Category: Financials

Q3-2015: Dreamworks Animation YoY revenue up 43% at $259.22 million

BENGALURU: DreamWorks Animation SKG Inc. (DWA) reported 43.3 per cent YoY revenue growth in the quarter ended 30 September, 2015 (Q3-2015, current quarter) at $259.22 million as compared to the $180.86 million, which was driven by performance across all operating segments.

For Q3-2015, DWA posted adjusted operating income of $26.8 million. The increase in revenues and segment gross profit was partially offset by an increase in adjusted general and administrative expenses says DWA.

“DreamWorks Animation delivered solid third quarter results, highlighted by strong top-line growth and meaningful segment gross profit across all of our businesses. While we still have considerable work ahead of us, I am proud of the team’s collective efforts and remain confident that we are well positioned to meet or even exceed our stated goals for the year while continuing to drive long term value for our stakeholders,” said DreamWorks Animation CEO Jeffrey Katzenberg.

Segment Revenue

Feature Film segment

Revenues for Q3-2015 from the Feature Film segment increased to $157.9 million, up from $142.4 million in the prior-year period. Segment gross profit decreased to $54.3 million compared to $64.3 million in the same period of last year, primarily due to contributions earned in the prior-year period in the worldwide theatrical market from How To Train Your Dragon 2, which was a higher margin title.

Home contributed feature film segment revenue of $49.7 million in Q3-2015. Home was released in the digital market on 26 June, 2015 and into the physical domestic home entertainment market on 28 July, 2015. The film reached an estimated 4.7 million home entertainment units through the end of the third quarter, net of actual and estimated future returns claims DWA.

The Penguins of Madagascar contributed feature film segment revenue of $39.8 million in the current quarter, primarily from domestic and international pay television. Through the end of the third quarter, the film reached an estimated 3.6 million home entertainment units sold worldwide, net of actual and estimated future returns.

How To Train Your Dragon 2 contributed feature film segment revenue of $7.4 million in the quarter, primarily from international pay television and home entertainment. The film reached an estimated 8.9 million home entertainment units sold worldwide through the end of the third quarter, net of actual and estimated future returns.

Mr. Peabody and Sherman contributed feature film segment revenue of $2.6 million in the quarter, primarily from home entertainment. The film reached an estimated 4.2 million home entertainment units sold worldwide through the end of Q3-2015, net of actual and estimated future returns.

Television Series and Specials segment

Revenues for the quarter ended 30 September, 2015 from the Television Series and Specials segment increased to $50.7 million in Q3-2015, compared to $14.3 million during the prior-year period. The increase in revenues was attributable to a significantly higher number of episodes delivered under DWA’s episodic content licensing arrangements. Segment gross profit increased to $15.3 million in the current quarter, from $2.3 million in Q3-2014. The increase was primarily driven by higher revenues along with favourable amortisation rates associated with episodic series, partially offset by up-front marketing costs associated with the release of DWA’s new television series.

Consumer Products segment

Revenues from the Consumer Products segment increased to $27 million in Q3-2015, compared to $12.1 million in the same period last year. The increase was primarily due to revenues earned from new and extended location based entertainment license arrangements in the quarter, as well as merchandise licensing agreements related to intellectual property rights associated with characters from DWA’s feature films and episodic television series. Revenues also included contributions from merchandising and other licensing activities. Segment gross profit increased to $15.8 million in Q3-2015 from $4.2 million in Q3-2014, as revenues earned from location based entertainment license arrangements have lower associated costs.

New Media Segment

Revenues for Q3-2015 from the company’s New Media segment were $20.7 million compared to $8.5 million during Q3- 2014. This increase was primarily attributable to revenue generated from licensing and distribution of content and brand sponsorship arrangements. In Q3-2014, DWA reported certain advertising and talent management revenues in this segment on a ‘gross’ basis rather than on a ‘net’ basis. For comparative purposes, if the New Media segment’s revenues had been reported on a ‘net’ basis during Q3-2014, revenues for Q3-2015 would reflect an increase of 226 per cent compared with the prior-year period. Segment gross profit, which is not affected by this item, increased to $10.9 million from $2.3 million in the prior-year period, primarily due to higher revenue contributions from licensed content and reduced amortisation of intangible assets.

All other segments

Revenues from All Other segments for Q3-2015 were $2.9 million compared to $3.6 million in the prior-year period and gross profit was $2.4 million compared to a loss of $1.1million in Q3-2014.

November 6, 2015
Q1-2016: News Corp revenue declines 4.5 percent

BENGALURU: Rupert Murdoch helmed News Corporation reported a 4.5 per cent YoY decline in consolidated revenues in the quarter ended 20 September, 2015 (Q1-2016, current quarter) at $2,014 million as compared to the prior year’s quarter revenue of $2,2108 million. Reported Consolidated EBIDTA in the current quarter declined 14.9 per cent YoY to $165 million from $194 million.

Negative foreign currency fluctuations in the current quarter reduced Total Segment EBITDA by $29 million as compared to Q1-2015. Income from continuing operations was $143 million as compared to $109 million in Q1-2015 due to a tax benefit from the release of valuation allowances resulting from the planned disposal of the digital education business, partially offset by lower Total Segment EBITDA, lower Other, net and lower equity earnings of affiliates says News Corp.

Earnings per share from continuing operations available to News Corporation stockholders in the current quarter were $0.22 as compared to $0.15 in Q1-2015. Adjusted EPS were $0.05 in Q1-2016 compared to $0.13 in Q1-2015.

News Corp CEO Robert Thomson said, “News Corp is on track in its transition to a more digital and global future, having successfully integrated several recent acquisitions and built a powerful platform for future growth. We are focused on driving sustainable expansion of revenue and profit, and leveraging the potency of our brands, while diligently controlling costs to maximise long-term returns for all investors. Foreign exchange fluctuations negatively impacted reported results, but this should not obscure the progress at many of our businesses. In fact, News Corp’s revenues, excluding the effect of currency, grew four per cent this quarter, underscoring the value of our shift to higher growth businesses and our prudent reinvestment strategy.”

“We are particularly pleased with the momentum at realtor.com, which is significantly ahead of schedule on key metrics. We are now, by some reckoning, the world’s largest digital property listings company and we see a particularly bright future in the sector, especially in the U.S. where we believe the national real estate market is still returning to health,” he added.

