Ladies and gentlemen, good day and welcome to the Entertainment Network (India) Q2 FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Ms. Sneha. Thank you, and over to you, ma'am.
A warm welcome to all the participants to the Entertainment Network (India) Limited Q2 FY 2026 earnings call. The investor presentation and the financial results are available on the company website and on the stock exchanges. Please note that anything said on this call which reflects our outlook for the future or which can be construed as a forward-looking statement must be viewed in conjunction with the risk that the company faces. This conference call is being recorded and the transcript along with the audio of the same will be made available on the website of the company as well as on the exchanges. Please also note that the audio of the conference call is the copyright material of Entertainment Network (India) Limited, and it cannot be copied, rebroadcasted, or attributed in press or media without specific and written consent of the company.
To give you a brief business update and to take you through the results, from the management team, we have Mr. Yatish Mehrishi, Chief Executive Officer, and Mr. Sanjay Ballabh, Chief Financial Officer. I would now request Mr. Yatish to provide you with a brief update on this quarter. Over to you, sir.
Thank you, Sneha. Good afternoon, everyone. On behalf of ENIL, I extend a very warm welcome to all participants joining us for our Q2 FY 2026 earnings call. We announced our results on 4th of November , and I hope you have had a chance to go through them. I will take this opportunity to walk you through the key highlights of the quarter and provide some context around our performance. During the quarter, we recorded domestic revenues of INR 135.4 crores, reflecting a robust year-on-year growth of 23.7%. This strong performance was led by continued momentum in our non-FCT and digital business, which grew 42.2% and an impressive 149.5% respectively on a year-on-year basis. Our EBITDA, excluding digital, stood at INR 20 crores, translating into an EBITDA margin of 19.3%.
Our international business also performed well, delivering revenue of INR 5.9 crores, up 35% year-on-year. The company continues to maintain a robust balance sheet with a cash balance of INR 344.7 crores as on 30th September, 2025. Let me turn your attention to the segment performance. To start with the radio segment. The radio advertising segment continued facing headwinds during the quarter, mirroring the overall slowdown in the media industry.
Advertiser sentiments remain muted, with several brands opting to defer campaigns ahead of anticipated GST benefits and the geopolitical uncertainty, leading to a slowdown in the media ad sales business. Despite this, we relatively remain better positioned than our peers, maintaining a healthy 25% volume share in the radio market. Notably, our diversified portfolio once again showcased its strength with robust growth in digital events and solution business, more than offsetting the softness in the radio advertising business.
This highlights the success of our platform-agnostic strategy and reinforces the resilience of our business model in a rapidly evolving media landscape. We stay cautiously optimistic about the coming quarters and expect the radio business to deliver single digits in the coming quarters. Moving to our non-FCT segment, revenue stood at INR 34.5 crores, a robust growth of 42.2% year-on-year. Our events and IP business grew a handsome 101.1%, continuing with our stellar growth in the previous quarters. Now let me take you through the digital business. Our digital business continues its exceptional growth trajectory this quarter. Revenues stood at INR 31.5 crores, marking another strong performance. Digital now contributes nearly 33% of our existing traditional business, a substantial increase from 15.9% in the same quarter last year, reflecting a rapid scale-up of this vertical.
This impressive performance was driven by an expanding user base and higher engagement levels on the Gaana platform, where we constantly continue to strengthen its content offerings and enhance user experience. What is encouraging is that this growth has been achieved with greater operational efficiency. Our investment in digital business has reduced to INR 9.8 crores from INR 12.9 crores in quarter two FY 2025, demonstrating improved cost discipline and a clear focus on sustainable, profitable growth. Overall, our digital strategy is firmly on track. The combination of content innovation, audience engagement, and disciplined execution is helping us unlock new business opportunities and further reinforce our leadership in the digital audio and entertainment space. With that, I would like to hand over the call to the moderator for the Q&A session. Thank you.
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of [Disha Shah], who is an Individual Investor. Please go ahead.
Hello?
Yes, ma'am.
