ITV

Category: Financials

  • Zee Media reports higher ad revenue for second quarter

    Zee Media reports higher ad revenue for second quarter

    BENGALURU: The Essel group’s news arm – Zee Media Corporation Limited (ZMCL) reported higher revenue, but lower profit after tax for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter. ZMCL’s revenue from continuing operations increased 23.9 percent y-o-y in the current quarter to Rs 1,268.24 million from Rs 1,005.67 million in Q2-17.

    EBIDTA for the current quarter declined marginally by 2.9 percent y-o-y in Q2-18 to Rs 213 million from Rs 219.4 million. Profit after tax (PAT) from continuing operations for Q2-18 declined by about two and a half times (declined 60.6 percent) y-o-y to Rs 37.92 million from Rs 96.17 million. However, for Q2-17, the company had reported a consolidated loss for Q2-17. When loss from discontinued operations and tax credits were included – ZMCL’s loss in Q2-17 was Rs 169.44 million. It may be noted that print media operations are ZMCL’s discontinued operations.

    ZMCL’s advertising revenue for Q2-18 increased 31.2 percent y-o-y to Rs 1,111 million from Rs 847.1 million. Subscription revenue however declined 16.8 percent y-o-y in the current quarter to Rs 117.3 million from Rs 140.9 million. Other sales and services revenue was almost flat (grew by 0.7 percent) in the current quarter to Rs 17.7 million.

    ZMCL’s total expenditure in Q2-18 increased 31.4 percent y-o-y to Rs 1,032.9 million from Rs 786.3 million on higher marketing, distribution and business promotion expenses (distribution) and employee benefits expenses.

    ZMCL’s employee benefits expense in the current quarter increased 46 percent y-o-y to Rs 331.7 million from Rs 226.7 million in Q2-17. The company’s distribution expenses in Q2-18 increased 84 percent y-o-y to Rs 155.9 million from Rs 84.6 million.

    Advertising and publicity expenses in the current quarter increased 9 percent y-o-y to Rs 55.2 million from Rs 50.4 million. Operating costs in Q2-18 increased 17 percent y-o-y to Rs 216.9 million from Rs 184.9 million. Other expenses in the current quarter increased 14 percent to Rs 273.2 million from Rs 239.6 million.

    EZ-Mall Online Limited

    EZ-Mall Online Limited, a wholly owned subsidiary of ZMCL, commenced its business operations by launching an ecommerce website. During the quarter under review, the company says that it has invested approximately Rs 40 million in EZ-Mall. ZMCL has reported revenue of Rs 0.88 million from this segment and an operating loss of Rs 54.32 million for Q2-18.

  • Inox reports increase in revenue, profits for second quarter

    Inox reports increase in revenue, profits for second quarter

    BENGALURU: Indian cinema chain Inox Leisure Limited (Inox) has reported improved revenue and net profit after tax (PAT) for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding quarter of the previous year (Q2-17, year ago quarter). Inox revenue from operations for Q2-18 increased 4.7 percent to Rs 3,112.6 million from Rs 2,973.8 million for Q2-17 (y-o-y). Profit after tax for the current period increased more than sevenfold (7.49 times) y-o-y to Rs 116.8 millon from Rs 15.6 million.

    Total income increased 4.9 percent y-o-y in Q2-18 to Rs 3,141.5 million from Rs 2,995.1 million. Operating profit (EBIDTA) for the current quarter increased 63.4 percent y-o-y to Rs 444.2 million from Rs 271.9 million.

    Inox says in its investor presentation that net box office collection (NBOC) increased in the current quarter to Rs 1,856 million from Rs 1,794 million. Advertisement revenue increased to Rs 321 million from Rs 23.8 million. Other operating revenues increased to Rs 264 million from Rs 240 million. Net food and beverages (F&B) revenue in the current quarter reduced to Rs 671 million from Rs 702 million in Q2-17.

    Though overall footfalls in Q2-18 increased to 12.75 million from 12.7 million in Q2-17, occupancy declined by 1 percent to 25 percent in Q2-18 from 26 percent in Q2-17. Overall average ticket price increased to Rs 186 in the current quarter from Rs 183 in the corresponding year ago quarter.

    The company says that the top five grossing movies in Q2-18 were Toilet-Ek Prem Katha (1.244 million footfalls, Gross Box Office Collection or GBOC of Rs 247.5 million; Spiderman Homecoming (0.623 million footfalls, GBOC Rs 131.1 million; Jab Harry Met Sejal (0.539 million footfall, GBOC Rs 119.6 million); Jagga Jasoos (0.605 million footfalls, GBOC Rs 113.9 million) and Mubarakan (0.561 million footfalls, GBOC Rs 103.3 million).

