ITV

Category: Financials

  • TV Today board recommends 45% dividend; numbers up

    TV Today board recommends 45% dividend; numbers up

    BENGALURU: The board of directors of TV Today Network Ltd (TVTN) has recommended a dividend of Rs 2.25 (45 per cent) per equity share of face value of Rs 5 each for the financial year ended 31 March 2018 (FY 2018, year, fiscal under review). The company has reported 10.7 per cent growth in consolidated total revenue from operations including other revenue for fiscal 2018 as compared to the previous year. Consolidated profit after tax (PAT) grew 18.4 per cent in FY 2018 as compared to FY 2017. Consolidated EBITDA and EBITDA margin during the year under review also grew as compared to the previous year. TVTN is the television arm of the India Today group.

    TVTN’s consolidated total revenue including other income for FY 2018 was Rs 790.92 crore as compared to Rs 652.28 crore in the previous year. Consolidated revenue from operations (Op revenue) expanded 10.5 per cent in the fiscal under review to Rs 720.92 crore from Rs 652.28 crore in FY 2017. Consolidated PAT for FY 2018 grew to Rs118.94 crore from Rs 100.46 crore in the previous year. Consolidated simple EBITDA without other income for FY 2018 was up 16.3 per cent at Rs 283.92 crore (39.2 per cent of op revenue) as compared to Rs 244.20 crore (37.4 per cent of op revenue).

    Consolidated total expenditure in FY 2018 grew four per cent to Rs 548.48 crore as compared to Rs 527.49 crore in the previous year. Consolidated employee benefits expense during the year under review grew 12.2 per cent to Rs 202.46 crore from Rs 180.50 crore in fiscal 2017. Consolidated production costs declined 6.5 per cent in FY 2018 to Rs 76.31 crore from Rs 81.64 crore in the previous year. Consolidated other expenses increased 3.2 per cent in FY 2018 to Rs 231.74 crore from Rs 180.50 crore in the previous year.

    Four segments – TV broadcasting; radio; others; and newspaper publishing contribute to TVTN’s numbers, of which TV broadcasting is the major segment. The company reported TV broadcasting segment’s revenue growth of 7.7 percent in FY 2018 to Rs 606.80 crore from Rs 563.59 crore in the previous year. The segment had a 29.3 per cent higher operating profit in FY 2018 of Rs 202.63 crore as compared to Rs 156.75 crore in FY 2017.

    After migration of three of its radio stations to phase III, radio segment reported a 167.6 per cent revenue growth in FY 2018 to Rs 23.90 crore from Rs 8.93 crore in the previous year. The segment’s operating loss reduced to Rs 13.69 crore during the year under review as compared to an operating loss of Rs 17.51 crore in FY 2017.

    TVTN’s ‘Others’ segment revenue grew 36 per cent in FY 2018 to Rs 60.46 crore from Rs 44.45 crore in fiscal 2017. Operating profit of the segment more than doubled (up 106.9 per cent) in FY 2018 to Rs 4.80 crore from Rs 2.32 crore in the previous year.

    Newspaper publishing segment revenue declined 20 per cent in FY 2018 to Rs 30.46 crore from Rs 38.08 crore in FY 2018. The segment’s operating loss more than tripled (grew by 202.1 per cent) in FY 2018 to Rs 8.55 crore from an operating loss of Rs 2.83 crore in the previous fiscal.

  • Den Networks reports higher revenue, operating profit

    Den Networks reports higher revenue, operating profit

    BENGALURU: Indian multi system operator (MSO) Den Networks (Den) reported growth in revenue and operating profit (EBITDA) for the quarter ended 31 March 2018 (FY 2018, fiscal 2018, year under review) as compared to the previous year FY 2017. Den’s operating revenue for fiscal 2018 increased 11 per cent to Rs 1,285.10 crore from Rs 1,157.34 crore in FY 2017. Total consolidated revenue including other income grew 9.7 per cent in FY 2018 to Rs 1,314.98 crore from Rs 1,198.67 crore in FY 2017. Consolidated simple EBITDA including activation revenue during the year under revenue increased 41.7 per cent to Rs 324.52 crore (25.3 per cent of revenue from operations) from Rs 229.01 crore (19.8 per cent of revenue from operations).

    The company’s net consolidated loss for FY 2018 reduced to Rs17.11 crore, which was less than a tenth of the loss of Rs 187.76 crore in the previous year. Consolidated total comprehensive loss for the year declined to Rs 16.77 crore from Rs 187.24 crore in FY 2017.