Hello, am I audible?
Yes, ma'am.
Good afternoon, sir, and congratulations on a good result. My first question would be, is the management targeting any specific revenue mix as far as radio, digital, and solutions are concerned?
Thank you, [Disha]. The way we look at it, the whole idea we have been telling in the previous quarters also, that we would want almost digital and non-digital, or radio and non-radio business to be at a 50/50 over a couple of years. That's what we look at our overall aim.
Okay. My next question would be, since digital media is improving and we could see the growth, are the management having any CapEx plan or investment plan for this platform?
Right now, the way we are in terms of Gaana, we don't have any CapEx requirement. From that point of view, on the digital side, we are covered on the CapEx front. We don't require anything immediate on our digital business as of now.
Okay, sir. That's it from my side, and thank you so much.
Thank you, [Disha].
Thank you. I repeat, you may press star and one to ask a question. The next question is from the line of [Hari Kumar], who is an Individual Investor. Please go ahead.
Good morning. One minute, sir. Good morning, ma'am. Am I audible? Am I audible, sir?
Yes.
Okay, sir. My question, sir, basically, one, regarding these production expenses, they have grown up stupendously. The second question, sir, this depreciation and amortization, when can we expect them to come down to a normal rate, sir? Those are my two questions, sir.
Just give me one thing, I will ask Sanjay to answer this.
The production expense, you want the explanation for that, or you want to know what the production expense is, sir?
No, not specifically, but what is the major reason for their going up disproportionately, sir?
Okay, so production expense, I thought you were asking for depreciation. The production expense is a function of our content in Gaana and also the events business. Since you have realized our event business, IP business, has grown 101%, in line with that, our production expense also gone up. So it is a variable component, not a fixed component. As the business increases, that proportion will also increase.
Okay. Do you see any proportionate increase in profitability?
Yes.
Okay. And this amortization, when can we expect them to come down, sir, depreciation and amortization?
Okay. The depreciation amortization portion is coming down categorically. But the point here is that as you understand the components of the amortization, it will not be on a sliding down scale. It will remain same till the end of the license period. So that is the answer, and other than amortization, the normal depreciation is hardly anything for ENIL, so not much impact we are forcing on that as well.
This pertains to intangible, sir? This depreciation pertains to intangibles?
No, this depreciation is pertaining to intangible. Yes.
Okay. Thank you.
Thank you.
Very well, sir.
Thank you. The next question is from the line of Amrit Raj from Minerva Asset Advisors. Please go ahead.
Hi, sir. Thanks a lot for the opportunity. Can you please break down your digital business a bit more, as in how much each piece within that actually contributes, and what are their growth trajectories and kind of profitability?
The way we said at the overall level, we delivered about INR 35 crores of revenue on the digital side, of which two large components are Gaana and our digital solution business. Gaana delivered almost INR 20.54 crores of revenue, while the digital solution business delivered INR 10.94 crores of revenue. Then digital in our other businesses is almost about INR 2.5 crores. So that's about total of approximately INR 35 crores of revenue. As we said, our Gaana business reinvest is going down quarter- on-q uarter, where we have invested this year almost about INR 9.5- INR 10 crores.
Okay. What about profitability on digital solutions part?
That is a profitable business. It is an EBITDA business on that part.
How much? Can you tell me, please?
It is about a 10%-12% margin business on that what we look at it.
Okay.
Yeah.
Okay, thanks a lot.
Thank you.
Thank you. The next question is from the line of Navin from ithought PMS. Please go ahead.
Yeah. Am I audible?
Yes.
Yes, sir.
Yeah. So two questions. One is regarding the press release. There was a comment that said the digital segment accounts for 52.5% of ENIL's core radio advertising revenue. I just wanted some clarification regarding this.
Yeah.
The digital business is not a part of the core radio. Are we just saying when numerically it comes out to 52.5%, or am I understanding something wrong here?