    Let us look at the other numbers reported by the company

    Total expenditure declined 13.1 percent y-o-y to Rs 2,963.1 million in Q2-18 from Rs 2,968 million. Exhibition costs increased 2.1 percent y-o-y in the current quarter to Rs 884.6 million from Rs 866.3 million. F&B costs declined 8.5 percent y-o-y to Rs 167.6 million y-o-y from Rs 183.1 million. Employee benefits expense increased 6.8 percent y-o-y to Rs 233 million from Rs 218.1 million. Finance costs in the current quarter increased 25.3 percent y-o-y to Rs 73.2 million from Rs 58.4 million. Other expenses reduced 3.6 percent y-o-y to Rs 1,383.2 million in Q2-18 from Rs 1,434.4 million.

  • PVR reports lower numbers for second quarter

    PVR reports lower numbers for second quarter

    BENGALURU: Indian entertainment and exhibition company PVR Limited (PVR) reported a slight decline in total revenue for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter (y-o-y). Operating profit (EBIDTA), net profit after tax (PAT) and total comprehensible income attributable to equity shareholders (TCI) of the parent company for current quarter were also lower as compared to Q2-17.

    PVR’s operating revenue declined 1.1 percent y-o-y in the current quarter to Rs 5,553.6 million from Rs 5,613 million. Total Income (TI) in Q2-18 declined 3.3 percent y-o-y to Rs 5,595.2 million from Rs 5,613 million. EBIDTA including other income for Q2-18 declined 18 percent y-o-y to Rs 946.7 million (16.9 percent of TI) from Rs 1,154.6 million (19.9 percent of TI). PAT for the current quarter declined 13.6 percent y-o-y to Rs 251.7 million (4.5 percent of TI) from Rs 291.3 million (5 percent of TI). TCI declined in Q2-18 by 14.4 percent y-o-y to Rs 246.5 million (4.4 percent of TI) from Rs 288.1 million (5 percent of TI).

    PVR reports revenue from two segments – movie exhibition and others. The movie exhibition segment saw a 3 percent y-o-y increase in operating revenue to Rs 5,321.9 million from Rs 5,164.6 million. The segment had 4.4 percent y-o-y decline in operating results at Rs 381.7 million from Rs 399.4 million. Others segment revenue saw 42.3 percent y-o-y to Rs 331.8 million from Rs 575.2 million. Others segment had an operating loss of Rs 8.9 million as compared to an operating profit of Rs 40.5 million as compared to the corresponding year ago quarter.

    PVR’s total expenditure for the current quarter was almost flat (up by 0.6 percent) y-o-y at Rs 5,202.3 million from Rs 5,173 million. Finance cost was up 6.9 percent y-o-y to Rs 207.1 million in Q2-18 from Rs 193.7 million.

    Movie exhibition cost in Q2-18 increased 16.4 percent y-o-y to Rs 1,334.5 million from Rs 1,146.4 million. Cost of food and beverages in the current quarter increased 8 percent y-o-y to Rs 384.7 million from Rs 356.5 million.

    Employee benefits expense in Q2-18 increased 7.8 percent y-o-y to Rs 586.6 million from Rs 544 million. Rent expenses in the current quarter were almost flat (declined 0.2 percent) y-o-y to Rs 971.6 million from Rs 973.4 million. Other expenses in Q2-18 declined 15 percent y-o-y to Rs 1,371.1 million from Rs 1,613.6 million.

  • Time Warner numbers up for third quarter

    Time Warner numbers up for third quarter

    BENGALURU: Time Warner Inc., (Time Warner) reported increase in revenues and income – both operating as well as adjusted – due to increase across these parameters by all its segments – Turner, Home Box Office (HBO) and Warner Bros. The company’s total revenue increased 6 percent for the quarter ended 30 September 2017 (Q3-17, current quarter) to $7,595 million from $7,167 million for the corresponding year ago quarter (y-o-y). Total operating income increased 11.5 percent y-o-y in the current quarter to $2,245 million from $2,014 million. Total adjusted operating income increased 13 percent y-o-y to $2,339 million from $2,070 million. It may be noted that the company continues to expect its pending merger with AT&T to close before yearend 2017.

