Category: Financials

Q1-17: Shemaroo reports 23 percent growth in revenue, PAT up 20 percent

BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 23.5 percent higher y-o-y consolidated Total Income from Operations (TIO) for the quarter ended 30 June 2016 (Q1-17, current quarter) at Rs 95.87 crore as compared to the Rs 77.63 crore in Q2-16. However, TIO in the current quarter was 6.8 percent lower quarter-over-over (q-o-q) than the Rs 93.53 crore in Q4-16.

Shemaroo’s consolidated PAT for the current quarter improved 20.3 percent y-o-y to Rs 14.04 crore (14.6 percent margin) as compared to the Rs 11.67 crore (15 percent margin) but was 14.7 percent lower as compared to the Rs 16.46 crore (16 percent margin) in Q4-16.

Shemaroo’s EBIDTA including other income in the current quarter at Rs 30.14 crore (31.4 percent margin) increased 23 percent y-o-y from Rs 24.48 crore (31.5 percent margin), but declined 11.2 percent q-o-q from Rs 33.91 crore (33 percent margin).

Shemaroo’s wholetime director and CFO Hiren Gada, said, “It has been yet another quarter of consistent growth for us with the topline growing y-o-y and with healthy margins. Improving technology and infrastructure continues to contribute in scaling up our revenue from digital platforms. To maintain the momentum of upward trajectory in the business, we will look to further explore and monetize our content on various upcoming platforms.”

Let us look at the other numbers reported by Shemaroo

The company has two business divisions – New Media and Traditional media. Revenue from New Media business increased 50.3 percent y-o-y to Rs 20.14 crore from Rs 13.40 crore. Traditional Media revenue increased 16.7 percent y-o-y to Rs 74.96 crore from Rs 64.34 crore.

The company’s Total Expenditure (TE) in Q1-17 at Rs 67.13 crore (70 percent of TIO) was 23.2 percent more y-o-y than the Rs 54.50 crore (70.2 percent of TIO) but was 4.1 percent lower q-o-q than Rs 69.97 crore (68 percent of TIO).

The company’s cost of Raw Materials consumed decreased 37 percent y-o-y in Q1-17 to Rs 58.38 crore (60.9 percent of TIO) as compared to Rs 92.65 crore (119.3 percent of TIO) and decreased 3.9 percent q-o-q as compared to Rs 60.77 crore (59.1 percent of TIO).

Employee Benefit Expense (EBE) in Q1-17 increased 67.7 percent y-o-y to Rs 7.68 crore (8 percent of TIO) as compared to Rs 4.58 crore (5.9 percent of TIO) and increased 4.9 percent q-o-q as compared to Rs 7.32 crore (7.1 percent of TIO)

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.

Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

August 4, 2016
Q1-17: Shemaroo reports 23 percent growth in revenue, PAT up 20 percent

BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 23.5 percent higher y-o-y consolidated Total Income from Operations (TIO) for the quarter ended 30 June 2016 (Q1-17, current quarter) at Rs 95.87 crore as compared to the Rs 77.63 crore in Q2-16. However, TIO in the current quarter was 6.8 percent lower quarter-over-over (q-o-q) than the Rs 93.53 crore in Q4-16.

Shemaroo’s consolidated PAT for the current quarter improved 20.3 percent y-o-y to Rs 14.04 crore (14.6 percent margin) as compared to the Rs 11.67 crore (15 percent margin) but was 14.7 percent lower as compared to the Rs 16.46 crore (16 percent margin) in Q4-16.

Shemaroo’s EBIDTA including other income in the current quarter at Rs 30.14 crore (31.4 percent margin) increased 23 percent y-o-y from Rs 24.48 crore (31.5 percent margin), but declined 11.2 percent q-o-q from Rs 33.91 crore (33 percent margin).

Shemaroo’s wholetime director and CFO Hiren Gada, said, “It has been yet another quarter of consistent growth for us with the topline growing y-o-y and with healthy margins. Improving technology and infrastructure continues to contribute in scaling up our revenue from digital platforms. To maintain the momentum of upward trajectory in the business, we will look to further explore and monetize our content on various upcoming platforms.”

Let us look at the other numbers reported by Shemaroo

The company has two business divisions – New Media and Traditional media. Revenue from New Media business increased 50.3 percent y-o-y to Rs 20.14 crore from Rs 13.40 crore. Traditional Media revenue increased 16.7 percent y-o-y to Rs 74.96 crore from Rs 64.34 crore.

The company’s Total Expenditure (TE) in Q1-17 at Rs 67.13 crore (70 percent of TIO) was 23.2 percent more y-o-y than the Rs 54.50 crore (70.2 percent of TIO) but was 4.1 percent lower q-o-q than Rs 69.97 crore (68 percent of TIO).

The company’s cost of Raw Materials consumed decreased 37 percent y-o-y in Q1-17 to Rs 58.38 crore (60.9 percent of TIO) as compared to Rs 92.65 crore (119.3 percent of TIO) and decreased 3.9 percent q-o-q as compared to Rs 60.77 crore (59.1 percent of TIO).