“Our digital expertise has been enhanced by the addition of Unruly and Checkout 51, which we expect will have a positive impact across our businesses and around the world. We are already seeing significant new opportunities because of Unruly’s unique skills in measuring the social and viral penetration of advertising campaigns. We are on the cusp of significant upheaval in the advertising market, which has been distorted by trash traffic, invisible impressions and mockable metrics, to the detriment of advertisers, large and small,” he further said.

“With recent M&A activity highlighting the rising value of global financial news brands, the progress at Dow Jones and The Wall Street Journal is noteworthy, with growth in print and digital advertising, and improvements in the professional information business.”

Segment Revenue

News and Information Services

This is News Corp’s largest segment. Revenues for the segment declined 11.1 per cent to $1,290 million in the current quarter as compared to the $1451 million in the corresponding year ago quarter. The segment’s EBIDTA declined 21 per cent YoY to $83 million from $105 million due to lower advertising revenues and $5 million of higher legal expenses at News America Marketing claims the company.

News Corp says that total segment advertising revenues declined 13 per cent, primarily due to negative foreign currency fluctuations, weakness in the print advertising market, most notably in Australia, and lower revenues at News America Marketing.

Circulation and subscription revenues declined six per cent, due to negative foreign currency fluctuations, partially offset by higher subscription pricing and cover price increases. At Dow Jones, the company saw growth in both print and digital advertising revenues and higher circulation revenues at The Wall Street Journal as well as modest growth of professional information business revenues.

Adjusted revenues declined three per cent compared to the prior year. Total segment advertising revenues declined five per cent and circulation and subscription revenues increased two per cent, excluding the impact of $60 million and $45 million, respectively, from negative foreign currency fluctuations.

Book Publishing

Revenues for the segment increased 0.7 per cent to $409 million in the current quarter as compared to the $406 million in the corresponding year ago quarter. The revenue growth was driven by driven by strong sales in General Books resulting from the popularity of Go Set a Watchman by Harper Lee and the inclusion of the results of Harlequin, acquired in August 2014, partially offset by lower revenues from the Divergent series, lower e-book sales and negative foreign currency fluctuations. Digital sales represented 20 per cent of consumer revenues for the quarter.

The segment’s EBIDTA declined 23.6 per cent YoY to $42 million from $55 million.

Digital Real Estate Services

Revenues for the segment increased 70.5 per cent to $191 million in the current quarter as compared to the $112 million in Q1-2015 primarily driven by the inclusion of the results of Move, acquired in November 2014. At REA Group, increased revenues from greater residential listing depth product penetration and improved listing volumes in Australia were more than offset by negative foreign currency fluctuations.

The segment’s EBIDTA was flat YoY at $57 million due to negative foreign currency fluctuations.

News Corp claims that in Q1-2016, Move’s revenues increased 33 per cent on a stand-alone basis to $85 million in the current quarter from $64 million in the corresponding prior year. Move saw continued strength in its Connection for Co-Brokerage product and non-listing Media revenues, coupled with market share gains for its Top Producer software product. Based on Move’s internal data, average monthly unique users of realtor.com’s web and mobile sites for the quarter grew 43 per cent year-over-year to approximately 46 million, which was driven by 64 per cent growth in mobile users.

Cable Network Programming

Revenues declined 10.9 per cent in the current quarter to $124 million from $139 million in Q1-2015, while the company says that Adjusted revenues increased 10 per cent, primarily due to higher affiliate and advertising revenues.

The segment’s EBIDTA declined 12.5 per cent in Q1-2016 to $28 million from $32 million in Q1-2015. News Corp claims that Adjusted Segment EBITDA increased nine per cent, primarily due to an increase in revenues, as noted above, partially offset by expected higher programming rights costs related to the Rugby World Cup. Negative foreign currency fluctuations reduced reported revenues for the first quarter of fiscal 2016 by $29 million as compared to the prior year.

Other

News Corp says that Segment EBITDA in the quarter improved by $10 million compared to the corresponding prior year, primarily due to lower fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World.

The net expense related to the U.K. Newspaper Matters was $5 million for Q1-2016 as compared to $14 million for Q1-2015.

November 6, 2015
Q2-2016: B.A.G. FM Radio revenue, operating profit up

BENGALURU: B.A.G. Films and Media Limited (B.A.G. Films) FM Radio segment reported 25.9 per cent YoY operating revenue growth for the quarter ended 30 September, 2015 (Q2-2016, current quarter) at Rs 2.22 crore (8.9 per cent of Total Income from Operations or TIO) as compared to Rs 1.77 crore (5.1 per cent of TIO).

The FM Radio segment’s operating revenue in the current quarter also increased 40.8 per cent QoQ from Rs 1.58 crore (6.1 per cent of TIO). B.A.G. Films’ FM radio network Dhamaal 24 (106.4 FM), which was launched in 2005, operates 10 stations in India.

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

The FM Radio segment reported almost threefold (up 2.9 times) operating profit in the current quarter at Rs 0.73 crore as compared to the Rs 0.25 crore in the corresponding year ago quarter. The segment had reported an operating loss of Rs 0.24 crore in the immediate trailing quarter.

B.A.G. Films other major segment, Television Broadcasting (TV segment) reported two per cent YoY growth in segment revenue at Rs 21.66 crore (86.8 per cent of TIO) as compared to the Rs 21.22 crore (64.7 per cent of TIO) and a 4.7 per cent QoQ revenue growth from Rs 20.69 crore (79.7 per cent of Total Income from Operations or TIO).

B.A.G. Films TV segment reported 14.2 per cent YoY drop in operating profit at at Rs 5.07 crore as compared to the Rs 5.91 crore and a 37.3 per cent QoQ drop from Rs 8.08 crore.

B.A.G. Films TIO in the current quarter at Rs 24.94 crore dropped 23.9 per cent YoY as compared to the Rs 32.80 and dropped 3.9 per cent from Rs 25.96 crore in the immediate preceding quarter.

Let’s look at the other numbers reported by B.A.G. Films:

B.A.G. Films reported a higher loss of Rs 3.66 crore in the current quarter as compared to the Rs 2.93 crore in the corresponding year ago quarter and a loss of Rs 1 crore in Q1-2016.