    Time Warner chairman and CEO Jeff Bewkes said, “We delivered very strong third-quarter results, keeping us on track to achieve our objectives for 2017. Both Turner and Home Box Office achieved double-digit gains in Subscription revenues, including HBO’s highest quarterly growth in 13 years, while Warner Bros. had a terrific quarter in theatrical, which all contributed to us increasing Operating Income by 11 percent and Adjusted Operating Income by 13 percent. Warner Bros.’ latest blockbuster, It, followed other box office successes, including Annabelle: Creation, Dunkirk and Wonder Woman, which have earned Warner Bros. the #1 spot at the domestic box office so far this year. Turner boasted the #1 comedy across all television among adults 18-34 with Adult Swim’s Rick and Morty and TNT’s NBA Opening Night doubleheader averaged 4.9 million total viewers, up 53 percent compared to last year. CNN also maintained its strength as the #1 news network among adults 18-49 in both primetime and total day, and had its most-watched third quarter ever among total viewers.”

    Bewkes continued: “Home Box Office’s creative excellence was again recognized at the Primetime Emmy Awards where HBO received more Primetime Emmys than any other network for the 16th consecutive year. The seventh season of Game of Thrones concluded during the quarter with an average of 33 million viewers, a record for an HBO original series. Our results and these highlights reflect our continued focus on executing our strategy, which includes both creating the most engaging content and advancing the ways that consumers can enjoy and experience our content and brands across platforms. The ability to accelerate our pace of innovation and connect more directly with consumers are among the reasons we are excited about our proposed merger with AT&T, which remains on track to close before year end, pending regulatory review and consents.”

    Segment results

    Turner

    The segment reported 6.1 percent ($158 million) y-o-y increase in revenue for the current quarter to $2,678 million from $2,610 million. Operating income for the segment increased 7 percent to $1,243 million in Q3-17 from $1,162 million in Q3-16. Adjusted operating income increased 5.3 percent y-o-y in the current quarter from $1,267 million from $1,203 million.

    Time Warner says that revenue at Turner increased due to increases of 13 percent ($186 million) in subscription revenues and 4 percent ($5 million) in content and other revenues, partially offset by a decline of 3 percent ($33 million) in advertising revenues. Subscription revenues benefited from higher domestic rates and growth at Turner’s international networks, partially offset by lower domestic subscribers.Content and other revenues increased due to higher licensing revenues. The decline in advertising revenues was due to lower delivery at certain domestic networks, partially offset by increases at Turner’s news businesses.

    The company says that operating income at Turner increased ($81 million) to $1.2 billion due to the growth in revenues partially offset by higher expenses, including increased programming and marketing costs. Programming expenses grew 8 percent primarily due to higher original programming costs at Turner’s domestic entertainment networks. Marketing expenses increased mainly to support original series on Turner’s domestic entertainment networks.

    Home Box Office (HBO)

    HBO revenue increased 12.6 percent ($179 million) y-o-y in Q3-17 to $1,605 million from $1,426 million. Operating profits increased in Q3-17 by 4.2 percent y-o-y to $552 million from $530 million. Adjusted operating profits increased in the current quarter by 6.6 percent y-o-y to $565 million from $530 million.

    Time Warner says that HBO revenue increased due to increases of 12 percent ($156 million) in subscription revenues and 14 percent ($23 million) in content and other revenues. Subscription revenues increased due to higher domestic subscribers and rates and international growth. The increase in content and other revenues was primarily due to higher international licensing and home entertainment revenues.

    Operating income at HBO increased 4 percent ($22 million) to $552 million. The growth in revenues more than offset increased expenses, including higher marketing and programming costs. Programming expenses increased 7 percent due to higher original programming costs, primarily related to the timing of original series. The increase in marketing costs was related to HBO’s OTT products and original programming.

    Warner Bros.

    Warner Bros. is Time Warner’s largest segment in terms of contribution to overall revenue. Warner Bros revenue increased 1.7 percent y-o-y in the current quarter to $3,460 million from $3,402 million. Operating profit increased 25.7 percent to $538 million from $428 million. Adjusted operating profit increased 33 percent to $576 million from $433 million.

    Time Warner says that Warner Bros. revenue increase of the segment reflected higher theatrical and videogames revenues partially offset by lower television revenues. Theatrical revenues increased due to higher home entertainment and television licensing revenues of theatrical product. Videogames revenues increased primarily due to carryover revenue from Injustice 2. The decrease in television revenues was mainly related to lower initial telecast revenues. 5

    Operating Income at Warner Bros. increased due to the increase in revenues and higher contributions from this quarter’s box office releases, including It and Annabelle: Creation, as well as lower print and advertising costs due to fewer releases.

  • Fever FM revenue up but HT Media revenue shrinks

    Fever FM revenue up but HT Media revenue shrinks

    BENGALURU: Indian media group HT Media Limited (HT Media) reported a drop in consolidated revenues and increase in consolidated profits for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter (y-o-y). The company reported 11.2 percent y-o-y drop in consolidated total income at Rs 6,041.3 million in Q2-18 as compared to Rs 6,802.3 million. Net profit after tax, however, more than doubled (up 2.14 times) y-o-y to Rs 662.2 million in the current quarter as compared to Rs 309.3 million.

