ITV

Category: Financials

  • FY-16: Games, Music dampen Mobile’s drop in Sony revenue; reports profit

    FY-16: Games, Music dampen Mobile’s drop in Sony revenue; reports profit

    BENGALURU:  Sony Corporation (Sony) reported 1.3 percent drop in sales for the year ended 31 March 2016 (FY-16, current year). Sony’s revenue for the current year was ¥8,105.7 billion, for the previous year it was ¥8,215.9 billion. Sony attributes the decrease to a decline of 20 percent in sales of its Mobile Communications (MC) segment which was offset by a 11.8 percent increase in sales of its Games and Network Services (G&NS) segment, and a 10.4 percent in sales from its Music segment. The increase in sales from Sony’s G&NS segment reflects an increase in sales of its PlayStation 4 (PS4).

    Sony’s reported net income attributable to stockholders at ¥147.8 billion for the current year as compared to a loss of ¥126 billion yen in the previous year.

    Of special significance from the India perspective was the increase in Media Networks sales which was primarily due to higher advertising revenues in India and the United Kingdom. The Media Networks is a category in Sony’s Pictures segment.

    Mobile Communications

    MC segment reported 20 percent drop in sales in FY-16 to ¥1,127.5 billion from ¥1,410.2 billion in the previous year. The segment reported a lower operating loss of ¥61.4 billion as compared to an operating loss ¥217.6 billion in the previous year. The company says that this was because of a strategic decision not to pursue scale in order to improve profitability.

    Game & Network Services

    G&NS segment reported an increase of 11.8 percent in sales to ¥1,551.9 billion in the current year as compared to ¥1,388 billion in the previous year. The above mentioned gains from PS4 were offset by a decline in PS3 hardware and software sales. Operating income in FY-16 increased 84.4 percent in the current year to ¥88.7 billion from ¥48.1 billion in the previous year. Sony attributes the increase to increase in PS4 software sales and PS4 hardware cost reductions as well as the absence of write down of ¥11.2 billion in the current year of PS Vita and PS TV components that was recorded in FY-15.

    Imaging Products & Solutions (IP&S)

    IP&S segment reported a 1.7 percent decline in sales in FY-16 to ¥712.2 billion as compared to ¥723.9 billion in the previous year. Sony says that sales of video cameras and digital cameras were lower due to the contraction of the market. This segment reported a 72.1 increase in operating profit in FY-16 at ¥72.1 billion from ¥41.8 billion in the previous year. The increase was due to improvement in product mix of digital cameras and price reductions.

    Home Entertainment & Sound (HE&S)

    HE&S segment reported a 6.4 percent decline in sales in FY-16 to ¥1,159 billion from ¥1,238.1 billion in FY-15. Sony says that this was due to a decline in unit sales of LCD televisions and a decline in home audio and video unit sales, reflecting a contraction of the market. Television sales declined 4.5 percent in FY-16 to ¥797.8 billion as compared to last year.

    The segment’s operating income increased to ¥50.6 billion in the current year from ¥24.1 in FY-15, primarily due to cost reductions and increase in product mix.

    Devices

    Devices segment revenue in FY-16 was flat (increased by 0.9 percent) to ¥735.8 billion from ¥927.1 billion in FY-15. The segment reported an operating loss of ¥28.6 billion in the current year as compared to an operating profit of ¥89 billon in FY-15.

    Pictures

    Pictures segment sales increased 6.8 percent to ¥938.1 billion in FY-16 from ¥878.7 billion in the previous year. Sony’s Pictures segment is primarily comprises of Motion Pictures, Televisions Productions and Media Networks categories. The impact of forex rates and lower sales in Motion Pictures was offset by higher sales in Televisions Productions and Media Networks. The increase in Media Networks was primarily due to higher advertising revenues in India and the United Kingdom. The increase in Television Productions sales was primarily due to higher subscription video-on-demand (VOD) revenues from Breaking Bad, The Blacklist and Better call Saul.

    Operating income for the segment declined 51.9 percent in the current year to ¥38.5 billion from ¥58.5 billion in FY-15.

    Music

    Sony’s Music segment comprises of Recorded Music, Music Publishing and Visual Media and Platform categories. The segment reported a 10.4 percent increase in sales to ¥617.6 billion in FY-16 from ¥559.2 billion in FY-15. Sony says that the increase was primarily due to the depreciation of the yen versus the US dollar. There was a significant increase in Visual Media and Platform sales reflecting the continued strong performance of a game application for mobile devices. In Recorded Music digital streaming revenues significantly increased, partially offset by a worldwide decline in physical and digital download sales. The current year includes the record breaking sales of Adele’s new album 25. Other best-selling titles include One Direction’s Made in the A.M., David Bowie’s Black Star and Meghan Trainor’s Title.

    The segment’s operating income increased 44.1 percent in FY-16 to ¥87.3 billion from ¥60.6 billion in the previous year.

    Besides the above, Sony has two other segments – Financial Services and All Other services. Numbers of these segments have not been mentioned in this report.

  • FY-16: Games, Music dampen Mobile’s drop in Sony revenue; reports profit

    FY-16: Games, Music dampen Mobile’s drop in Sony revenue; reports profit

    BENGALURU:  Sony Corporation (Sony) reported 1.3 percent drop in sales for the year ended 31 March 2016 (FY-16, current year). Sony’s revenue for the current year was ¥8,105.7 billion, for the previous year it was ¥8,215.9 billion. Sony attributes the decrease to a decline of 20 percent in sales of its Mobile Communications (MC) segment which was offset by a 11.8 percent increase in sales of its Games and Network Services (G&NS) segment, and a 10.4 percent in sales from its Music segment. The increase in sales from Sony’s G&NS segment reflects an increase in sales of its PlayStation 4 (PS4).

    Sony’s reported net income attributable to stockholders at ¥147.8 billion for the current year as compared to a loss of ¥126 billion yen in the previous year.

