ITV

Tag: Radio Mirchi

  • Radio Mirchi to hawk Oye FM 104.8 ads

    Radio Mirchi to hawk Oye FM 104.8 ads

    BENGALURU: Entertainment Network India Limited (ENIL) has informed the bourses that it has entered into an Advertising Sales Agreement (ASA) with TV Today Network Limited (TVTN) on 24 August 2016, in relation to TVTN’s 3 (three) private FM radio stations at New Delhi, Mumbai and Kolkata. Pursuant to the ASA, TVTN has agreed to appoint ENIL as an agent of TVTN with effect from September 1, 2016 to facilitate the sale of TVTN’s airtime to third-parties who wish to advertise using TVTN’s airtime. ENIL operates stations under the brand Radio Mirchi.

    Early last year, TVTN had offered to sell seven radio stations that it ran under the brand Oye FM 104.8. The company had entered into a non-binding memorandum of understanding with ENIL to sell all its seven radio stations to it subject to approvals and conditions. TVTN received approval from the Ministry of Information and Broadcasting (I&B Ministry) in July last year for sale of four of its radio stations at Jodhpur, Amritsar, Patiala and Shimla to ENIL and a binding agreement was signed between the two in September to that effect. The I&B Ministry had earlier declined its approval on the grounds that the proposed sale by TV Today Network and proposed purchase by ENIL is not in conformity with the FM radio guidelines.

  • Radio Mirchi to hawk Oye FM 104.8 ads

    Radio Mirchi to hawk Oye FM 104.8 ads

    BENGALURU: Entertainment Network India Limited (ENIL) has informed the bourses that it has entered into an Advertising Sales Agreement (ASA) with TV Today Network Limited (TVTN) on 24 August 2016, in relation to TVTN’s 3 (three) private FM radio stations at New Delhi, Mumbai and Kolkata. Pursuant to the ASA, TVTN has agreed to appoint ENIL as an agent of TVTN with effect from September 1, 2016 to facilitate the sale of TVTN’s airtime to third-parties who wish to advertise using TVTN’s airtime. ENIL operates stations under the brand Radio Mirchi.

    Early last year, TVTN had offered to sell seven radio stations that it ran under the brand Oye FM 104.8. The company had entered into a non-binding memorandum of understanding with ENIL to sell all its seven radio stations to it subject to approvals and conditions. TVTN received approval from the Ministry of Information and Broadcasting (I&B Ministry) in July last year for sale of four of its radio stations at Jodhpur, Amritsar, Patiala and Shimla to ENIL and a binding agreement was signed between the two in September to that effect. The I&B Ministry had earlier declined its approval on the grounds that the proposed sale by TV Today Network and proposed purchase by ENIL is not in conformity with the FM radio guidelines.

  • FY-16: Radio Mirchi revenue up 16 percent, crosses Rs 500 crore

    FY-16: Radio Mirchi revenue up 16 percent, crosses Rs 500 crore

    BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL), which runs the Radio Mirchi radio network in India,  reported 16 percent increase in Total Income from Operations (TIO) for the year ended 31 March 2015 (FY-16, current year). Annual revenue crossed Rs 500 crore for the first time in FY-16. The company reported consolidated revenue of Rs 508.61 crore for the current year as compared to Rs 434.48 crore in the previous fiscal.

    Note: (1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
    (2) The numbers in this report are consolidated unless stated otherwise. Consolidated quarterly numbers for the quarter ended 31 March 2016 (Q4-16) have been arrived at by deducting the company’s reported consolidated numbers for the nine month period ended 31 December 2015 (9M-16) from its reported consolidated numbers for FY-16.

    The company’s consolidated profit after tax (PAT) in FY-16 declined sightly by 5.7 percent to Rs 99.99 crore (19.7 percent PAT margin) as compared to Rs 105.98 crore (24.2 percent PAT margin). ENIL’s board of directors has recommended a dividend of Re.1 per equity share of face value of Rs 10 each.

    Commenting on the results, ENIL CEO Prashant Panday said, “Rs 500 crores is an important milestone in any media company’s life and I am happy we’ve crossed that! We’re now working on launching our 2nd channel in every major city in the country, as well as entering new markets like Chandigarh, Kochi and Guwahati for the first time with brand Mirchi. We look forward to a very exciting next 5-years.”

    Consolidated TIO for the quarter ended 31 March 2016 (Q4-16, current quarter) increased 18.3 percent year-over-year (y-o-y) to Rs 147.20 crore from Rs 124.43 crore and increased 2.5 percent quarter-over-quarter (q-o-q) from Rs 143.56 crore in Q3-16.

    Consolidated PAT in Q4-16 declined 21 percent y-o-y to Rs 20.15 crore (13.7 percent PAT margin) as compared to Rs 25.49 crore (20.5 percent PAT margin) and declined 25.3 percent q-o-q from Rs 26.99 crore (18.8 percent PAT margin).

