ITV

Category: Financials

  • GTPL cable TV business revenue up in second quarter

    GTPL cable TV business revenue up in second quarter

    BENGALURU: Indian multi-system operator and internet service provider GTPL Hathway Ltd (GTPL) reported 13.8 percent increase in total income for the quarter ended 30 September 2018 (Q2 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y) Q2 2018. GTPL’s Total Income in Q1 2019 was Rs 317.40 crore, for the corresponding year ago quarter it was Rs 278.88 crore.

    GTPL has two segments – cable TV business and internet service. Cable TV business operating result increased 82.1 percent y-o-y to Rs 15.99 crore in Q2 2019 from Rs 8.78 crore in the corresponding quarter of the previous year. Operating revenue of GTPL’s cable TV business increased 15.6 percent y-o-y to Rs 276.69 crore from Rs 239.32 crore.

    GTPL’s unternet service operating revenue in Q2 2019 was almost flat – it increased 0.3 percent y-o-y to Rs 35.75 crore from Rs 35.64 crore. Internet service segment’s operating results for Q2 2019 declined by 99.6 percent y-o-y to just Rs 0.01 crore from Rs 3.67 crore in the corresponding quarter of the previous year.

    GTPL’s consolidated profit after tax (PAT) increased 28.5 percent y-o-y in Q2 2019 to Rs 16.01 crore from Rs 12.45 crore in Q2 2018. Consolidated total comprehensive income for the period increased 33.8 percent y-o-y to Rs 16.79 crore from Rs 12.55 crore. Consolidated operating profit (EBITDA) excluding other income increased 11.5 percent y-o-y in Q2 2019 to Rs 85.20 crore (27.3 percent of operating or op revenue) from Rs 76.39 crore (27.8 percent of op revenue) in the corresponding quarter of the previous fiscal.

    Let us look at the other numbers reported by GTPL Hathway

    Consolidated total expenditure increased 15.7 percent y-o-y during the quarter under review to Rs 294.74 crore from Rs 254.81 crore in Q2 2018. Pay channel cost in Q2 2019 increased 20.4 percent y-o-y to Rs 132.33 crore from Rs 109.89 crore in the corresponding quarter of the previous year. Other operational costs reduced 10.6 percent y-o-y in Q2 2019 to Rs 20.98 crore from Rs 23.46 crore in Q2 2018.

    Employee benefits expense in Q2 2019 increased 9.5 percent y-o-y to Rs 35.81 crore from Rs 32.70 crore in the corresponding quarter of the previous fiscal. Finance costs increased 68.8 percent y-o-y during the quarter under review to Rs 17.91 crore from Rs 10.61 crore. Other expenses in the period increased 17.2 percent y-o-y to Rs 38.12 percent in Q2 2019 from Rs 32.52 crore in the corresponding quarter of the previous year.

  • TV Today revenue up in Q2

    TV Today revenue up in Q2

    BENGALURU: TV Today Network Ltd (TVTN) reported 3.5 percent year on year (y-o-y) increase in standalone operating revenue at Rs 163.29 crore for the quarter ended 30 September 2018 (Q2 2019, quarter or period under review) as compared to the Rs 157.80 crore for the corresponding year ago quarter (Q2 2018). Total income increased 5.3 percent y-o-y to Rs 171.59 crore in Q2 2019 from Rs 162.89 crore.

    Simple operating EBITDA was 10.5 percent lower y-o-y in the quarter under review at Rs 44.62 crore (27.1 percent of operating revenue) as compared to Rs 49.87 crore (30.3 percent of operating revenue). The company reported 5.7 percent lower standalone PAT of Rs 29.50 crore for Q2 2019 as compared to Rs 31.29 crore in Q2 2018. Standalone total comprehensive income for the quarter under review was 4.6 percent lower y-o-y at Rs 29.85 crore as compared to Rs 31.29 crore in Q2 2018.

    Segment numbers

    TVTN has three segments – Television Broadcasting (TV); Radio Broadcasting (Radio); and ‘Others.’ The company’s TV segment is the largest contributor to its numbers. TVTN reported 0.2 percent y-o-y increase in revenue for its TV segment at Rs 140.21 crore in Q2 2019 as compared to Rs 139.86 crore. The company reported 1.5 percent y-o-y decline in the segment’s operating profit at Rs 42.52 crore in Q2 2019 as compared to Rs 43.16 crore.

