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PERFORMANCE REVIEW:Q1 FY07

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INDEX
The Company
Business Performance
Highlights
Financial Highlights
Growth Drivers
Future Strategy and Outlook
Investor Communication
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Entertainment Network (India) Limited (ENIL) is India's first pure play radio
broadcasting company to go public and is listed on the BSE and NSE.
Incorporated in June, 1999, ENIL currently operates FM radio broadcasting
stations in ten cities under the brand Radio Mirchi. ENIL is the largest private
FM Radio operator in the country in terms of number of operational stations
and revenue. The company has its headquarters in Mumbai, India and is the
only commercial FM broadcaster present in all 4 Metros
ENIL has a 100% owned subsidiary, Times Innovative Media Private Limited
("TIMPL") through which it operates its out-of-home media division (brand
Times OOH Media) and experiential marketing division (brand 360
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Experience)
The financial results discussed in this update are not Consolidated
THE COMPANY
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On a like basis, compared with Q1 FY06 (excluding 3
new stations):
Revenues increased by 47.3%
EBITDA increased by 55.0%
EBITDA margin stood at 30.5%
BUSINESS PERFORMANCE - Q1 FY07
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13.1 NET PROFIT
59.7 EBITDA
354.9 TOTAL INCOME
In Rs. million
Revenues have increased by 69.2%
EBITDA margin stood at 16.8%
BUSINESS PERFORMANCE - Q1 FY07
As reported, (including 3 new stations):
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HIGHLIGHTS - ENIL
In April 2006, ENIL launched 3 new FM stations under Phase II policy
in Bangalore, Hyderabad and Jaipur expanding its network to 10 cities
Research findings of IMRB, commissioned by us, indicate Radio
Mirchi is the No. 1 radio station in terms of listenership in Bangalore,
Hyderabad and Jaipur
ENIL demonstrated its ability to spot emerging trends earlier than
others by being the first in India (New Delhi) and fourth country in the
world to launch Visual Radio
Got the permission for 98.3 FM across the Network
Already made transition to 98.3 in Bangalore, Hyderabad and
Jaipur effective August 1, 2006
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HIGHLIGHTS TIMPL (100% Subsidiary)
Times OOH Media won the advertising rights for Patel Bridge,
considered a unique outdoor advertising infrastructure in Mumbai
and the Delhi-Noida toll bridge
The Experiential Marketing business- 360 Degrees has been
selected as the nodal agency for Habitat for Humanity - a Jimmy
Carter Project , which is aimed at establishing low cost housing for
the underprivileged across the world
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FINANCIAL HIGHLIGHTS
Companys operating margin for existing 7 stations has grown
compared to Q1 FY06
Reported margins are under pressure due to operating loss in
Bangalore, Hyderabad and Jaipur, launched on April 17 &19, 2006
In the initial period of operations, the revenues are not in
proportion to the operating cost incurred for these Radio stations
(including launch expenses)
For 3 new stations the company had paid an OTEF of Rs. 454
million in FY06
Amortization of One Time Entry Fee (OTEF) stood at Rs. 9.3
million in the quarter
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Widely recognized brand
Presence in key markets
Radio Mirchi today reaches more people than the #1 TV/Print
media Brands in Delhi and Mumbai
Innovative Content
Strong relationships with Hindi and other film fraternities
Success in Diverse Markets
Experience in running stations in almost all Indian languages
Customized content in 10 distinct markets
Superior Sales Capabilities
Offering unique and innovative solutions
e.g. Hutch Pink Campaign, Mirchi Activation
GROWTH DRIVERS: RADIO MIRCHI
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Largely Fragmented Industry
Scope of high growth for organized
players
Ability to Offer Integrated Marketing
Solutions
Diversified Product Mix in 3 Cities
Won advertising rights of premium
OOH Properties
Focus on Innovation and Technology
Investment in LED Screens
Customized solution provider
Capacity to Handle Scale
GROWTH DRIVERS: TIMES OOH MEDIA
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Key strengths
Managing large format events
National presence (8 branches)
Experienced team of professionals
Large bouquet of in-house events
Geared for aggressive growth
Increasing coverage of new clients
and new markets
Consistently delivering innovative
concepts
Cost Efficient
GROWTH DRIVERS: 360
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EXPERIENCE
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FUTURE STRATEGY AND OUTLOOK - ENIL
Expand our footprint in radio broadcasting
Rapid roll-out of 22 new stations
Explore opportunities in international markets
Maintain market leadership in fast growing radio industry
Development of listenership research standards and spread
across the country
Continuously invest in brand building and programming innovation
Launch Visual Radio through mobile phones in other cities
Leverage our footprint to capture additional income sources
Exploit additional revenue streams like Mirchi Activation
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FUTURE STRATEGY AND OUTLOOK - TIMPL
Focus on Out-of-Home media growth
Expansion of the network of out-of-home media sites managed by
us
Explore opportunities to lease sites on a long-term basis
Introduce innovative technology and processes
Establish long-term client relationships for Experiential Marketing
Focus on wellness not illness approach
Establish ourselves as a provider of innovative solutions
Create own event properties at an appropriate time
Focus on Life style, Fashion shows and Exhibitions
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INVESTOR COMMUNICATION
Entertainment Network is committed to improving its performance every fiscal and
continuously enhance shareholder value through successful implementation of its growth
plans. The companys investor relations mission is to maintain an ongoing awareness of
its performance among shareholders and financial community. This update covers the
companys financial performance for Q1 FY07
We thank you for your support and welcome your feedback and comments regarding this
update and other investor issues
For further information please contact:
Saurav Banerjee, Sr. Vice President, Finance, ENIL
Tel: +91-22-67536983; Email: saurav.banerjee@timesgroup.com
Dalpat Jain, Business Analyst, ENIL
Tel # 022-67536919; E-mail: dalpatraj.jain@timesgroup.com
Arun Rajendran, Adfactors PR
Tel: +91 (22) 22813565; Email: arunr@adfactorspr.com
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Certain statements in this release concerning our future growth prospects are forward-looking
statements, which involve a number of risks, and uncertainties that could cause actual results to
differ materially from those in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties regarding fluctuations in
earnings, our ability to manage growth, intense competition in our business segments, change in
governmental policies, political instability, legal restrictions on raising capital, and unauthorized use of
our intellectual property and general economic conditions affecting our industry. ENIL may, from time
to time, make additional written and oral forward looking statements, including our reports to
shareholders. The Company does not undertake to update any forward-looking statement that may
be made from time to time by or on behalf of the company.
DISCLAIMER
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THANK YOU