I will tell you the way we look at this business, Navin. If you look at our traditional radio business, there are three segments of business the way we constitute our company. There is traditional radio FCT business, then there is media solution business, which includes IP and media solutions, and then there is a digital business. These are the three pillars of ENIL. When we said 52.2%, the digital percentage to the radio percentage is about 52%. Radio is now digitally almost half of our radio business. This shows how we have moved from being just a radio company to a multimedia company moving towards digital, which is in line with the way media industry is getting impacted and driven by the digital growth.
Got it. So it's like just a salient to the top line.
Yes. To showcase the way that our strategy has always been to become not from a radio company to be a multimedia and entertainment company led by digital. And that was the path we show that earlier we used to be a radio company, now our digital also contributes almost 50%, in line with 50% of the radio business, while the other 15%-20% is also the non-FCT business.
Okay. Got it. Yeah, thank you. The second thing is regarding the Gaana subscriber thing. I think in the last call, you'd mentioned that there was some migration of a cohort of users who were paying a lesser subscription fee to a higher subscription fee. Just wanted to know, are we further along that conversion, and is it having any impact on the number of subscribers? Just wanted to get a sense of that.
The way we look at, Navin is, the churn happens as the year gets completed. Correct? You can't change the price in between. If somebody is subscribed for a year, the price change will only happen at the end of the year. So it's a cycle which keeps changing. As new consumer keeps coming at the newer price, the old consumer either churn out or get into a newer price or sometimes they continue with the same price also, depending on the offer we're running in. So it's a mix of old and a new price. To give you comfort, our percentage of newer price or the higher price keeps increasing. So from earlier, where we are sub 50%, now we are almost touching 60% of the higher price business or a gross margin profitable business.
Got it. Yeah. Thanks a lot.
Yeah. Thank you, Navin.
Thank you. I repeat, you may press star and one to ask a question. The next question is from the line of [Khushi Sen], who is an Individual Investor. Please go ahead.
Hi, everybody. Am I audible?
Yes.
Yeah. Sir, I just wanted to check that the Gaana revenue that you just disclosed, is it for the quarter?
Yes.
What is that number, if you could repeat it again?
INR 20.54 crores, almost double of the last year revenue.
Okay. All right. Also, I wanted to know about what is the inventory utilization for this quarter?
The inventory utilization has gone up by about 3%.
3%?
It's gone up by 3%. At a percentage level, we are about 76%.
All right. The volume growth, I wanted to ask that.
That volume growth has gone up by about 3%. Capacity utilization is at 76%.
Okay. This is for the quarter, right?
Yes, ma'am.
What is it for year-on-year?
No, this side I said year-on-year only. Like this quarter against last year quarter two.
All right. My last question is, what is the effective debt growth quarter-on-quarter, year-on-year?
It's almost flattish. There is some bit of channel mix and client mix change, but otherwise, overall, it's almost flattish.
Okay. That's all from my side. Thank you.
Thank you, [Khushi].
Thank you. I repeat, you may press star and one to ask a question. The next question is from the line of Rahul from Noesis Ventures. Please go ahead.
Yeah. Hi, Mr. Yatish. Congrats for your results and your efforts for the diversification in the company.
Thank you, Rahul.
I am an individual investor, and just wanted to ask you a few questions. Basically, in the quarterly results, basically the production expenses have gone up by almost INR 22 crore in this quarter, while the revenue, it also has gone up in line to around INR 22 crore. So the margins have been impacted as such. They have not increased as such, per se, as per the revenue increase.
Yeah.
Why the profit margins have not increased as such, basically?
The way you look at our business, as I said, radio is a high margin business compared to the other verticals. Radio is an outlier in terms of margin. Any ad sales business, be it radio or TV, they are much more higher margins than an event or a digital influencer business or Gaana. The margins are different. It is a mixed change between FCT and a non-FCT. Whenever there is muted growth on FCT, it puts pressure on the overall margin scheme of things. It is a weighted average the way you look at it. While at an absolute level, when you look at production expense, the event business has gone up by 101%. When you do an event, the margins are not in line with the way the radio business margins are. That is the reason the production expense subsequently goes up.