    Let us look at the other numbers reported by Radio Mirchi

    ENIL’s consolidated Earnings before Interest, Depreciation, Taxes and Amortisation (EBIDTA) for FY-16 increased 9.7 percent to Rs 159.35 crore (31.3 percent EBIDTA margin) from Rs 145.25 crore (33.1 percent EBIDTA margin). EBIDTA in Q4-16 at Rs 38.53 crore (26.2 percent EBIDTA margin) increased 11.6 percent y-o-y from Rs 34.53 crore (27.7 percent EBIDTA margin), but declined 22.5 percent q-o-q from Rs 49.74 crore (34.6 percent EBIDTA margin).

    ENIL total expense (TE) in FY-16 increased 18.2 percent to Rs 385.54 crore (75.8 percent of TIO) from Rs 326.10 crore (74.4 percent of TIO) in FY-15.  TE in Q4-2016 at Rs 117.57 crore (79.9 percent of TIO) increased 19.8 percent y-o-y as compared to Rs 102.74 crore (71.6 percent of TIO) and increased 14.4 percent q-o-q from Rs 102.74 crore (71.6 percent of TIO).

    ENIL paid 20.2 per cent higher license fee in FY-16 at Rs 26.19 crore (5.1 percent of TIO) as compared to Rs 21.79 crore (5 percent of TIO) in FY-15. License fee in Q4-2016 increased 5.7 percent y-o-y to Rs 6.37 crore (4.3 percent of TIO) as compared to Rs 6.03 crore (4.8 percent of TIO), but declined 7.2 percent q-o-q from Rs 6.87 crore (4.8 percent of TIO) in Q3-16. 

    The company’s marketing expense in FY-16 increased 31.7 percent to Rs 99.74 crore (19.6 percent of TIO) from Rs 75.76 crore (17.3 percent of TIO) in FY-15. Marketing expense in Q4-2016 at Rs 41.21 crore (28 percent of TIO) increased 30.5 percent y-o-y from Rs 31.57 crore (25.4 percent of TIO) and increased 29.7 percent q-o-q from Rs 31.78 crore (22.1 percent of TIO).

    The company’s programming and royalty expenses in the current year increased 16.8 percent to Rs 17.86 crore (3.5 percent of TIO) from Rs 15.28 crore (3.5 percent of TIO) in FY-15. Programming and royalty expenses in the current quarter increased 20.3 percent y-o-y to Rs 5.09 crore (3.5 percent of TIO)  from Rs 4.23 crore (3.4 percent of TIO) 6.8 percent q-o-q from Rs 4.77 crore (3.3 percent of TIO) in Q3-16.

    Employee Benefit Expense (EBE) in FY-16 increased 13 percent to Rs 93.53 crore (18.4 percent of TIO) from Rs 82.76 crore (18.9 percent of TIO) in the previous year. EBE in Q4-16 at Rs 25.06 crore (17 percent of TIO) increased 19.4 percent y-o-y from Rs 20.98 crore (16.9 percent of TIO) and increased 1.4 percent q-o-q from Rs 24.70 crore (17.2 percent of TIO).

    Other expenses in FY-16 increased 14.6 percent to Rs 111.95 crore (22 percent of TIO) from Rs 97.64 crore (22.3 percent of TIO) in FY-15. Other expenses in Q4-16 at Rs 30.94 crore (21 percent of TIO) increased 14.2 percent y-o-y from Rs 27.08 (21.8 percent of TIO) and increased 20.3 percent q-o-q from Rs 25.72 crore (17.9 percent of TIO).

    ENIL won 17 stations in Phase 3 auctions and has launched Bengaluru, Guwahati and Kochi stations. Bengaluru is Radio Mirchi’s first launch in the second frequencies network.

    Radio Mirchi with Delhi International Airport (P) Limited (DIAL) has launched ‘Mirchi T3’ radio at Terminal 3 of Delhi Airport. With Mirchi T3, Radio Mirchi looks to cater to the niche group of premium listeners who frequent India’s premier airport.

     

  • FY-16: Radio Mirchi revenue up 16 percent, crosses Rs 500 crore

    FY-16: Radio Mirchi revenue up 16 percent, crosses Rs 500 crore

    BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL), which runs the Radio Mirchi radio network in India,  reported 16 percent increase in Total Income from Operations (TIO) for the year ended 31 March 2015 (FY-16, current year). Annual revenue crossed Rs 500 crore for the first time in FY-16. The company reported consolidated revenue of Rs 508.61 crore for the current year as compared to Rs 434.48 crore in the previous fiscal.

