Entertainment Network India (ENIL) is likely to report weak December quarter results. Net profit of the media company which owns Radio Mirchi may fall 8.5 percent to Rs 30 crore in Q3FY16 from Rs 32.8 crore in corresponding quarter last fiscal, according to a CNBC-TV18 poll. During the period, topline is likely to grow 15.7 percent at Rs 135.3 crore compared to Rs 117 crore (year-on-year).
In Q3, EBITDA is seen up 12.9 percent at Rs 50.5 crore versus Rs 44.7 crore while margins may come in at 37.3 percent versus 38.2 percent on annual basis. Analysts polled by CNBC-TV18 say decline in EBITDA margins may be due to higher marketing expenditure, license fees on account of phase III digitisation and one-time cost for Mirchi Top 20 event. Higher depreciation and tax expense may also hurt net profit. Ad revenue growth is seen between 14-16 percent while ad inventory utilisation will be keenly watched as the company has started monetising late night shows. Revenue from Phase III stations is likely to be visible in FY17.
In Phase III auctions, the company forked out Rs 339.2 crore and Rs 370 crore towards migration. An additional burden of interest costs due to these payments.
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