The company’s simple EBIDTA calculated without including other income in the current quarter at Rs 3.93 crore (15.8 per cent margin) declined 9.3 per cent as compared to the Rs 4.34 crore (13.2 per cent margin) in Q2-2015 and was 35.1 per cent lower than the Rs 6.06 crore (23.3 per cent margin) in Q1-2016.

B.A.G. Films’ total expenditure in the current quarter at Rs 24.62 crore (98.7 per cent of TIO) was 23.7 per cent lower than the Rs 32.27 crore (98.4 per cent of TIO), but increased four per cent QoQ from Rs 23.67 crore (91.2 per cent of TIO).

Employee Cost in Q2-2016 at Rs 4.82 crore (19.3 per cent of TIO) increased 1.5 per cent YoY from Rs 4.75 crore (14.5 per cent of IO) and was 1.7 per cent more than Rs 4.74 crore (18.2 per cent of TIO) in Q1-2016.

Segment Numbers

The company has mentioned five segments in its financial results namely: Audio-Visual Production (AVP); Movies: Leasing; FM Radio; and Television Broadcasting. While the movies segment made no contribution to the company’s revenue or operating results in the current quarter, Q2-2015 or Q1-2016, FM Radio and TV Broadcasting segment numbers have already been mentioned above.

Audio Visual Production segment (AVP segment)

AVP segment reported a 78.3 per cent decline in revenue in Q2-2016 at Rs 1 crore as compared to the Rs 4.60 crore in Q2-2015 and 72.2 per cent decline from Rs 3.60 crore in Q1-2016. The segment reported an operating loss of Rs 0.66 crore in the current quarter as compared to an operating profit of Rs 1.98 crore in Q2-2015 and an operating profit of Rs 2.24 crore in Q1-2016.

Leasing segment (The numbers for this segment are mentioned in lakh – 100 lakh = 1 crore)

B.A.G. Films leasing segment reported revenue of just Rs 6.95 lakh in the current quarter as compared to the Rs 15.65 lakh in Q2-2015 and Rs 9.97 lakh in the preceding quarter. The segment reported an operating loss of Rs 82.63 lakh in Q2-2016 as compared to an operating loss of Rs 88.64 lakh in the corresponding year ago quarter and an operating loss of Rs 93.20 lakh in the immediate trailing quarter.

November 6, 2015
FY-2015: Disney revenue up 7.5%; net income up 11.7%

BENGALURU: The Walt Disney Company Inc reported 7.5 per cent YoY increase in consolidated revenue at $52,465 million for the year ended 3 October, 2015 (FY-2015, current year) as compared to the $48.813 million reported for the year ended 27 September, 2014 (FY-2014, previous year). Net income in the current year increased 11.7 per cent YoY to $8.382 million from $7,501 million.

“We had a strong quarter, with adjusted EPS up 35 per cent, completing our fifth consecutive year of record performance. In Fiscal 2015 we delivered the highest revenue, net income and adjusted EPS in the Company’s history, reflecting the power of our great brands and franchises, the quality of our creative content, and our relentless innovation to maximize value from emerging technologies,” said Disney chairman and CEO Robert A Iger.

For the quarter ended 3 October, 2015 (Q4-2015, current quarter), consolidated revenue increased 9.1 per cent YoY to $13.512 million as compared to $12,389 million in the quarter ended 27 September, 2014 (Q4-2014). Net Income in Q4-2015 increased 7.3 per cent to $1,609 million as compared to $1,499 million.

Segment Results

Four of the five Disney’s segments – Media Works, Parks and Resorts, Studio Entertainment and Consumer Products reported growth in revenue in FY-2015 and Q4-2015 as compared to FY-2014 and Q4-2014 respectively, while the fifth segment – Interactive – reported decline in revenues. However, all the five segments reported growth in segment operating income in the current year and quarter as compared to the previous year and year ago quarter respectively.

Media Networks

Media Networks revenue in FY-2015 increased 10 per cent to $23,264 million from $21,152 million in the previous year. Segment Operating income increased 6.4 per cent in the current year to $7,793 million as compared to $7,321 million in FY-2014.

The segments revenue in the current quarter increased 11.7 per cent YoY to $5,286 million from $5,217 million. Operating income for the segment increased 26.6 per cent YoY to $1,819 million from $1,437 million.

Disney says that Operating income growth at Media Networks was driven by higher affiliate fees, increased advertising revenue at ESPN and the ABC Television Network and higher operating income from program sales. These increases were partially offset by an increase in programming and production costs at ESPN and, to a lesser extent, the Disney Channels and the ABC Television Network.

Two sub-segments contribute to Disney’s Media Networks – Cable Networks and Broadcasting.

Cable Networks

Cable Networks revenue in FY-2015 increased 9.7 per cent to $16,581million from $15,110 million in the previous year. Segment Operating income increased 4.9 per cent in the current year to $6,787 million as compared to $6,467 million in FY-2014.

The sub-segments revenue in the current quarter increased 12.4 per cent YoY to $4,245 million from $3,776 million. Operating income for the sub- segment increased 29.8 per cent YoY to $1,655 million from $1,275 million.

For Q4-2014, Disney says that Operating income at Cable Networks increased due to an increase at ESPN and, to a lesser extent, A&E Television Networks (A&E) and the Disney Channels. The increase at ESPN reflected higher affiliate and advertising revenues, partially offset by an increase in programming costs. Affiliate revenue growth was driven by contractual rate increases and an increase in subscribers. The increase in subscribers was due to a full quarter of the SEC Network, which launched in August 2014, partially offset by a decline in subscribers at certain of Disney’s networks.

Growth in advertising revenue reflected higher units sold, partially offset by lower ratings. Higher programming costs reflected a full quarter for the SEC Network, additional rights for the US Open Tennis tournament and contractual rate increases for Major League Baseball and NFL rights, partially offset by the absence of rights costs for NASCAR.

Higher equity income from A&E was due to lower programming and marketing costs, partially offset by lower advertising and affiliate revenue. The increase at Disney Channels was driven by higher affiliate revenues, partially offset by higher programming costs. Affiliate revenue growth reflected contractual rate increases domestically and subscriber growth internationally. The programming cost increase was driven by higher costs for original programming, including more hours of new series in the current quarter.