    Note: (1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
    (2) The numbers in this report are consolidated unless stated otherwise. Consolidated quarterly numbers for the quarter ended 31 March 2016 (Q4-16) have been arrived at by deducting the company’s reported consolidated numbers for the nine month period ended 31 December 2015 (9M-16) from its reported consolidated numbers for FY-16.

    The company’s consolidated profit after tax (PAT) in FY-16 declined sightly by 5.7 percent to Rs 99.99 crore (19.7 percent PAT margin) as compared to Rs 105.98 crore (24.2 percent PAT margin). ENIL’s board of directors has recommended a dividend of Re.1 per equity share of face value of Rs 10 each.

    Commenting on the results, ENIL CEO Prashant Panday said, “Rs 500 crores is an important milestone in any media company’s life and I am happy we’ve crossed that! We’re now working on launching our 2nd channel in every major city in the country, as well as entering new markets like Chandigarh, Kochi and Guwahati for the first time with brand Mirchi. We look forward to a very exciting next 5-years.”

    Consolidated TIO for the quarter ended 31 March 2016 (Q4-16, current quarter) increased 18.3 percent year-over-year (y-o-y) to Rs 147.20 crore from Rs 124.43 crore and increased 2.5 percent quarter-over-quarter (q-o-q) from Rs 143.56 crore in Q3-16.

    Consolidated PAT in Q4-16 declined 21 percent y-o-y to Rs 20.15 crore (13.7 percent PAT margin) as compared to Rs 25.49 crore (20.5 percent PAT margin) and declined 25.3 percent q-o-q from Rs 26.99 crore (18.8 percent PAT margin).

    Let us look at the other numbers reported by Radio Mirchi

    ENIL’s consolidated Earnings before Interest, Depreciation, Taxes and Amortisation (EBIDTA) for FY-16 increased 9.7 percent to Rs 159.35 crore (31.3 percent EBIDTA margin) from Rs 145.25 crore (33.1 percent EBIDTA margin). EBIDTA in Q4-16 at Rs 38.53 crore (26.2 percent EBIDTA margin) increased 11.6 percent y-o-y from Rs 34.53 crore (27.7 percent EBIDTA margin), but declined 22.5 percent q-o-q from Rs 49.74 crore (34.6 percent EBIDTA margin).

    ENIL total expense (TE) in FY-16 increased 18.2 percent to Rs 385.54 crore (75.8 percent of TIO) from Rs 326.10 crore (74.4 percent of TIO) in FY-15.  TE in Q4-2016 at Rs 117.57 crore (79.9 percent of TIO) increased 19.8 percent y-o-y as compared to Rs 102.74 crore (71.6 percent of TIO) and increased 14.4 percent q-o-q from Rs 102.74 crore (71.6 percent of TIO).

    ENIL paid 20.2 per cent higher license fee in FY-16 at Rs 26.19 crore (5.1 percent of TIO) as compared to Rs 21.79 crore (5 percent of TIO) in FY-15. License fee in Q4-2016 increased 5.7 percent y-o-y to Rs 6.37 crore (4.3 percent of TIO) as compared to Rs 6.03 crore (4.8 percent of TIO), but declined 7.2 percent q-o-q from Rs 6.87 crore (4.8 percent of TIO) in Q3-16. 

    The company’s marketing expense in FY-16 increased 31.7 percent to Rs 99.74 crore (19.6 percent of TIO) from Rs 75.76 crore (17.3 percent of TIO) in FY-15. Marketing expense in Q4-2016 at Rs 41.21 crore (28 percent of TIO) increased 30.5 percent y-o-y from Rs 31.57 crore (25.4 percent of TIO) and increased 29.7 percent q-o-q from Rs 31.78 crore (22.1 percent of TIO).

    The company’s programming and royalty expenses in the current year increased 16.8 percent to Rs 17.86 crore (3.5 percent of TIO) from Rs 15.28 crore (3.5 percent of TIO) in FY-15. Programming and royalty expenses in the current quarter increased 20.3 percent y-o-y to Rs 5.09 crore (3.5 percent of TIO)  from Rs 4.23 crore (3.4 percent of TIO) 6.8 percent q-o-q from Rs 4.77 crore (3.3 percent of TIO) in Q3-16.

    Employee Benefit Expense (EBE) in FY-16 increased 13 percent to Rs 93.53 crore (18.4 percent of TIO) from Rs 82.76 crore (18.9 percent of TIO) in the previous year. EBE in Q4-16 at Rs 25.06 crore (17 percent of TIO) increased 19.4 percent y-o-y from Rs 20.98 crore (16.9 percent of TIO) and increased 1.4 percent q-o-q from Rs 24.70 crore (17.2 percent of TIO).