Employee Benefit Expense (EBE) in Q1-17 increased 67.7 percent y-o-y to Rs 7.68 crore (8 percent of TIO) as compared to Rs 4.58 crore (5.9 percent of TIO) and increased 4.9 percent q-o-q as compared to Rs 7.32 crore (7.1 percent of TIO)

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.

Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

August 4, 2016
Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

BENGALURU: Lower videogames, home entertainment and television licensing revenues pulled down Warner Bros revenue by 19.4 percent year-over-year (y-o-y) and operating income by 9.4 percent y-o-y for the quarter ended 30 June 2016 (Q2-16, current quarter). Warner Bros contributed 38.2 percent to Time Warner Inc. (Time Warner) in Q2-16, and hence pulled down its parent’s consolidated revenue by 5.4 percent y-o-y to $6,952 million from $7,348 million in the corresponding year ago quarter.

Time Warner operating income was almost flat y-o-y (declined 0.7 percent) in the current quarter at $1,846 million as compared to $1,849 million in Q2-15. Adjusted operating income in Q2-16 declined 5.5 percent y-o-y to $1,760 million from $1,862 million in Q2-15.

Company speak

Time Warner chairman and CEO Jeff Bewkes said, “We had a strong first half of 2016, which puts us ahead of our original goals for the year. Our performance reflects the creative excellence resulting from investments we’ve been making in the very best content. At the same time, we’re capitalizing on new distribution opportunities to take advantage of the growing demand for high-quality video content around the world. As an example of our creative excellence, Time Warner received 148 Primetime Emmy nominations – more than any other company – with HBO’s 94 again setting the pace for the industry. In the second quarter, TNT and TBS finished as the two highest rated ad-supported cable networks in primetime among adults 18-49, and Warner Bros. once again came out of the upfront as the leading supplier to broadcast television. Warner Bros. also gained momentum in film with recent successes, such as Central Intelligence and The Conjuring 2, and anticipation is running high for Suicide Squad, which debuts this week.”

Bewkes continued, “Today, we also announced our 10 percent investment in Hulu LLC and that Turner has separately signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year. These are just the latest examples of our commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. We’re confident the multiple investments we’re making in these types of services position the Company to benefit from growing global demand for the strongest network brands and very best video content.”

Segment numbers

Time Warner has three segments – Turner – which contributed the most to revenue (43.3 percent in Q2-16), Home Box Office – the smallest segment in terms of revenue contribution (21.1 percent in Q2-16) and Warner Bros which contributed 38.2 percent to Time Warner’s revenue Q2-16.

Turner

Turner reported 6.5 percent y-o-y increase in revenue in Q2-16 at $3,010 million as compared to $2,827 million in Q2-15. Revenues due to increases of 11 percent ($142 million) in Subscription revenue and 6 percent ($73 million) in Advertising revenue, partially offset by a decline of 15 percent ($32 million) in Content and other revenue says the company.

Turner’s operating income in Q2-16 was flat y-o-y at $1,130 million, while adjusted operating income increased marginally y-o-y (0.3 percent) to $1,133 million from $1,130 million. The company says that operating income was flat as the growth in revenues was offset by higher expenses, including increased programming and marketing costs.

Home Box Office (HBO)

HBO revenue in the current quarter increased 2 percent y-o-y to $1,467million from $1,438 million in Q2-15. Time Warner says that HBO revenue increased due to an increase of 6 percent ($72 million) in Subscription revenues partially offset by a decline of 17 percent ($43 million) in Content and other revenues.

The segment reported 5.3 percent y-o-y decline in operating income and adjusted operating income in the current quarter to $481 million from $508 million in Q2-15. Operating income declined because the growth in revenues was more than offset by higher expenses, including increased programming and restructuring and severance costs says the company.

Warner Bros

As mentioned above, Warner Bros declined 19.4 percent y-o-y to $2,658 million from $3,298 due to lower videogames, home entertainment and television licensing revenues.

The segment reported 9.7 percent y-o-y decline in operating income in Q2-16 to $308 million from $341 million. Adjusted operating income in the current quarter declined 36.9 percent to $217 million from $344 million in Q2-15. Time Warner says that operating income declined due to the decline in revenues, partially offset by lower associated costs of revenues due to the number and mix of film and videogames releases, a $90 million gain on the April 2016 sale of Flixster and lower film valuation adjustments.

August 3, 2016
Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

BENGALURU: Lower videogames, home entertainment and television licensing revenues pulled down Warner Bros revenue by 19.4 percent year-over-year (y-o-y) and operating income by 9.4 percent y-o-y for the quarter ended 30 June 2016 (Q2-16, current quarter). Warner Bros contributed 38.2 percent to Time Warner Inc. (Time Warner) in Q2-16, and hence pulled down its parent’s consolidated revenue by 5.4 percent y-o-y to $6,952 million from $7,348 million in the corresponding year ago quarter.