Broadcasting

Cable Networks revenue in FY-2015 increased 10.6 per cent to $6,683 million from $6,042 million in the previous year. Segment Operating income increased 17.8 per cent in the current year to $1,006 million as compared to $854 million in FY-2014.

The sub-segments revenue in the current quarter increased 9.7 per cent YoY to $1,581 million from $1,441 million. Operating income for the sub-segment was flat YoY to $164 million from $163 million.

For Q4-2014, Disney says that growth in advertising and affiliate revenue was offset by higher programming costs, lower operating income from program sales, an equity loss from Hulu and higher marketing costs for the fall season launch. The increase in advertising revenue reflected higher units sold, including the benefit of the extra week of operations, and higher rates. Affiliate revenue growth was due to contractual rate increases and new contractual provisions. Higher programming costs reflected the impact of an additional week of operations. Lower operating income from program sales was driven by an increase in cost amortisation and lower sales. Program sales reflected decreases for My Wife and Kids and America’s Funniest Home Videos, partially offset by the sale of How to Get Away with Murder in the current quarter. The equity loss from Hulu was due to higher content and marketing costs.

Parks & Resorts

Parks and Resorts segment revenue in the current year increased seven per cent to $16,162 million as compared to the $15,099 in FY-2014. Segment Operating income increased 13.8 per cent in the current year to $3,301 million as compared to $2,663 million in FY-2014.

The segments revenue in the current quarter increased 10.1 per cent YoY to $4,361 million from $3,960 million. Operating income for the segment increased 7.4 per cent YoY to $738 million from $687 million.

Growth at Parks and Resorts was driven by Disney’s domestic operations due to higher average guest spending, attendance and occupancy, partially offset by increased costs driven by inflation and volumes. Results at Disney’s international parks and resorts operations reflected lower attendance and occupancy at Hong Kong Disneyland Resort and higher pre-opening expenses at Shanghai Disney Resort.

Studio Entertainment

Studio Entertainment segment revenue in the current year increased 1.2 per cent to $7,366 million as compared to the $7,278 in FY-2014. Segment Operating income increased 27.4 per cent in the current year to $1,973 million as compared to $1,549 million in FY-2014.

The segments revenue in the current quarter was flat (increased 0.3 per cent) YoY to $1,783 million from $1,778 million. Operating income for the segment more than doubled (2.09 times) YoY to $530 million from $254 million.

At Studio Entertainment, operating income growth was due to a higher revenue share with the Consumer Products segment reflecting the success of Frozen merchandise, an increase in television distribution revenue and higher domestic theatrical results. This growth was partially offset by a decline in home entertainment units sold reflecting the success of Frozen in the prior year.

For Q4-2015, Disney says that Operating income growth was due to increased TV/SVOD distribution results, lower film cost impairments, improved theatrical results and a higher revenue share with the Consumer Products segment. These increases were partially offset by lower home entertainment results.

The increase in TV/SVOD distribution was driven by a lower average production cost amortisation rate, the timing of title availabilities in international pay and domestic free television markets as well as SVOD revenue growth internationally. Lower production cost amortisation reflected a higher sales mix of catalogue titles in the current quarter.

Operating income growth in theatrical distribution was driven by the performance of Inside Out and Ant-Man in the current quarter compared to Guardians of the Galaxy, Maleficent and no Pixar title in the prior-year quarter. Theatrical distribution revenues were lower in the current quarter as the prior-year quarter also included Planes: Fire and Rescue and The Hundred-Foot Journey, whereas the current year included no Disney feature animation or DreamWorks titles in release. Increased revenue share was due to the performance of Frozen merchandise in the current quarter.

The decrease in home entertainment was due to lower net effective pricing and unit sales reflecting the prior-year quarter performance of Frozen internationally and Marvel’s Captain America: The Winter Soldier worldwide, partially offset by Marvel’s Avengers: Age of Ultron and Cinderella in the current quarter. These decreases were partially offset by lower per unit costs as well as decreased marketing spending in the current quarter.

Consumer Products

Consumer Products segment revenue in the current year increased 12.9 per cent to $4,499 million as compared to the $3,985 in FY-2014. Segment Operating income increased 29.2 per cent in the current year to $1,752 million as compared to $1,356 million in FY-2014.

The segments revenue in the current quarter increased 11.5 per cent YoY to $1,195 million from $1,072 million. Operating income for the segment increased 9.8 per cent YoY to $416 million from $379 million.

Consumer Products operating income growth was due to higher merchandise licensing revenue reflecting the strength of Frozen, Avengers and Star Wars Classic merchandise.

Interactive

Interactive segment revenue in the current year reduced 9.6 per cent to $1,174 million as compared to the $1,299 in FY-2014. Segment Operating income increased 13.8 per cent in the current year to $132 million as compared to $116 million in FY-2014.

The segments revenue in the current quarter reduced 4.1 per cent YoY to $347 million from $362 million. Operating income for the segment increased 72.2 per cent YoY to $31 million from $18 million.

Interactive growth was driven by the ongoing success of the Tsum Tsum mobile game and lower product development and marketing costs, primarily at Disney’s mobile businesses, partially offset by lower operating income from Disney Infinity console games.

November 6, 2015
Q2-2016: Hathway Bhawani YoY sales up 10.4%, loss down

BENGALURU: Hathway Bhawani Cabletel and Datacom Limited (HBCDL) reported a 10.4 per cent YoY growth in net sales or Income from Operations (TIO) for the quarter ended 30 September, 2015 (Q2-2016, current quarter) at Rs 419.74 lakh as compared to Rs 380.14 lakh. Current quarter’s TIO was almost flat (increased 0.6 per cent) QoQ as compared to Rs 416.32 lakh.

Note: 100,00,000 = 100 lakh =10 million = 1 crore

The numbers in this report are mentioned in Rs lakh in general.

The company reported a lower loss in the current quarter at Rs 12.50 lakh as compared to the loss of Rs 50.14 lakh in the corresponding year ago quarter and a loss of Rs 18.52 lakh in the immediate trailing quarter.