    Other expenses in FY-16 increased 14.6 percent to Rs 111.95 crore (22 percent of TIO) from Rs 97.64 crore (22.3 percent of TIO) in FY-15. Other expenses in Q4-16 at Rs 30.94 crore (21 percent of TIO) increased 14.2 percent y-o-y from Rs 27.08 (21.8 percent of TIO) and increased 20.3 percent q-o-q from Rs 25.72 crore (17.9 percent of TIO).

    ENIL won 17 stations in Phase 3 auctions and has launched Bengaluru, Guwahati and Kochi stations. Bengaluru is Radio Mirchi’s first launch in the second frequencies network.

    Radio Mirchi with Delhi International Airport (P) Limited (DIAL) has launched ‘Mirchi T3’ radio at Terminal 3 of Delhi Airport. With Mirchi T3, Radio Mirchi looks to cater to the niche group of premium listeners who frequent India’s premier airport.

     

  • TRAI: 35 companies control 243 operational FM channels, seven control 169

    TRAI: 35 companies control 243 operational FM channels, seven control 169

    New Delhi: Reliance Broadcast Network Ltd holds the largest number of FM radio channels with 45 Big FM channels in various cities.

    Figures released by the Telecom Regulatory Authority of India as part of its consultation paper on ‘Issues related to Radio Audience Measurement and Ratings in India’ shows that seven companies hold the largest number of FM channels (169) of the 243 channels currently operational after Phase II.

    Entertainment Network India Ltd through Radio Mirchi holds 36; South Asia FM Ltd through S FM has 23; Kal Radio Pvt. Ltd with S FM has 18; Music Broadcast Pvt. Ltd has 20 Radio City channels; D B Corp Ltd has 17 My FM channels; and BAG Information P Ltd runs ten Radio Dhamaal channels.A total of 28 companies run the remaining 74 FM channels in various parts of the country.

    Radio broadcasting services were opened to private sector in 2000 when the Government auctioned 108 FM radio channels in the VHF band (88 –108 MHz) in 40 cities in Phase-I of FM Radio. Out of these, only 21 FM radio channels became operational and subsequently migrated to Phase-II in 2005. In Phase-II of FM Radio, a total of 337 channels were put on bid across 91 cities having population equal to or more than 300,000. Of 337 channels, 222 channels became operational. At present, 243 FM Radio channels are operational in 86 cities.

    Phase-III auctions have begun to enable setting up of private FM Radio channels in all cities with a population of more than 100,000. As part of this Phase, auctions were done for 135 FM Radio channels in 69 cities where at least one channel of FM radio is already operational. Out of these, 91 FM Radio channels in 54 cities have been successfully auctioned.

    A total of 831 more FM Radio channels will be put up for auction in 264 new cities under FM radio Phase-III in addition to remaining channels of 135 FM radio channels put for auction recently.

    Terrestrial radio broadcasting which includes FM is a free-to-air service. A consumer can simply procure radio receiver equipment and tune into various radio channels available in that region. The business model of radio broadcasting service is based on advertisement revenue. Radio broadcasters are permitted to air commercials during their programme.

    The revenue of radio broadcasting sector in 2014 was Rs 1720 crore, with a year-on year increase of 18 per cent from 2013 to 2014, driven by increasing popularity of radio in smaller towns and cities. The radio broadcasting sector revenues are expected to grow at a CAGR of 18 per cent to reach Rs. 3950 crore by 2019.

    The total advertisement revenue of Media and Entertainment (M&E) industry was Rs. 41,400 crore in 2014, contributing approximately 31 per cent to the total M&E revenues. The advertisement revenue is expected to grow at a CAGR of 14.5 per cent to reach Rs 81,600 crore by 2019. Presently television and print media sectors corner the maximum advertisement revenue (approximately 80 per cent of the total revenues) spend in India. Though the radio broadcasting sector presently accounted for only 4 per cent of total advertisement revenue in 20143, it is however expected to garner 5 per cent of the total advertisement revenues by 2019.

  • TRAI: 35 companies control 243 operational FM channels, seven control 169

    TRAI: 35 companies control 243 operational FM channels, seven control 169

    New Delhi: Reliance Broadcast Network Ltd holds the largest number of FM radio channels with 45 Big FM channels in various cities.

    Figures released by the Telecom Regulatory Authority of India as part of its consultation paper on ‘Issues related to Radio Audience Measurement and Ratings in India’ shows that seven companies hold the largest number of FM channels (169) of the 243 channels currently operational after Phase II.

    Entertainment Network India Ltd through Radio Mirchi holds 36; South Asia FM Ltd through S FM has 23; Kal Radio Pvt. Ltd with S FM has 18; Music Broadcast Pvt. Ltd has 20 Radio City channels; D B Corp Ltd has 17 My FM channels; and BAG Information P Ltd runs ten Radio Dhamaal channels.A total of 28 companies run the remaining 74 FM channels in various parts of the country.