    Of special significance from the India perspective was the increase in Media Networks sales which was primarily due to higher advertising revenues in India and the United Kingdom. The Media Networks is a category in Sony’s Pictures segment.

    Mobile Communications

    MC segment reported 20 percent drop in sales in FY-16 to ¥1,127.5 billion from ¥1,410.2 billion in the previous year. The segment reported a lower operating loss of ¥61.4 billion as compared to an operating loss ¥217.6 billion in the previous year. The company says that this was because of a strategic decision not to pursue scale in order to improve profitability.

    Game & Network Services

    G&NS segment reported an increase of 11.8 percent in sales to ¥1,551.9 billion in the current year as compared to ¥1,388 billion in the previous year. The above mentioned gains from PS4 were offset by a decline in PS3 hardware and software sales. Operating income in FY-16 increased 84.4 percent in the current year to ¥88.7 billion from ¥48.1 billion in the previous year. Sony attributes the increase to increase in PS4 software sales and PS4 hardware cost reductions as well as the absence of write down of ¥11.2 billion in the current year of PS Vita and PS TV components that was recorded in FY-15.

    Imaging Products & Solutions (IP&S)

    IP&S segment reported a 1.7 percent decline in sales in FY-16 to ¥712.2 billion as compared to ¥723.9 billion in the previous year. Sony says that sales of video cameras and digital cameras were lower due to the contraction of the market. This segment reported a 72.1 increase in operating profit in FY-16 at ¥72.1 billion from ¥41.8 billion in the previous year. The increase was due to improvement in product mix of digital cameras and price reductions.

    Home Entertainment & Sound (HE&S)

    HE&S segment reported a 6.4 percent decline in sales in FY-16 to ¥1,159 billion from ¥1,238.1 billion in FY-15. Sony says that this was due to a decline in unit sales of LCD televisions and a decline in home audio and video unit sales, reflecting a contraction of the market. Television sales declined 4.5 percent in FY-16 to ¥797.8 billion as compared to last year.

    The segment’s operating income increased to ¥50.6 billion in the current year from ¥24.1 in FY-15, primarily due to cost reductions and increase in product mix.

    Devices

    Devices segment revenue in FY-16 was flat (increased by 0.9 percent) to ¥735.8 billion from ¥927.1 billion in FY-15. The segment reported an operating loss of ¥28.6 billion in the current year as compared to an operating profit of ¥89 billon in FY-15.

    Pictures

    Pictures segment sales increased 6.8 percent to ¥938.1 billion in FY-16 from ¥878.7 billion in the previous year. Sony’s Pictures segment is primarily comprises of Motion Pictures, Televisions Productions and Media Networks categories. The impact of forex rates and lower sales in Motion Pictures was offset by higher sales in Televisions Productions and Media Networks. The increase in Media Networks was primarily due to higher advertising revenues in India and the United Kingdom. The increase in Television Productions sales was primarily due to higher subscription video-on-demand (VOD) revenues from Breaking Bad, The Blacklist and Better call Saul.

    Operating income for the segment declined 51.9 percent in the current year to ¥38.5 billion from ¥58.5 billion in FY-15.

    Music

    Sony’s Music segment comprises of Recorded Music, Music Publishing and Visual Media and Platform categories. The segment reported a 10.4 percent increase in sales to ¥617.6 billion in FY-16 from ¥559.2 billion in FY-15. Sony says that the increase was primarily due to the depreciation of the yen versus the US dollar. There was a significant increase in Visual Media and Platform sales reflecting the continued strong performance of a game application for mobile devices. In Recorded Music digital streaming revenues significantly increased, partially offset by a worldwide decline in physical and digital download sales. The current year includes the record breaking sales of Adele’s new album 25. Other best-selling titles include One Direction’s Made in the A.M., David Bowie’s Black Star and Meghan Trainor’s Title.

    The segment’s operating income increased 44.1 percent in FY-16 to ¥87.3 billion from ¥60.6 billion in the previous year.

    Besides the above, Sony has two other segments – Financial Services and All Other services. Numbers of these segments have not been mentioned in this report.

  • Q1-16: Connected Homes segment revs Technicolor revenue 57 percent

    Q1-16: Connected Homes segment revs Technicolor revenue 57 percent

    BENGALURU:  Buoyed by its Connected Homes segment which more than doubled its revenue, TechnicolorGroup (Technicolor, Group) reported a 57 percent revenue jump on constant currency basis for the quarter ended 31 March 2016 (Q1-2016, current quarter) as compared to Q1-2015. Except for its Technology segment which reported a 4.9 per cent year-on-year (YoY) decline in the current quarter vis-à-vis Q1-2015, all the other segments reported a hike in revenue.  Further, Technicolor closed the acquisitions of Cisco Connected Devices and The Mill, which had a positive impact on prior-year result comparison.

    Technicolor CEO Fredric Rose said, “Our significant customer wins in the first quarter demonstrate the successful start to integrating our 2015 acquisitions. This puts us in good stead to achieve our financial objectives.”

    Technicolor Group reported revenue of €1,262 million in Q1-2016, which as 56.7 percent more than €805 million in Q1-2015.

    Connected Home

    Connected Home revenues amounted to €698 million in Q1-2016, including a €396 million contribution of Cisco Connected Devices. Technicolor says that excluding Cisco Connected Devices, Connected Home recorded year-over-year (YoY) revenue growth in all regions, except for Latin America. Revenues in North America, EMEA and APAC regions were up 26 percent year-on-year at constant currency. Latin America revenues were impacted by the Brazilian crisis and recorded a sharp drop of 45 percent year-on-year at constant currency.

    Within Connected Home, by product, Video revenue went up by 2.65 times YoY to €428 million in Q1-2016 as compared to €164 million. Broadband revenue increased 81 percent to €270 million in the current quarter to €164 million in the corresponding year ago quarter.