    Segment revenue

    The company has two segments – cable distribution networks (cable); and broadband. Cable segment revenue increased 12.5 per cent in FY 2018 to Rs 1,209.75 crore from Rs 1,075.54 crore in FY 2017. Den reported that segment had an operating profit of Rs 61.63 crore as compared to an operating loss of Rs 60.98 crore in FY 2017.

    Den reported 7.9 per cent decline in operating revenue for its broadband segment in FY 2018 at Rs 73.75 crore as compared to Rs 81.80 crore in the previous year. The segment’s operating loss reduced to Rs 31.91 crore in FY 2018 from Rs 36.31 crore in FY 2017.

    Let us look at the other numbers reported by Den

    Consolidated total expenditure for the year was almost flat – it increased by 0.1 per cent in FY 2018 to Rs 1,321.43 crore (102.8 per cent of operating value) from Rs 1319.79 crore (114 per cent of operating value) in the previous year. The company has seen a rise in content cost in actual value as well as in terms of percentage of operating revenue over the past quarters and fiscal 2018. Consolidated content cost increased 14.1 per cent in FY 2018 to Rs 539.80 crore (42 per cent of operating revenue) as compared to Rs 473.28 crore (40.9 per cent of operating revenue) in the previous fiscal. Consolidated placement fees reduced 7.9 per cent in FY 2018 to Rs 46.21 crore (3.6 per cent of operating revenue) from Rs 50.20 crore (4.3 per cent of operating revenue).

    Consolidated employee benefits expense during the year under review declined 12.5 per cent to Rs 107.99 crore (8.4 per cent of operating value) from Rs 123.37 crore (10.7 per cent of operating value) in FY 2017. Consolidated other expenses in 2018 reduced 5.7 per cent to Rs 312.79 crore (24.3 per cent of operating value) in FY 2018 from Rs 331.68 crore (28.7 per cent of operating value) in the previous year.

    Also Read :

    Aim to take phase 3 ARPU to phase 1 value: Den Networks’ SN Sharma

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  • Siti Networks revenue, operating profit up in fiscal 2018

    Siti Networks revenue, operating profit up in fiscal 2018

    BENGALURU: Backed by higher subscription revenue and a 95 per cent collection efficiency, Indian multi-system operator (MSO) Siti Networks Ltd (Siti) posted 16.8 per cent higher consolidated total income for the year ended 31 March 2018 (FY 2018, year under review) as compared to the previous fiscal year FY 2017. Siticable has clarified that the revenue numbers for FY 2017 reflect gross billing that included LCO share to the extent of Rs 16-17 crore. Based on a figure of Rs 16 crore, Siticable’s consolidated total income for fiscal 2018 grew 18.4 percent as compared to the previous year.

    Siticable’s operating profit (simple EBITDA including activation revenue) for FY 2018 increased 52.1 per cent as compared to FY 2017. Total comprehensive loss (TCL) for the year was lower as compared to the previous year. It must be noted that all numbers mentioned in this report are consolidated unless stated otherwise.

    Siti’s consolidated total income in FY 2018 was Rs 1,426.37 crore as compared to Rs 1220.81 crore in FY 2017. Consolidated operating revenue in fiscal 2018 increased 18 per cent to Rs 1,410.40 crore from Rs 1,194.92 crore in FY 2017. Siti’s consolidated operating EBITDA (including activation revenue) during the year under review increased 52.1 per cent to Rs 308.55 crore (21.9 per cent of operating revenue) from Rs 202.81 crore (17 per cent of operating revenue) in FY 2017. The company reports that excluding activation revenue, operating EBITDA in FY 2018 grew 2.6 times to Rs 151 crore as compared to Rs 59 crore in the previous year. EBITDA including other income and activation fee in FY 2018 grew 41.9 per cent to Rs 324.52 crore (22.8 per cent of total income) from Rs 228.70 crore (18.7 per cent of total income) TCL including non-controlling interest during the year under review was lower at Rs 169.51 crore as compared to Rs 179.01 crore in FY 2017.

    Siti claims that it added industry leading 3.1 million (0.31 crore or 31 lakh) digital cable households in FY 2018 taking its active digital subscriber base to 11.5 million (1.15 crore or 115 lakh). Siti says in its earnings release that subscription revenue in FY 2018 increased 41 per cent y-o-y to Rs 800 crore and was the main driver for revenue growth.  