    TVTN reported 43 percent y-o-y increase in operating revenue for its radio segment for Q2 2019 at Rs 5.84 crore as compared to Rs 4.09 crore. However, the radio segment’s operating loss increased to Rs 4.49 crore during the period under review from an operating loss of Rs 2.92 crore.

    TVTN reported 24.3 percent y-o-y increase in operating revenue for its ‘Others’ segment at Rs 13.87 crore as compared to Rs 13.78 crore. Operating result of the ‘Others’ segment for the quarter declined 58.3 percent y-o-y to Rs 0.84 crore from Rs 2.01 crore.

    Let us look at the other numbers reported by TVTN

    Standalone total expense in Q2 2019 increased nine percent y-o-y to Rs 126.64 crore from Rs 116.15 crore in the corresponding quarter of the previous year. Standalone production cost reduced 7.8 percent y-o-y in Q2 2019 to Rs 14.23 crore from Rs 15.44 crore in Q2 2018. Standalone employee benefit expense during the quarter under review increased 9.5 percent y-o-y in Q2 2019 to Rs 52.05 crore from Rs 45.53 crore in the corresponding period of the previous year. Standalone other expenses in Q2 2019 increased 16.5 percent y-o-y to Rs 52.38 crore from Rs 44.96 crore in Q2 2018.

  • Sun TV moots 50% interim dividend as numbers jump in Q2

    Sun TV moots 50% interim dividend as numbers jump in Q2

    BENGALURU: Sun TV Network Ltd (Sun TV) reported improved year-on-year (y-o-y) standalone numbers across all important parameters for the quarter ended 30 September 2018 (Q2 2019, quarter or period under review) as compared to the corresponding quarter of the previous year (Q2 2018). The company reported 13.8 percent higher y-o-y standalone total income in the quarter under review at Rs 811.67 crore as compared to Rs 713.13 crore in Q2 2018. Standalone operating revenue increased 10.9 percent y-o-y to Rs 749.55 crore in Q2 2019 from Rs 675.90 crore in Q2 2018.The board of directors of the company has declared an interim dividend of 50 percent (Rs 2.50 per equity share) for the quarter under review as compared to100 percent or Rs 5 per equity share of face value of Rs 5 each in the immediate trailing quarter Q1 2019. This means that during the six month period ending 30 September 2018 (H1 2019), the company has declared dividends to the extent of 150 percent.

    The company has stated in its earnings release that standalone subscription revenue at Rs 311.27 crore was up 21.33 percent y-o-y.
     

    The company’s standalone profit after tax or PAT in Q2 2019 improved 23.4 percent y-o-y to Rs 351.32 crore as compared to Rs 284.67 crore in Q2 2019.

    Sun TV standalone EBITDA in Q2 2019 was Rs 553.97 crore (70.5 percent of operating revenue), 11.8 percent higher as compared to Rs 495.69 crore (63 percent of operating revenue) in Q1 2018. Total comprehensive income or TCI for the quarter under review was up 23.4 percent y-o-y at Rs 351.38 crore as compared to Rs 284.73 crore in Q2 2018.

    Total Expenditure (TE) during the period under review reduced 1.7 percent y-o-y to Rs 278.04 crore as compared to Rs 283.96 crore in the corresponding quarter of the previous year.

    Operating expense in Q2 2019 incresed 40.6 percent y-o-y to Rs 90.11 crore from Rs 64.08 crore in the corresponding quarter of the previous year. Employee Benefits Expense in Q2 2019 reduced 5.1 percent y-o-y to Rs 73.47 crore as compared to Rs 77.39 crore in Q2 2018. Other expenses (OE) in the Q2 2019 reduced 16.5 percent to Rs 32 crore as compared to Rs 38.34 crore in the corresponding quarter of the previous year.
     

    SunRisers Hyderabad adds to operating profits of Sun TV
     

    Sun TV paid 16.6 percent lower IPL Franchisee Fees in H1 2019 at Rs 71.33 crore as compared to Rs 85.48 crore in H1 2019. Sun TV’s IPL franchise had turned operationally profitable as per the notes in Sun TV’s financial statement  for Q1 2019. The company has included income of Rs 386.28 crore from Sun Risers Hyderabad and costs incurred on it of Rs 187.20 crore in its H1 2019 numbers. Corresponding numbers for Sun Risers Hyderabad for the year ago half year (H1 2018) were income of Rs 143.20 crore and costs of Rs 165.82 crore.