    Entertainment Services

    Entertainment Services revenues amounted to €450 million in Q1-2016, up 34.6 percent at constant currency compared €338 million to Q1-2015. This performance reflected a strong double-digit growth in Production Services, including the contribution of last year’s acquisitions, combined with increased DVD Services revenues.

    Production Services revenues amounted to €179 million in Q1-2016, up by more than 50 percent at constant currency compared to the first quarter of 2015. This strong performance resulted from a double-digit organic revenue growth and the additions of OuiDo, Mikros Image and The Mill.

    The level of activity in Visual Effects for feature films was stable year-on-year as the Group started ramping up new titles in the current quarter and thus fully offset the completion of large-scale projects in Q3-2015.

    DVD Services revenues amounted to €272 million in the current quarter, up 25.2 percent at constant currency compared to Q1-2015. This performance was driven by a 24.6 percent year-on-year growth in total volumes from 271 million in Q1-2015 to 337.5 million, reflecting new customer additions secured in 2015, as well as selected key new release theatrical titles produced in the Q1-2016. During the period, DVD volumes increased by c.12 percent, while Blu-ray disc volumes were up c.26 percent compared Q1-2015. Overall Games volumes increased by c.6 percent year-on-year, as growth in Xbox One Blu-ray games volumes was tempered somewhat by the ongoing (and largely complete) shift in demand from the prior generation DVD based Xbox console. CD volumes were up substantially in the first quarter, due primarily to last year’s new customer additions.

    The company reveals that key theatrical titles produced in the current quarter included Star Wars: The Force Awakens (Disney), Spectre (Fox), as well as The Hunger Games: Mockingjay – Part 2 (Lionsgate), while key games titles included Tom Clancy’s The Division (Ubisoft) and Quantum Break (Microsoft).

    Technology

    Licensing revenues amounted to €112 million in Q1-2016, down €6 million at current currency compared to Q1-2015. This decrease was due to a €62 million decline in MPEG LA revenues, which was partially compensated by a strong quarter in Patent Licensing, driven by Video Coding and Digital TV activities. In Video Coding, the strong performance was driven by the first material licensing agreement for the use of its HEVC patent portfolio thatTechnicolor signed with a leading technology company in early February.

    In the current quarter, Technicolor slightly increased its Trademark Licensing revenues and continued to make additional progress in the dissemination of its High Dynamic Range (HDR) technology. Technicolor says that several silicon manufacturers have started to embed its technologies, for TVs or set-top boxes, and chips will be available by the end of this year.

    Click here for detailed report.

  • Q1-16: Connected Homes segment revs Technicolor revenue 57 percent

    Q1-16: Connected Homes segment revs Technicolor revenue 57 percent

    BENGALURU:  Buoyed by its Connected Homes segment which more than doubled its revenue, TechnicolorGroup (Technicolor, Group) reported a 57 percent revenue jump on constant currency basis for the quarter ended 31 March 2016 (Q1-2016, current quarter) as compared to Q1-2015. Except for its Technology segment which reported a 4.9 per cent year-on-year (YoY) decline in the current quarter vis-à-vis Q1-2015, all the other segments reported a hike in revenue.  Further, Technicolor closed the acquisitions of Cisco Connected Devices and The Mill, which had a positive impact on prior-year result comparison.

    Technicolor CEO Fredric Rose said, “Our significant customer wins in the first quarter demonstrate the successful start to integrating our 2015 acquisitions. This puts us in good stead to achieve our financial objectives.”

    Technicolor Group reported revenue of €1,262 million in Q1-2016, which as 56.7 percent more than €805 million in Q1-2015.

    Connected Home

    Connected Home revenues amounted to €698 million in Q1-2016, including a €396 million contribution of Cisco Connected Devices. Technicolor says that excluding Cisco Connected Devices, Connected Home recorded year-over-year (YoY) revenue growth in all regions, except for Latin America. Revenues in North America, EMEA and APAC regions were up 26 percent year-on-year at constant currency. Latin America revenues were impacted by the Brazilian crisis and recorded a sharp drop of 45 percent year-on-year at constant currency.

    Within Connected Home, by product, Video revenue went up by 2.65 times YoY to €428 million in Q1-2016 as compared to €164 million. Broadband revenue increased 81 percent to €270 million in the current quarter to €164 million in the corresponding year ago quarter.

    Entertainment Services

    Entertainment Services revenues amounted to €450 million in Q1-2016, up 34.6 percent at constant currency compared €338 million to Q1-2015. This performance reflected a strong double-digit growth in Production Services, including the contribution of last year’s acquisitions, combined with increased DVD Services revenues.

    Production Services revenues amounted to €179 million in Q1-2016, up by more than 50 percent at constant currency compared to the first quarter of 2015. This strong performance resulted from a double-digit organic revenue growth and the additions of OuiDo, Mikros Image and The Mill.

    The level of activity in Visual Effects for feature films was stable year-on-year as the Group started ramping up new titles in the current quarter and thus fully offset the completion of large-scale projects in Q3-2015.

    DVD Services revenues amounted to €272 million in the current quarter, up 25.2 percent at constant currency compared to Q1-2015. This performance was driven by a 24.6 percent year-on-year growth in total volumes from 271 million in Q1-2015 to 337.5 million, reflecting new customer additions secured in 2015, as well as selected key new release theatrical titles produced in the Q1-2016. During the period, DVD volumes increased by c.12 percent, while Blu-ray disc volumes were up c.26 percent compared Q1-2015. Overall Games volumes increased by c.6 percent year-on-year, as growth in Xbox One Blu-ray games volumes was tempered somewhat by the ongoing (and largely complete) shift in demand from the prior generation DVD based Xbox console. CD volumes were up substantially in the first quarter, due primarily to last year’s new customer additions.

    The company reveals that key theatrical titles produced in the current quarter included Star Wars: The Force Awakens (Disney), Spectre (Fox), as well as The Hunger Games: Mockingjay – Part 2 (Lionsgate), while key games titles included Tom Clancy’s The Division (Ubisoft) and Quantum Break (Microsoft).