    HT Media has four segments-Printing and Publishing of Newspapers & Periodicals (Printing); Radio Broadcast & Entertainment (Radio); Digital; and Multimedia Content Management (Multimedia). The y-o-y drop in revenue was mainly due to drop in revenues of the company’s printing segment.

    The company reported an 18.4 percent increase in revenue for its radio segment that operates radio stations under the brand Fever FM for the current quarter. HT Media’s radio segment reported an operating profit of Rs 26.2 million as compared to an operating loss of Rs 3.3 million in Q2-17. HT Media, in its investor presentation for the current quarter, informed that its radio business continued robust growth and increase in profit margins. It says further there was revenue growth in core stations, while new stations continued to perform adding to top line in a profitable manner and that synergies in costs had brought in margin expansion.

    Printing segment revenue declined 5.9 percent y-o-y in Q2-18 to Rs 4,948.9 million from Rs 5,259.5 million in Q2-17. Printing segment operating profit more than doubled (2.25 times) to Rs 1,048.8 million in Q2-18 as compared to Rs 467.2 million in Q2-17. HT Media’s digital segment revenue declined 9.5 percent to Rs 337 million from Rs 372.5 million. Digital segment reported an operating loss of Rs 116.2 million in the current quarter as compared to an operating loss of Rs 128.6 million in Q2-17.

    HT Media’s Multimedia segment reported operating revenue of Rs 444.6 million and an operating profit of Rs 8.5 million. The Multimedia segment had revenue of Rs 473.4 million in Q1-18 and an operating profit of Rs 2.9 million.

    HT Media chairperson and editorial director Shobhana Bhartia said, “Advertising revenue growth continues to be a challenge in our coreprint business, with this quarter witnessing high level of uncertainty across industries on account of GST implementation. Our radio business continues to do well. New radio stations are generating revenue and the entire radio business witnessed an increase in operating profits. While advertising revenue in print has been soft, operating profits continue to grow steadily on the back of strong cost management and aided by favourable currency and commodity rates.”

    “GST is expected to stabilise soon which should lead to a better macroeconomic environment and result in higher advertising spends. With growth coming back to core business, we hope to deliver better results to our shareholders,” added Bhartia.

  • Zeel ad revenue & profit up in Q2 despite GST impact

    Zeel ad revenue & profit up in Q2 despite GST impact

    BENGALURU: The Subhash Chandra led Zee Entertainment Enterprises Limited (Zeel) reported a 2.9 percent increase in advertising revenue for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding year ago quarter (y-o-y). Zeel says in a press release that despite the adverse impact of GST on advertising, domestic advertising grew by 5.8 percent y-o-y, on a comparable basis (excluding sports, RBNL and IWPL) to Rs 9028 million.

    Zeel’s net profit after tax (PAT) for the period more than doubled (2.48 times) y-o-y in the current quarter to Rs 5908 million as compared  to Rs 2384 million due the slump sale of its sports broadcasting business that resulted in a net gain of Rs 1346.1 million for the current quarter. Zeel’s subscription revenue declined 14 percent y-o-y to Rs 5014.1 million in the current quarter as compared to Rs 5833.4 million. However, adjusted for the sale of sports business, domestic subscription revenue grew by 7.2 percent to Rs. 4043 million. International subscription revenue stood at Rs 971 million. Other sales and services revenue in the current quarter was lower y-o-y at Rs 939 million as compared to Rs 1529.4 million.

    Overall, Zeel’s revenue increased 2.7 percent y-o-y in Q2-18 to Rs 17,851.8 million on higher other income as compared to Rs 17,386.7 million in Q2-17. Other income in the current quarter more than quadrupled y-o-y to Rs 2031.3 million as compared to Rs 432.3 million. EBIDTA in the current quarter was almost flat y-o-y (up 0.4 percent) at Rs 4912 million as compared to Rs 4892 million.

    Company speak

    Zeel chairman Subhash Chandra said, “We are now a 25 years old organisation and it is with great satisfaction and pride that I look back at this journey and the numerous milestones we have achieved. Starting as India’s first private television channel, we have grown into a truly global entertainment content company with a worldwide footprint and a strong presence across all forms of entertainment. Indian M&E industry has grown by leaps and bounds but it is just the beginning. I am confident that we will continue to shape the entertainment industry, much like we have done over the last two and a half decades.”