  • Q2 results: Hinduja Ventures reports total income of Rs 26.72 crores

    Q2 results: Hinduja Ventures reports total income of Rs 26.72 crores

    MUMBAI: HVL on standalone basis reported a total income of Rs. 26.72 Crores for the half year ended September 30, 2018.

    Pursuant to adoption of INDAS, the mark to market gains in respect of equity shares held by the Company in IndusInd Bank Limited were reflected in the Balance Sheet as on March 31, 2018.The price at which the mark to market adjustment was carried out in the Balance Sheet on March 31, 2018 was Rs. 1796.75 per share. The corresponding market price as on September 30, 2018 was Rs. 1690.05 per share. This reduction in value in respect of shares held as “Stock in trade” is reflected in the Profit & Loss Account for the current period and in respect of shares held as “Investments” is reflected in “Other Comprehensive Income” in the reserves of the Balance Sheet for the current period.

    The Supreme Court by its Order dated 30th October 2018, has dismissed the appeals made to it against the decision of the Madras High Court upholding the Digital Tariff Order issued by the Telecom Regulatory Authority of India (TRAI). 

    This decision of the Supreme Court is a major positive development for IndusInd Media & Communications Limited (“IMCL”) as it ensures that the pay channel costs which are a major drag on IMCL’s profitability today will in future be a pure pass through cost and in addition IMCL is assured a minimum guaranteed revenuethrough network operating fees. A combination of these factors will ensure that IMCL will begin to become profitable effective the implementation of the Tariff Order. This ordertakes effect from January 03, 2019 in the fourth quarter of the current financial year.

    IMCL has expanded its offerings to 700 TV Channelsand is today providing the largest number of TV channels across the country. The Cable TV industry is today witnessing consolidation and fresh investments. This consolidation is beneficial to IMCL as this enables it to align with a large number of mid-sized operators who are looking at partnering with a large MSO.  IMCL has today close to 5 million subscribers and has plans to double this number. The superior HITS technology continues to fuel the organic growth of the Company in the Phase III & IV locations across the country. 

  • Dish TV encores profits in 2nd quarter post merger, proposes maiden dividend of 50%

    Dish TV encores profits in 2nd quarter post merger, proposes maiden dividend of 50%

    BENGALURU: Indian direct to home (DTH) behemoth Dish TV India Ltd (Dish TV) reported profit after tax (PAT) of Rs 19.7 crore for the quarter ended 30 September 2018 (Q2 2019, quarter under review) as compared to PAT of Rs 22.5 crore in the immediate trailing quarter Q1 2109. Dish TV and Videocon d2h were merged on 22 March 2018 and hence Q1 2019 was the first full reporting quarter for the merged entity. The board of directors of the company have proposed a dividend of Rs 0.50 per fully paid up subscriber and issued equity share of Re 1 each. This is the first ever dividend proposed by the DTH major.

    Since results of the year ago quarter are not comparable, a quarter on quarter (q-o-q) comparison of the numbers of the joint entity has been done here. Dish TV’s operating profit or EBITDA in Q2 2019 was Rs 540.6 crore, 2.9 percent lower than Rs 556.8 crore in Q1 2019. The company reported a 3.7 percent q-o-q decline in operating revenue for the quarter under review at Rs 1,594.3 crore as compared to Rs1,655.6 crore in Q1 2019.

    Dish TV’s subscriber additions picked up speed during the first quarter. The net number of 301 thousand additions took Dish TV’s subscriber base to 2.33 crore in Q1 2019. The company picked up another net 200,000 subscribers in Q2 2019 to ramp up its subs base to 2.35 crore.

    Subscription revenue declined 2.4 percent q-o-q increase in Q2 2018 to Rs 1,453.6 crore from Rs 1,489.3. ARPU for the quarter declined to Rs 207 from Rs. 214 the previous quarter. Advertisement revenue for the quarter under review declined 34.8 percent q-o-q to Rs 22.6 crore Rs 34.6 crore. Bandwidth charges (revenue) reduced 3.4 percent q-o-q to Rs 37.4 crore in Q2 2019 from Rs 38.7 crore. Other income declined 26.4 percent q-o-q in Q2 2019 to Rs 80.7 crore from Rs 93.1 crore.