    Technology

    Licensing revenues amounted to €112 million in Q1-2016, down €6 million at current currency compared to Q1-2015. This decrease was due to a €62 million decline in MPEG LA revenues, which was partially compensated by a strong quarter in Patent Licensing, driven by Video Coding and Digital TV activities. In Video Coding, the strong performance was driven by the first material licensing agreement for the use of its HEVC patent portfolio thatTechnicolor signed with a leading technology company in early February.

    In the current quarter, Technicolor slightly increased its Trademark Licensing revenues and continued to make additional progress in the dissemination of its High Dynamic Range (HDR) technology. Technicolor says that several silicon manufacturers have started to embed its technologies, for TVs or set-top boxes, and chips will be available by the end of this year.

    Click here for detailed report.

  • Q2-2016: Viacom segments report decline in numbers

    Q2-2016: Viacom segments report decline in numbers

    BENGALURU: Viacom Inc (Viacom) reported 2.5 percent year-on year (YoY) drop (reduced by $77 million) in revenue for the quarter ended 31 March 2016 (Q2-2016, current quarter) at $2,381 million as compared to $2,452 million in Q2-2015. Revenue for the company’s Media Networks segment declined 2.9 percent YoY in the current quarter to $2,381 million from $2,452 million in the corresponding year ago quarter. Filmed Entertainment segment revenue declined 0.6 percent YoY to $655 million from $659 million in Q2-2015.

    Adjusted operating Income in the current quarter declined 29 per cent to $586 million from $822 million in Q2-2015. Media Networks adjusted operating income in Q2-2016 decreased 11 per cent to $805 million from $903 million in Q2-2015, reflecting revenue declines as well as an increase in programming expenses. Filmed Entertainment adjusted operating loss was $136 million, driven by the performance of certain films released in the quarter.
    Quarterly adjusted net earnings attributable to Viacom decreased to $303 million. Adjusted diluted earnings per share for the quarter were $0.76.

    A common trend across a number of media and entertainment verticals in the US for the quarter that ends 31 March is that revenues are at the lowest. In general as per this cycle, revenue can only go up from here for the other quarters if a business has a normal year. In the case of Viacom Inc., 31 March corresponds to the close of the second quarter of its fiscal, since the company’s financial year ends on 30 September.

    Viacom, executive chairman, president and chief executive cfficer Philippe Dauman, said, “Viacom’s brands are among the most popular and culturally connected in the world. Nickelodeon remains the number one network for kids and many of our other networks have shown sequential improvements in ratings and consumption across platforms. The continuing strength of our brands was validated by our recent renewals with Dish and Frontier on attractive terms. In the past year, we have successfully closed long-term carriage agreements with domestic distributors representing more than 44 million subscribers. Around the world we continue to expand the global reach of our networks, launching several new channels in the quarter. At Paramount, we are looking forward to upcoming blockbusters Teenage Mutant Ninja Turtles: Out of the Shadows and Star Trek Beyond this summer.”

    “We are responding to industry consumption shifts with innovative, thoughtful, and long-term strategic solutions and are generating meaningful results in many important areas, including content creation, data-based audience measurement and distribution innovation. There is much more work to be done, but we see the path to growth ahead and are very optimistic about our future,” he added.

    Media Networks

    This segment’s revenue and results have been mentioned above. Viacom says that domestic advertising revenues decreased 5 per cent, as pricing increases were more than offset by softer ratings at some of its networks. International advertising revenues declined 1 per cent, driven by a 7 per cent adverse effect of foreign exchange. Absent the impact of foreign exchange, international advertising revenues increased 6 per cent, driven principally by growth in Europe. Domestic affiliate revenues decreased 2 per cent, reflecting a modest decline in subscribers and a previously disclosed rate adjustment with a major distributor partially offset by rate increases across the remaining subscriber base. International affiliate revenues increased 4 per cent, driven by new channel launches, increased subscribers, and rate increases. Absent a 7 per cent adverse impact of foreign exchange, international affiliates revenues increased 11 per cent.

    Filmed Entertainment

    Filmed Entertainment revenues mentioned above decreased as an increase in license fees and theatrical revenues was more than offset by declines in home entertainment and ancillary revenues. The company says that excluding foreign exchange, which had a 2 per cent unfavourable impact, worldwide revenues increased 1 per cent. Worldwide theatrical revenues increased 6 per cent to $217 million in the quarter, reflecting revenues from Daddy’s Homeand The Big Short, both released late in the first fiscal quarter. License fees increased 17 per cent to $240 million in the quarter, driven by the licensing of certain titles for subscription video-on-demand services. Worldwide home entertainment revenues decreased $41 million in the quarter, primarily reflecting lower revenues associated with catalogue and third-party distribution titles.

  • Q2-2016: Viacom segments report decline in numbers

    Q2-2016: Viacom segments report decline in numbers

    BENGALURU: Viacom Inc (Viacom) reported 2.5 percent year-on year (YoY) drop (reduced by $77 million) in revenue for the quarter ended 31 March 2016 (Q2-2016, current quarter) at $2,381 million as compared to $2,452 million in Q2-2015. Revenue for the company’s Media Networks segment declined 2.9 percent YoY in the current quarter to $2,381 million from $2,452 million in the corresponding year ago quarter. Filmed Entertainment segment revenue declined 0.6 percent YoY to $655 million from $659 million in Q2-2015.

    Adjusted operating Income in the current quarter declined 29 per cent to $586 million from $822 million in Q2-2015. Media Networks adjusted operating income in Q2-2016 decreased 11 per cent to $805 million from $903 million in Q2-2015, reflecting revenue declines as well as an increase in programming expenses. Filmed Entertainment adjusted operating loss was $136 million, driven by the performance of certain films released in the quarter.
    Quarterly adjusted net earnings attributable to Viacom decreased to $303 million. Adjusted diluted earnings per share for the quarter were $0.76.