Time Warner operating income was almost flat y-o-y (declined 0.7 percent) in the current quarter at $1,846 million as compared to $1,849 million in Q2-15. Adjusted operating income in Q2-16 declined 5.5 percent y-o-y to $1,760 million from $1,862 million in Q2-15.

Company speak

Time Warner chairman and CEO Jeff Bewkes said, “We had a strong first half of 2016, which puts us ahead of our original goals for the year. Our performance reflects the creative excellence resulting from investments we’ve been making in the very best content. At the same time, we’re capitalizing on new distribution opportunities to take advantage of the growing demand for high-quality video content around the world. As an example of our creative excellence, Time Warner received 148 Primetime Emmy nominations – more than any other company – with HBO’s 94 again setting the pace for the industry. In the second quarter, TNT and TBS finished as the two highest rated ad-supported cable networks in primetime among adults 18-49, and Warner Bros. once again came out of the upfront as the leading supplier to broadcast television. Warner Bros. also gained momentum in film with recent successes, such as Central Intelligence and The Conjuring 2, and anticipation is running high for Suicide Squad, which debuts this week.”

Bewkes continued, “Today, we also announced our 10 percent investment in Hulu LLC and that Turner has separately signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year. These are just the latest examples of our commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. We’re confident the multiple investments we’re making in these types of services position the Company to benefit from growing global demand for the strongest network brands and very best video content.”

Segment numbers

Time Warner has three segments – Turner – which contributed the most to revenue (43.3 percent in Q2-16), Home Box Office – the smallest segment in terms of revenue contribution (21.1 percent in Q2-16) and Warner Bros which contributed 38.2 percent to Time Warner’s revenue Q2-16.

Turner

Turner reported 6.5 percent y-o-y increase in revenue in Q2-16 at $3,010 million as compared to $2,827 million in Q2-15. Revenues due to increases of 11 percent ($142 million) in Subscription revenue and 6 percent ($73 million) in Advertising revenue, partially offset by a decline of 15 percent ($32 million) in Content and other revenue says the company.

Turner’s operating income in Q2-16 was flat y-o-y at $1,130 million, while adjusted operating income increased marginally y-o-y (0.3 percent) to $1,133 million from $1,130 million. The company says that operating income was flat as the growth in revenues was offset by higher expenses, including increased programming and marketing costs.

Home Box Office (HBO)

HBO revenue in the current quarter increased 2 percent y-o-y to $1,467million from $1,438 million in Q2-15. Time Warner says that HBO revenue increased due to an increase of 6 percent ($72 million) in Subscription revenues partially offset by a decline of 17 percent ($43 million) in Content and other revenues.

The segment reported 5.3 percent y-o-y decline in operating income and adjusted operating income in the current quarter to $481 million from $508 million in Q2-15. Operating income declined because the growth in revenues was more than offset by higher expenses, including increased programming and restructuring and severance costs says the company.

Warner Bros

As mentioned above, Warner Bros declined 19.4 percent y-o-y to $2,658 million from $3,298 due to lower videogames, home entertainment and television licensing revenues.

The segment reported 9.7 percent y-o-y decline in operating income in Q2-16 to $308 million from $341 million. Adjusted operating income in the current quarter declined 36.9 percent to $217 million from $344 million in Q2-15. Time Warner says that operating income declined due to the decline in revenues, partially offset by lower associated costs of revenues due to the number and mix of film and videogames releases, a $90 million gain on the April 2016 sale of Flixster and lower film valuation adjustments.

August 3, 2016
Q1-17: Infrastructure leasing segment pulls down Ortel’s numbers

BENGALURU: The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported less than one third ( 1/3.6 times) profit after tax (PAT) for the quarter ended 30 June 2016 (Q1-17, current quarter). Ortel reported PAT in Q1-17 at Rs 0.86 crore (1.6 percent margin) as compared to Rs 3.05 crore (7.5 percent margin) in the corresponding quarter of the previous year. The improved performance by company’s cable and broadband segments were pulled down by the lower execution of the company’s Infrastructure Leasing segment. Cable TV and broadband segments are the major contributors to Ortel’s numbers.

Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal.

Ortel’s Total Income from Operations (TIO) increased 29.1 percent year-over-year (y-o-y) in the current year to Rs 52.42 crore as compared to Rs 40.60 crore in Q1-16. TIO declined marginally (declined 1.6 percent) quarter-over-quarter (q-o-q) from Rs 53.28 crore in Q4-16.

Company speak:

Ortel President and CEO Rath said, “We have begun the year on a positive note with healthy results in our Cable Television and Broadband segments. This is reflected in the revenues which grew y-o-y by 45 percent and 26 percent respectively in Q1-17. I am also pleased to highlight that the total subscriber addition stood strong at 68,949 during the quarter taking our total subscriber base to 770,141. Our profitability however was impacted during the period under review primarily due to lower quarterly execution in the Infrastructure Leasing business. Going forward I expect Infrastructure Leasing business to return back to normalcy in the coming quarters as execution picks up.

