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Radio Mirchi back in the black under tight cost control
MUMBAI: Radio Mirchi, Entertainment Network India Ltd's radio business, is back in the black as it curtailed its expenses in a “still recovering” advertising market.

The second-quarter net profit stood at Rs 38.17 million despite a 9.15 per cent fall in revenue. For the earlier-year period, Radio Mirchi had a net loss of Rs 32.78 million.

An aggressive cost management kept total expenses down by 19.39 per cent to Rs 509.36 million for the quarter under review.

ENIL's standalone revenue for the quarter ended 30 September stood at Rs 559.30 million, down from Rs 615.64 million a year ago. Total expenses, however, fell by 19.39 per cent to Rs 509.36 million in the quarter under review.

Operating margin also improved drastically from 13.8 per cent in the second quarter of the previous fiscal to 25.9 per cent during the current quarter.

Says ENIL CEO Prashant Panday, “In spite of declining revenues, we are happy to report a much improved EBITDA and PAT margins."

Panday, however, expects revenues to pick up from the third quarter as the market recovers and ENIL enjoys a higher listenership share.

"While revenues are down from last year, our market share has risen to 42 per cent, largely on account of better listenership performance. From this point on, we expect an upturn in revenues, which should give us substantially better margins,” Panday says.

On a consolidated basis, ENIL has posted a net loss of Rs 138.29 million for the quarter, as against a loss of Rs 181.12 million a year ago.

Revenue stood at Rs 984.42 million, compared to Rs 1.10 billion in the second quarter of FY'09.

ENIL's consolidated results combine the financial performances of the OOH business under Times Innovative Media and the experimental marketing unit under Alternate Brand Solutions.

For Times OOH, the company has posted a revenue of Rs 366 million, recording a sequential growth of 18.2 per cent.

Says Times OOH MD Sunder Hemrajani, “The OOH Media market continues to be on the path to recovery. The efforts of the company are beginning to yield positive results. Both airport and street furniture format participated in the revival process. The cost productivity initiatives to improve profitability are on track. The full impact of these initiatives should be visible in the ensuing quarters.”

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