    Let us look at the other numbers reported by Siti

    Siti’s consolidated total expenditure (TE) increased 15.2 per cent in FY 2018 to Rs 1,567.56 crore from Rs 1,360.74 crore in fiscal 2017. Adjusting the Rs 16 crore payout to LCOs in FY 2017, TE in FY 2018 increased 16.6 per cent as compared to FY 2017. Carriage sharing, pay channels and related costs are the highest expense head for the company. Carriage sharing, pay channels and related costs in FY 2018 increased 6.8 per cent to Rs 637.90 crore from Rs 597.13 crore in FY 2017. Employee benefit expense during the year under review increased 8.6 per cent to Rs 90.49 crore from Rs 83.29 crore in the previous year. Other expense in fiscal 2018 increased 25.3 per cent to Rs 370.13 crore from Rs 295.47 crore in FY 2017.

    Company speak

    While commenting on the results, Siti chief business transformation officer, Rajesh Sethi said, “We at Siti are proud of our performance for this past year as we enter FY 2019 with significant momentum. In FY 2018 we have achieved strong operational and financial results while also delivering superlative customer experience and must-see content to our approximately 55 million strong consumer base across the country. Our continued focus on customer experience drove exceptional EBITDA growth (2.6x) coupled with industry leading subscriber additions (3.1 million, 0.31 crore, 31 lakh).”

    “We continue to maintain our steady increase in customer additions, driving efficiencies through war on waste, balanced with solid EBITDA growth and expanding margins. We continue to transform into a process driven organisation with customer experience at its heart. As we achieve more from less, our year-over-year growth rates of revenue and EBITDA continue to accelerate, which is a testament of our transformation efforts across SITI,” added Sethi.

  • Film business boosts TV18 revenue

    Film business boosts TV18 revenue

    BENGALURU: Indian news, entertainment and film company TV18 Broadcast Ltd (TV18) reported triple the revenue from its film business for the year ended 31 March 2018 (FY 2017-18, the year under review) as compared with the previous fiscal. Consequently, the company’s consolidated operating revenue increased by 70 per cent in FY 2017-18 as against FY 2016-017. TV18’s operating revenue, including GST for the year under review, was Rs 1,665 crore vis-a-vis Rs 979 crore. It may be noted that GST was not applicable in FY 2016-17. Revenue for the film business for the year under review was Rs 450 crore as compared with Rs 150 crore in the previous year. The numbers have been rounded off to the nearest Rs crore.

    The company has turned the corner only recently. Profit after tax increased by 33 per cent to Rs 8 crore in FY 2017-18 in comparison with Rs 6 crore in the year before. The company reported total comprehensive income of Rs 9 crore for FY 2017-18 as against loss of Rs 2 crore in the previous year. Operating profit increased by 87.1 per cent to Rs 58 crore during the year under review as compared with Rs 31 crore in FY 2016-17.

    Network18 chairman Adil Zainulbhai said, “We continue to invest into filling whitespaces, and creating the most compelling bouquet for the Indian consumer. This complements the strong performance of our flagships.”

    Based on its current structure of ownership, TV18 has restated its consolidated numbers. Consolidated restated revenue increased by 16 per cent in FY 2017-18 to Rs 4,813 crore from Rs 4,142 crore. Consolidated operating EBIDTA in FY 2017-18 increased by 41 per cent to Rs 240 crore from Rs 170 crore in FY 2016-17.

    Majority of TV18’s income comes from its entertainment business, which comprises Viacom18 and Indiacast. The company says in its earnings press release that entertainment income grew by 10 per cent in FY 2017-18 to Rs 3,781 crore from Rs 3,160 crore. Operating EBIDTA of the entertainment business increased by 43 per cent in FY 2017-18 to Rs 198 crore from Rs 139 crore in FY 2016-17.

    TV18’s standalone business comprises business and general news. Standalone income increased by 10 per cent during FY 2017-18 to Rs 735 crore from Rs 667 crore. Standalone operating EBIDTA declined by 29 per cent in FY 2017-18 to Rs 157 crore from Rs 122 crore in the previous year.

    Regional news (ex-IBN Lokmat) and infotainment revenue decreased by 8 per cent to Rs 297 crore in FY 2017-18 from Rs 316 crore in FY 2016-17. Regional News (ex-IBN Lokmat) and infotainment operating EBIDTA loss was higher at Rs 115 crore in FY 2017-18 as against loss of Rs 91 crore in the previous year.