Similarly, when you do an influencer business also, when you use more influencers compared to last year, or the business has grown almost 5x, that also leads to a higher production expense. The absolute number, it is in line with the revenue growth. The margin difference, when you look at it at overall level, Rahul, it is because the mix of radio and the non-radio business changes. It is a transformation thing which will always happen when you transform a business from a high margin, low growth business to a high growth and comparatively lower margin business. There will be a mix change happening over the quarters of transformation, which you always will have to go through.
It is looking little higher because as we saw, ad sales business overall in the media industry has been very muted and has been impacted by the geopolitical reasons, the business not spending because of the GST growth coming in. That is the reason the ad sales business has taken a lot of pressure and which has resulted in a lower margin. While we are committed to deliver a higher margin and we believe in our event business, influencer business will always be positive and at better margins than the peer group. But there will always be a change between our radio margins and the non-radio margins.
Okay. The overall results of other companies in the radio business have also been very muted. I think you guys at least are maintaining the top line and the bottom line in the radio business. That is a good sign, basically.
Yeah.
I think you all are able to protect the market share also in the radio business, basically at 25%. That is a good sign that what efforts you all guys are doing. Basically, another main thing is that in the bottom line there, you all guys are showing a loss at the moment. When do you plan to break even and come into profitability?
As we look at our Gaana profitability on the digital business investment, what we have been doing, compared to last year, we invested about INR 13 crores last year in quarter two. This year, it has come down to almost INR 9.8 crores. Continuously, we are being very disciplined in our execution and spending. We believe by the time next year this time, we should be breaking even on the Gaana business and with a very top-end heavy number.
Basically, the thing is that you all have got INR 350 crore worth of cash. For investor, you all guys have been paying dividend also and increasing the dividend. Do you think the company is going to invest in future businesses or do a company buyback in equity shares to make the returns of the equity holders much better in the future?
That's always been the intent, Rahul. The whole idea is we keep evaluating the businesses which are there in the market, new age business, while we transforming ourselves as a company, our digital business has grown so much. We keep evaluating cases in the market, companies in the market. If there is a strategic fit and a profitable business which we can build on, we will surely look into it. As you rightly said, we have been very consistent with giving out dividend, and it's been increasing over years also. Even in COVID period, we've been very clear of giving dividends. That's the way we look at it. The whole intent and ambition remains that delivering the better value for our shareholders. Media is right now in a flux, a dynamic situation.
You have to be very careful in terms of evaluating the right companies, the right fit for us, where there is a strategic fit also to the company, which can lead us to a next level of growth. While we are very confident of our digital efforts right now in the same direction, but we'll keep evaluating the right companies.
Okay, thanks.
Thank you.
Can you talk a little bit more on the Gaana competitors? Like you said last time that three of them have closed down and how the other people are faring compared to Gaana?
The way we look at is, we believe we are a strong number two in the paid subscription business because we do not offer free service. While there is free available on Spotify and Amazon and JioSaavn, we are a only premium paid service in the country right now. In the landscape right now, a lot of push has been done to drive paid subscription. I think the music industry, music labels, if you speak to, also believe the music industry growth can only happen through subscription and not through free service. The free advertising-led model for free subscription is not going to work, that everybody believes. We believe our competition also is driving towards subscription. The subscription numbers are growing. It is growing at a better pace than what we would expect, but it is consistently growing. That is a good sign.
Even numbers for Spotify, be it Saavn , everybody is focusing on that and we believe, sooner or later, we will see some better growth numbers on subscriber numbers. India is a value for money market. It takes time for people to pay for something which has been available for free. As I always been saying, it is a behavior change rather than a price issue.
As people look into it and see value in the product, they will pay for it. It does not cost much for the spend when you look at the way people are spending money on music concerts. A music service surely looks at an economical rate. It is a great proposition. As long as we deliver a right value for the consumer and the right experience, they will give it. That is the way we look at the business. The numbers are encouraging. It is keep growing.
