. Breaking the business result do

63 crore

ess result down into our two major components of Radio and Solutions: The Radio business there is 63 crores, which represents a growth of 171% over last year, a very strong growth as you will notice. But

171%

nents of Radio and Solutions: The Radio business there is 63 crores, which represents a growth of 171% over last year, a very strong growth as you will notice. But compared to the pre-pandemic quarter

67%

growth as you will notice. But compared to the pre-pandemic quarter of FY20, the recovery is only 67%, which means that Radio has a longer way to go compared to the Solutions business. However, a sma

73%

a once in a five-year phenomenon. And if I take that out, then the recovery on the Radio side is 73%. So, it’s still approximately the same 27%, 28% gap that we see in our results, still that we nee

27%

take that out, then the recovery on the Radio side is 73%. So, it’s still approximately the same 27%, 28% gap that we see in our results, still that we need to bridge to just go back to the pre-pand

32 crore

go back to the pre-pandemic levels. Talking about our Solutions business: We did approximately 32 crores in revenues, which represents about 108% to last year. Again, anything above 100% would be consi

“Again, anything above 100% would be considered to be a strong growth, because even though we knew that we were recovering from a COVID impacted quarter last year, many times it is very uncertain that how strong there will be even a growth of 60% or 70%, would it be considered to be a strong growth.”

“So, ask me how I see this going forward, I believe that the pricing will start to recover, because the season is going to come.”

“However, the pricing recovery will be slow and gradual.”

“We expect this expense to continue in the coming quarters at least for this financial year.”

“In other words what I’m saying is that even if our revenues fail to catch up with the pre-pandemic numbers in this financial year, because the costs are so down our EBITDA movement will be far more faster in hitting the pre-pandemic numbers.”

“So, firstly wanted to understand, so are we on track to achieve 150 crore kind of revenue run rate for Q3 for this year as compared to pre-COVID level?”

“I will not talk specific numbers, we normally don’t give guidance, as you know for the future.”

“But in the digital business as you know, what actually drives downloads, and usership is performance marketing that we have completely, we have not started that at all, nor do we intend to push very heavily on it.”

“We have also said that the 67%, we see it reducing to 50%, which does not mean that Radio is going to degrow, it only means that Radio we expect will grow slower than the other products, and therefore the contribution from Radio will reduce a 50%.”

“Now in the Solutions portfolio, we believe that the digital businesses will grow faster, what is about 10%, 11% today should become 25% in a couple of years’ time and what is again because it will grow very rapidly.”

Prashant Panday

16

Chetan Thacker

7

Moderator

6

Sanjay Ballabh

4

Deepan Narayan

3

Sameer

3

Talking about our Solutions business

1

Coming to the pricing and the capacity utilization

1

Prashant Panday

Thank you very much Aman, and welcome to this call dear Investors and Analysts. As always, let me just begin by giving a small update on the quarter and then we will open the lines up for questions from your end. Before I give you the details, I would just like to preface it by mentioning that this has been an exceptionally good quarter for ENIL and for the Radio industry in general. I will show you three or four points in my talk now, which will explain why I’m calling it an excellent quarter for the ENIL. And, it has of course been a good quarter, Radio as the sector has recovered partially from the COVID impact of the last two years. In fact, this was the first quarter after two full years that we’ve not had any lock downs. And we can say that this is a first quarter of recovery in genuine terms. So, with that, let me just go on to share some important numbers: As you may have seen from the Investor Presentation, our overall Standalone Company revenues were Rs.95 crore compared to R

Talking about our Solutions business

We did approximately 32 crores in revenues, which represents about 108% to last year. Again, anything above 100% would be considered to be a strong growth, because even though we knew that we were recovering from a COVID impacted quarter last year, many times it is very uncertain that how strong there will be even a growth of 60% or 70%, would it be considered to be a strong growth. But something above 100% means that it has been a really strong, exceptionally strong growth that the Company has seen in this quadrant. Now, in our Solutions business, if you remember in the pre-pandemic year in FY20, we also used to sell TV Today’s three Radio stations in Delhi, Mumbai and Kolkata and if I were to remove that out and remove the other operating income, if I were to do a like to like comparison, then the really good news is that the Solutions business is actually 102% compared to the pre- pandemic quarter, which means that we have actually gone ahead of the pre-pandemic number, the Solution

Coming to the pricing and the capacity utilization

There’s been a pretty solid reset in the balance between these two important variables. If you look at the results of this quarter, and compare it with the pre-pandemic quarter, the pricing is down 44% compared to the FY20 quarter, and the volume is 119% which means that the volume recovery is still happening, but the price impact has already happened. And that is the reason why we are still less than our pre-pandemic numbers. So, ask me how I see this going forward, I believe that the pricing will start to recover, because the season is going to come. Most broadcasters are running full on volumes, there is a solid amount of demand that we are seeing in the market. So, we’re getting more and more calls for Radio advertising and therefore we believe that the pricing will start to recover starting from mid-August, which is festival season, anytime we will start seeing the pricing to recover. But will it recover all the way up, I think it will not recover all the way up. I’ve said this in