    Company speak

    Dish TV CMD Jawahar Goel said, “We remain extremely confident about our business and our strong financials give us the courage to compete against anyone in this space. That said, we continue to focus on growth with profitability keeping in mind our objective of maximising shareholder returns while aggressively investing in the business.”

    Talking about future competitive scenario in the TV distribution space, Goel, said, “With limited takers for fibre or fixed line broadband, watching television through IPTV is going to be even scarce. In fact, post running an internal analysis, we see less than 1 percent of our subscriber base to be vulnerable to any kind of IPTV threat in the forseeable future. Our competitive strength in the rural market ring fences our subscriber base almost completely.”

    Talking about the current technological buzz, Dish TV group CEO Anil Dua, said, “There is change but a lot of exaggeration as well. We acknowledge the new choices that the television consumer is getting exposed to but you can’t undermine the unique dynamics of India as a consuming nation. The television consumer likes flexibility but not at the cost of affordability. We still are a nation with 98 percent of the households having a single TV at home and with more than 79 percent CRTVs. Our soon to be launched ‘SMRT Stick’ will be the ideal value for money offering for TV households to convert their CRTVs into smart TVs and experience OTT content.”

    Let us look at the other numbers reported by Dish TV

    The merged Dish TV’s consolidated total expenditure reduced 4.1 percent q-o-q in Q2 2019 to Rs 1,053.7 crore from Rs 1,098.9 crore. Cost of gods and services in Q2 2019 reduced 1.9 percent q-o-q to Rs 867.2 crore from Rs 884.1 crore. Personnel cost during the quarter under review increased 8.6 percent q-o-q to Rs 62.6 crore from Rs 57.7 crore in Q1 2019. Other expenses in Q1 2019 reduced 21.2 percent q-o-q to Rs 123.8 crore from Rs 157 crore from Rs 195.97 crore.

  • Network18 reports improved numbers for Q2 FY19

    Network18 reports improved numbers for Q2 FY19

    BENGALURU: Mukesh Dhirubhai Ambani’s media arm, Network18, reported improved numbers for the quarter ended 30 September 2018 (Q2 2019, quarter under review) as compared to the corresponding year ago quarter Q2 2018). The company reported 9 per cent y-o-y growth in consolidated revenue for Q2 2019 at Rs 1,237 crore as compared to Rs 1,138 crore in Q2 2018. Network18 reported a lower loss of Rs 68 crore in the quarter under review as compared to Rs 71 crore in the corresponding year ago quarter. Consolidated operating EBITDA increased 59 per cent y-o-y to Rs 92 crore in Q 2019 from Rs 58 crore in Q2 2018.

    Network18’s numbers comprise numbers from its publically listed subsidiary TV18 Broadcast Ltd and from NW18 digital, print and others.

    TV18 Broadcast numbers

    TV18 consolidated revenue of Rs 1,118 crore in Q2 2019 was 11 per cent higher y-o-y than Rs 1,084 crore in Q 2018. TV18 consolidated operating EBITDA for Q2 2019 increased 42 per cent y-o-y to Rs 108 crore from Rs 76 crore in Q 2018

    Revenue growth in Q2 2019 was across all revenue streams. The company’s operating revenue from business and general news (TV18 standalone) increased 26 per cent y-o-y to Rs 200 crore from Rs 159 crore. The segment’s operating EBITDA increased 10 per cent y-o-y in Q2 2019 to Rs 31 crore from Rs 28 crore. Regional news ex-Lokmat including entertainment operating revenue during the quarter under review increased 36 per cent y-o-y to Rs 95 crore from Rs 70 crore. The segment reported a substantially lower loss of Rs 8 crore for Q2 2019 as compared to Rs 28 crore for Q2 2018.The entertainment segment (Viacom18 and Indiacast) saw a 6 per cent y-o-y increase in revenue to Rs 903 crore in Q2 2019 from Rs 855 crore. Operating profit of the entertainment segment increased 12 per cent y-o-y to Rs 85 core from Rs 76 core.

    NW18 digital, print and others numbers

    NW18 digital, print and others (NW18) revenue declined 28 per cent y-o-y to Rs 39 crore from Rs 54 crore. NW18 operating EBITDA was a lower loss of Rs 16 crore as compared to a loss of Rs 18 crore.

    Company speak

    Chairman of Network18, Adil Zainulbhai said: “Our regional properties across news and entertainment have shown significant improvements in viewership and monetisation, cementing our belief that vernacular content will be a key growth driver. We continue to see opportunities in the Indian media space; and aim to create segmented offerings to deepen our presence.”