HBCDL’s EBIDTA including ‘Other Income’ (Operating profit) was Rs 10.11 lakh 2.4 per cent margin) as compared to an operating loss of Rs 23.82 lakh in Q2-2015 and was over six times (6.6 times) the EBIDTA of Rs 1.53 lakh reported for Q1-2016.

Let us look at the other numbers reported by HBSDL

HBDCL’s Total Expenditure in the current quarter increased 1.3 per cent YoY to Rs 435.62 lakh (103.8 per cent of TIO) from Rs 429.90 lakh (113.1 per cent of TIO) and was almost flat (declined 0.5 per cent) QoQ from Rs 437.96 lakh (105.2 per cent of TIO).

A major expense head for the company is Pay Channel & Feed Charges (Pay channel). The company’s Pay channel costs in Q2-2016 declined 5.9 per cent YoY to Rs 200.29 lakh (47.7 per cent of TIO) from Rs 212.88 crore (56 per cent of TIO), but increased 1.9 per cent QoQ from Rs 196.49 lakh (47.2 per cent of TIO).

Employee Costs in the current quarter reduced by 12.1 per cent YoY to Rs 36.70 lakh (8.7 per cent of TIO) from Rs 41.75 lakh (11 per cent of TIO), but increased 3.5 per cent QoQ from Rs 35.45 lakh (8.5 per cent of TIO).

The company’s Provision for doubtful receivables in Q2-2016 increased 38.1 per cent YoY to Rs 43.50 lakh (10.4 per cent of TIO) as compared to Rs 31.50 lakh (8.3 per cent of TIO), but declined 18.7 per cent QoQ from Rs 53.50 lakh (12.9 per cent of TIO).

Interest costs in the current quarter reduced 3.9 per cent YoY to Rs 5.15 lakh (1.2 per cent of TIO) from 5.36 lakh (1.4 per cent of TIO) but increased 2.8 per cent QoQ from Rs 5.01 lakh (1.2 per cent of TIO).

November 6, 2015
Q2-2016: NDTV YoY Television revenue up 15%

BENGALURU: New Delhi Television Limited (NDTV) reported 15.1 per cent YoY revenue growth for its Television Media and related operations segment at Rs 125.25 crore in the quarter ended 30 September, 2015 (Q2-2016, current quarter) as compared to Rs 108.83 crore. The segment’s revenue for the current quarter was up 7.3 per cent QoQ from Rs 116.76 crore.

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

All numbers In this report are consolidated unless stated otherwise

To leverage the NDTV brand, NDTV had started two additional businesses – Digital business (NDTV Convergence) about 10 years ago and E-commerce business about two years ago. But these businesses also reported growth in YoY revenue. NDTV’s Retail/E-commerce business reported 73.3 per cent YoY revenue growth in the current quarter at Rs 3.95 crore as compared to the Rs 2.28 crore in Q2-2015, but a QoQ decline of 31.5 per cent from Rs 5.77 crore.

The company says that its digital business reported 30 per cent YoY growth with revenue of Rs 26 crore in the current quarter as compared to Rs 20 crore in Q2-2015.

NDTV’s consolidated Total Income from Operations (TIO) in Q2-2016 increased 15.6 per cent YoY to Rs 127.60 crore from Rs 110.38 crore and increased 6.3 per cent QoQ from Rs 120.01 crore.

NDTV reported lower loss at Rs 7.11 crore in the current quarter as compared to the loss of Rs 20.18 crore in Q2-2015 and a loss of Rs 14.60 crore in the immediate trailing quarter.

The company’s EBIDTA numbers including ‘Other Income’ in the current quarter improved YoY and QoQ. For Q2-2016, NDTV reported lower operating loss of Rs 10.92 crore as compared to the operating loss Rs 12 crore in Q2-2015 and the operating loss of Rs 15.33 crore in the immediate trailing quarter.

Television Media and related operations segment

Television Media and related operations numbers include numbers from the company’s Digital Business. NDTV’s Television and allied operations reported Operating Profit of Rs 1 crore in Q2-2016 as compared to an operating loss of Rs 11 crore in Q2-2015. Digital Business EBIDTA declined from Rs 3 crore in the corresponding year ago quarter to Rs 1 crore in the current quarter.

Overall, the segment reported lower operating loss of Rs 8.41 crore in Q2-2016 as compared to operating loss of Rs 15.22 crore in Q2-2015 and operating loss of Rs 12.55 crore in the immediate trailing quarter.

Retail/E-Commerce segment

Retail/E-commerce segment revenue numbers have been mentioned above. The segment reported operating loss of Rs 10.89 crore in the current quarter as compared to the operating loss of Rs 3.16 crore in Q2-2015 and the operating loss of Rs 8.39 crore in Q1-2016.

Let us look at the other numbers reported by NDTV

Total Expenditure (TE) in the current quarter increased 7.1 per cent YoY to Rs 148.77 crore as compared to Rs 132.43 crore, and was two per cent higher QoQ as compared to Rs 145.92 crore.

NDTV’s consolidated Production Expense increased 26.7 per cent YoY to Rs 27.41 crore in Q2-2016 as compared to the Rs 21.64 crore and increased 20.2 per cent QoQ from Rs 22.79 crore.

The company’s marketing, distribution and promotional expense (marketing expense) in the current quarter increased 21.3 per cent YoY to Rs 30.28 crore from Rs 24.96 crore and increased 3.2 per cent QoQ from Rs 29.33 crore.

NDTV’s Employee Benefit Expense increased 4.3 per cent YoY in the current quarter to Rs 47.63 crore from Rs 45.65 crore and declined 6.2 per cent QoQ from Rs 50.77 crore.

Operating and administration expenses in Q2-2016 declined 3 per cent YoY to Rs 31.42 crore from Rs 32.41 crore, but increased 4.7 per cent QoQ from Rs 30.01 crore.

Finance Costs in the current quarter declined 8.2 per cent YoY to Rs 5.23 crore from Rs 5.70 crore and declined 6.1 per cent QoQ from Rs 5.57 crore.

November 5, 2015
Q3-2015: Facebook YoY revenue up 40.5% to $4.5 billion; net income $1.63 billion

BENGALURU: Social media major Facebook Inc reported a 40.5 per cent hike in YoY revenue to $4.5 billion in the quarter ended 30 September, 2015 (Q3-2015) as compared to the $3.2 billion in the corresponding quarter of last year.