    A common trend across a number of media and entertainment verticals in the US for the quarter that ends 31 March is that revenues are at the lowest. In general as per this cycle, revenue can only go up from here for the other quarters if a business has a normal year. In the case of Viacom Inc., 31 March corresponds to the close of the second quarter of its fiscal, since the company’s financial year ends on 30 September.

    Viacom, executive chairman, president and chief executive cfficer Philippe Dauman, said, “Viacom’s brands are among the most popular and culturally connected in the world. Nickelodeon remains the number one network for kids and many of our other networks have shown sequential improvements in ratings and consumption across platforms. The continuing strength of our brands was validated by our recent renewals with Dish and Frontier on attractive terms. In the past year, we have successfully closed long-term carriage agreements with domestic distributors representing more than 44 million subscribers. Around the world we continue to expand the global reach of our networks, launching several new channels in the quarter. At Paramount, we are looking forward to upcoming blockbusters Teenage Mutant Ninja Turtles: Out of the Shadows and Star Trek Beyond this summer.”

    “We are responding to industry consumption shifts with innovative, thoughtful, and long-term strategic solutions and are generating meaningful results in many important areas, including content creation, data-based audience measurement and distribution innovation. There is much more work to be done, but we see the path to growth ahead and are very optimistic about our future,” he added.

    Media Networks

    This segment’s revenue and results have been mentioned above. Viacom says that domestic advertising revenues decreased 5 per cent, as pricing increases were more than offset by softer ratings at some of its networks. International advertising revenues declined 1 per cent, driven by a 7 per cent adverse effect of foreign exchange. Absent the impact of foreign exchange, international advertising revenues increased 6 per cent, driven principally by growth in Europe. Domestic affiliate revenues decreased 2 per cent, reflecting a modest decline in subscribers and a previously disclosed rate adjustment with a major distributor partially offset by rate increases across the remaining subscriber base. International affiliate revenues increased 4 per cent, driven by new channel launches, increased subscribers, and rate increases. Absent a 7 per cent adverse impact of foreign exchange, international affiliates revenues increased 11 per cent.

    Filmed Entertainment

    Filmed Entertainment revenues mentioned above decreased as an increase in license fees and theatrical revenues was more than offset by declines in home entertainment and ancillary revenues. The company says that excluding foreign exchange, which had a 2 per cent unfavourable impact, worldwide revenues increased 1 per cent. Worldwide theatrical revenues increased 6 per cent to $217 million in the quarter, reflecting revenues from Daddy’s Homeand The Big Short, both released late in the first fiscal quarter. License fees increased 17 per cent to $240 million in the quarter, driven by the licensing of certain titles for subscription video-on-demand services. Worldwide home entertainment revenues decreased $41 million in the quarter, primarily reflecting lower revenues associated with catalogue and third-party distribution titles.

  • FY-2016: Inox PAT almost quadruples

    FY-2016: Inox PAT almost quadruples

    BENGALURU: Inox Leisure Limited (Inox) reported almost quadrupling (3.87 times) of profit after tax (PAT) for the year ended 31 March 2016 (FY-2016, current year). The company reported PAT of Rs 77.49 crore (5.8 per cent margin on total income from operations or TIO) in the current year as compared to the Rs 20.04 crore (2 per cent margin on TIO) in the previous year.

    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.

    PAT for the quarter ended 31 March 2016 (Q4-2016, current quarter) was 16.12 crore (5.6 per cent margin on TIO). During the corresponding quarter of the previous year, the company had reported a loss of Rs 4.06 crore, while PAT in the immediate trailing quarter was 3.3 per cent lower at Rs 15.60 crore (4.6 per cent margin on TIO).

    TIO for the current year was 31.1 per cent higher at Rs 1,332.69 crore as compared to the Rs 1,016.81 crore in the previous year. TIO in Q4-2016 grew 31.8 per cent YoY to Rs 286.92 crore from Rs 217.75 crore, but declined 16 per cent quarter-on-quarter (QoQ) from Rs 341.71 crore.

    Company speak

    Commenting on the results, Inox Group of companies director and group head (Corporate Finance) Deepak Asher, said, “Good content coupled with our expansion across the country, with a world class movie viewing experience has helped us in maintaining our growth in the last quarter. We will continue this growth momentum with our consistent efforts in the forthcoming quarters for our guests and all the stakeholders”.

    Gross Box Office (GBOC)

    During FY-2016, as well as Q4-2016, the increase in TIO was driven by increase in Gross Box Office collection (GBOC) in the sale of food and beverages (F&B).

    Inox reported GBOC of Rs 904.94 crore for the current year, 34.4 per cent higher as compared to Rs 673.08 crore in the previous year. GBOC in Q4-2016 increased 41.7 per cent YoY to Rs 191 crore as compared to Rs 134.80 crore, but declined 17.2 per cent QoQ from Rs 230.69 crore.

    Performance of the top five movies by GBOC performance accounted for 42 percent of total GBOC collection in the current quarter. The top five movies in terms of GBO collection for Q4-2016 in descending order were: Airlift (Rs 29.8 crore GBOC or Gross Box Office Collection, 15 lakh footfalls); Neerja (Rs 17.3 crore GBOC, 10.5 lakh footfalls); Kapoor&Sons (Rs 15.7 crore GBOC, 8.5 lakh footfalls) Bajirao Mastani (Rs 9.8 crore, 5.6 lakh footfalls); and Wazir (9.2 crore GBOC, 5.1 lakh footfalls).

    Advertising, food and beverages and other operating revenues

    F&B sales in FY-2016 were Rs 265.63 crore, 39.1 per cent higher as compared to Rs 191.03 crore in FY-2015. This segment reported 52.3 per cent higher YoY sales at Rs 56.99 crore in Q4-2016 as compared to Rs 34.73 crores, but 13 per cent lower QoQ as compared to Rs 65.51 crore in the immediate trailing quarter.