    In the TV18 media release, Zainulbhai said, “TV18’s investments into regional have served to diversify our portfolio and reduce dependence on national markets. Our rising viewership in regional channels across both news and entertainment has been the primary driver this quarter. We shall continue to invest in the broadcasting space to capture growth opportunities.”

    Notes:

    Viacom18 and  Indiacast became subsidiaries of TV18 from 28 February 2018 and have been consolidated into TV18/Network18 financials from 1 March 2018. HomeShop18 has ceased to be a subsidiary of Network18 from 15 February 2018 as a result of its acquisition of ShopCJ through a share-swap.

  • Eros International profits up in first quarter

    Eros International profits up in first quarter

    BENGALURU: The Sunil Lulla-led Indian film and media company Eros International Media Limited (Eros) reported 25.3 per cent year on year (y-o-y) jump in profit after tax (PAT) for the quarter ended 30 June 2018 (Q1 2018, quarter, period under review) as compared to the corresponding year ago quarter (Q1 2018). Eros reported PAT at Rs 59.95 as compared to PAT of Rs 47.86 crore in Q1 2018. On account of items that will be classified later as a profit or a loss, total comprehensive income more than doubled (up 1.31 times)y-o-y to Rs 100.91 crore in Q1 2019 from Rs 43.56 crore.Calculated simple EBIDTA for the period under review increased 48.6 per cent y-o-y to Rs 93.33 crore (42.8 per cent of operating revenue) from Rs 47.86 crores (24.2 per cent of operating revenue.)

    Eros operating revenue in Q1 2019 declined 16.1 per cent y-o-y to Rs 217.93 crore from Rs 259.62 crore. Total Income declined 18.2 per cent y-o-y to Rs 223.57 crore from Rs 273.36 crore.

    The company says in its earnings presentation that revenues during the quarter were driven by releases of Bhavesh Joshi(Hindi), Meri Nimmo (Digital release), Blackmail (Overseas), Haami (Bengali), Goodnight City (Bengali), Alinagarer

    Golokdhadha (Bengali) and others. Eros released a total of 14 films during the quarter, consisting of 1 medium budget and 13 low budget films  as compared to 5 films in Q1  2018, consisting of 1 High Budget, 1 Medium Budget and 3 Low Budget Films). TV and Others segment included satellite sales of catalogue films to Zee TV and others.

    Eros says that Theatrical Revenues contributed – 30.7 per cent, Overseas Revenues – 12.6 per cent and Television & Others – 56.7 per cent as a percentage of income from operations.

    Company speak

    Eros executive vice chairman and MD Lulla  said: “We have started the year on an excellent note on operational and strategic parameters. Our strategy of a content driven approach reflected in a robust green lighting process enabling us to de-risk our model. Our film content is deeply researched and evaluated for its revenue potential across platforms and markets by our business leaders, due to which we were able to again deliver margin enhancing performance in Q1 2019.

    The new JV kicking in with V. Vijayendra Prasad for Hindi and regional content and Reliance Eros Productions LLP for USD 150 million already in process is bound further boost our content strategy and reflect in our financial performance in the forthcoming quarters. The first quarter was marked by the successful releases of our films which contributed to the overall growth. Our strong slate across languages, active pre-sales and catalogue monetization of our films ‘ library further supported the performance during the quarter. Looking ahead, we have drawn a compelling line-up for the remainder of the year featuring high-potential movies such as Color Yellow Productions Happy Phir Bhaag Jayegi, Anurag Kashyap’s Manmarziyan, the IndiaChina co-productions, Panda by Kabir Khan, trilingual Haathi mere Saathi and multiple other films across languages.

    Lulla further added, “As always, we continue to be a pioneer in industry innovations in catering to the changing tastes and preferences of the audiences. In this quarter, we released Meri Nimmo straight-to-digital on the Eros Now platform. I am happy to share that the film received a tremendous response from the audience and we look forward to launching more such films and originals on the Eros Now platform during the course of this fiscal. Along with it the roll-out of fresh and strong original content, makes us confident that the pace of subscriber addition for Eros Now will further accelerate, going from 50 to 100 cities and almost doubling the subscriber base to 16 million by end of the Fiscal year.”