The company’s non-GAAP net income rose 41.7 per cent YoY to $1.6 billion (36.2 per cent margin) in the current quarter as compared to $1.14 billion (35.9 per cent margin) in Q3-2014. Facebook’s GAAP income increased 11.2 per cent to $896 million in the current quarter as compared to $806 million in Q3-2014.

“We had a good quarter and got a lot done,” said Facebook founder and CEO Mark Zuckerberg. “We’re focused on innovating and investing for the long term to serve our community and connect the entire world.”

Operational highlights

Daily active users (DAUs) – DAUs were 1.01 billion on average for September 2015, an increase of 17 per cent YoY

Mobile DAUs – Mobile DAUs were 894 million on average for September 2015, an increase of 27 per cent YoY.

Monthly active users (MAUs) – MAUs were 1.55 billion as of 30 September, 2015, an increase of 14 per cent YoY.

Mobile MAUs – Mobile MAUs were 1.39 billion as of 30 September, 2015, an increase of 23 per cent YoY.

Financial highlights

Growth in revenue was driven by a 45.4 per cent growth in Advertising revenue to $4.29 billion in the current quarter as compared to the $2.59 billion in Q2-2014.

Mobile advertising revenue – Mobile advertising revenue represented approximately 78 per cent of advertising revenue for Q3-2015 2015, up from 66 per cent of advertising revenue in Q3-2014.

Capital expenditures – Capital expenditures for Q3-2015 were $780 million.

Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $15.83 billion at the end of Q3-2015.

Free cash flow – Free cash flow for Q3-2015 was $1.41 billion.

Zuckerberg also took to his Facebook page to say, “Our community now has more than 1.55 billion people, including more than 1 billion people active every day. Through Internet.org, more than 15 million people now have access to the opportunities of the Internet who didn’t before.”

“In the last three months, we’ve also announced our first aircraft to beam down internet access, our first satellite launch to deliver connectivity, an AI-powered digital assistant and our first Oculus virtual reality consumer release. Our community has a lot to be proud of. Thank you for being a part of our community, and for helping to connect the world,” he added.

November 5, 2015
Time Warner revenues up 5% to $6.6 billion led by HBO & Warner Bros

MUMBAI: Time Warner Inc’s revenue in the third quarter ended 30 September, 2015 was up five per cent to $6.6 billion. The revenue growth was led by Home Box Office (HBO) and Warner Bros, which was partially offset by higher intercompany eliminations and a decline at Turner.

Adjusted Operating Income grew 85 per cent to $1.8 billion due to growth across all operating divisions, reflecting the absence of programming charges incurred in 2014 at Turner and lower restructuring and severance charges across all segments, partially offset by higher intercompany eliminations.

Revenues and Adjusted Operating Income included the unfavorable impact of foreign exchange rates of $290 million and $160 million, respectively, in the quarter. Operating Income increased 89 per cent to $1.8 billion.

Time Warner chairman and CEO Jeff Bewkes said, “We had another very good quarter, with revenues up five per cent and strong growth in Adjusted Operating Income, which totaled $1.8 billion. Our revenue growth was led by Warner Bros. and Home Box Office, and illustrated how our investments in great content have been paying off in our traditional television businesses, as well as in newer areas such as video games. In September, HBO received a record 43 Primetime Emmy Awards, the most of any network for the 14th consecutive year. That included 12 awards for Game of Thrones, setting a record for a series in a single year,” he added.

The company posted Adjusted Diluted Income per Common Share from Continuing Operations (Adjusted EPS) of $1.25 versus $1.22 for the prior year quarter. Excluding a net tax benefit of $639 million, programming charges at Turner and restructuring and severance charges in the prior year quarter, Adjusted EPS would have been $0.97 in the prior year quarter. Diluted Income per Common Share from Continuing Operations was $1.26 compared to $1.11 in the prior year quarter.

For the first nine months of 2015, Cash Provided by Operations from Continuing Operations reached $3 billion and Free Cash Flow totaled $2.9 billion. As of 30 September, 2015, net debt was $21.2 billion, up from $19.8 billion at the end of 2014, due to share repurchases, dividends and investments and acquisitions, partially offset by the generation of Free Cash Flow.

Segment Performance

Time Warner’s segments performance for the third quarter of 2015 is as follows:

TURNER

Revenues decreased two per cent ($48 million) to $2.4 billion, due to declines of 15 per cent ($18 million) in Content and other revenues, one per cent ($17 million) in Subscription revenues and one per cent ($13 million) in Advertising revenues.

Content and other revenues decreased due to lower subscription video-on-demand (VOD) revenues. The decline in Subscription revenues was due to the impact of foreign exchange rates and a decline in domestic subscribers, partially offset by higher domestic rates and local currency growth at Turner’s international networks. Advertising revenues decreased due to the impact of foreign exchange rates and the absence of NASCAR programming, partially offset by local currency growth at Turner’s international networks. Domestic advertising was flat in the quarter.

Adjusted Operating Income increased 206 per cent ($721 million) to $1.1 billion, as the decline in revenues was more than offset by lower expenses, including decreased programming costs and lower restructuring and severance costs. Programming costs decreased 45 per cent primarily due to the absence of the prior year quarter’s $482 million of charges related to Turner’s decision to no longer air certain programming. Excluding these charges in the prior year, programming costs decreased in the high-single digits mainly due to the absence of NASCAR programming.

Operating Income increased 218 per cent ($735 million) to $1.1 billion.

TNT’s NBA Opening Night doubleheader averaged 2.9 million total viewers, up 24 per cent over last year, and generated double-digit growth across all key demographics. TBS’ Major League Baseball postseason coverage averaged 6.3 million total viewers, up close to 50 per cent compared to last year, and was the network’s most watched postseason ever. For the 30th consecutive quarter, Adult Swim was ad-supported cable’s #1 total day network among adults 18-34, and it was #1 among adults 18-49 in the third quarter. CNN’s recent coverage of the Republican presidential debate garnered over 23 million average viewers – making it CNN’s most watched program ever – and the Democratic presidential debate reached over 15 million average viewers – making it the most watched Democratic debate ever on cable. CNN continued to grow primetime ratings across all key demographics, up 39 per cent and 35 per cent for adults 18-49 and 25-54, respectively, in the third quarter. Cartoon Network was once again the only top 3 kids network to grow ratings in the quarter, and ranked as the #1 ad-supported cable network in total day ratings among kids 6-11.