    Zeel managing director and CEO Punit Goenka commented, “At Zeel, it has been an exciting 25 years during which we significantly increased our viewership and expanded our regional as well as global presence. This was achieved while delivering a strong financial performance. It has been possible because of our ability to evolve our content offerings in line with changing consumer preferences. Another step in this evolution would be the launch of our new digital product, ‘Z5’, in the second half of this financial year. It will offer an unrivalled content catalogue appealing to all demographics and bring unique viewing experience to the consumer.”

    “We are satisfied with our performance against the backdrop of tough macro-economic environment during the quarter. Our advertisers were negatively impacted during transition to GST which led to a temporary pull-back on their ad spends. Post the decline in the first half of the quarter, the growth recovered strongly and is back on track. Despite the adversity, our domestic ad revenue grew at 5.8 percent on a comparable basis,” said Goenka.

    “The domestic subscription growth for the quarter was at 7.2 percent. As against the early closure of deals last year, content deals with distributors are taking slightly longer due to litigations regarding the TRAI tariff regulation. However, our full year outlook for subscription growth remains unaltered. Despite the loss of advertising revenue and elevated expenses during the quarter, we have been able to deliver a healthy margin of 31 percent,” assured Goenka.

    “The acquisition of 9X Media follows our stated strategy of expanding into regional markets and niche genres. 9X Media’s six music channels enjoy leading market shares in their respective segments and will further strengthen our entertainment offering to the consumer. The channels will benefit immensely from our network’s strength to achieve higher growth potential and cost synergies,” revealed Goenka.

    Let us look at the other numbers reported by Zeel

    The company’s total expenditure in the current quarter declined 9.6 percent y-o-y to Rs 10,909 million from Rs 12,062 million. Employee Benefit Expense in Q2-18 increased 18.4 percent y-o-y to Rs1814 million from Rs 1533 million. Operating costs in the current quarter declined 24.7 percent y-o-y to Rs 5789 million from Rs 7688 million. Advertising and Publicity expenses increased 22.3 percent y-o-y in Q2-18 to Rs 1410 million from Rs 1153 million in Q2-18. Other expenses increased 12.3 percent in the current quarter to Rs 1896 million from Rs 1688 million in Q2-17.

    Also Read:

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    Zee TV new logo unveiled; refreshed digital platform Zee5 launch soon

    ZEEL’s Punit Misra: Our new logo signifies aspiration of Indian middle class

  • Backed by new media, Shemaroo reports improved numbers for first quarter

    Backed by new media, Shemaroo reports improved numbers for first quarter

    BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported  8.6 percent higher  y-o-y consolidated Total Revenue for the quarter ended 30 June 2017 (Q1-17, current quarter) at Rs 1,045.1 million as compared to the Rs 962 million in Q1-17. Shemaroo’s consolidated PAT for the current quarter improved 21.5 percent y-o-y to Rs 160.30 million (15.3 percent margin) as compared to the Rs 131.90 million (13.7 percent margin) in the corresponding quarter of the previous year.

    Revenue from operations increased 8.1 percent y-o-y to Rs 1,036.40 from Rs 958.70 million. In its earnings release, Shemaroo says that revenue from new media increased 41.7 percent y-o-y in Q1-18 to Rs 285.3 million from Rs 201.4 million. However, revenue from traditional media declined 1.5 percent in the current quarter to Rs 738.2 million as compared to Rs 749.6 million in the corresponding year ago quarter.

    Shemaroo’s EBIDTA including other income in the current quarter at Rs 343 million (32.8 percent margin) increased 12.9 percent y-o-y from Rs 303.70 million (31.6 percent margin).

    Shemaroo wholetime director and CFO Hiren Gada said, “After few quarters of impact, the traditional media business has slowly recovered to near normal levels post demonetization. We have achieved an overall topline growth of 8.6 percent on a y-o-y basis. We continue to expand our digital reach and have managed to maintain our upward trajectory with a growth rate of 41.7 percent on a y-o-y basis in the digital media business. Our huge content library with varied genres and our expertise to monetize it, helps us offer our audiences their preferred choice of content on desired platforms.”

    Let us look at the other numbers reported by Shemaroo

    The company’s Total Expenditure (TE) in Q1-18 at Rs 795.5 million (76.1 percent of TIO) was 7.9 percent more y-o-y than the Rs 737 million (76.6 percent of TIO).

    The company’s cost of Raw Materials consumed more than doubled (increased 2.25 times) y-o-y in Q1-18 to Rs 1312.50 million (125.6 percent of TIO) as compared to Rs 583.80 million (60.7 percent of TIO). Changes in inventories of finished goods and work in progress resulted in reduction of Rs 754.90 million in the current quarter as compared to a reduction of Rs 46.60 million in the corresponding year ago quarter.