Revenue breakup

Cable TV revenue in Q1-17 increased 44.9 percent y-o-y to Rs 41.20 crore from Rs 28.43 crore in Q1-16 and increased 5.3 percent q-o-q from Rs 39.14 crore.

Cable TV Activation fees or connection fees in Q1-17 were almost 7 times at Rs 4.6 crore as compared to Rs 0.7 crore in Q1-16, but declined 23.8 percent q-o-q from Rs 6 crore. Cable TV subscription revenue in Q1-17 increased 38.7 percent y-o-y to Rs 27.7 crore from Rs 20 crore and increased 11.5 percent q-o-q from Rs 24.8 crore. Channel carriage fees in the current quarter increased 14.3 percent y-o-y to Rs 8.9 crore from Rs 7.8 crore and increased 7.8 percent q-o-q from Rs 8.3 crore.

Broadband services revenue in Q1-17 increased 26 percent to Rs 9.5 crore from Rs 7.5 crore in Q1-16 and increased 6.3 percent q-o-q from Rs 8.9 crore. Internet connection fees in Q1-17 increased 13.4 percent y-o-y to Rs 0.7 crore from Rs 0.6 crore and increased 1.6 percent q-o-q. Internet subscription fees in Q1-17 increased 27 percent y-o-y to Rs 8.8 crore from Rs 7 crore and increased 6.6 percent q-o-q from Rs 8.3 crore.

Ortel’s revenue from its infrastructure leasing segment in Q1-17 declined 75.4 percent to Rs 10 crore from Rs3.9 crore in Q1-16 and declined 78.4 percent q-o-q from Rs 4.4 crore.

On a geographical basis, in the current quarter, revenue from Ortel’c core market – Odisha increased 13.9 percent to Rs 42.2 crore from Rs 37.1 crore but declined 5.3 percent q-o-q from Rs 44.6 crore. EBIDTA from the Odisha region in Q1-17 increased 5.5 percent y-o-y to Rs 17.2 crore from Rs 16.3 crore but declined 14.3 percent q-o-q from Rs 20.1 crore

Revenue from Ortel’s Emerging Markets (Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Telengana and West Bengal) more than tripled (3.2 times) y-o-y to Rs 9.7 crore in q1-17 from Rs 3 crore and increased 15.3 percent q-o-q from Rs 8.4 crore. Emerging markets reported lower negative EBIDTA in Q1-17 at Rs 0.7 crore as compared to a negative EIDTA of Rs 1 crore in Q1-16 and same as the negative EBIDTA of Rs 0.7 crore in Q4-16.

Subscription numbers (revenue generating units – RGUs’), ARPU

During the current quarter, the total subscribers (both cable and television) stood at 770,141 subscribers. Net addition in Q1-17 stood at 68,949 as compared to 74,717 subscriber additions in Q4-16. Percentage of digital TV subscribers in Q1-17 increased to 43.6 from 37.1 in the immediate trailing quarter.

Television ARPU’s have been falling. Analog and Digital TV ARPU stood as Rs. 141 per month and Rs. 169 per month respectively. Digital ARPU in Q1-16 was Rs 185 and in Q4-16, it was Rs 178.

The company added 5,124 broadband subscribers in Q1-17, taking its total broadband subscriber count to 77.609.

Broadband ARPU in the current quarter increased to Rs 401 from Rs 393 in Q1-16 and Rs 398 in Q4-16.

Let us look at the other numbers reported by Ortel in brief.

Higher y-o-y total expenses (TE) in Q1-17 have also resulted in the lower PAT numbers for Q1-17 vis-à-vis Q1-16. Ortel’s TE in the current quarter increased 33.2 percent y-o-y to Rs 45.86 crore (87.5 percent of TIO) as compared to Rs 34.42 crore (84.8 percent of TIO), and increased 2.3 percent q-o-q from Rs 44.82 crore (84.1 percent of TIO).

Programming cost in Q1-17 came in higher at Rs. 10 crore. Employee expenses during the current quarter stood higher y-o-y at Rs. 6.22 crore. EBITDA in Q1-17 (including other income) came in at Rs. 12.51 crore, representing a q-o-q decline of 6.1 percent.

Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

July 29, 2016
Q1-17: Infrastructure leasing segment pulls down Ortel’s numbers

BENGALURU: The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited (Ortel) reported less than one third ( 1/3.6 times) profit after tax (PAT) for the quarter ended 30 June 2016 (Q1-17, current quarter). Ortel reported PAT in Q1-17 at Rs 0.86 crore (1.6 percent margin) as compared to Rs 3.05 crore (7.5 percent margin) in the corresponding quarter of the previous year. The improved performance by company’s cable and broadband segments were pulled down by the lower execution of the company’s Infrastructure Leasing segment. Cable TV and broadband segments are the major contributors to Ortel’s numbers.

Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal.

