Earnings call transcript
ENIL · price
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Entertainment Network (India) Limited reported FY26 consolidated revenues of INR565 crores (+3.9% YoY), with EBITDA excluding digital at INR76 crores (18% margin) and PAT at INR22 crores after a one-time INR17.2 crore deferred tax reversal. Radio segment faced headwinds due to macroeconomic and geopolitical uncertainty, holding a 25.2% volume market share. Non-FCT (events/experiential) segment revenue of INR148 crores was impacted in Q4 by event cancellations. Digital emerged as a key growth driver with INR112.4 crores revenue (+84% YoY), now contributing 48% of radio revenues. The company's Gaana music streaming platform is on track for breakeven in FY27 with 15% subscriber CAGR, pricing increased from INR499 to INR799 annually, and royalty costs remain at 60-70% of digital revenue as a variable cost. An income tax notice of INR113 crores for FY24 is being contested. Cash balance remains strong at INR424 crores (consolidated). The Board recommended a dividend of INR2 per share.
The digital transformation is gaining momentum with Gaana approaching breakeven, offering a potential margin recovery story, but traditional radio and events segments face ongoing macro headwinds that may continue to pressure near-term consolidated profitability.