Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Entertainment Network (India) Ltd (BOM:532700, Financial) recorded a domestic revenue of 110 crores, marking a healthy 9.4% year-on-year growth.
- The digital segment posted impressive year-on-year growth of nearly 300%, contributing significantly to the overall revenue.
- Profit before tax rose to 11.2 crores, up from 8.5 crores in the same quarter last year.
- The company maintained its leadership position in the radio industry with a stable market share of 24%.
- Ghana's annual subscription price increase from 299 to 599 did not deter growth, with digital revenue reaching 15.4 crores, representing 21.4% of radio revenues.
Negative Points
- The radio industry faced a mild slowdown due to volume challenges, impacting FCP revenues.
- Volume growth declined by 2.9% due to an industry-wide slowdown affecting various sectors.
- Inventory utilization decreased to 74% from 77% last year, indicating underutilization.
- Pricing remains stable but is still lower than pre-COVID levels, affecting overall profitability.
- The company anticipates potential challenges in Q4 due to heavy government spending leading to elections, which could impact growth.
Q & A Highlights
Q: What is the reason for the volume decline in the radio business, and has there been any loss in market share?
A: The volume decline is due to an industry-wide slowdown affecting sectors like FMCG and auto. However, we have maintained our market share at 24%, indicating no loss in market share. (Answered by CEO)
Q: Can you provide insights into the growth of the event activation business?
A: Despite challenges like erratic floods, the event activation business has performed well. The multimedia solutions segment has seen a decline due to reduced advertising growth, but overall, the business has grown strongly at 59%. (Answered by CEO)
Q: How has the festive season impacted the radio business, and what are the expectations for the upcoming quarters?
A: The festive season has been positive, and with a strong wedding season expected, we anticipate growth in the radio business. However, we remain cautious about potential reductions in government spending, which could impact growth. (Answered by CEO)
Q: What is the current status of Ghana's subscription growth and revenue performance?
A: Ghana has seen a quarter-on-quarter growth in subscriptions, even after a price increase from INR 299 to INR 599. We are pleased with the performance and expect stronger growth in the coming quarters. (Answered by CEO)
Q: What is the expected timeline for Ghana to break even, and what factors will contribute to this?
A: We anticipate breaking even in about six quarters. This will be driven by improvements in technology, content acquisition, and the transition of all subscribers to the new pricing model. (Answered by CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