    Restated fourth quarter numbers

    The company said in its earnings press release that restated consolidated operating revenue grew by 41 per cent in the quarter ended 31 March 2018 (Q4 2017-18, the quarter under review) to Rs 1,540 crore from Rs 1,092 crore. Consolidated operating EBIDTA grew by 41 per cent to Rs 61 crore from Rs 44 crore.

    Entertainment income grew by 51 per cent in Q4 2017-18 to Rs 1,228 crore from Rs 812 crore. Operating EBIDTA of the entertainment business more than doubled (increased by 120 per cent) in Q4 2017-18 to Rs 38 crore from Rs 17 crore in Q4 2016-17.

    TV18’s standalone business consists of business and general news. Standalone income increased by 12 per cent during the quarter under review to Rs 228 crore from Rs 203 crore. Standalone operating EBIDTA declined to 20 per cent in Q4 2017-18 to Rs 50 crore from Rs 63 crore in the corresponding previous year’s quarter.

    Regional news (ex-IBN Lokmat) and infotaiment revenue grew by 8 per cent to Rs 84 crore in Q4 2017-18 from Rs 77 crore in Q4 2016-17. Regional news (ex-IBN Lokmat) and infotainment operating EBIDTA loss was lower at Rs 26 crore in Q4 2017-18 as against loss of Rs 36 crore in the corresponding quarter of the previous year.

    Network18 Media and Investments Ltd results

    TV18 is a subsidiary of Network18 Media and Investments Ltd (Network 18). TV18 has taken operational control and has increased its stake in Viacom18 to 51 per cent by acquiring 1 per cent from its joint venture partner Viacom Inc. Besides TV18, Network18’s digital and print business adds to its numbers.

    Network18 reported 16 per cent growth in its consolidated operating revenue to Rs 5,027 crore in FY 2017-18 from Rs 4,333 crore in FY 2016-17. Consolidated operating EBIDTA increased by 42 per cent to Rs 187 crore in FY 2017-18 from Rs 132 crore in FY 2016-17.

    TV18 numbers have been mentioned above. Network18’s digital and print business operating revenue increased by 12 per cent to Rs 213 crore from Rs 191 crore. Digital and print business operating EBIDTA rose by 193 per cent to Rs 31 crore from Rs 10 crore.

    Zainulbhai said about Network18, “We are continuing our investments in digital and regional content and seeing growth in most segments of our business.”

    Also Read:

    TV18 to increase Viacom18 stake to 51%

    TV18 completes acquisition of Viacom shares

  • Viacom reports lower revenue for Q1 2018

    Viacom reports lower revenue for Q1 2018

    BENGALURU: American multinational media conglomerate with interests primarily in cinema and cable television, Viacom Inc (Viacom) reported lower numbers for the quarter ended 31 December 2017 (Q1 2018, quarter under review) as compared to the corresponding year ago quarter Q1 2017 (y-o-y). The company reported 7.6 percent y-o-y decline in revenue for Q1 2018 at $3,073 million from $3,324 million. Two segments are revenue heads for the company – Media Networks; and Filmed Entertainment.

    The drop in revenue reflected declines in both segments says the company in its earnings release. Operating income increased 1.6 per cent y-o-y to $717 million from $706 million, primarily reflecting lower total expenses including the impact of a $42 million restructuring charge recognised in the prior year quarter. Net earnings from continuing operations attributable to Viacom grew 35 per cent, or $139 million, to $535 million, principally due to the enactment of tax reform. Diluted earnings per share for the quarter increased $0.33 to $1.33, and adjusted diluted earnings per share decreased $0.01 to $1.03.

    Media Networks

    Media Networks revenues decreased 1.1 per cent to $2,560 million in the quarter, as a 1 per cent increase in advertising revenues to $1,308 million was more than offset by a 4 per cent y-o-y decrease in affiliate revenues to $1,094 million. Domestic revenues declined 6 per cent to $1.93 billion while international revenues grew 18 per cent to $631 million. Excluding a 5-percentage point favourable impact from foreign exchange, international revenues increased 13 per cent in the quarter, primarily driven by a 6-percentage point favourable impact from the acquisition of Telefe, as well as growth in Europe.

    Domestic advertising revenues decreased 5 per cent to $937 million, reflecting lower linear impressions partially offset by higher pricing, as well as growth in digital advertising revenue. International advertising revenues increased 22 per cent to $371 million. Excluding a 5-percentage point favourable impact from foreign exchange, international advertising revenues increased 17 per cent, principally due to a 10-percentage point favourable impact from the acquisition of Telefe, as well as growth in Europe.