Ortel’s Total Income from Operations (TIO) increased 29.1 percent year-over-year (y-o-y) in the current year to Rs 52.42 crore as compared to Rs 40.60 crore in Q1-16. TIO declined marginally (declined 1.6 percent) quarter-over-quarter (q-o-q) from Rs 53.28 crore in Q4-16.

Company speak:

Ortel President and CEO Rath said, “We have begun the year on a positive note with healthy results in our Cable Television and Broadband segments. This is reflected in the revenues which grew y-o-y by 45 percent and 26 percent respectively in Q1-17. I am also pleased to highlight that the total subscriber addition stood strong at 68,949 during the quarter taking our total subscriber base to 770,141. Our profitability however was impacted during the period under review primarily due to lower quarterly execution in the Infrastructure Leasing business. Going forward I expect Infrastructure Leasing business to return back to normalcy in the coming quarters as execution picks up.

Revenue breakup

Cable TV revenue in Q1-17 increased 44.9 percent y-o-y to Rs 41.20 crore from Rs 28.43 crore in Q1-16 and increased 5.3 percent q-o-q from Rs 39.14 crore.

Cable TV Activation fees or connection fees in Q1-17 were almost 7 times at Rs 4.6 crore as compared to Rs 0.7 crore in Q1-16, but declined 23.8 percent q-o-q from Rs 6 crore. Cable TV subscription revenue in Q1-17 increased 38.7 percent y-o-y to Rs 27.7 crore from Rs 20 crore and increased 11.5 percent q-o-q from Rs 24.8 crore. Channel carriage fees in the current quarter increased 14.3 percent y-o-y to Rs 8.9 crore from Rs 7.8 crore and increased 7.8 percent q-o-q from Rs 8.3 crore.

Broadband services revenue in Q1-17 increased 26 percent to Rs 9.5 crore from Rs 7.5 crore in Q1-16 and increased 6.3 percent q-o-q from Rs 8.9 crore. Internet connection fees in Q1-17 increased 13.4 percent y-o-y to Rs 0.7 crore from Rs 0.6 crore and increased 1.6 percent q-o-q. Internet subscription fees in Q1-17 increased 27 percent y-o-y to Rs 8.8 crore from Rs 7 crore and increased 6.6 percent q-o-q from Rs 8.3 crore.

Ortel’s revenue from its infrastructure leasing segment in Q1-17 declined 75.4 percent to Rs 10 crore from Rs3.9 crore in Q1-16 and declined 78.4 percent q-o-q from Rs 4.4 crore.

On a geographical basis, in the current quarter, revenue from Ortel’c core market – Odisha increased 13.9 percent to Rs 42.2 crore from Rs 37.1 crore but declined 5.3 percent q-o-q from Rs 44.6 crore. EBIDTA from the Odisha region in Q1-17 increased 5.5 percent y-o-y to Rs 17.2 crore from Rs 16.3 crore but declined 14.3 percent q-o-q from Rs 20.1 crore

Revenue from Ortel’s Emerging Markets (Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Telengana and West Bengal) more than tripled (3.2 times) y-o-y to Rs 9.7 crore in q1-17 from Rs 3 crore and increased 15.3 percent q-o-q from Rs 8.4 crore. Emerging markets reported lower negative EBIDTA in Q1-17 at Rs 0.7 crore as compared to a negative EIDTA of Rs 1 crore in Q1-16 and same as the negative EBIDTA of Rs 0.7 crore in Q4-16.

Subscription numbers (revenue generating units – RGUs’), ARPU

During the current quarter, the total subscribers (both cable and television) stood at 770,141 subscribers. Net addition in Q1-17 stood at 68,949 as compared to 74,717 subscriber additions in Q4-16. Percentage of digital TV subscribers in Q1-17 increased to 43.6 from 37.1 in the immediate trailing quarter.

Television ARPU’s have been falling. Analog and Digital TV ARPU stood as Rs. 141 per month and Rs. 169 per month respectively. Digital ARPU in Q1-16 was Rs 185 and in Q4-16, it was Rs 178.

The company added 5,124 broadband subscribers in Q1-17, taking its total broadband subscriber count to 77.609.

Broadband ARPU in the current quarter increased to Rs 401 from Rs 393 in Q1-16 and Rs 398 in Q4-16.

Let us look at the other numbers reported by Ortel in brief.

Higher y-o-y total expenses (TE) in Q1-17 have also resulted in the lower PAT numbers for Q1-17 vis-à-vis Q1-16. Ortel’s TE in the current quarter increased 33.2 percent y-o-y to Rs 45.86 crore (87.5 percent of TIO) as compared to Rs 34.42 crore (84.8 percent of TIO), and increased 2.3 percent q-o-q from Rs 44.82 crore (84.1 percent of TIO).

Programming cost in Q1-17 came in higher at Rs. 10 crore. Employee expenses during the current quarter stood higher y-o-y at Rs. 6.22 crore. EBITDA in Q1-17 (including other income) came in at Rs. 12.51 crore, representing a q-o-q decline of 6.1 percent.

Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

July 29, 2016
Q1-17: Dish TV adds 4 lakh subs, subscription revenue up at Rs 728 cr

BENGALURU: Indian direct to home (DTH) television operator Dish TV India Limited (Dish TV) has reported growth across important financial and operational parameters including operating revenues (TIO) , EBIDTA and subscription numbers. The company announced the addition of 402,000 net subscribers for the quarter ended 30 June 2016 (Q1-17, current). It closed the quarter with 149 lakh subscribers. Average revenue per user (ARPU) for Q1-17 remained the same year-over-year (y-o-y) and quarter-over-quarter (q-o-q) at Rs 174.

Dish TV reported 6.7 percent higher y-o-y subscription revenue of Rs 728.2 crore for Q1-17, as compared to Rs 682.8 crore. Operating revenue in the current quarter increased 5.7 percent y-o-y to Rs 778.6 crore from Rs 736.7 crore in the corresponding quarter of the previous year. (Refer Note 2.1 and 2.2 below)

Dish TV reported PAT of Rs. 50.9 crore in Q1-17, down 24.6 percent as compared to Rs 54.2 crore in Q1-16.

EBIDTA in the current quarter increased 12.2 percent to Rs 264.6 crore from Rs 235.7 crore in Q1-16.

Total expense in the current quarter increased 2.6 percent y-o-y to Rs 513.9 crore (66 percent of revenue) from Rs 500.9 crore (68 percent of revenue). (Refer note 2.3 below). Personnel cost increased 9.8 percent y-o-y to Rs 38.1 crore (4.9 percent of revenue) from Rs 34.7 crore (4.7 percent of revenue). Cost of sales and services declined 1.8 percent y-o-y to Rs 358.4 crore (46 percent of revenue) from Rs 365 crore (49.5 percent of revenue).

Dish TV managing director Jawahar Goel said, “Buoyed by digitization, notwithstanding the relative seasonal weakness in 1Q, the industry collectively added around 15 percent higher subscribers compared to the same quarter last fiscal. Dish TV maintained its lead in incremental subscriber additions during the quarter. Our strengthened distribution in DAS Phase III and IV areas along with the popularity of the Dish TV Insta Care – 4- Hour Service Assurance Campaign were instrumental in helping us maintain an edge over competition. Our regional and mass-market offerings continued to remain crowd-pullers in respective geographies.”

“The consumers growing passion for HD has the potential to trigger yet another round of growth, beyond that being driven by digitization, for the DTH industry. Going forward, we would continue to build on our HD advantage while focusing on its sales across the country,” Goel added.

To further enhance the digital TV experience for subscribers and build an affordable and fast deployment model for itself, Dish TV recently selected Wyplay’s Frog as the Middleware for its next generation Set-Top-Boxes. Wyplay is an HTML5 browser based system and incorporates all features required for traditional linear broadcast TV consumption, on-demand content and applications distributed over the internet.

Talking about the first quarter results, Goel said, “Healthy subscriber additions led to a 12.3 percent y-o-y increase in subscription revenues (on a like-to-like basis). EBITDA margin bounced to 34.0 percent from 32.0 per cent in the corresponding quarter last fiscal. Net Profit for the quarter was Rs. 409 million leading to FCF generation of Rs. 627 million. Churn for the quarter at 0.7 percent per month remained well within manageable limits.”

Expressing his views on other regulatory overhangs Goel, said, “An industry favourable resolution of the DTH license fee matter should go a long way in ensuring non-discrimination amongst various distribution platforms in the country. We are also hopeful of a just and logical outcome of the currently debated TRAI consultation paper on Interconnection Framework for Broadcasting TV Services Distributed through Addressable Systems.”

Notes: (1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

(2) Dish TV says

(2.1) For Q1-17, subscription revenue, on a like-to-like basis, was Rs 766.9 crore, a growth of 12.3 percent y-o-y.

(2.2) For Q1-17 operating revenue, on a like-to-like basis, was Rs 817.2 crore, a growth of 10.9 percent y-o-y.

(2.3) For Q1-17, COGS, on a like-to-like basis, was Rs 3,97 crore, a change of 8.8 percent y-o-y. The resultant Total Expense, on-a like-to-like basis, was Rs. 552.6 crore, a change of 10.3 percent y-o-y.

July 28, 2016
Q1-17: Dish TV adds 4 lakh subs, subscription revenue up at Rs 728 cr

BENGALURU: Indian direct to home (DTH) television operator Dish TV India Limited (Dish TV) has reported growth across important financial and operational parameters including operating revenues (TIO) , EBIDTA and subscription numbers. The company announced the addition of 402,000 net subscribers for the quarter ended 30 June 2016 (Q1-17, current). It closed the quarter with 149 lakh subscribers. Average revenue per user (ARPU) for Q1-17 remained the same year-over-year (y-o-y) and quarter-over-quarter (q-o-q) at Rs 174.