HOME BOX OFFICE

Revenues increased five per cent ($63 million) to $1.4 billion, due to increases of four per cent ($44 million) in Subscription revenues and 13 per cent ($19 million) in Content and other revenues. Subscription revenues grew primarily due to higher domestic rates, partially offset by lower international revenues, which included the impact of the transfer to Turner of the operation of HBO’s basic cable network in India. The increase in Content and other revenues primarily reflected higher domestic licensing revenues.

Adjusted Operating Income increased 37 per cent ($139 million) to $519 million, reflecting higher revenues and lower expenses. The decrease in expenses was mainly due to lower restructuring and severance costs as well as decreased distribution and programming costs, partially offset by higher marketing and technology costs. Programming costs decreased six per cent primarily reflecting lower acquired theatrical programming costs. The higher marketing and technology costs related to HBO NOW, HBO’s stand-alone streaming service.

Operating Income increased 37 per cent ($139 million) to $519 million.

WARNER BROS.

Revenues increased 15 per cent ($415 million) to $3.2 billion, reflecting higher video games and television licensing revenues, partially offset by the impact of foreign exchange rates, the absence of revenues from a patent license and settlement agreement in the prior year quarter and lower theatrical revenues. The increase in video games revenues was primarily due to the releases of LEGO Dimensions and Mad Max, as well as carryover revenues from several titles, including Mortal Kombat X and Batman: Arkham Knight. Television licensing revenues benefited from the initial cable and off-network availability of 2 Broke Girls and the initial cable availability and subscription video-on-demand licensing of Person of Interest.

Adjusted Operating Income increased 61 per cent ($147 million) to $388 million, due to the increase in revenues, lower theatrical and video games valuation adjustments and decreased restructuring and severance costs, partially offset by higher print and advertising costs.

Operating Income increased 62 per cent ($148 million) to $385 million.

Season-to-date among adults 18-49: Blindspot and Supergirl ranked as the top two new series, The Voice ranked as the #1 non-scripted series and The Big Bang Theory ranked as the #1 comedy and #2 series overall in primetime on broadcast television. For the first nine months of the year, Warner Bros. ranked as the top US video game publisher, and Mortal Kombat X was the #1 videogame.

CONSOLIDATED NET INCOME AND PER SHARE RESULTS

Third-Quarter Results

Adjusted EPS was $1.25 for the three months ended 30 September, 2015, compared to $1.22 in last year’s third quarter. The increase in Adjusted EPS primarily reflects higher Adjusted Operating Income and fewer shares outstanding, offset in part by higher taxes as a result of the $639 million net tax benefit in the third quarter of 2014 mainly related to the reversal of certain tax reserves in connection with an audit settlement.

For the three months ended 30 September, 2015, the company had Income from Continuing Operations of $1 billion, or $1.26 per diluted common share. This compares to Income from Continuing Operations attributable to Time Warner common shareholders in the third quarter of 2014 of $966 million, or $1.11 per diluted common share.

For the third quarters of 2015 and 2014, the company had Net Income of $1.0 billion and $967 million, respectively.

November 4, 2015
Q2-2016: Tips YoY Audio Products sales up 12.5%

BENGALURU: Tips Industries Limited (Tips) reported a 12.5 per cent growth in its Audio Products Sales to Rs 9.01 core (75 per cent of Total Income from Operations or TIO) in the quarter ended 30 September, 2015 (Q2-2016, current quarter) as compared to the Rs 8 crore (10.3 per cent of TIO) in Q2-2015. QoQ, Audio Product sales grew 1.6 per cent from Rs 8.86 crore (100 per cent of TIO).

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

Tips reported TIO of Rs 12.01 crore in the current quarter. In Q2-2014, higher revenue from films resulted in the company reporting 6.5 times higher revenue of Rs 78 crore. In the immediate trailing quarter, Tips reported revenue of Rs 8.86 crore.

The company reported profit after tax (PAT) of Rs 1.59 crore (13.2 per cent margin) in Q2-2016 as compared the profit of Rs 13.53 crore (17.3 per cent margin) in Q2-2015 and a loss of Rs 0.62 crore in Q1-2016.

Segment numbers

The company’s Audio Production Sales/Income segment reported 2.6 times the operating profit of Rs 7.91 crore in Q2-2016 as compared to the Rs 3.05 crore in Q2-2015 and 3.9 per cent more than the Rs 7.62 crore in Q1-2016.

Tips Film Production/Distribution (Production) segment reported revenue of Rs 3 crore (25 per cent of TIO) in the current quarter as compared to the Rs 70 crore (89.7 per cent of TIO) in Q2-2015. For Q1-2016, the segment had reported ‘nil’ revenue.

Tips Production segment reported operating loss of Rs 0.88 crore as compared to an operating profit of Rs 19.07 crore in Q2-2015 and an operating loss of Rs 3 crore in the immediate trailing quarter.

Let’s look at the other numbers reported by Tips

The company’s simple EBIDTA calculated without considering other income in the current quarter was 75.7 per cent lower at Rs 4.86 crore (40.5 per cent margin) as compared to the Rs 20.03 crore (25.7 per cent margin) in Q2-2015 and was 63.6 per cent more than the Rs 2.97 crore (33.5 per cent margin) in Q1-2016.

The company’s Total Expenses in the current quarter reduced by 87 per cent YoY to Rs 7.57 crore (63 per cent of TIO) as compared to Rs 58.40 crore (74.9 per cent of TIO) and increased by 19.6 per cent from Rs 6.33 crore (71.4 per cent of TIO) in Q1-2016.

Tips cost of production/distribution of films in Q2-2016 reduced 93.4 per cent YoY to Rs 3.31 crore (27.6 per cent of TIO) from Rs 50.44 crore (64.7 per cent of TIO) and increased 28.3 per cent to Rs 2.58 crore (29.1 per cent of TIO) in the immediate trailing quarter.