    Domestic affiliate revenues decreased 8 per cent to $907 million, primarily due to subscriber declines and lower SVOD revenues, partially offset by rate increases. International affiliate revenues grew 18 per cent to $187 million in the quarter.

    Excluding a 5-percentage point favourable impact from foreign exchange, international affiliate revenues grew 13 per cent driven by organic growth, as well as a 2-percentage point favourable impact from the acquisition of Telefe.

    Ancillary revenues grew 5 per cent to $158 million in the quarter, including a 2-percentage point favourable impact from foreign exchange. Domestic ancillary revenues increased 8 per cent to $85 million and international ancillary revenues increased 1 per cent to $73 million.

    Adjusted operating income for Media Networks decreased 7 per cent to $913 million in the quarter, principally due to an increase in segment expenses and lower revenues

    Filmed Entertainment

    Filmed Entertainment revenues decreased 28 per cent to $544 million in the quarter, with domestic revenues down 42 per cent to $270 million, and international revenues down 6 per cent to $274 million. Theatrical revenues declined 48 per cent to $100 million due to the number and mix of current quarter releases. Domestic and international theatrical revenues decreased 49 per cent and 46 per cent, respectively.

    Licencing revenues decreased 13 per cent to $213 million in the quarter. Domestic licensing revenues decreased 36 per cent while international licencing revenues grew 8 per cent, primarily driven by the mix of titles available in each market.

    Home entertainment revenues were down 25 per cent to $183 million, principally due to the comparison against the release of Star Trek Beyond in the prior year quarter. Domestic home entertainment revenues decreased 38 per cent while international revenues increased 1 per cent. Ancillary revenues decreased 38 per cent to $48 million, with domestic ancillary revenues down 49 per cent and international ancillary revenues up 27 per cent.

    Filmed Entertainment reported an adjusted operating loss of $130 million in the quarter compared to $180 million in the prior year quarter, an improvement of $50 million that primarily reflects lower operating expenses.

    Company speak

    Viacom President and CEO Bob Bakish said, “In the quarter, Viacom aggressively drove progress on our strategic plan, delivering improvements in our business and positioning the company for the future. Viacom’s most watched portfolio of domestic cable brands grew viewership share in the quarter, led by our powerful flagship networks, which now includes Paramount Network – the biggest and most ambitious network rebrand in our history. Internationally, we continue to deliver double-digit top-line and bottom-line Media Networks gains while launching innovative new partnerships in growth territories around the world.

    Adding further, Bakish said, “Viacom has also made considerable progress in its push to accelerate consumption and monetisation on next-generation platforms, achieving substantial growth in worldwide digital advertising revenues, expanding distribution on fast-growing virtual MVPD and mobile services, and ramping up resources and talent at Viacom Digital Studios. Additionally, since the end of the quarter, we continued to expand our digital capabilities with the acquisition of influence marketer WHOSAY and the world’s premier online video event, VidCon. In addition, our strategy to further diversify our core properties offscreen through live events, hospitality and consumer products continues to progress, with the much anticipated Broadway premiere of the SpongeBob SquarePants musical in the quarter, along with new initiatives across our portfolio.

    “We remain deeply committed to maintaining strong financial discipline and delivering returns for our shareholders. In the quarter, Viacom continued to improve its leverage profile and we are on track to achieve $100 million in new cost savings in the current fiscal year, and hundreds of millions more in 2019,” concluded Bakish.

    Also Read:

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    Sudhanshu Vats on Viacom18’s growth strategy and why data analytics is key

    Viacom Inc misses EPS forecast but revenue beats expectations

  • Sluggish rural consumption, distribution expenses pull down Dish TV’s Q3 numbers

    Sluggish rural consumption, distribution expenses pull down Dish TV’s Q3 numbers

    BENGALURU: A recovered but not fully-up-to-speed rural sector and higher selling and distribution expenses during festival time led to Indian direct-to-home (DTH) major Dish TV India Ltd (Dish TV) reporting lower numbers for the quarter ended 31 December 2017 (Q3 2018, the quarter under review) as compared with the corresponding year ago quarter (yoy). Though the company added net 250,000 subscribers during the quarter, lower ARPU brought down Dish TV’s operating revenue and EBITDA by 1 per cent and 15.5 per cent, respectively, yoy. The company reported a net subscriber base of 1.61 crore at the end of Q3 2018. ARPU of Rs 144 in Q3 2018 was the lowest in the current fiscal as against Rs 148 in Q2 2018 and Rs 149 in Q1 2018. Dish TV’s ARPU before demonetisation in November 2016 was Rs 162. The company has reported net loss after taxes of Rs 3.58 crore in Q3 2018 as against profit of Rs 8.39 crore in Q3 2017.