Dish TV reported 6.7 percent higher y-o-y subscription revenue of Rs 728.2 crore for Q1-17, as compared to Rs 682.8 crore. Operating revenue in the current quarter increased 5.7 percent y-o-y to Rs 778.6 crore from Rs 736.7 crore in the corresponding quarter of the previous year. (Refer Note 2.1 and 2.2 below)

Dish TV reported PAT of Rs. 50.9 crore in Q1-17, down 24.6 percent as compared to Rs 54.2 crore in Q1-16.

EBIDTA in the current quarter increased 12.2 percent to Rs 264.6 crore from Rs 235.7 crore in Q1-16.

Total expense in the current quarter increased 2.6 percent y-o-y to Rs 513.9 crore (66 percent of revenue) from Rs 500.9 crore (68 percent of revenue). (Refer note 2.3 below). Personnel cost increased 9.8 percent y-o-y to Rs 38.1 crore (4.9 percent of revenue) from Rs 34.7 crore (4.7 percent of revenue). Cost of sales and services declined 1.8 percent y-o-y to Rs 358.4 crore (46 percent of revenue) from Rs 365 crore (49.5 percent of revenue).

Dish TV managing director Jawahar Goel said, “Buoyed by digitization, notwithstanding the relative seasonal weakness in 1Q, the industry collectively added around 15 percent higher subscribers compared to the same quarter last fiscal. Dish TV maintained its lead in incremental subscriber additions during the quarter. Our strengthened distribution in DAS Phase III and IV areas along with the popularity of the Dish TV Insta Care – 4- Hour Service Assurance Campaign were instrumental in helping us maintain an edge over competition. Our regional and mass-market offerings continued to remain crowd-pullers in respective geographies.”

“The consumers growing passion for HD has the potential to trigger yet another round of growth, beyond that being driven by digitization, for the DTH industry. Going forward, we would continue to build on our HD advantage while focusing on its sales across the country,” Goel added.

To further enhance the digital TV experience for subscribers and build an affordable and fast deployment model for itself, Dish TV recently selected Wyplay’s Frog as the Middleware for its next generation Set-Top-Boxes. Wyplay is an HTML5 browser based system and incorporates all features required for traditional linear broadcast TV consumption, on-demand content and applications distributed over the internet.

Talking about the first quarter results, Goel said, “Healthy subscriber additions led to a 12.3 percent y-o-y increase in subscription revenues (on a like-to-like basis). EBITDA margin bounced to 34.0 percent from 32.0 per cent in the corresponding quarter last fiscal. Net Profit for the quarter was Rs. 409 million leading to FCF generation of Rs. 627 million. Churn for the quarter at 0.7 percent per month remained well within manageable limits.”

Expressing his views on other regulatory overhangs Goel, said, “An industry favourable resolution of the DTH license fee matter should go a long way in ensuring non-discrimination amongst various distribution platforms in the country. We are also hopeful of a just and logical outcome of the currently debated TRAI consultation paper on Interconnection Framework for Broadcasting TV Services Distributed through Addressable Systems.”

Notes: (1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

(2) Dish TV says

(2.1) For Q1-17, subscription revenue, on a like-to-like basis, was Rs 766.9 crore, a growth of 12.3 percent y-o-y.

(2.2) For Q1-17 operating revenue, on a like-to-like basis, was Rs 817.2 crore, a growth of 10.9 percent y-o-y.

(2.3) For Q1-17, COGS, on a like-to-like basis, was Rs 3,97 crore, a change of 8.8 percent y-o-y. The resultant Total Expense, on-a like-to-like basis, was Rs. 552.6 crore, a change of 10.3 percent y-o-y.

July 28, 2016
Q2-16: Facebook ad revenue up 63percent, income triples

BENGALURU: Facebook Inc., (Facebook) advertisement revenue increased 63percent year-on year (Y-o-y) for the second quarter ended 30 June 2016 (Q2-16, current quarter) at $6,239 million as compared to $3,827 million in Q2-15. Advertisement revenue growth in percentage terms was led by the US and Canada (68.5percent growth) and the A-Pac (66.8percent growth) regions. Ad revenue share by geography in Q2-16 was: US and Canada –49.3 percent; Europe – 24.8percent; A-Pac – 16.2 percent, and the rest of the world (ROW) – 9.7percent.

Facebook reported 59.2 percent growth in total revenue at $6,436 million as compared to $4,042 million in the corresponding quarter of the previous year.The social media giant’s net income in Q2-16 almost tripled (by 2.86 times) year-on-year (y-o-y) to $2,055 million, as compared to $719 million in Q2-15.

Growth in revenue in percentage terms was also led by growth from the US and Canada (63.3percenty-o-y growth) and the A-Pac (64.5percenty-o-y growth) geographical regions. A major share of Facebook’s revenue (49.9 percent) came from the US and Canada region, while the A-Pac regioncontributed 15.9percentto revenue in Q2-16. Europe’s contribution to Facebook revenue was 24.6percent and ROW contributed 9.5percent during the same period.

“Our community and business had another good quarter,” said Facebook founder and CEOMark Zuckerberg. “We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services.”