    Let us look at the other numbers reported by the company

    Total Expenditure (TE) during the period under review declined 32.8 per cent y-o-y to Rs 146.45 crore as compared to Rs 217.81 crore in the corresponding quarter of the previous year.

    Films rights costs including amortisation costs in Q1 2019 declined 29.6 per cent y-o-y to Rs 90.15 crore from Rs 128.12 crore in the corresponding quarter of the previous year. Employee Benefits Expense in Q1 2019 declined 14.5 per cent y-o-y to Rs 13.54 crore as compared to Rs 15.83 crore in Q1 2018. Other expenses (OE) in the Q1 2019 reduced 63.8 per cent y-o-y to Rs 19.15 crore as compared to Rs 52.84 crore in the corresponding quarter of the previous year. Finance costs in Q1 2019 increased 5 per cent y-o-y to in Q1 2019  Rs 19.5 crore from Rs 18.58 crore.

  • ZMCL reports almost fivefold profit for Q1; DNA loss lower

    ZMCL reports almost fivefold profit for Q1; DNA loss lower

    BENGALURU: The Essel group’s television news broadcasting arm Zee Media Corporation Ltd (ZMCL) reported a 386.3 per cent growth (almost five fold) in consolidated profit after tax (PAT) for the period ended 30 June 2018 (Q1 2019, quarter or period under review) as compared (year-on-year comparison, y-o-y) to the corresponding year ago quarter (Q1 2018, year ago quarter). The company’s consolidated operating revenue increased 35.4 per cent y-o-y in Q1 2019 at Rs 154.69 crore as compared to Rs 114.45 crore in the year ago quarter. Total income increased 31.1 per cent y-o-y in Q1 2019 to Rs 158.39 crore from Rs 120.83 crore in Q1 2018.

    It may be noted that ZMCL has sold its entire equity stake in Ez-Mall Online Ltd to a related party at an aggregate consideration of Rs. 8.60 crore. Accordingly, Ez-Mall Online Ltd ceased to be a subsidiary of ZMCL with effect from 30 June 2018 and gain on disposal of investments of approximately Rs 41.21 crore has been recognised during the quarter and shown as exceptional items.

    PAT in Q1 2019 was Rs 35.89 crore as compared to Rs 7.38 crore in Q1 2018. Even if one were to neglect the benefit of exceptional items the company’s consolidated profit before tax (PBT) came to a healthy Rs 21.49 crore during the quarter under review as compared to Rs 12.57 crore in Q1 2018. ZMCL reported operating EBITDA at Rs 35.88 crore in Q1 2019, which was 42.3 per cent more than the Rs 25.22 crore in Q1 2018.

    Also, during the quarter, ZMCL completed acquisition of balance 40 per cent equity stake in its subsidiary Zee Akaash News Private Ltd (ZANPL). Accordingly, ZANPL became a wholly owned subsidiary of the company with effect from 1 June, 2018 and figures for the current quarter are not comparable with previous periods presented in the consolidated financial results says the company.

    In its earnings release ZMCL reported 34.5 percent y-o-y growth in advertising revenue for Q 2019 at Rs 136.97 crore from Rs 101.87 crore. Subscription revenue increased 1 per cent y-o-y to Rs 11.1 crore in Q1 2019 from Rs 10.99 crore. Other sales and services quadrupled (increased by 3.16 times) in Q1 2019 to Rs 6.62 crore from Rs 1.59 core in the corresponding year ago quarter.

    Let us look at the other numbers reported by ZMCL

    ZMCL’s total expenditure in Q1 2019 increased 28.5 per cent y-o-y to Rs 134.93 crore from Rs 102.72 crore. Employee benefits expense in the quarter under review increased 18.4 per cent y-o-y to Rs 34.81 crore from Rs 29.40 crore in Q 2019. The company’s marketing promotion and distribution expenses in Q1 2019 increased 53.8 per cent to Rs 20.14 crore from Rs 13.9 crore in the year ago quarter.

    Advertising and publicity expenses in the year declined 1.4 per cent y-o-y to Rs 3.05 crore from Rs 3.09 crore. Operating costs in Q1 2019 increased 28.6 per cent to Rs 25.49 crore from Rs 19.83 crore. Other expenses in Q1 2019 increased 40.2 per cent to Rs 37.74 crore from Rs 26.95 crore in Q1 2018.