    F&B spend per head in FY-2016 increased to Rs 58 from Rs 55 in FY-2016. In Q4-2016, F&B spend per head increased to Rs 58 from Rs 53 in Q4-2015.

    Revenue from advertising in FY-2016 increased 11.7 per cent to Rs 91.01 crore as compared to Rs 81.49 crore in FY-2015. In Q4-2016, advertising revenue declined 2 per cent to Rs 19.40 crore from Rs 19.79 crore in Q4-2015, and declined 34.2 per cent QoQ from Rs 29.49 crore.

    Other operating revenue in FY-2016 declined 0.2 per cent YoY to Rs 71.10 crore from Rs 71.21 crore. Other operating revenue declined 24.1 percent YoY in Q4-2016 to Rs 19.52 crore from Rs 25.73 crore, but increased 21.8 per cent QoQ from Rs 16.02 crore in Q3-2016.

    Footfalls, occupancy rates and average ticket price

    Footfalls for FY-2016 increased 30 per cent to 534 lakh from 411 lakh in FY-2015. Inox reported a 36 percent increase in footfalls in the current quarter at 115 lakh as compared to 84 lakh in Q4-2015, but a 10.9 per cent decline QoQ from 129 lakh in Q3-2016.

    Occupancy rate in the current year increased to 29 per cent from 25 per cent in FY-2015. Occupancy rate in Q4-2016 improved to 23 per cent from 20 per cent in Q4-2015, but was less than the 31 percent in Q3-2016.

    Average Ticket Price (APT) increased 3.7 per cent in FY-2016 to Rs 170 from Rs 164 in the previous year. ATP increased 5.7 per cent YoY to Rs 167 in the current quarter as compared to Rs 158, but declined 6.7 per cent QoQ from Rs 179.

    Entertainment Tax, Distributors share and F&B costs, rents, etc.

    Inox paid 43.1 per cent higher Entertainment Tax in FY-2016 at Rs 173.81 crore as compared to Rs 121.45 crore in the previous year. Entertainment Tax in Q4-2016 at Rs 35.61 crore was 56.5 per cent higher YoY than Rs 22.76 crore but was 19.8 percent lower QoQ entertainment tax as compared to Rs 44.40 crore.

    Distributors share (Exhibition cost) in FY-2016 was 30.5 per cent higher at Rs 325.30 crore as compared to Rs 249.32 crore in FY-2015. Distributors share in Q4-2016 at Rs 68.94 crore was 44.4 per cent higher YoY as compared to Rs 47.75 crore but was 18.5 per cent lower QoQ as compared to Rs 84.54 crore in Q3-2016.

    F&B costs in the current year were 34 per cent higher at Rs 66.41 crore as compared to Rs 49.55 crore in the previous year. F&B costs in Q4-2016 increased 37 percent YoY to Rs 14.18 crore as compared to Rs 10.35 crore, but declined 11.1 per cent QoQ from Rs 15.95 crore.

    Total Expense in the current year increased 26.1 per cent to Rs 1,223.06 crore from Rs 969.88 crore in FY-2015. Total Expense in the current quarter increased 29.8 percent YoY to Rs 292.59 crore from Rs 225.34 crore but declined 5.3 per cent QoQ from Rs 308.97 crore 

  • FY-2016: Inox PAT almost quadruples

    FY-2016: Inox PAT almost quadruples

    BENGALURU: Inox Leisure Limited (Inox) reported almost quadrupling (3.87 times) of profit after tax (PAT) for the year ended 31 March 2016 (FY-2016, current year). The company reported PAT of Rs 77.49 crore (5.8 per cent margin on total income from operations or TIO) in the current year as compared to the Rs 20.04 crore (2 per cent margin on TIO) in the previous year.

    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.

    PAT for the quarter ended 31 March 2016 (Q4-2016, current quarter) was 16.12 crore (5.6 per cent margin on TIO). During the corresponding quarter of the previous year, the company had reported a loss of Rs 4.06 crore, while PAT in the immediate trailing quarter was 3.3 per cent lower at Rs 15.60 crore (4.6 per cent margin on TIO).

    TIO for the current year was 31.1 per cent higher at Rs 1,332.69 crore as compared to the Rs 1,016.81 crore in the previous year. TIO in Q4-2016 grew 31.8 per cent YoY to Rs 286.92 crore from Rs 217.75 crore, but declined 16 per cent quarter-on-quarter (QoQ) from Rs 341.71 crore.

    Company speak

    Commenting on the results, Inox Group of companies director and group head (Corporate Finance) Deepak Asher, said, “Good content coupled with our expansion across the country, with a world class movie viewing experience has helped us in maintaining our growth in the last quarter. We will continue this growth momentum with our consistent efforts in the forthcoming quarters for our guests and all the stakeholders”.

    Gross Box Office (GBOC)

    During FY-2016, as well as Q4-2016, the increase in TIO was driven by increase in Gross Box Office collection (GBOC) in the sale of food and beverages (F&B).

    Inox reported GBOC of Rs 904.94 crore for the current year, 34.4 per cent higher as compared to Rs 673.08 crore in the previous year. GBOC in Q4-2016 increased 41.7 per cent YoY to Rs 191 crore as compared to Rs 134.80 crore, but declined 17.2 per cent QoQ from Rs 230.69 crore.

    Performance of the top five movies by GBOC performance accounted for 42 percent of total GBOC collection in the current quarter. The top five movies in terms of GBO collection for Q4-2016 in descending order were: Airlift (Rs 29.8 crore GBOC or Gross Box Office Collection, 15 lakh footfalls); Neerja (Rs 17.3 crore GBOC, 10.5 lakh footfalls); Kapoor&Sons (Rs 15.7 crore GBOC, 8.5 lakh footfalls) Bajirao Mastani (Rs 9.8 crore, 5.6 lakh footfalls); and Wazir (9.2 crore GBOC, 5.1 lakh footfalls).