    Radio broadcasting services were opened to private sector in 2000 when the Government auctioned 108 FM radio channels in the VHF band (88 –108 MHz) in 40 cities in Phase-I of FM Radio. Out of these, only 21 FM radio channels became operational and subsequently migrated to Phase-II in 2005. In Phase-II of FM Radio, a total of 337 channels were put on bid across 91 cities having population equal to or more than 300,000. Of 337 channels, 222 channels became operational. At present, 243 FM Radio channels are operational in 86 cities.

    Phase-III auctions have begun to enable setting up of private FM Radio channels in all cities with a population of more than 100,000. As part of this Phase, auctions were done for 135 FM Radio channels in 69 cities where at least one channel of FM radio is already operational. Out of these, 91 FM Radio channels in 54 cities have been successfully auctioned.

    A total of 831 more FM Radio channels will be put up for auction in 264 new cities under FM radio Phase-III in addition to remaining channels of 135 FM radio channels put for auction recently.

    Terrestrial radio broadcasting which includes FM is a free-to-air service. A consumer can simply procure radio receiver equipment and tune into various radio channels available in that region. The business model of radio broadcasting service is based on advertisement revenue. Radio broadcasters are permitted to air commercials during their programme.

    The revenue of radio broadcasting sector in 2014 was Rs 1720 crore, with a year-on year increase of 18 per cent from 2013 to 2014, driven by increasing popularity of radio in smaller towns and cities. The radio broadcasting sector revenues are expected to grow at a CAGR of 18 per cent to reach Rs. 3950 crore by 2019.

    The total advertisement revenue of Media and Entertainment (M&E) industry was Rs. 41,400 crore in 2014, contributing approximately 31 per cent to the total M&E revenues. The advertisement revenue is expected to grow at a CAGR of 14.5 per cent to reach Rs 81,600 crore by 2019. Presently television and print media sectors corner the maximum advertisement revenue (approximately 80 per cent of the total revenues) spend in India. Though the radio broadcasting sector presently accounted for only 4 per cent of total advertisement revenue in 20143, it is however expected to garner 5 per cent of the total advertisement revenues by 2019.

  • Q1-2016 TRAI report: Radio industry performance improves

    Q1-2016 TRAI report: Radio industry performance improves

    BENGALURU: The Telecom Regulatory Authority of India (TRAI) released combined advertisement (Ad) revenues of 239 private FM radio stations for the quarter ended 30 June, 2015 (Q1-2016) a few days ago. There were a total of 243 radio stations in the India as on that date. 

    Trends across 16 consecutive quarters (four fiscal years) 

    Please refer to Figures A and B below. The all India simple average revenue per radio station and the QoQ and YoY (year on year) change has been calculated using TRAI data – the overall ad revenue mentioned by TRAI divided by the number of radio stations, which have reported revenue numbers to TRAI.

    As has been the trend over the period mentioned above, Q1 of a year is generally the leanest quarter in terms of ad revenue as per TRAI data. The second quarter – Q2 has the next lowest average ad revenues per station. Over the last two consecutive years FY-2014 and FY-2015, the highest ad revenue per radio station per year has been reported for the third quarter (Q3), while in FY-2012 and FY-2013, the highest ad revenue was reported in Q4, so there is a tie for the first and the second highest quarters in terms ad revenue per station between Q3 and Q4.

    For the year ended 31 March, 2015 (FY-2015), this website had mentioned that the numbers reported by the radio industry for the year were the probably the best (Indiantelevision link, Radioandusic link) so far. Despite an 8.88 per cent QoQ (quarter on quarter) fall in average ad revenue per station in Q1-2016, the ad average revenue per station of Rs 1.65 crore is the best yet for the first quarter over a period of four years. In Q1-2015, YoY ad revenue grew 11.90 per cent. Hence historical trends indicate that FY-2016 could be an even better year in terms of average revenue per station and overall revenues.

    Note (1): (a)100,00,000 = 100 lakh = 10 million = 1 crore

    (b) The author has taken the liberty to introduce a measure – average revenue per radio station. This is a rough yardstick and may not necessarily be indicative of a station or a networks performance, because factors such as geography and market conditions within the area of operations are among many of the factors that will also determine performance.

    (c) This report is skewed more towards general financial numbers in terms of revenue and results, and not operational performance.

    The TRAI report for Q1-2016

    As per the TRAI report for Q1-2016, the total advertisement revenues reported by 239 radio stations was Rs 393.9 crore or Rs 1.65 crore per station. In the immediate trailing quarter of Q1-2016, that is, for Q4-2015 (quarter ended 31 March, 2015), the combined advertisement revenues reported by 241 radio stations was Rs 435.89 crore or Rs 1.81 crore per station, hence the above mentioned QoQ drop of 8.88 per cent (Rs 0.16 crore) in ad revenue per station. For Q1-2015 (quarter ended 30 June, 2014 or Q1-2015), 241 radio stations reported combined ad revenues of Rs 354.97 crore or Rs 1.47 crore per station, or the above mentioned YoY growth of ad revenue per station of 11.90 per cent or Rs 0.18 crore per station in Q1-2016.