    Employee Benefit Expense (EBE) in Q1-18 increased 9.1 percent y-o-y to Rs 83.80 million (8 percent of TIO) as compared to Rs 76.80 million (8 percent of TIO).

    Finance costs in the current quarter increased 18.6 percent (7.8 percent margin) y-o-y as compared to Rs 68.30 million (7.1 percent margin).Other expense in Q1-18 increased 37.6 percent to Rs 60.80 million (5.8 percent margin) from Rs 44.20 million (4.6 percent margin) in Q1-17.

    Basic and undiluted EPS (not annualised) for Q1-17 was Rs 5.17, for Q1-16 it was Rs 4.29; in Q4-2016 EPS was Rs 6.05.

    Operational highlights as per the company’s media release

    Shemaroo says that in Q1-18, it:

    Signed a content deal with YuppTV
    Crossed 3 million subscribers on our flagship YouTube channel ‘ShemarooEnt’
    Crossed 3 million subscribers on its YouTube channel ‘FilmiGaane’
    Crossed 2 billion cumulative views on its YouTube channel ‘FilmiGaane’ Crossed 5 lakh subscribers on its YouTube channel ‘Indian Comedy’
    Launched with Airtel Digital TV: a) Bhojpuri Service in April 2017 b) Comedy Service in May 2017
    Launched with Tata Sky: a) Tata Sky Bollywood Premiere Service in May 2017. ‘Miniplex’ service makes way for this service b) Tata Sky Classic Cinema service in June 2017″

    The company claims that some brands have pulled their advertising out from YouTube since some of their ads were shown next to hateful and offensive content. As a result, YouTube has implemented stricter brand safety guidelines and therefore stopped monetizing certain videos.

  • Lower carriage and internet subs fees pull down Ortel numbers in first quarter

    Lower carriage and internet subs fees pull down Ortel numbers in first quarter

    BENGALURU: A forty four percent year-on-year (y-o-y) decline in carriage fees and a thirty five percent y-o-y  decline in internet subscription fees for the quarter ended 30 June 2017 (Q1-18, current quarter, first quarter of fiscal 2018) resulted in decline of some major numbers for Ortel Communications Limited (Ortel). The company has reported a net loss of Rs 29 million in Q1-18 as compared to a profit after tax of Rs 1 million in Q1-17.

    Ortel reported carriage fees of Rs 62 million for Q1-18 as compared to Rs 89 million in the corresponding year ago quarter. Despite a 4.5 percent increase in cable subscription fees, the company’s Total cable TV services revenue declined 5.5 percent in the current quarter to Rs 371 million as compared to Rs 384 million in Q1-17. Ortel reported cable subscription fees of Rs 288 million as compared to Rs 277 million in the corresponding year ago quarter. Connection fees rose to Rs 21 million in the first quarter of fiscal 2018 as compared to Rs 18 million in Q1-17.

    Ortel reported internet subscription revenue on lower Average Revenue per user at Rs 57 million for Q1-18 as compared to Rs 88 million in Q1-17. Internet connection fees declined to Rs 4 million in the current quarter as compared to Rs 7 million in Q1-17. Overall broadband revenue declined 35.8 percent y-o-y in Q1-18 to Rs 61 million as compared to Rs 95 million in Q1-17.

    Coupled with a 13.8 percent decline in Ortel’s Infrastructure and Leasing segment revenue, the company’s total operating revenue declined 8.6 percent y-o-y in the current quarter to Rs 468 million from Rs 512 million.

    Subscription number, ARPU

    The company’s cable TV and internet subscriber bases declined quarter-over-quarter (q-o-q).  Ortel’s cable TV subscriber base in Q1-18 was 747,528 in Q1-18 as compared to 750,471. Broadband subscriber base in the current quarter declined to 70,273 from 73,087. Cable TV ARPU for the current quarter declined by Rs 1 to Rs 137 from Rs 138 in the immediate trailing quarter. In Q1-17, the company has reported a much higher Cable TV ARPU at Rs 157. Broadband ARPU in Q1-18 was substantially lower at Rs 267 as compared to Rs 319 in the immediate trailing quarter and Rs 401 in the corresponding year ago quarter.

    Major Expense heads

    Ortel’s total expenses in the current quarter declined 7.7 percent y-o-y to Rs 359 million from Rs 389 million. Programming cost increased to Rs 115 million in Q1-18 as compared to Rs 100 million in Q1-17.Broadband bandwidth cost increased to Rs 25 million from Rs 22 million. Digital bandwidth cost increased to Rs 15 million from Rs 13 million. Employee benefits expense declined to Rs 54 million from Rs 62 million. Finance costs increased to Rs 71 million from Rs 64 million. Other expenses in the current quarter declined to Rs 114 million from Rs 135 million in the corresponding year ago quarter.

