ICICI Direct research report on Entertainment Network ENIL continues to be a leader and key beneficiary of expanding reach and revenue potential in the radio industry. Post the phase III auction, the company, with second frequencies in nine out of Top 13 cities, which contribute ~70% of radio industry revenues, is expected to increase its dominance. We maintain our HOLD recommendation with a target price of | 734 (32x FY17E EPS) as we await clarity on the revenue potential from new stations. We highlight that MIB’s approval in favour of the company would be an upside risk to our call. ENIL reported 11.4% YoY revenue growth to | 116.3 crore, largely in line with our estimate of | 118 crore. Ad revenue growth came in at 11%, higher than our estimate of 10.5% growth EBITDA came in at | 35.7 crore vs. expectations of | 36.6 crore with margins at 30.7%, a tad lower than our expectations of 31% PAT came in at | 27 crore (vs. expectation of | 26.1 crore), boosted by higher other income of | 12.2 crore vs. our estimate of | 9 croreFor all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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