    Please refer to Fig A. The slope of the simple linear trend line (the dotted black line with a red end in Fig A below) projects that the average ad revenue per station in Q2-2016 should be about Rs 1.78 crore, which would be significantly higher than the Rs 1.66 crore reported for Q2-2015. How much this figure is in line with the actual number depends upon the numbers reported by the radio companies and revealed by TRAI. But, if one were to go by the published Q2-2016 results of some of the players in this report, the combined revenues of these sample player has gone up in double digits Q2-2016 as compared to Q1-2016, and of course are higher than those reported for Q2-2015.

    Further, Figure B below indicates that QoQ fall in ad revenue per station in Q1-2016 was the second steepest fall during a 13 quarter period starting Q1-2013 (Q1-2013 as compared to Q4-2012) until Q1-2016. The steepest QoQ fall in ad revenue per station was in Q1-2013 at 9.95 percent during the same period. The highest YoY rise in ad revenue per station was in 21.31 percent in Q2-2014. Q4 is another quarter that has seen QoQ dips in ad revenue per station in FY-2014 and FY-2015. YoY, ad revenue per station has always increased between Q1-2012 and Q1-2016.

    Let us look at how a few radio networks performed:

    Note (2):  (a) This report considers PAT posted by two radio companies (ENIL – Radio Mirchi, 32 radio stations; Jagran Prakashan – Radio City – 20 radio stations), along with operating results of DB Corp (My FM, 17 stations); B. A.G.Films (Radio Dhamaal, 10 stations); HT Media (Fever FM, four stations); and TV Today (Oye! FM, six stations), or a total of six radio networks that represent 89, or 36.63 per cent of the 243 private FM radio stations in Q1-2016.

    (b) While Q3 for the current fiscal (Q3-2016) has already ended on 31 December,2015 and financial results will be declared by the players in a few weeks times, individual Q2-2016 (quarter ended 30 September, 2015) results have already been reported by them. The Q2-2016 numbers of individual players in this report have been obtained from their filings with regulatory bodies, the TRAI number for Q2-2016 has been extrapolated and could prove to be inaccurate.

    (c) Revenues for the sample stations mean Total Income from Operations and generally include ad revenue and other operating revenues.

    (d) Phase III and other radio stations acquisitions: ENIL has received permission from the Ministry of Information & Broadcasting (MIB) to acquire four stations from TV Today Network Limited (Oye! FM), viz., those at Amritsar, Patiala, Shimla and Jodhpur – which the company says have been/will be re-branded and re-launched shortly as Mirchi, adding to its North India network strength. With another seven stations acquired in phase III auctions, the core Mirchi brand will now be available in 43 cities. There are/will be a total of 39 FM radio stations that Jagran Prakashan Limited currently has. This includes the existing 20 radio stations plus 11 stations acquired in phase III auctions and eight radio stations under the brand Radio Mantra. Radio Mantra was earlier operated by Shri Puran Multimedia, Jagran’s promoter group. Besides, the group also runs a web radio network with 21 web radio streams under Planetradiocity.com. During the Phase III auctions, DB Corp (My FM) acquired 14 frequencies, through which MY FM will extend its presence to seven states and 30 cities with 31 stations. HT Media acquired 10 radio frequencies during phase III auctions, taking its total radio stations to 14. However these changes are not considered here, for this report pertains to the period before the new stations were acquired.

    Entertainment Network India Limited (ENIL) that operates brand Radio Mirchi is the only separately listed radio company in India and one of the most profitable ones by far. Other stations/radio brands of consequence, whose results are within the public domain have been considered in this report.

    Please refer to Figure C below. The curved black line with a red extrapolated end (curve D in Figure C below) indicates the all India average ad revenue per station as per TRAI data. Three radio networks had average revenue per station that has consistently been higher than the all India average. Revenue per station was the highest in the case of Fever FM (Curve A in the Figure C below) at Rs 6.13 crore in Q1-2016 and 7.34 crore in Q2-2016, followed by Radio Mirchi (Curve B in Fig C below) with Rs 3.17 crore in Q1-2016 and Rs 3.63 crore in Q2-2016. Radio City (Curve C in Fig C below) also reported average revenue per station of Rs 2.37 crore in Q1-2016 (43.64 per cent more than the all India average ad revenue per station of Rs 1.65 crore) and Rs 2.78 crore in Q2-2016.

    The other three – Dhamaal (Curve G in Fig C below), My FM (curve E in Fig C below) and Oye! FM (curve F in Fig C below) reported lower average revenue per station than the industry average ad revenue per station.

