Radio Mirchi operator, Entertainment Network India Ltd., expects its advertisement revenue to improve in the next financial year, as it comes out of the shadow of economic reforms such as demonetization and the Goods and Services Tax.
The company had increased its advertisement pricing by 8 percent during the first half of the current financial year and reduced the duration by 18 minutes in the peak season, Managing Director and Chief Executive Officer Prashant Panday said.
The company should improve its ad revenue in the next financial year, Panday said, with the negative impact of GST, demonetization and Real Estate (Regulation and Development) Act now behind it.
Besides, the company has launched two new radio stations in Jammu & Kashmir and Kozhikode in Kerala, Panday said.
The company will acquire TV Today’s frequencies in three metro stations—Mumbai, Delhi and Kolkata—by March 2019.
ENIL’s advertisement revenue that remained muted in October due to an early festive season, subdued Gujarat election advertisement expenditure and GST impact will see a revival in November and December on a low base of November 2016, and the just-launched Karan Johar Show, brokerage firm Motilal Oswal said in a report.
The new stations, which contribute 11 percent of revenue, should break even by the next quarter, with capacity utilization rising from 23 percent to about 30 percent.
Motilal Oswal Research Report
The brokerage also expects revenue and operating income to grow at a compounded rate of 15 percent and 19 percent, respectively by March 2020. – Bloomberg Quint