ITV

Category: Financials

  • Q2-2016: Zee Media EBIDTA up 9.7 percent

    Q2-2016: Zee Media EBIDTA up 9.7 percent

    BENGALURU:  Zee Media Corporation Limited (ZMCL), the erstwhile Zee News Limited reported a 3.1 percent deline in Total Income from Operations (TIO) to Rs 127.04 crore in the quarter ended September 30, 2015 (Q2-2016, current quarter) as compared to the Rs 131.12 crore in Q2-2015. TIO in the current quarter was 6.1 percent lower than the Rs 135.26 crore in Q1-2016.

     

    Notes: (1) 100,00,000 = 100 lakh = 10 million = 1 crore

    (2) The figures in this report are consolidated figures unless stated otherwise

     

    ZMCL’s EBIDTA however improved 9.7 percent to Rs 6.71 crore in the current quarter as compared to the Rs 6.12 crore in Q2-2015. ZMCL’s EBIDTA in the immediate trailing quarter was higher at Rs 14.76 crore.

     

    ZMCL’s existing television channels returned positive operating results (Positive EBIDTA) of Rs 17.43 crore crore in Q2-2016. Its TV Broadcasting EBIDTA was negatively impacted to the extent of Rs 7.26 crore by its new channels, and hence the TV Broadcast business returned a positive EBIDTA of Rs 10.17 crore.  Overall, ZMCL’s EBIDTA was further impacted by a negative EBIDTA of Rs 3.45 crore from its Print Business, hence the company reported the EBIDTA of Rs 6.71 crore mentioned above in Q2-2016.

     

    While the company’s Television Broadcast business revenue grew YoY grew 1.8 percent to Rs 100.30 crore in the current quarter as compared to Rs 98.56 crore in the corresponding year ago quarter, its Print business revenue declined 7.9 percent to Rs 30.02 crore as compared to Rs 32.59 crore. TV Broadcast business revenue in Q1-2016 was higher at Rs 108.64 crore, while Print business revenue was lower at Rs 28.04 crore.

     

    Advertisement and Subscription Revenues

     

    The company’s overall advertising and subscription revenues declined both YoY and QoQ in Q2-2016. ZMCL reported 2.6 percent lower advertising revenue of Rs 90.69 crore (71.4 percent of Total Revenue) in the current quarter as compared to 93.14 crore (71 percent of Total Revenue) in Q2-2015 and was 6.3 percent lower than the Rs 96.75 crore (71.5 percent of Total Revenue).

     

    TV Business advertisement revenue increased 2.1 percent to Rs 72.59 crore in Q2-2016 as compared to the Rs 71.1 crore in Q2-2015, but declined 8.9 percent as compared to the Rs 79.72 crore in the immediate trailing quarter. TV Business Advertisement revenue from existing channels declined 3.9 percent in the current quarter to Rs 65.93 crore as compared to the Rs 68.58 crore in Q2-2015 and declined 11 percent as compared to the Rs 74.05 crore in Q1-2016. Advertisement revenue from new channels more than doubled (went up 2.7 times) to Rs 6.66 crore as compared to the Rs 2.52 crore in Q2-2015 and increased 17.3 percent as compared to the Rs 5.68 crore in Q1-2016.

     

    Overall subscription revenue in the current quarter declined 3 percent to Rs 27.24 crore (21.4 percent of Total Revenue) in Q2-2016 as compared to the Rs 28.07 crore (21.4 percent of Total Revenue) in the corresponding year ago quarter and was 5 percent lower than the Rs 28.67 crore (21.2 percent of Total Revenue) in the immediate trailing quarter.

     

    TV Business YoY subscription revenue declined 0.2 percent in the current quarter to Rs 24.44 crore as compared to the Rs 24.62crore in Q2-2015, and declined 5.4 percent as compared to the Rs 25.84 crore in Q1-2016.

     

    Let us look at the other numbers reported by ZMCL

     

    ZMCL’s Total Expenditure in the current quarter declined 3.4 percent to Rs 133.35 crore as compared to the Rs 138.01 crore in Q2-2015, but increased 0.3 percent as compared to the Rs 133.01 crore in Q1-2016.

     

    Employee Benefits Expense in Q2-2016 declined 7.2 percent to Rs 38.60 crore in Q2-2016 as compared to the Rs 41.60 crore in the corresponding year ago quarter and was 8.3 percent lower than the Rs 42.11 crore in Q1-2016.

     

    Operational Cost in Q2-2016 declined 17.5 percent to Rs 21.14 crore as compared to the Rs 25.62 crore in Q2-2015 but was 1.7 percent higher than the Rs 20.79 crore in Q1-2016.

     

    Marketing, Distribution and Business Promotion Expenses in Q2-2016 increased 66 percent to Rs 24.97 crore as compared to the Rs 15.04 crore in Q2-2015 and was 15.3 percent more than the Rs 21.65 crore in the immediate trailing quarter.