    In Q1-2016, the combined revenues of the six players fell 15.86 per cent (fell Rs 37.51 crore) QoQ to Rs 199.01 crore from Rs 236.51 crore, a drop that was significantly higher than the 8.88 per cent QoQ fall in the average ad revenue per station based on TRAI numbers. Also, YoY, the combined revenue reported by these stations increased by 7.15 per cent from Rs 185.73 crore, much lower than the 11.90 per cent YoY growth in ad revenue per station as per TRAI numbers. These combined QoQ numbers have been significantly pulled down by the 18.38 per cent QoQ drop (Rs 22.87 crore drop) in Radio Mirchi’s revenues in Q1-2016. Combined YoY increase has not been as sharp as compared to the industry average, because all the players reported lower revenue growth rates in Q1-2016 as compared to Q1-2015 than the growth rate of the all India average ad revenue per station.

    The lowest QoQ fall in percentage terms in Q1-2016 was by Fever, which saw revenues drop 5.03 per cent (drop of Rs 1.30 crore), while the highest drop was 36.85 per cent (drop of Rs 1.44 crore) in the case of Oye! FM.

    The highest YoY percentage growth in Q1-2016 among the six players in this report in revenues was by Radio City at 10.19 per cent (Rs 4.38 crore), while Oye! FM reported a YoY decline of 26.74 per cent (Rs 0.9 crore) in revenues in Q1-2016.

    For Q2-2016, the six networks reported 15.55 per cent QoQ growth in combined revenues to Rs 229.95 crore from Rs 199.01 crore. YoY, combined revenue of the six networks in percentage terms in Q2-2016 increased 10.27 per cent (increased by Rs 21.42 crore). Dhamaal saw the highest YoY revenue growth in Q2-2016 at 25.93 per cent (0.46 crore), while Mirchi saw the highest YoY growth in Q2-2016 in absolute rupees at Rs 12.13 crore (11.65 per cent). Oye! FM saw a YoY decline in revenues of 38 per cent (declined 1.60 crore) in Q2-2016.

    Fig D below indicates the operating results of four of the six networks considered in this report and Profit after tax (PAT) for the other two. While Mirchi has reported the highest profit after tax, far surpassing the operating results or EBIDTA reported by the other five, it is Fever FM that is likely to be the most profitable one, considering that during the period under consideration, it had only four radio stations in its network.

  • Q1-2016: ENIL revenue up 9.1%, PAT up 6.3%

    Q1-2016: ENIL revenue up 9.1%, PAT up 6.3%

    BENGALURU:  Indian private FM player Entertainment Network (India) Limited (ENIL) reported 9.1 per cent increase in Total Income from Operations (TIO) in the quarter ended 30 June, 2015 (Q1-2016) to Rs 101.56 crore as compared to the Rs 93.12 crore in Q1-2015, but declined 18.4 per cent as compared to the Rs 124.43 crore in Q4-2015.

     

    The company’s profit after tax (PAT) in the current quarter increased 6.3 per cent to Rs 25.88 crore (25.5 per cent of TIO) as compared to the Rs 24.35 crore (26.2 per cent margin) in Q1-2015 and was 1.5 per cent more than the Rs 25.49 crore (20.5 per cent margin) in Q4-2015. It may be recalled that the company had entered the Rs 100 crore PAT club in FY-2015 with a PAT of Rs 105.98 crore (24.2 per cent margin) on a TIO of Rs 483.48 crore

     

    Notes:  (1) 100,00,000 = 100 Lakhs = 10 million = 1 crore

    (2) The numbers in this report are consolidated unless stated otherwise.

     

    Let us look at some of the other numbers reported by ENIL

     

    The company’s EBIDTA in Q1-2016 at Rs 35.38 crore (34.8 per cent margin) was 1.8 per cent more than the Rs 34.74 crore (37.3 per cent margin) and was 2.5 per cent more than the Rs 34.53 crore (27.7 per cent margin) in Q4-2015.

     

    ENIL total expense (TE) in Q1-2016 at Rs 74.38 crore (73.2 per cent of TIO) in Q1-2016 was 11.7 per cent more than the Rs 66.58 crore (71.5 per cent of TIO) in Q1-2015, but was 24.2 per cent lower than the Rs 98.10 crore (78.8 per cent of TIO) in Q4-2015.

     

    ENIL paid 10 per cent higher license fee in Q1-2016 at Rs 5.11 crore (five per cent of TIO) as compared to the Rs 4.65 crore (five per cent of TIO) in Q1-201, but was 15.3 per cent lower than the Rs 6.03 crore (4.8 per cent of TIO) in the immediate trailing quarter. 