Please refer to Fig 1 for Facebook’s revenue and Fig 2 for Facebook’s advertisement revenue breakup by geography below.

It is evident from Fig 2 below that the share of revenue from US and Canada, and A-Pac regions has been increasing, while share of revenue from Europe and ROW has been declining, though in Q2-16, revenue share from the ROW has shown a slight resurgence.

Facebook’s daily average users (DAU) increased 16.5 percenty-o-yin the current quarter to 1,128 million as compared to 968 million in Q2-15. For the current quarter,A-Pac (21.4percenty-o-ygrowth) and the ROW (21.6percenty-o-ygrowth) regions lead DAU growth in percentage terms. In Q2-16 DAU from US and Canada grew by 6.7percenty-o-y, while Europe DAU grew 10.5 percenty-o-y. Please refer to Fig 3 below.

The proportion of people logging on to Facebook on their mobiles has grown to 91.6percent in the current quarter as compared to 87.2percent in Q2-15 and 90.7percent in the immediate trailing quarter (Q1-16).

The curve B in Fig 3 below signifies the ratio of DAUs’ to Monthly Average Users (MAU), while curve A indicates the percentage of Mobile DAUs’ to DAUs’. Mobile DAU’s in Q2-16 have increased 22.4percenty-o-y to 1,033 million as compared to 844 million in Q2-15.

ARPU

Facebook’s worldwide average revenue per user (ARPU) in the current quarter was $3.82 as compared to $2.76in Q2-15 and $3.32 in Q1-16. The US and Canada regions lead in terms of ARPU by far. ARPU for the US and Canada region was $14.34 in the current quarter. Corresponding numbers for other regions for Q2-16 were Europe $4.72; A-Pac $1.77; ROW $1.13.

July 28, 2016
Q2-16: Facebook ad revenue up 63percent, income triples

BENGALURU: Facebook Inc., (Facebook) advertisement revenue increased 63percent year-on year (Y-o-y) for the second quarter ended 30 June 2016 (Q2-16, current quarter) at $6,239 million as compared to $3,827 million in Q2-15. Advertisement revenue growth in percentage terms was led by the US and Canada (68.5percent growth) and the A-Pac (66.8percent growth) regions. Ad revenue share by geography in Q2-16 was: US and Canada –49.3 percent; Europe – 24.8percent; A-Pac – 16.2 percent, and the rest of the world (ROW) – 9.7percent.

Facebook reported 59.2 percent growth in total revenue at $6,436 million as compared to $4,042 million in the corresponding quarter of the previous year.The social media giant’s net income in Q2-16 almost tripled (by 2.86 times) year-on-year (y-o-y) to $2,055 million, as compared to $719 million in Q2-15.

Growth in revenue in percentage terms was also led by growth from the US and Canada (63.3percenty-o-y growth) and the A-Pac (64.5percenty-o-y growth) geographical regions. A major share of Facebook’s revenue (49.9 percent) came from the US and Canada region, while the A-Pac regioncontributed 15.9percentto revenue in Q2-16. Europe’s contribution to Facebook revenue was 24.6percent and ROW contributed 9.5percent during the same period.

“Our community and business had another good quarter,” said Facebook founder and CEOMark Zuckerberg. “We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services.”

Please refer to Fig 1 for Facebook’s revenue and Fig 2 for Facebook’s advertisement revenue breakup by geography below.

It is evident from Fig 2 below that the share of revenue from US and Canada, and A-Pac regions has been increasing, while share of revenue from Europe and ROW has been declining, though in Q2-16, revenue share from the ROW has shown a slight resurgence.

Facebook’s daily average users (DAU) increased 16.5 percenty-o-yin the current quarter to 1,128 million as compared to 968 million in Q2-15. For the current quarter,A-Pac (21.4percenty-o-ygrowth) and the ROW (21.6percenty-o-ygrowth) regions lead DAU growth in percentage terms. In Q2-16 DAU from US and Canada grew by 6.7percenty-o-y, while Europe DAU grew 10.5 percenty-o-y. Please refer to Fig 3 below.

The proportion of people logging on to Facebook on their mobiles has grown to 91.6percent in the current quarter as compared to 87.2percent in Q2-15 and 90.7percent in the immediate trailing quarter (Q1-16).

The curve B in Fig 3 below signifies the ratio of DAUs’ to Monthly Average Users (MAU), while curve A indicates the percentage of Mobile DAUs’ to DAUs’. Mobile DAU’s in Q2-16 have increased 22.4percenty-o-y to 1,033 million as compared to 844 million in Q2-15.

ARPU

Facebook’s worldwide average revenue per user (ARPU) in the current quarter was $3.82 as compared to $2.76in Q2-15 and $3.32 in Q1-16. The US and Canada regions lead in terms of ARPU by far. ARPU for the US and Canada region was $14.34 in the current quarter. Corresponding numbers for other regions for Q2-16 were Europe $4.72; A-Pac $1.77; ROW $1.13.

July 28, 2016