    Lower loss reported by Diligent Media Limited (DNA)

    In a separate filing with the bourses, Diligent Media Corporation Ltd (Diligent Media), which comprises of the divested print media business of ZMCL and the amalgamation of Mediavest and Pri-Media into itself, reported lower loss for Q1 2019 at Rs 14.52 crore as compared to Rs 44.49 crore for Q1 2018. The company’s revenue from operations increased marginally by 2.2 per cent y-o-y in Q 2019 to Rs 26.02 crore from Rs 25.45 crore in the year ago quarter. The company owns the broadsheet newspaper DNA (Daily News and Analysis)

  • Zeel reports higher numbers on improved ad, subs revenues

    Zeel reports higher numbers on improved ad, subs revenues

    BENGALURU: The Subhash Chandra-led Zee Entertainment Enterprises Ltd (Zeel) reported a 15 per cent year on year (y-o-y) growth in total revenue for the quarter ended 30 June 2018 (Q1 2019, period, or quarter under review) as compared to the corresponding year ago quarter (Q1 2018). The company’s advertisement revenue increased 18.6 per cent y-o-y in Q1 2019, while its subscription revenue increased 8.3 per cent y-o-y. Zeel’s total revenue in Q1 2019 was Rs 1,772 crore as compared to Rs 1,540.3 crore in the corresponding year ago quarter. Advertisement revenue during the quarter under review increased to Rs1,146 crore from Rs 966.5 crore in Q1 2018. Subscription revenue increased to Rs 518.6 crore in Q1 2019 from Rs 479.1 crore in Q1 2018. Other sales and services increased 13.4 per cent y-o-y in Q1 2019 to Rs 107.4 crore from Rs 94.7 crore in Q1 2018.

    Operating profit (EBITDA) during the period increased 16.8 per cent y-o-y to Rs 565.7 crore from Rs 484.4 crore in Q1 2018. Profit after tax (PAT) increased 31.4 per cent to Rs 326.4 crore in Q1 2019 rom Rs 248.4 crore in Q1 2018.

    International Business

    Zeel reported international business revenue in Q1 2019 of Rs 195.1 crore. International advertisement revenue grew 2.1 per cent y-o-y to Rs 59 crore. International subscription revenue in Q1 2019 was 6.6 per cent lower at Rs 93.4 crore. The company reported other sales and services revenue of Rs 42.7 crore from its international business.

    Company speak

    Zeel chairman Chandra said, “The year has commenced on a positive note, for both the company as well as the economy. Government initiatives to aid the farming sector, coupled with the normal monsoon for the third successive year is encouraging for the rural economic growth. The growth in consumption, now being driven by rural as well, bodes well for advertising spends. In addition, increasing availability and adoption of digital medium, across different sectors, will have a positive effect on the country’s growth trajectory.”

    Zeel managing director & CEO Punit Goenka said, “We are happy with the all-round performance of our portfolio during the first quarter of this fiscal. Our domestic advertising growth of 22 per cent was driven by higher ad spends across categories and increase in our network viewership share. Based on our discussions with the advertisers and the visibility on ad campaigns, we believe that the ad growth for the industry could be higher than the initial estimates for this financial year.”

    “On the subscription front, TRAI has notified that the new tariff order will come into effect starting January 2019. We have started discussions with our distribution partners for seamless transition to the new regime. If implemented as envisaged, the regulation would be beneficial for all the stakeholders and could be a catalyst for ARPU growth. Even under the new regime we will be able to grow our subscription revenue at a healthy pace,” added Goenka.

    “ZEE5, our digital OTT offering, is already amongst the top-5 digital entertainment platforms in India. We are confident that the pace of subscriber addition will further accelerate with the roll-out of original content and exclusive movie premieres. We are on track to be the largest producer of digital content in the country and are committed to make ZEE5 the #1 entertainment destination for digital consumers,” revealed Goenka.

    “Our domestic broadcast portfolio further increased its market share and continues to be the leading television entertainment network in the country. The increase in viewership share is across the markets with strong traction particularly in our regional channels. We believe that there is still room for monetising the increase in market share, which will allow us to grow ahead of the market,” assured Goenka.

    Let us look at the other numbers reported by Zeel

    Total expenditure during the period under review increased 14.3 per cent to Rs 1,206.4 crore in Q1 2019 from Rs 1,206.4 crore from Rs 1,055.9 crore in Q1 2019. Employee benefit expense increased 2.7 per cent y-o-y in Q1 2019 to Rs 171.38 crore from Rs 166.89 crore in Q1 2018. Operational cost in the quarter under review increased 14 per cent y-o-y to Rs 668.32 crore from Rs 586.34 crore in Q1 2018.

