01
indiantelevision.com Team
MUMBAI: Radio Mirchi, Entertainment Network India Ltd?s (ENIL) FM radio business, is eyeing a turnover jump of 10 per cent this fiscal amid a soft advertising climate while margins could come under pressure due to increase in marketing spends.
The airtime sales on the FM radio channel will show sluggish growth due to external factors but Radio Mirchi?s innovative ad solutions will trigger the growth.
Radio Mirchi will explore overseas opportunities by licensing its brand. It will, however, not get into equity deals or be involved in operations in international markets.
The company is sitting on a cash pile of Rs 2.2 billion but will invest in Phase 111 as it sees a bright growth opportunity then.
The pressure on margins due to a rise in marketing expenses will push the levels to around 30 per cent this fiscal.
For the fiscal ended 31 March 2012, Radio Mirchi brand, has posted a net profit (standalone) of Rs 565.09 million, up 8.24 per cent, compared to Rs 522.09 million a year ago.
Income from operations saw a 9.02 per cent jump to Rs 3 billion, as against Rs 2.76 billion a year ago. Expenses stood at Rs 2.33 billion, from Rs 2.23 billion.
Radio Mirchi?s profit (from operations before other income, finance cost and exceptional items) was at Rs 682.26 million, up from Rs 573.66 million a year ago.
Meanwhile, for the three-month period ended 31 March, the company has posted a net profit of Rs 196.17 million, up from a net profit of Rs 180.33 million it had posted in the corresponding quarter of the previous fiscal.
Income from operations was up 14.63 per cent to Rs 932.78 million in the quarter, from Rs 813.68 million.
Image