The company’s finance costs in Q2-2016 at Rs 3.31 crore (27.6 per cent of TIO) was 15.4 per cent YoY as compared to Rs 2.87 crore (3.7 per cent of TIO), but was 2.2 per cent lower than the Rs 3.39 crore (38.2 per cent of TIO) in Q1-2016.

Employee Benefit Expense in the current quarter at Rs 1.41 crore (11.7 per cent of TIO) was 9.1 per cent lower than the Rs 1.55 crore (2 per cent of TIO) in Q2-2015 and was almost flat (0.9 per cent lower) as compared to the Rs 1.42 crore (16 per cent of TIO) in the immediate trailing quarter.

November 4, 2015
Q3-2015: Cable Networks & Broadcasting revenues pull down CBS Corp revenue 3.3%

BENGALURU: CBS Corporation (CBS) reported a 3.3 per cent decline in revenue to $3,257 million in the quarter ended 30 September, 2015 (Q3-2015, current quarter) as compared to the $3,367 million reported for the corresponding year ago quarter. Revenue pulled down because of decline in revenue of two of its four segments – Cable Networks; and Broadcasting, which saw declines of 15.6 per cent and 6.2 per cent respectively in Q3-2015 as compared to Q3-2104.

CBS’s other segments-Entertainment and Publishing saw revenue growths of 1.1 per cent and two per cent respectively, but not enough to prevent the YoY slide in revenue.

From the type perspective, CBS’s Advertising revenue and Content Licensing & Distribution revenues declined by 4.3 per cent and 8.3 per cent respectively, while Affiliate and Subscription fee revenue increased 9.2 per cent.

CBS Total Operating Income for Q3-2015 increased 12.7 per cent to $753 million in the current quarter as compared to $668 million in the corresponding year ago quarter.

“Thanks to the strength of our great content, CBS continues to have a winning hand,” said CBS executive chairman Sumner Redstone. “Les and his team are capitalising on all of the opportunities before us, and I’m confident they are setting the company up for continued, long-term growth.”

“During the third quarter, we once again grew our profit and EPS while continuing to increase our investment in content and new distribution services,” said CBS president and CEO Leslie Moonves. “I’m particularly pleased with the gains we’re seeing in network advertising, including underlying ad growth in the third quarter and even better pricing here in the fourth. Plus, having sold less inventory in the upfront, we stand to benefit throughout this television season as we sell our #1 network in a very robust scatter marketplace. Add to that CBS’s broadcast of Super Bowl 50 in February and the upcoming presidential election, you can see why we feel very good about advertising in 2016. At the same time, our non-advertising revenue continues to grow even faster, led by retransmission consent and reverse compensation, which were up 50 per cent in the third quarter and are well on their way to exceeding $1 billion next year. Looking ahead, as viewers increasingly want to access and pay for content in new ways, we see continued increases in subscription revenue from our in-house over-the-top services at CBS and Showtime, as well as those from outside distribution partners. The good news is, no matter how quickly the industry changes — from big bundles to ‘skinny’ ones to a la carte — CBS is positioned to succeed.”

CBS says that lower YoY revenues in Q3-2015 primarily reflect the timing of television licensing sales and decreases in lower-margin revenues, including the non-renewal of a sports contract and lower pay-per-view revenues. Revenues for Q3-2015 benefited from growth in underlying network advertising, as well as 9 per cent higher affiliate and subscription fees, including a 50 per cent increase in revenues from retransmission consent and CBS Television Network-affiliated television stations.

The company says that YoY increase in operating income in the current quarter reflects growth in high-margin affiliate and subscription fee revenues, which were offset by lower profits from television licensing.

Segment numbers

Entertainment (CBS Television Network, CBS Television Studios, CBS Global Distribution Group, CBS

Interactive, and CBS Films)

Entertainment revenues in Q3-2015 rose to $1.93 billion as compared with $1.91 billion for the same prior-year period, primarily reflecting a 55 per cent increase in affiliate and subscription fees. Network advertising revenues were up one per cent despite the broadcast of fewer sporting events on the CBS Television Network. Content licensing and distribution revenues decreased three per cent, primarily reflecting the timing of television licensing sales.

Entertainment operating income for Q3-2015 of 2015 was $339 million, up 12 per cent YoY from $302 million, driven by growth in higher margin revenues, which were partially offset by an increased investment in programming and digital distribution initiatives says CBS.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks)

Cable Networks revenues for the current quarter were $526 million compared with $624 million for Q3-2014, which included significant domestic streaming sales of Dexter and Californication and higher revenues from pay-per-view boxing events. An increase in affiliate and subscription fees, reflecting growth in rates and revenues from new digital distribution platforms, partially offset the decline.

Cable Networks operating income for Q3-2015 was $246 million compared with $266 million Q3-2014, primarily reflecting the lower revenues. The decline was partially offset by lower programming costs that were mainly associated with pay-per-view boxing events.

Publishing (Simon & Schuster)

Publishing revenue for Q3-2015 was $203 million compared to $199 million for Q3-2014. Digital revenues represented 25 per cent of Publishing’s total revenues for Q3-2015. Bestselling titles included The Survivorby Vince Flynn and Kyle Mills and Plunder and Deceit by Mark R. Levin, as well as the continued success of the Pulitzer Prize-winning 2014 release, All the Light We Cannot See by Anthony Doerr.

Publishing operating income of $43 million for Q3- 2015 increased two per cent from $42 million in the

Q3-2014, primarily reflecting the revenue increases.

Local Broadcasting (CBS Television Stations and CBS Radio)

Local Broadcasting revenue was $638 million for Q3-2015 as compared to $680 million in Q3-2014. CBS Television Stations YoY revenues declined as a result of the benefit to 2014 from the midterm elections and the broadcast of fewer sporting events on CBS in 2015. Growth in affiliate fees partially offset the decline. CBS Radio revenues decreased six per cent, reflecting several non-comparable items, including fewer stations and lower political revenues, as well as continued softness in the radio advertising marketplace.

Local Broadcasting operating income for Q3-2015 was down 9 per cent to $174 million from $192 million in Q3-2014, primarily because of the revenue decline, which was partially offset by the recent cost-cutting measures CBS put in place.

November 4, 2015