    Dish TV CMD Jawahar Goel said, “One year down the line from demonetisation, we have come a long way but somehow the sting in rural consumption is still missing. This was probably well recognised by the government and hence the impetus towards a stronger rural India. Television continues to remain the cheapest and most wholesome means of entertainment for the masses. DTH has presence in places where few other television service providers have reached. Dish TV, amongst such DTH players, has perhaps the deepest rural connect and hopes to benefit from rural India’s increasing propensity to consume everything including television content.”

    In its investor release for Q3 2018, Dish TV said that the pending Dish TV–Videocon d2h merger had hit a roadblock as the company was forced to evaluate the impact of certain proposed proceedings, against the Videocon group, on its rights and obligations under the definitive agreements, and consequential effects on the transactions contemplated thereunder.

    Dish TV, on 15 December, had secured the Ministry of Information and Broadcasting’s approval to the request made by the company for closing the merger of Videocon d2h with and into Dish TV.

    Talking about the merger, Goel said, “We acknowledge our shareholders growing impatience with respect to the merger. We would like to assure them that work around the completion of the deal is going ahead with full steam now and should be completed soon.”

    “We are excited about the future of the merged entity and are raring to put the business in overdrive as soon as the merger completes. Though we have lost some time in FY18, we would want to regain our leadership as well as extract the highest possible synergies in the year ahead,” he explained.

    A look at the numbers

    Dish TV reported a 1 per cent yoy decline in operating revenue for the quarter under review at Rs 740.77 crore as against Rs 747.98 crore. EBITDA for Q3 2018 was 15.5 per cent y-o-y at Rs 200.52 crore (27.1 percent margin) as compared with Rs 237.42 crore (31.7 percent margin).

    Total expenditure for Q3 2018 increased by 4.3 per cent y-o-y to Rs 775.12 crore. Employee benefits expense declined 1.5 per cent y-o-y to Rs 35.80 crore. Operating expenses in Q3 2018 increased by 6.2 per cent yoy to Rs 374.08 crore. Other expenses during the quarter under review increased by 8 per cent to Rs 127.84 crore yoy. Finance costs in Q3 2018 reduced by 18.4 per cent yoy to Rs 50.16 crore.

    Also Read :

    MIB clears path for Dish TV Videocon

    Dish TV reports improved operating profits for second quarter

     

  • RCom’s 3rd quarter numbers improve on Big TV, consumer business exit

    RCom’s 3rd quarter numbers improve on Big TV, consumer business exit

    BENGALURU: Anil Dhirubhai Ambani-led Reliance Communications Ltd (RCom) reported 95 percent lower loss for the third quarter ended 31 December 2017 (Q3 2018, the quarter under review) as compared with the immediate trailing quarter (Q2 2018). The company reported loss of Rs 130 crore in Q3 2018 as against a loss of Rs 2,712 crore in Q2 2018. It had reported loss of Rs 531 crore in Q3 2017.

    After the planned exit from its consumer business that included wireless, direct-to-home (DTH – Reliance Big TV) and PCO, RCom is left with the B2B business. RCom’s B2B business comprises global and Indian enterprises, internet data centres (IDC), a global submarine cable network and international long-distance voice.

    The company said in its media release that it had 40,000 B2B global and Indian customers. It reported a 2.1 percent quarter-on-quarter (qoq) revenue increase for its B2B business at Rs 1,176 crore for the quarter under review. Year on year, revenue in Q3 2018 declined by 30.7 percent from Rs 1698 crore.

    EBIDTA for the B2B business increased by 5.9 percent qoq to Rs 252 crore. Net profit after tax (PAT) increased by 28.6 percent q-o-q to Rs 27 crore from Rs 21 crore and was 68.8 percent higher y-o-y that Rs 16 crore.

    Revenue from Indian operations declined both qoq and yoy in Q3 2018 by 7.6 percent and 42.9 percent, respectively, to Rs 596 crore. The company had reported revenue from India operations of Rs 645 crore for Q2 2018 and Rs 1,043 crore for Q2 2017. RCom’s Indian operations’ operating profit reduced by 7.7 percent qoq to Rs 60 crore in Q3 2018 from Rs 65 crore but increased yoy from Rs 40 crore.