The entire industry believes in subscription now. We have seen some bit of action on subscription pricing also from competition, which I believe is a good sign for the industry. The way we look at is to build the cake rather than just take a share of the cake, is to build the subscriber numbers as a industry will only help the industry.
Best for the future and please do well. Yeah. Thank you.
Sure. Thank you very much.
Thank you. The next question is from the line of Anant Shirgaonkar from Newport Capital. Please go ahead.
Hi. Anant here. Can you hear me?
Yes. Thanks, Anant.
Yes.
Hi, Yatish. Thank you for a good set of numbers. I just had a few basic questions. Last quarter, your radio business was about 58% of revenues, I remember. What has the move been in this quarter, and how is it looking, the shift from the 58% for radio versus non-radio composition of revenue?
Give me one second. Give me one second.
Yeah.
It is almost about 50%, Anant. We would have liked it a little better. As I said, our ambition has always been the way we planned it was that radio mix should be about 50% in a year and a half type or maybe two years. It is falling a little faster because of the muted advertising market. That puts pressure on the margin, which I was explaining the previous question, that the radio contributes a higher margin compared to the non-radio business. There is a mix of 50% is by design also, but it is fallen a little higher than what our comfort would be. We would have liked at least few percentage points of radio growth rather than a muted, single-digit growth on radio side of the business.
Understood. Do you have any thoughts on how this number may look, say, one year down the line or two years down the line?
We will look at factors in terms of radio too, and we have always said that we would want to make the radio business more efficient, because we believe the media ad sales business will see pressure over the period as we are seeing consumer behavior changing of media consumption. The advertising will also get very fragmented. The whole idea will always be that the traditional business will have to be very efficient. We will have to look at revenue growth and the cost optimization factors also as we go along. We believe there will be it radio ad sales or media ad sales, I don't think it will be a double-digit growth. It will always be a mid-single digit growth as we go on.
We believe the next two quarters should also be in the same line, because there will be some base effect coming in from last year, plus we saw some green shoots of the GST impact. But let's see how it pans out for all companies. As you know, media always lags all companies' results because if companies do well, they will spend more on marketing. If they spend more on marketing, the media companies do well. Overall economy, overall geopolitical situation will also play a role. We remain cautiously optimistic with a single-digit growth on pure radio business, while our events and digital business will keep showing stellar results.
Understood. A little bit on Gaana. Earlier on you had mentioned that you expect a bit breakeven for Gaana March quarter or June quarter. Is that on track?
Yeah. So most likely, June, July, there is some action which is happening. The way we look at it is, we should be breakeven by June, July of next year. I am not putting quarter, maybe the months I am looking at it. That is the way we look at. Maybe if the growth comes in and a lot of action happens there, then we might spend some monies on mainland marketing also. To give you an answer, between June, September next year, we should break even. That is what we have been committing on that part.
Correct. Understand. To the previous question you had mentioned about how even the industry wants to shift towards subscription. Can you give more color on what is happening from the industry point of view? How are the other players trying to push customers towards subscription? Do you have any data points on pricing, or are they giving pain to the customer so that they find value in subscribing rather than going for the ad music app?
The way you look at the music streaming, YouTube used to be one big consumption player, though now with connected TV happening, on YouTube, the music consumption has gone lower than what it used to be. You see now a lot of ads coming in YouTube, so it is not a great experience. That is the reason people move to streaming side. Even on Spotify, when you look at a paid consumer and a free consumer, a free consumer is not allowed to download certain set of music. He cannot skip music beyond certain levels. Then there are unnecessary ads which are coming in. They do not get ad business. That is what I have been always saying. The free model supported with ad will not survive.
We see in Spotify also not many ads come in, but they keep playing their own ads, which disturbs the overall experience of a consumer. They have been pushing subscription by limiting the features for a free consumer. Also recently, which is not for quarter two, but in quarter three, they reduced price for a new consumer to drive subscription, because they also believe in.