    Advertising, food and beverages and other operating revenues

    F&B sales in FY-2016 were Rs 265.63 crore, 39.1 per cent higher as compared to Rs 191.03 crore in FY-2015. This segment reported 52.3 per cent higher YoY sales at Rs 56.99 crore in Q4-2016 as compared to Rs 34.73 crores, but 13 per cent lower QoQ as compared to Rs 65.51 crore in the immediate trailing quarter.

    F&B spend per head in FY-2016 increased to Rs 58 from Rs 55 in FY-2016. In Q4-2016, F&B spend per head increased to Rs 58 from Rs 53 in Q4-2015.

    Revenue from advertising in FY-2016 increased 11.7 per cent to Rs 91.01 crore as compared to Rs 81.49 crore in FY-2015. In Q4-2016, advertising revenue declined 2 per cent to Rs 19.40 crore from Rs 19.79 crore in Q4-2015, and declined 34.2 per cent QoQ from Rs 29.49 crore.

    Other operating revenue in FY-2016 declined 0.2 per cent YoY to Rs 71.10 crore from Rs 71.21 crore. Other operating revenue declined 24.1 percent YoY in Q4-2016 to Rs 19.52 crore from Rs 25.73 crore, but increased 21.8 per cent QoQ from Rs 16.02 crore in Q3-2016.

    Footfalls, occupancy rates and average ticket price

    Footfalls for FY-2016 increased 30 per cent to 534 lakh from 411 lakh in FY-2015. Inox reported a 36 percent increase in footfalls in the current quarter at 115 lakh as compared to 84 lakh in Q4-2015, but a 10.9 per cent decline QoQ from 129 lakh in Q3-2016.

    Occupancy rate in the current year increased to 29 per cent from 25 per cent in FY-2015. Occupancy rate in Q4-2016 improved to 23 per cent from 20 per cent in Q4-2015, but was less than the 31 percent in Q3-2016.

    Average Ticket Price (APT) increased 3.7 per cent in FY-2016 to Rs 170 from Rs 164 in the previous year. ATP increased 5.7 per cent YoY to Rs 167 in the current quarter as compared to Rs 158, but declined 6.7 per cent QoQ from Rs 179.

    Entertainment Tax, Distributors share and F&B costs, rents, etc.

    Inox paid 43.1 per cent higher Entertainment Tax in FY-2016 at Rs 173.81 crore as compared to Rs 121.45 crore in the previous year. Entertainment Tax in Q4-2016 at Rs 35.61 crore was 56.5 per cent higher YoY than Rs 22.76 crore but was 19.8 percent lower QoQ entertainment tax as compared to Rs 44.40 crore.

    Distributors share (Exhibition cost) in FY-2016 was 30.5 per cent higher at Rs 325.30 crore as compared to Rs 249.32 crore in FY-2015. Distributors share in Q4-2016 at Rs 68.94 crore was 44.4 per cent higher YoY as compared to Rs 47.75 crore but was 18.5 per cent lower QoQ as compared to Rs 84.54 crore in Q3-2016.

    F&B costs in the current year were 34 per cent higher at Rs 66.41 crore as compared to Rs 49.55 crore in the previous year. F&B costs in Q4-2016 increased 37 percent YoY to Rs 14.18 crore as compared to Rs 10.35 crore, but declined 11.1 per cent QoQ from Rs 15.95 crore.

    Total Expense in the current year increased 26.1 per cent to Rs 1,223.06 crore from Rs 969.88 crore in FY-2015. Total Expense in the current quarter increased 29.8 percent YoY to Rs 292.59 crore from Rs 225.34 crore but declined 5.3 per cent QoQ from Rs 308.97 crore 

  • Q1-2016: Facebook ad revenue up 56.8 per cent, income triples

    Q1-2016: Facebook ad revenue up 56.8 per cent, income triples

    BENGALURU: Facebook Inc., (Facebook) advertisement revenue increased 56.8 per cent year-on year (YoY)for the first quarter ended 31 March 2016 (Q1-2016, current quarter) at $5,201 million as compared to $3,317 million in Q1-2015. Advertisement revenue growth in percentage terms was led by the US and Canada (64.3 per cent growth) and the A-Pac (62 per cent growth) regions. Ad revenue share by geography in Q1-2016 was: US and Canada – 50.3 per cent); Europe – 24.4 per cent; A-Pac – 16.3 per cent), and the rest of the world (ROW) – 9 per cent.

    Facebook reported 51.9 percent growth in total revenue at $5,382 million as compared to $3,543 million in the corresponding quarter of the previous year.The social media giant’s GAAP income in Q1-2016 almost tripled (by 2.95 times) year-on-year (YoY) to $1,510 million, as compared to $512 million in Q1-2015. Non-GAAP income in the current quarter was 87.5 per cent higher YoY at $2,229 million as compared to $1,189 million.

    Growth in revenue in percentage terms was also led by growth from the US and Canada (57.6 per cent growth) and the A-Pac (59 per cent YoY growth) geographical regions. A major share of Facebook’s revenue (50.9 per cent) came from the US and Canada region, while the A-Pac regioncontributed 16 per cent to revenue in Q1-2016. Europe’s contribution to Facebook revenue was 24.3 per cent and ROW contributed 8.8 per cent in Q1-2016.

    Historical numbers suggest that Facebook’s revenue in Q1 is the lowest for the year, with revenue peaking in Q4. Hence, revenue increase for the year 2016 should be substantial, considering that the company has also launched new revenue generating products.

    “We had a great start to the year,” said Facebook founder and CEOMark Zuckerberg. “We’re focused on our 10 yearroadmap to give everyone in the world the power to share anything they want with anyone.”

    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.