    Finance costs declined by 64 per cent y-o-y in Q1 2019 to Rs 5.29 crore from Rs 14.7 crore during the corresponding period of the previous year. Other expenses increased 26.9 per cent y-o-y in quarter under review to Rs 226.52 crore from Rs 178.57 crore in Q1 2018.

    The company incurred 60 per cent lower fair value loss on financial instruments at fair value through profit and loss for Q1 2019 at Rs 21.29 crore as compared to Rs 53.21 crore in Q1 2018.

  • Competition, provision for doubtful receivables paint Ortel’s bottom line red

    Competition, provision for doubtful receivables paint Ortel’s bottom line red

    BENGALURU: Higher competitive intensity in the market, delay in collections and issues pertaining to debt repayment are some of the reasons that Indian regional cable and broadband player Ortel Communications Ltd (Ortel) says that it has incurred a loss of Rs 95.28 crore for the year ended 31 March 2018 (FY 2018, year, fiscal under review).

    Ortel president and CEO Bibhu Prasad Rath said, “Our FY 2018 was very challenging for the company due to delay in collections, higher competitive intensity in the marketplace as well as issues pertaining to debt repayment. We have been working on all these parameters with an objective to improve our overall performance in the future. As intimated in the previous quarter, the management reviewed the details of receivables and took a firm step by creating provision of Rs 679.4 million (Rs 67.94 crore) against doubtful receivables. This amount is primarily on account of disruption of services during the process of digitisation and acquisition of local operators. This significantly impacted our P&L in FY 2018.”

    However, Rath is confident of a brighter 2019. He added, “We want to start afresh in FY2019 and restore our business momentum. We have also taken many steps for increasing the net growth of our broadband business. This will result in lesser churn and higher sales thereby increasing our subscriber base and broadband revenue.”

    Segment numbers

    Three segments contribute to Ortel’s revenue. They are cable TV; broadband; and infrastructure leasing. Revenues from both cable TV and broadband segments declined in FY 2018 as compared to FY 2017.

    Ortel’s cable TV segment’s revenue declined 5.1 per cent in fiscal 2018 to Rs 145.41 crore from Rs 153.19 crore. The segment reported an operating loss of Rs 15.54 crore in FY 2018 as compared to an operating profit of Rs 61.48 crore in FY 2017.

    Broadband segment’s revenue declined 35.5 per cent in FY 2018 to Rs 23.16 crore from Rs 35.91 crore in FY 2017. The segment’s operating profit declined to less than a sixth (declined 83.5 per cent) in FY 2018 to Rs 3.13 crore as compared to Rs 18.96 crore in the previous fiscal.

    Ortel’s infrastructure and leasing segment had operating revenue of Rs 11.72 crore in FY 2018 which was 5.6 per cent more than the Rs 11.10 crore in FY 2017. The segment’s operating profit declined 15.5 percent in FY 2018 to Rs 8.92 crore from R 10.55 crore in FY 2017.

    Let us look at the other numbers reported by Ortel

    Ortel operating revenue for the year under review declined 9.4 per cent in FY 2018 to Rs 184.04 crore as compared to Rs 203.21 crore in the previous year. Total income including other income for fiscal 2018 reduced 10.1 per cent to Rs 186.20 crore as compared to Rs 207.07 crore in the previous fiscal. The company incurred an operating loss (negative EBITDA including other income) of Rs 34.85 crore in FY 2018 as compared to a positive EBITDA including other income of Rs 53.88 crore in the previous fiscal. As mentioned above, net loss for the period under review was Rs 95.28 crore as compared to a profit after tax of Rs 0.50 crore in FY 2017.

    Ortel’s total expenditure in FY 2018 declined two per cent to Rs 202.63 crore from Rs 206.81 crore in fiscal 2017. Programming costs increased 17.7 per cent in FY 2018 to Rs 45.26 crore from Rs 38.45 crore in FY 2017. Bandwidth costs in the year under review increased 6.1 per cent to Rs 18.03 crore from Rs 16.99 crore. Finance costs in FY 2018 increased 9.7 per cent to Rs 29.19 crore from Rs 26.62 crore in FY 2017.

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