In fact, as I speak, their price was about $4.99 10 days back for a new consumer, which came down to $3.99 for a week, which is a limited time offer till 12th November. It shows that they also believe with our growth also, and sometimes I would want to believe, I do not know I am right or wrong. When a large consumer or a big company drops prices lower to our number, it means there is a subscriber growth happening out.
They also believe in the subscription economy. Similar thing happened with Saavn. We believe even Amazon Music over a period of time will also look at de-linking from our Amazon Prime customer. The overall landscape, I believe, will move towards this. If you speak to any of the music industry veterans, be it Saregama, Tips or T-Series, they also believe the way that subscribed music business has to go is through subscription. It will never be free, funded by advertising.
Even in the past, as I have always spoken, people have spent money on music. People have bought CDs, people have bought cassettes. It is just that for a short time or a few years, free music got streamed, the habits got changed. But people have always believed music plays a massive role while you are studying, while you go for a walk, while you are doing a morning course.
It will always drive. That is the value it gives in the life, and the money is not very big. It is a behavioral change will happen, and I am very confident about it, that sooner or later it will change and the numbers will show up. Right now, in a year and a half, from last year, it was about 5 million subscribers there, then moved to 10 million. We believe as of today, there are about 15 million- 16 million paying subscribers in India.
Understood.
I hope I answered, Anant.
Yes, I understand. Can you also throw some light on how events business is looking for you? Because last quarter you had mentioned that there are new entrants coming in because the growth is very high. How is that playing out now in terms of events for ENIL?
I don't need to talk about events. There are massive tailwinds. I think it is available everywhere. Be it, if you are in Bombay, you see an Enrique concert happening and in rains all the people being there, people spending money. There is a massive change, post-COVID, which has happened of going out. Event business has massive tailwinds. There is always a cycle to it. But as we ride the tailwind, because we have been in this business for more than a decade, we understand this business, and we are taking the leverage of that and growing handsomely.
We have grown almost about 106% on event business. What is happening is, because ad sales business has been little muted, a lot of companies are wanting to get to event business to drive growth. They are coming for the first time. They are not sure which business will drive margins.
Everybody thinks that the event business is as good as an ad sales business. We have been doing this for 10 years. It takes time to understand the value chain, where the margins are, how do you drive efficiency. A lot of people burn hands also, but everybody wants to ride the wave of events. We believe we need to pick and choose events. We do almost, as I said, 300 events a year. And we are very cautious about it. This quarter, our margins could have improved little bit better had there not been rains. We do a very large Navratri across the country in about 15, 16 cities. The rains have been a bit erratic. A couple of days of rains in Calcutta, Pujos got impacted, which drops your margins.
Our margin would have been a little better than what it is right now, had the rain gods blessed us better. But that you can't beat it. That is not a controllable. Our controllables are that we believe in running a more efficient and a margin-focused company. Yes, the margins of events will never be like radio. But we believe this growth will continue, not 100% quarter on quarter, but we see a lot of tailwinds going forward for the next two, three years. And we are geared up for that business.
Understood. And one last question. Have you disclosed the subscribers for Gaana currently? The current number of subscribers.
We would let it remain confidential. On a one-on-one basis, we can always have a chat, but on this, for competitive reasons, we don't disclose that.
Understood. Thank you so much, patiently. Thank you.
Thank you, Anant.
Thank you. The next question is from the line of Deepan Narayanan from Trust Line Holdings. Please go ahead.
Good afternoon, everyone, and thanks a lot for the opportunity. Firstly, how do we see the digital radio FM opportunity, and what is our plan for auction process?
Deepan, on the digital radio, it's still on the TRAI recommendations has happened. We are very excited about it. If you ask me, as on the face of it, digital radio will change the radio dynamic because it helps getting radio on mobile phones. From that perspective, it is a great step from the government. Though it involves lot of stakeholders to come together. It's not just about radio industry to look into it. Yes, radio is the first and foremost stakeholder and the main stakeholder, but it involves the mobile manufacturer and the car manufacturers to get the receivers part of it, which the government is also talking to. It takes a while. While globally also, like in U.S., HD Radio works; while in Europe or largely led by U.K., it's about DAB+. Saudi Arabia runs with DAB+.