    Company speak

    Ortel managing director and CEO Bibu Prasad Rath said, “This has been a challenging period for the Company as intense competition in our core markets and new subscriber integration issues in new markets  continued to impact our performance. The management team is working towards improving our position and expect to deliver better results by the end of this fiscal year. While we are evaluating fund raise possibilities to bridge our short-term capital requirement, our focus in FY18 would be to consolidate the operations and improve the operational matrix which would result in notable cash flow generation. Overall, we remain confident of the strength of fully controlling the ‘last mile’ network and the B2C business model, which we believe will enable us to tide over this difficult period.”

  • Dish TV India reports muted numbers for first quarter

    Dish TV India reports muted numbers for first quarter

    BENGALURU: The Essel Group’s television direct to home (DTH) Dish TV India Limited (Dish TV) reported 5 percent and 5.1 percent declines in subscription and operation revenue for the quarter ended 30 June 2017 (Q1-18, current quarter) as compared to the corresponding year ago quarter (Q1-17). Dish TV says that it is making a smart recovery from the lows of the demonetization impacted previous quarters. The company reported subscription revenue of Rs 6,917 million in the current quarter as compared to Rs 7,282 million in Q1-17. Operating revenue in Q1-18 was Rs 7,389 million as compared to Rs 7,786 million in Q1-17.

    Dish TV reported a net loss of Rs 139 million in the current quarter as compared to profit after tax of Rs 361 million in Q1-17. EBIDTA in Q1-18 was 22.9 percent down at Rs 2,016 million as compared to Rs 2,610 million in Q1-17. Total comprehensive loss in the current quarter was a Rs 134 million as compared to total comprehensive income of Rs 364 million in the corresponding year ago quarter.

    Dish TV reported net addition of 0.186 million subscribers in the current quarter which takes it subscriber base to 15.7 million. The company had closed the previous quarter (last quarter of fiscal 2017 or Q4-17) with 15.5 million subscribers.

    Dish TV CMD Jawahar Goel, said, “With digitization spreading to rural India, our primary objective is to address the needs of pay-TV viewers in small towns and villages. For the first time in the history of DTH industry in India, indirect tax rates have been separately communicated to the consumers. In an attempt to make TV viewing affordable for viewers, Dish TV introduced the Rs. 160 per month (plus taxes) pack this month. In addition, by partly adopting TRAI’s new Tariff Order, Dish TV also started offering all channels, except Sports and select south channels, at affordable ala-carte prices of Rs. 8.50 and Rs.17.00 (plus taxes) per channel per month for SD and HD respectively. It would be worthwhile to mention here that none of these new offerings would be margin dilutive for our business.

    Dish TV’s total expenditure in Q1-18 increased 6 percent to Rs 7,788.5 million (105.4 percent of operating revenue) from Rs 7,350.6 million (94.4 percent of operating revenue) in the corresponding quarter of the previous year. Employee Benefit Expense in Q1-18 increased 1.5 percent to Rs 388.4 million (5.3 percent of operating revenue) from Rs 382.6 million (4.9 percent of operating revenue) in Q1-17. Operating Expenses increased 5.2 percent y-o-y in Q1-18 to Rs 3,731.5 million (50.5 percent of operating revenue) from Rs 3,547.5 million (45.6 percent of operating revenue) in the corresponding quarter of the previous year. Other expenses were flat at Rs 1,223.8 million (16.6 percent of operating revenue) as compared to Rs 1,223.6 million (15.7 percent of operating revenue) in Q1-17. Finance costs increased 12.1 percent y-o-y in Q1-18 to Rs 589.6 million (8 percent of operating revenue) from Rs 526.1 million (6.8 percent of operating revenue) in Q1-17.

    In its earnings release, Dish TV says that it is excited about the mega size, strength and reach that it is going to achieve post the formation of Dish TV Videocon Limited. The new company would be riding on the strength of a resurgent economy and a growing market that should help enhance the efficiencies from this mega merger. It says that the combination of DishTV and Videocon D2h would create one of the World’s largest DTH platform.

    Goel, said, “The proposed amalgamation will further help create scale in the highly fragmented TV distribution landscape in India while creating significant synergies through the combination. Drawing inference from our initial estimates and integration meetings held so far, we expect approximate net synergies from the amalgamation to the tune of Rs. 1,800 million in FY-18 and Rs. 5,100 million in FY-19. Significant amongst these would be synergies arising from unified content contracts as each major contract becomes due for re-setting.”

