Entertainment Network (India) Net Income jumped on 26.7% in 2015 and EBITDA Margin increased slightly on 0.84 pp from 32.4% to 33.3%
19-05-2015 • About Entertainment Network (India) (
$ENIL) • By InTwits
Entertainment Network (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Entertainment Network (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 10.7%.
- CAPEX is quite volatile: 40.7 in FY2015, 30.3 in FY2014, 14.4 in FY2013, 27.3 in FY2012, 286 in FY2011
- The company has highly profitable business model: ROIC is at 17.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Entertainment Network (India) ($ENIL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,635 | 3,110 | 3,396 | 3,845 | 4,385 | 14.0% |
| EBITDA | 1,016 | 998 | 1,044 | 1,247 | 1,459 | 17.0% |
| Net Income | 172 | 561 | 683 | 836 | 1,060 | 26.7% |
Balance Sheet
|
|---|
| Cash | 80 | 376 | 53 | 138 | 143 | 3.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 286 | 27 | 14 | 30 | 41 | 34.3% |
Ratios
|
|---|
| Revenue growth | -12.4% | -32.9% | 9.2% | 13.2% | 14.0% | |
| EBITDA growth | 122.3% | -1.8% | 4.6% | 19.4% | 17.0% | |
| EBITDA Margin | 21.9% | 32.1% | 30.8% | 32.4% | 33.3% | 0.8% |
| Net Income Margin | 3.7% | 18.0% | 20.1% | 21.7% | 24.2% | 2.4% |
| CAPEX, % of revenue | 6.2% | 0.9% | 0.4% | 0.8% | 0.9% | 0.1% |
| ROIC | 13.4% | 15.2% | 14.8% | 16.7% | 17.9% | 1.2% |
| ROE | 4.6% | 13.7% | 14.5% | 15.4% | 16.9% | 1.4% |
| Net Debt/EBITDA | -0.1x | -0.4x | -0.1x | -0.1x | -0.1x | 0.0x |
Revenue and profitability
The company's Revenue jumped on 14.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 14.7 pp from 67.6% to 82.4% in FY2015.
Net Income marign increased on 2.4 pp from 21.7% to 24.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Entertainment Network (India)'s CAPEX/Revenue was 0.93% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 0.71%.
Return on investment
The company operates at good ROIC (17.91%) and ROE (16.89%). ROIC increased slightly on 1.2 pp from 16.7% to 17.9% in FY2015. ROE increased slightly on 1.4 pp from 15.4% to 16.9% in FY2015.
Leverage (Debt)
The company has no debt. Cash increased on 3.5% in FY2015.
Valuation
Entertainment Network (India)'s trades at EV/EBITDA 22.9x and P/E 31.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 23.5x with the industry average at 4.7x.
Appendix 1: Peers in Broadcasting & Cable TV
Below you can find Entertainment Network (India) benchmarking vs. other companies in Broadcasting & Cable TV industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Balaji Telefilms ($BALAJITELE) | -53.5% | -2.3% | -1.0% | 119.1% | |
| Siti Cable Network ($SITICABLE) | -71.5% | 12.0% | 37.0% | 41.6% | |
| Hinduja Ventures ($HINDUJAVEN) | | 25.6% | 31.8% | 29.6% | 81.8% |
| Den Networks ($DEN) | | 10.0% | -21.7% | 24.8% | 1.2% |
| B.A.G.Films & Media ($BAGFILMS) | -49.9% | 55.3% | 0.5% | 22.9% | |
| |
|---|
| Median (9 companies) | -54.0% | 12.0% | 10.7% | 22.9% | 17.8% |
|---|
| Entertainment Network (India) ($ENIL) | | -32.9% | 9.2% | 13.2% | 14.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Entertainment Enterprises ($ZEEL) | 27.3% | 24.4% | 25.9% | 27.6% | |
| Dish Tv India ($DISHTV) | 17.8% | 25.5% | 27.3% | 26.4% | |
| Den Networks ($DEN) | 13.2% | 7.3% | 22.5% | 24.8% | 7.3% |
| Siti Cable Network ($SITICABLE) | 3.7% | 1.6% | 17.5% | 19.9% | |
| Hinduja Ventures ($HINDUJAVEN) | 22.5% | 27.7% | 21.0% | 18.2% | 54.7% |
| |
|---|
| Median (9 companies) | 13.2% | 7.3% | 17.5% | 18.2% | 11.0% |
|---|
| Entertainment Network (India) ($ENIL) | 21.9% | 32.1% | 30.8% | 32.4% | 33.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Siti Cable Network ($SITICABLE) | 10.2% | 10.6% | 80.9% | 73.0% | |
| Den Networks ($DEN) | 8.4% | 12.6% | 60.4% | 53.2% | 28.5% |
| Zee Media Corporation ($ZEEMEDIA) | 3.8% | 3.4% | 5.9% | 31.6% | |
| Hinduja Ventures ($HINDUJAVEN) | 8.8% | 11.6% | 65.8% | 14.2% | 7.1% |
| Dish Tv India ($DISHTV) | 70.0% | 33.5% | 32.2% | 11.9% | |
| |
|---|
| Median (8 companies) | 8.4% | 10.6% | 19.0% | 13.1% | 7.1% |
|---|
| Entertainment Network (India) ($ENIL) | 6.2% | 0.9% | 0.4% | 0.8% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Entertainment Enterprises ($ZEEL) | 21.6% | 21.1% | 24.2% | 25.5% | |
| Raj Television Network ($RAJTV) | -9.1% | 10.1% | 10.3% | 11.5% | |
| Dish Tv India ($DISHTV) | -14.4% | -2.5% | -4.6% | 8.7% | |
| Den Networks ($DEN) | 9.2% | 2.7% | 8.1% | 5.6% | -4.0% |
| Zee Media Corporation ($ZEEMEDIA) | 11.9% | 18.8% | 11.9% | 5.2% | |
| |
|---|
| Median (12 companies) | -1.3% | 0.7% | 3.3% | 4.6% | 5.3% |
|---|
| Entertainment Network (India) ($ENIL) | 13.4% | 15.2% | 14.8% | 16.7% | 17.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 0.8x | 0.7x | 5.9x | 5.6x | 1.1x |
| Siti Cable Network ($SITICABLE) | 23.2x | 56.0x | 9.5x | 5.6x | |
| Zee Media Corporation ($ZEEMEDIA) | -0.6x | 0.2x | 0.3x | 3.0x | |
| Dish Tv India ($DISHTV) | 2.1x | 2.1x | 2.6x | 2.0x | |
| Den Networks ($DEN) | -0.8x | -0.5x | 2.4x | 1.7x | 6.0x |
| |
|---|
| Median (9 companies) | 0.8x | 0.2x | 2.4x | 1.7x | 1.3x |
|---|
| Entertainment Network (India) ($ENIL) | -0.1x | -0.4x | -0.1x | -0.1x | -0.1x |