    Global operations revenue grew by 4.1 percent qoq in Q3 2018 to Rs 709 crore from Rs 681 crore but reduced by 37.4 percent yoy from Rs 1,132 crore. RCom reported operating profit of Rs 20 crore from its global operations in Q3 2018 as against loss of Rs 3 crore in the immediate trailing quarter but 44.4 percent lower yoy than the Rs 36 crore reported for Q3 2017.   

    RCom chairman Anil Ambani said, “RCom’s planned exit from the consumer business has achieved more than the desired results. RCom has reduced its net loss by over 95 percent. RCom expects to deliver even better financial performance in the coming quarters.”

    Also Read :

    Reliance Jio acquires RCom’s wireless infra assets

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  • Zeel numbers up on higher ad revenue in third quarter

    Zeel numbers up on higher ad revenue in third quarter

    BENGALURU: Subhash Chandra-led Zee Entertainment Enterprises Ltd (Zeel) today reported an 11.5 per cent and 28.3 percent increase in consolidated total revenue and profit after tax (PAT), respectively, for the quarter ended 31 December 2017 (Q3-18) as compared with the corresponding quarter of the previous year (year-on-year [y-o-y]). Zeel’s consolidated operating revenue, which comprises advertisement, subscription and other sales and services revenue, rose by 12.1 percent y-o-y in Q3-18.

    Zeel reported consolidated total revenue of Rs 1,886.11 crore for Q3-18 as against Rs 1,691.58 crore a year ago. PAT for the quarter under review was Rs 321.72 crore vis-a-vis Rs 250.80 crore for the corresponding year ago quarter. Consolidated operating revenue was Rs 1,838.07 crore up from Rs 1,639.12 crore in Q3-17.

    Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for Q3-18 increased by 15.2 percent y-o-y to Rs 594.42 crore (31.5 percent margin) from Rs 515.79 crore (30.5 percent margin). Adjusted EBITDA includes cost of fair value loss on financial instruments at fair value through profit and loss (net) of Rs 41.92 crore in Q3-18 and of Rs 71.35 crore in Q3-17.

    Operating revenue break-up

    Ad revenue in the quarter under review increased by 25.8 percent y-o-y to Rs 1,202.02 crore as compared with Rs 955.45 crore. Zeel said in its earnings release that adjusted for the sale of its sports business, domestic advertising grew by 30.4 percent to Rs 1,137.3 crore. Subscription revenue declined by 15.5 percent y-o-y to Rs 501.69 crore from Rs 593.46 crore. Adjusted for the sale of the sports business, domestic subscription revenue grew by 7.5 percent to Rs 403.6 crore. International subscription revenue stood at Rs 98.1 crore. Other sales and services revenue swelled by 48.1 percent to Rs 134.36 crore.

    Other income decreased by 8.1 percent y-o-y to Rs 48.04 crore in the quarter under review from Rs 52.46 crore.

    Company speak

    Zeel chairman Chandra said, “It is very heartening to see the rebound in the economy after four quarters. The initiatives taken by the government had some short-term impact on the growth but these measures will strengthen the economy in the long run. The Indian M&E sector will be a beneficiary of this growth story as people spend more time and money on consuming entertainment content. ZEEL, with its strong portfolio of entertainment offerings, is well positioned to capitalise on this opportunity.”

    Zeel managing director and CEO Punit Goenka said, “We are delighted to deliver a strong operating performance during the quarter. The slower growth in the last four quarters was due to specific events that required advertisers to recalibrate spends. As the impact of these factors is now behind us, ad spends have bounced back strongly and the outlook remains encouraging. The recent cut in GST rates across a wide category of products should aid the growth. Our domestic ad revenue growth of 26 percent is a testimony to the fact that television continues to remain the most effective medium for brand building. With a dominant time share along with an increasing reach, television will remain an important medium for advertisers in the foreseeable future. On top of this, digital platforms are driving incremental video consumption which represents another growth opportunity for content monetisation. Our new digital platform, Zee5, scheduled to be launched in February, will enable us to capture this growth.

    “The domestic subscription growth for the quarter was at 7.5 percent. The growth so far has been lower than what we had last year as the content deals with our distribution partners are taking slightly longer to conclude due to litigations regarding the TRAI tariff regulation. Last year we had closed majority of these deals in the second and third quarter. However, this does not have any significant impact on our full year outlook for subscription growth.”