    Speaking about GST, Goel informed, ““Dish TV has successfully transitioned to the GST regime. The DTH industry has seen a reduction in the overall indirect tax rates under GST. Though benefits due to the unified tax may take some time to reflect in numbers, the sheer check on tax avoidance in the informal cable sector should be immediately helpful in reducing irrational competition from cable. The Harmonized System Nomenclature (HSN) codes, unit and rate which need to be separately declared in the invoice in value chain right from the broadcasters to the local cable operator, under GST will give a logical and systematic classification to goods and services thus reducing the possibility of misdeclaration by businesses. The total amount of GST to be collected and payable by Dish TV during the current quarter would be to the tune of Rs. 1,350 million.”

    Addressing concerns being raised on whether data prices could hit rock bottom levels such that some entertainment viewers would prefer streaming content, as perceived to have been done in the West, instead of sticking to the traditional cable/DTH distribution methods, Goel, said, “New technology would generally replace the traditional means only if it provides something better than what the incumbent is providing and at much more efficient price levels. The fact of the matter is that even at the current, all time low data prices, the cost of watching Standard Definition TV for a month through streaming devices would turn out to be at least 3-5 times higher than the popular average monthly DTH subscription.”

    Speaking on The Telecom Regulatory Authority of India’s (TRAI) Tariff Order, Goel, said, “The broadcasting community wanted forbearance on pricing which has been granted under the order. Distribution platforms have been allowed to charge for the network. The proposed Tariff Order, on seeing the light of the day, will ensure minimization of discriminatory pricing amongst distribution platforms thus ensuring a level playing field for all players.”

  • Restructuring brings Hathway to black in first quarter

    BENGALURU: Restructuring at Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) has brought for it a positive bottomline. The pared company reported a profit of Rs 27.16 million (including an exceptional item –gain from the sale of shares of Rs 17.13 million) or 21 per cent of total income for the quarter ended 30 June 2017 (Q1-18, current quarter).  Even if one were to neglect the exceptional income during the quarter, profit of Rs 101.3 million works out to about eight per cent of total income. The numbers above basically represent the numbers that Hathway has reported from its broadband business.

    The Hathway group structure can be divided into three – Broadband business, CATV business which includes joint ventures, associates and subsidiaries and GTPL Hathway in which it has 37 per cent shareholding. The broadband business is managed by the parent company while the CATV business is managed by wholly owned subsidiary Hathway Digital Private Limited (HDPL).

    Hathway has reported higher y-o-y average revenue per broadband user (ARPU) at Rs 730 as compared to Rs 724 in Q1-17, but lower than the Rs 740 reported for the immediate trailing quarter (Q4-17). The company says that it has added 30,000 broadband subscribers in Q1-17, bringing its broadband subscriber base to 0.66 million.

    For its CATV business, the company says that it has seeded about 0.25 million set top boxes (STB) in Q1-18, bringing its digital CATV subscriber base to 7.2 million, or approximately 96 per cent of its overall subscriber base. It says that it has seeded 1.6 million, 2.3 million and 3.3 million in DAS phases I, II and III & IV respectively. ARPUs’ in Q1-18 were Rs 105, Rs 95 and Rs 55 for DAS phases I, II and III, respectively.

    Broadband business

    Hathway has reported standalone total income of Rs 1,295.7 million for Q1-18 (from its broadband business). Total expenditure in Q1-18 was Rs 1,195.4 million or 92.3 per cent of total income. Employee benefits expense for the quarter was Rs 89 million (6.9 per cent of total income), other operating expenses was Rs 307.9 million (23.8 per cent of total income) and other expenses was Rs 401.7 million (31 per cent of total income). EBIDTA for broadband business was Rs 497.1 million (38.4 per cent of total income).

    CATV business excluding GTPL Hathway business

    For HDPL, Hathway has mentioned total income of Rs 2,365 million for Q1-18 in investor presentation. The breakup of total income is Rs 1,325 million from cable TV subscription, Rs 702 million from placement, Rs 242 million from activation and other operating income of Rs 96 million. Total expenditure in Q1-18 has been reported at Rs 2,093 million (88.5 per cent of DHPL total revenue). Major expense heads include pay channel cost (57.2 percent of HDPL total revenue), employee cost Rs 214 million (9 per cent of HDPL total revenue), other expense Rs 527 million (22.3 per cent of HDPL total revenue). Finance costs for Q1-18 for HDPL was Rs 162 million (6.8 per cent of HDPL total revenue). The company has reported HDPL EBIDTA of Rs 272 million (11.5 per cent of HDPL total revenue).