But it takes a while for that technology to be adapted, both in mobile phones and the car stereos. It will take some time, but on the face of it, to answer in short, it's a very exciting phase to be in to drive digital radio, because that will impact more frequencies, more differentiation in content. A lot of data gets collected, which helps in driving ad sales. From that perspective, it is a great sign.
Okay. Overall, our market access gets widened and better ad measurement to give us better ad rates. That's what will drive future revenue, right?
Yes. But it will take some time. It is not happening in a hurry. It is not happening next year. It will take some time.
Okay. How radio industry as such viewing this digital radio opportunity? Like, industry players are open to it on the TRAI recommendation? Is there any discussions going on that per se, specifically on auctions, investments on that, and also about transition from analog to digital per se? How do we plan to do that?
The industry looks at very positive. There is always a price component to it. It cannot be so expensive that even if the proposition is good, but if it is not financially viable, then people will not look at it. But as I said, on the whole, as a digital thing, it is great. Yes, there has been some guidance on the migration fee which had come in, which we rejected, and we had a consultation with the TRAI also. As an AROI body, we have sent our messaging to them that at this price it does not make sense and they need to support it because there will be investment also coming in, which government recognizes and TRAI also recognizes it. As I said, it is just a first set of recommendation. It takes some time.
Anyways, the next set of auctions can only happen in 2030, when the first renewal happens. So there is still some time available on that for consultation. But it is a right step to move from analog to digital, is a right step from a radio perspective.
Till this digital gets established, there will be some transition phase where the analog will be still continued, and then slowly the migration process will be slower process, right? Because you will have to still get the user base also has to be developed in the digital arena.
Yeah. The way we will discuss with the government and what even TRAI recommends is, it is in the first phase, only 13 cities they are looking at digital. The rest is all analog.
Okay.
Even in the same cities, it will be both continuing. It will be over a period of time, there will be a sunset to the terrestrial thing. The digital radio will take the As I said, it is a long transition. It is not happening tomorrow or in a year or two years' things.
Okay. Sure. Thanks a lot. All the best.
Thank you, Deepan. Thank you.
Thank you. The next question is on the line of Gaurav Agrawal from Nine One Capital. Please go ahead.
Hi, sir. Thank you for the opportunity.
Thanks, Gaurav.
Sir, first of all, this INR 144, INR 141 crore revenue. Can you just give me a broad breakup? I know you have given the presentation, but a slightly confusing one. How much is coming from radio, how much is from Gaana, and how much is from IP events?
The way, as I told you, we divide generally in three verticals. The radio is almost about INR 70 crores, INR 73 crores. Sorry, INR 70 crores. While our media solution business is about INR 35 crores. The digital business is almost about INR 32 crores, and the international business is about INR 5.5 crores. The total is about INR 135 crores or INR 141 crores.
Okay, so what is the second one, media? What exactly do we do in media?
Media solutions, I said, it is about IP business and also we do multimedia solutions for our clients. These are the two businesses which we put in part of media solutions.
Right. Existing will include radio as well as media.
Yeah.
Digital will include Gaana and this digital solution business.
And digital solution business.
And events go where?
Event goes part of media solutions. The INR 35 crores includes the event business also.
How large would that be, sir, events?
Event would be about INR 20 odd crores in the INR 35 crores.
In the INR 35 crores, yes, right. When you say events, these are like what? Like a, biggest sort of an event or like small Navratri events? What kind of events do we do?
It's a mix of, we do managed events. Ranging from doing concerts to food festival to Navratri to marathons to corporate activations, RWA activations, mall activations, school activation programs. It's a plethora of activities. In a year, we do almost about 300 events, precisely because we are present in 63 markets with teams across the board, and that's what places us in the best place in media companies with such a massive presence across India market.