    Facebook’s daily average users (DAU) increased 16.5 per cent YoY in the current quarter to 1,090 million as compared to 936 million in Q1-2015. For the current quarter A-Pac (21.9 per cent YoY growth) and the ROW (21.9 per cent YOY growth) regions lead DAU growth in percentage terms. In Q1-2016 DAU from US and Canada grew by 16.5 per cent YoY, while Europe DAU grew 7.5 per cent YoY. Please refer to Fig 3 below.

    The proportion of people logging on to Facebook on their mobiles has grown to 90.7 per cent in the current quarter as compared to 85.3 per cent in Q1-2015 and 90 per cent in the immediate trailing quarter (Q4-2015).

    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 Q1-2016 have increased 23.9 per cent YoY to 989 million as compared to 798 million in Q1-2015.

    ARPU

    Facebook’s worldwide average revenue per user (ARPU) in the current quarter was $3.32 in the current quarter as compared to $2.50 in Q1-2015 and $3.73 in Q4-2015. The US and Canada regions lead in terms of ARPU by far. ARPU for the US and Canada region was $12.43 in the current quarter. Corresponding numbers for other regions for Q1-2016 were Europe $3.98; A-Pac1.56; ROW $0.91.

    Facebook announcement

    Facbook has announced that its board of directors has approved a proposal to amend and restate its existing certificateof incorporation to create a new class of non-voting capital stock, known as the class C capital stock. If the proposal isapproved, Facebook intends to issue two shares of class C capital stock as a one-time stock dividend in respect of each outstanding share of its class A and class B common stock. This proposal is designed to create a capital structure thatwill, among other things, allow the company to remain focused on Zuckerberg’s long-term vision for it and to encourageZuckerberg to remain in an active leadership role at Facebook. The adoption of the proposal is subject to the approval Facebook’s stockholders at its 2016 annual meeting of stockholders to be held on June 20, 2016. The record date for thepayment of the class C stock dividend would be set by the board of directors at a later date.

  • Q1-2016: Facebook ad revenue up 56.8 per cent, income triples

    Q1-2016: Facebook ad revenue up 56.8 per cent, income triples

    BENGALURU: Facebook Inc., (Facebook) advertisement revenue increased 56.8 per cent year-on year (YoY)for the first quarter ended 31 March 2016 (Q1-2016, current quarter) at $5,201 million as compared to $3,317 million in Q1-2015. Advertisement revenue growth in percentage terms was led by the US and Canada (64.3 per cent growth) and the A-Pac (62 per cent growth) regions. Ad revenue share by geography in Q1-2016 was: US and Canada – 50.3 per cent); Europe – 24.4 per cent; A-Pac – 16.3 per cent), and the rest of the world (ROW) – 9 per cent.

    Facebook reported 51.9 percent growth in total revenue at $5,382 million as compared to $3,543 million in the corresponding quarter of the previous year.The social media giant’s GAAP income in Q1-2016 almost tripled (by 2.95 times) year-on-year (YoY) to $1,510 million, as compared to $512 million in Q1-2015. Non-GAAP income in the current quarter was 87.5 per cent higher YoY at $2,229 million as compared to $1,189 million.

    Growth in revenue in percentage terms was also led by growth from the US and Canada (57.6 per cent growth) and the A-Pac (59 per cent YoY growth) geographical regions. A major share of Facebook’s revenue (50.9 per cent) came from the US and Canada region, while the A-Pac regioncontributed 16 per cent to revenue in Q1-2016. Europe’s contribution to Facebook revenue was 24.3 per cent and ROW contributed 8.8 per cent in Q1-2016.

    Historical numbers suggest that Facebook’s revenue in Q1 is the lowest for the year, with revenue peaking in Q4. Hence, revenue increase for the year 2016 should be substantial, considering that the company has also launched new revenue generating products.

    “We had a great start to the year,” said Facebook founder and CEOMark Zuckerberg. “We’re focused on our 10 yearroadmap to give everyone in the world the power to share anything they want with anyone.”

    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.

    Facebook’s daily average users (DAU) increased 16.5 per cent YoY in the current quarter to 1,090 million as compared to 936 million in Q1-2015. For the current quarter A-Pac (21.9 per cent YoY growth) and the ROW (21.9 per cent YOY growth) regions lead DAU growth in percentage terms. In Q1-2016 DAU from US and Canada grew by 16.5 per cent YoY, while Europe DAU grew 7.5 per cent YoY. Please refer to Fig 3 below.

    The proportion of people logging on to Facebook on their mobiles has grown to 90.7 per cent in the current quarter as compared to 85.3 per cent in Q1-2015 and 90 per cent in the immediate trailing quarter (Q4-2015).

    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 Q1-2016 have increased 23.9 per cent YoY to 989 million as compared to 798 million in Q1-2015.

    ARPU

    Facebook’s worldwide average revenue per user (ARPU) in the current quarter was $3.32 in the current quarter as compared to $2.50 in Q1-2015 and $3.73 in Q4-2015. The US and Canada regions lead in terms of ARPU by far. ARPU for the US and Canada region was $12.43 in the current quarter. Corresponding numbers for other regions for Q1-2016 were Europe $3.98; A-Pac1.56; ROW $0.91.

    Facebook announcement

    Facbook has announced that its board of directors has approved a proposal to amend and restate its existing certificateof incorporation to create a new class of non-voting capital stock, known as the class C capital stock. If the proposal isapproved, Facebook intends to issue two shares of class C capital stock as a one-time stock dividend in respect of each outstanding share of its class A and class B common stock. This proposal is designed to create a capital structure thatwill, among other things, allow the company to remain focused on Zuckerberg’s long-term vision for it and to encourageZuckerberg to remain in an active leadership role at Facebook. The adoption of the proposal is subject to the approval Facebook’s stockholders at its 2016 annual meeting of stockholders to be held on June 20, 2016. The record date for thepayment of the class C stock dividend would be set by the board of directors at a later date.