    In a tweet today, Goenka had this to say:

    Let us look at the other numbers reported by Zeel

    Zeel’s total expenditure increased by 8.9 percent y-o-y in the quarter under review to Rs 1,338.38 crore from Rs 1,228.60 crore. Operating costs reduced by 4.3 percent y-o-y to Rs 672.98 crore from Rs 703.50 crore. Employee benefits expense in Q3-18 increased 8.2 percent y-o-y to Rs 153.54 crore from Rs 141.88 crore. Advertising and publicity expenses increased by 71.2 percent y-o-y to Rs 179.62 crore from Rs 104.90 crore. Other expenses increased by 37.2 percent to Rs 237.51 crore from Rs 173.05 crore.

    Also Read:

    Zeel ad revenue & profit up in Q2 despite GST impact

    ZEEL reports steady Q1 FY2018 results

    Launch of ZEEL’s lifestyle channels round the corner

  • Subscription revenue drives up Den’s PAT

    Subscription revenue drives up Den’s PAT

    MUMBAI: Multi-system operator (MSO) Den Networks’ financial results for Q3 2018 show consolidated revenue of Rs 330 crore as against Rs 293 crores in the corresponding quarter a year ago, up by 12 per cent. In Q2 2018, consolidated revenue stood at Rs 328 crore.

    Consolidated Q3 EBITDA (earnings before interests, taxes, depreciation and amortisation) stood at Rs 81 crore, 54 per cent higher than the Rs 53 crore reported a year ago but lower than the Rs 82 crore reported in the previous quarter. This EBITDA does not include the Rs 14 crore pertaining to entities that are not getting consolidated as per INDAS or else the overall consolidated EBITDA is Rs 95 crore.

    The MSO has been able to get higher subscriptions from phase III and IV markets with revenue growth from cable subscription 21 per cent higher than Q3 2017 and 6 per cent higher than Q2 2018. This was aided by 10 per cent higher average revenue per user (ARPU) collection from phase III areas on a quarter-on-quarter basis.

    Cable revenue stood at Rs 312 crore versus Rs 272 crore in the year ago quarter, up by 15 per cent. Cable EBITDA was Rs 82 crore, up from Rs 53 crore from Q3 2017, led by subscription growth and rationalisation of costs.

    Subscription revenue drove up consolidated PAT to Rs 2 crore from negative Rs 37 crore in Q3 FY2017 and Rs 1 crore in Q2 2018.

    The company stated that its broadband business was on track and that it managed to add 10,000 new subscribers during the quarter. Wired internet services will be rolled out to 10 new towns as part of its expansion. Cost optimisation initiatives have helped the broadband segment to break even which was negative Rs 1 crore in the previous quarter.

    Den Networks CEO SN Sharma said, “Den has been able to improve operational performance consistently every quarter with constant focus on increasing the subscription collections on the ground with a much controlled cost base. It is a time of pride and joy as we announce that as per the Trust Research Advisory research, Den has outshone all its competing brands and has emerged as the ‘Most attractive brand of 2017’ in the cable TV segment.”

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  • Network 18 PAT at Rs 114 million

    Network 18 PAT at Rs 114 million

    MUMBAI: Network18 Media & Investments (Network18) reported a marked improvement in its numbers for the quarter ended 31 December 2017. The consolidated revenue (net of revenue from joint ventures and associates) for the company declined marginally by 1.8 per cent year-on-year (yoy) to Rs 3660 million.

    With lower distribution and business promotion expenses, the company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 77 million as against EBITDA loss of Rs 130 million in Q3FY18. Though other income grew significantly, the decline in EBITDA and higher tax outgo weighed down PAT. The company reported PAT of Rs 114 million against loss of Rs 778 million in the same quarter last year. 

    Network18 posted consolidated revenue of Rs 9690 million (including a proportionate share of JVs) in Q3 FY18, a 7 per cent yoy growth. The revival in growth in the broadcasting business was partially offset by a pullback in the TV shopping business.

    Media operations revenue (including a proportionate share of JVs) grew by 7.6 per cent yoy to Rs 9595 million. Revenue from film production segment declined by 18.0 per cent yoy to Rs 153 million.

    Led by cost control in TV shopping, margins of the broadcasting segment improved, thereby leading to a reduction in EBIT loss for the media operations segment to Rs317 million against EBIT loss of Rs778 million in Q3FY17. 

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