The yearly revenue will be like INR 80 crore-INR 90 crore for the events. Would that be a good estimate to have?
Last year we did about INR 75 odd crores. I think it will be much more than that. We generally don't give any guidance.
What kind of margin does it make? EBITDA margins?
I would reserve that. It's a healthy margin. Generally, event businesses are, we outlet the overall general margins in event business, which ranges from concerts, generally people say it ranges in single digits. Events are in about 10%-15%. But because we do managed events, when I say managed events, which is sponsorship-led and ticketing, we generally deliver about 20 odd percent.
Okay. And sir for Gaana, I think last quarter also you said once it crosses the INR 150 crore revenue run rate annual basis, then it is a breakeven, right? At that stage it will be breakeven level. But let's say beyond INR 150 crore, for the incremental revenue that you get from Gaana, how much of that incremental revenue will flow to EBITDA? If INR 150 crores goes INR 200 crores, for that remaining INR 50 crores, how much can it go to the EBITDA level?
Gaurav, right now I would not comment on it because I think right now immediate for us is to breakeven. I think globally also if you look at digital businesses, it takes time to become a breakeven business. So for us, our milestone is very clear to breakeven. We are a very profitable-focused company. For us, though it's an investment into the digital business, coming from almost zero revenues on Gaana this year, the way we're looking at and we're doing an ARR level, it's about almost about INR 90 crores or INR 100 crores revenue coming in this year.
To make it profitable is the first milestone. Yes, there are multiple factors to profitability. There is a cost of content. Though we are well-placed with our contracts, the tech thing, depending on how stream. So when you say INR 150 crores, it's a mix of pricing and subscriber.
If we can increase price and less subscriber, then your tech cost may be a little less because the streaming numbers will be less. It's multiple factors. I have not built a model on for next three years thing or two years, though we have in mind. But right now, the immediate objective for us is to get it into breakeven. I think that would be a major landmark in our digital business per se to look at. And we have a path to profitability on that. As we build towards breaking even, we will start looking at and sharing how we look at the margins on the Gaana business also.
Great. And sir, I assume Gaana is 100% Indian, right? We do not have the app outside India.
No. We have international presence. We are present in about 170 countries. We have not focused so much on international business, which we want to do, as we said, we have got a year and a half. But there is presence for sure. In our subscriber, there is some percentage coming from international also. It comes at a better rate also because internationally, subscription economy is much better in U.S. than in India. We need to focus on those markets. That is our plan also going forward.
And sir, the last question, qualitatively, not looking for any numbers. In terms of paying subscribers for Gaana, what kind of growth can we see on a quarter-to-quarter basis?
We all only have paying subscribers. I would limit that, Gaurav, maybe often I will share that. Generally, we do not share subscriber numbers.
Sir, I am just looking for a growth, 10, 15-
It is a decent growth. I would say it is a decent growth to look at.
Right. Sure. Thank you so much.
Thank you, Gaurav.
Thank you. The next question is on the line of [Hari Kumar], who is an Individual Investor. Please go ahead.
Just one follow-up question, sir. Am I audible now?
Yes, [Hari].
We are expecting a positive change in the government policy towards the radio sector since two years. What has happened on that, sir?
Yes, we have been doing consultations. Government is looking into it, and we believe sooner or later there will be some reforms coming in on the radio industry side, which could be beneficial to the industry.
Okay. Any tentative date, sir?
With government, I think you are asking me, it is beyond my pay grade, [Hari], to answer on government behalf.
Yeah. We have been waiting for two years, approximately. Yes, sir.
Thank you, [Hari].
Okay, thank you.
Thank you. We will take that as our last question for today. I now hand the conference over to the management for closing comments.
Thank you, ladies and gentlemen. It's a pleasure to have you all. We remain committed to driving profitable growth for all stakeholders. Thank you once again for joining this call, and in advance, wish you a very happy new year, and see you in the quarter's earnings call. Thank you very much.
On behalf of Entertainment Network (India), that concludes this conference. Thank you for joining us, and you may now disconnect your lines.