     

    The company’s marketing expense in Q1-2016 at Rs 11.29 crore (11.1 per cent of TIO) was 59.3 per cent more than the Rs 7.09 crore (7.6 per cent of TIO) in Q1-2015, but was a little more than a third (64.5 per cent lower) than the Rs 31.57 crore (25.4 per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense (EBE) in Q1-2016 at Rs 22.10 crore (21.8 per cent of TIO) was 8.3 per cent more than the Rs 20.41 crore (21.9 per cent of TIO) in the corresponding quarter of the previous year and was 5.3 per cent more than the Rs 20.98 crore (16.9 per cent of TIO) in Q4-2015.

     

    ENIL managing director and CEO Prashant Panday said, “It’s been a sombre quarter for radio companies, largely on account of the high base of election advertising last year. Overall advertising growth remains satisfactory, though below expectations, possibly because of the sluggish economy. The good news is that Phase-3 auctions have finally started. This will spur new growth in the years to come.”

  • Day 4: FM Phase III provisional winning price crosses Rs 550 crore mark

    Day 4: FM Phase III provisional winning price crosses Rs 550 crore mark

    NEW DELHI: The summation of provisional winning prices at the end of the fourth day of the FM Phase III surpassed Rs 550.18 crore, which is the total reserve price of 135 channels.

     

    The fourth day of the e-auction showed marked enthusiasm but there were still no bids in as many as 14 cities and the provisional winning price was lower than the Clock round Price in some cases.

     

    In all, 16 rounds of e-auction have been completed including four today (30 July) for the 135 FM channels in all the existing 69 cities of the first stage being opened.

     

    At the close of the fourth day of bidding, 80 channels in 55 cities became provisionally winning channels with cumulative provisional winning price of around Rs 643 crore against their aggregate reserve price of about Rs 391 crore.

     

    The auction began for the fourth day with Auction Activity Requirement set at 80 per cent.

     

    The demand over the price in many cities fell by up to three per cent below the aggregate demand.

     

    The Percentage Price Increment (in INR) applicable for the Next Clock Round was five per cent in the metros of Delhi, Mumbai and Chennai, and in Bhubaneswar, Bengaluru, Ahmedabad, Guwahati, Rourkela, Jodhpur, and Pune.

     

    The highest Provisional winning price – the same as the Clock round price at the start of the sixteenth round – was in Delhi – Rs 86.57 crore, followed by Mumbai – Rs 78 crore with both showing sizeable increase compared to the first three days. On the other hand, Hyderabad was at Rs 18 crore, Lucknow at Rs 14 crore, Cochin at Rs 10. 21 crore and Chandigarh at Rs 15.76 crore.

     

    Among cities recording more than Rs 10 crore, it rose sizeably in Bengaluru – Rs 44.90 crore; Pune – Rs 29.11 crore; Chennai – Rs 25.50 crore and Ahmedabad – Rs 24.95 crore.

  • Times Group’s ENIL not appealing after Red FM permitted to participate in auctions

    Times Group’s ENIL not appealing after Red FM permitted to participate in auctions

    MUMBAI: Times Group’s Entertainment Network India Limited (ENIL), which operates one of India’s most popular radio stations- Radio Mirchi, had earlier approached the Madras and Delhi High Courts in light of the conditional approval given to Sun TV Group’s radio network by the Madras HC. The hearing for the same was adjourned to 21 August. However, with the recent Red FM verdict, allowing the network to participate in the Phase III auctions, ENIL has decided that it will not appeal further.

     

    ENIL MD and CEO Prashant Panday said, “We are very happy with the final order the Delhi HC has given. It removes the conditional approval worry of ENIL. So, we are not appealing any further.”

     

    The e-auctions will take place in New Delhi on 27 July from 9:30 am onwards. The Delhi High Court, which had earlier permitted Digital Radio Broadcasting Ltd, which runs Red FM to take part in the mock e-auction, on 26 July, gave permission for the network to take part in the main e-auction for FM Phase III.

     

    ENIL had approached both, Madras and Delhi High Courts, due to the conditional approval given to Sun Group companies, namely Kal Radio, Sun TV and South Asia FM Ltd. In a previous interview, Panday stated that the conditional approval “puts the radio industry in a tizzy.”

     

    Panday had earlier said that ENIL was opposed to a conditional approval to Sun Group, and clarified that ENIL had no problem if Sun Group participated in the auctions.

     

    Explaining ENIL’s stand, Panday said, “Conditional would put the whole auction process in jeopardy. Since all cities progress simultaneously in this auction, removing any winning bidder later (if required) is impossible. If still done, it will harm the interests of other bidders whose strategies could have been different had they known this. That is why we did not want conditional approval for Sun. We were fine with any final decision. The conditional approval allowed Sun TV to participate, however, the result of which, will be kept in a sealed cover and produced before the Court. As you know, TOI Group has been against the revocation of their (Red FM) license.”