     

    ZMCL’s loss in Q2-2016 increased to Rs 16.98 crore as compared to the loss of Rs 11.53 crore in Q2-2015 and the loss of Rs 7.1 crore in Q1-2016.

     

    Group CEO, News Cluster  Bhaskar Das said, “With hardly any content differentiators, news has become commoditized over the years. Fragmentation has also not helped the cause of the genre. However, we at Zee Media have been constantly investing on breaking the clutter and creating path breaking content so that we can distinctly set ourselves apart from the current normal. Our breakthrough experiments in content have borne results.”

     

    Das further added, “Zee News, the pioneer in news broadcasting in India, has turned into viewers’ first choice of late as we continue to make the content meaningful and relevant in the context of the current discourse. The bouquet of ZMCL channels and our newspaper, dna, continue to be one of India’s largest news networks and we leverage our multiple access points to reach both our viewers and advertisers, providing value to every stakeholder at every step.”

  • Q2-2016: HUL YoY marketing spends up 23.8%

    Q2-2016: HUL YoY marketing spends up 23.8%

    BENGALURU: Indian FMCG giant Hindustan Unilever Limited’s (HUL) Advertisement and Promotions expense (marketing spends, ASP) in Q2-2016 (quarter ended 30 September, 2015, current quarter) was 23.8 per cent more at Rs 1145.04 crore (14.4 per cent of Total Income from operations or TIO, approximately $176.7 million) than the Rs 925.05 crore (12.1 per cent of TIO) in Q2-2015 but was 0.7 per cent lower than the Rs 1153.39 crore (14.2 per cent of TIO) in Q1-2016.

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

    (2) All figures in this report are standalone figures filed by the company. The trends are based on the numbers submitted by the company or picked up from the company’s website. For performance of HUL’s various product lines please refer to the attached earnings release for Q1-2016.

    (3) The US dollar figures are approximately based on a conversion rate of 1US$ = Rs 64.79 at a particular time on October 19, 2015.The converted numbers have been rounded off.

    HUL chairman Harish Manwani said, “The business delivered another quarter of profitable volume-led growth. We continue to invest behind our brands and in-market executional capabilities to drive the competitiveness of our portfolio. The deflationary commodity cost environment is likely to continue in the near term and our strategy of delivering consistent and competitive growth with sustainable improvement in operating margin remains unchanged.”

    Advertising and Sales Promotion trends

    HUL’s ASP in Q1-2016 was the highest during a four quarter period starting Q1-2013 until Q2-2016 in terms of absolute rupees. Q2-2016 ASP (current quarter) in terms of percentage of TIO was the highest during the period under consideration. Further, during the period under consideration in this report, ASP in absolute rupee spends shows a marked linear increasing trend, while ASP in percentage of TIO terms shows a slight linear increasing trend. The company’s lowest ASP was in Q2-2013 at Rs 768.98 crore (12.2 per cent of TIO) in absolute rupee spends during the period under consideration, while the lowest in terms of percentage of TIO was in Q4-2014 at 11.8 per cent of TIO (Rs 840.34 crore). Please refer to Fig A above.

    If the company follows the trends of the past three fiscals, at least one or more quarter in FY-2016 will see higher ASP in terms of absolute rupees than Q1-2016.

    HUL Revenue and PAT

    Please refer to Fig B above. HUL reported 4.1 per cent growth in TIO in Q2-2016 at Rs 7955.39 crore as compared to the Rs 7639.33 crore in the corresponding year ago quarter, but was 1.8 per cent lower than the Rs 8105.13 crore in Q1-2016. The company’s TIO shows a linear increasing trend as indicated by the broken blue trend line in Fig B. TIO in Q1-2016 is the highest reported by the company during the 13 quarter period under consideration in this report.

    HUL’s PAT in Q2-2016 was lower by 2.6 per cent at Rs 962.24 crore (12.1 per cent margin) as compared to the Rs 988.1 crore (12.9 per cent margin) in Q2-2015 and was 9.1 per cent lower than the Rs 1059.14 crore (13.1 per cent margin) in Q1-2015. During the period under consideration, HUL’s highest PAT was in Q1-2013 at Rs 1331.19 crore (20.9 per cent of TIO), both in terms of absolute rupees and in percentage of TIO. While PAT in absolute rupees shows a linear increasing trend as indicated by the broken pink trend line in Fig B below, while in terms of percentage of TIO, the linear trend is declining as indicated by the broken yellow line.

    Company Speak

    During the quarter, the Domestic Consumer business grew at five per cent, with seven per cent underlying volume growth. The growth in the quarter continued to be impacted by the phasing out of Excise Duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers.

    Soaps and Detergents: Robust volume growth partially offset by price deflation. Skin Cleansing was driven by double digit volume growth on Dove, Pears, Hamam and Lifebuoy. The liquids portfolio registered another robust quarter.

    In Laundry, growth was led by the premium segment, with Surf maintaining its strong momentum and Rin accelerating post relaunch. Comfort Fabric Conditioner delivered another strong performance on the back of sustained market development. Household Care growth was driven by Vim, with the tubs and liquids portfolio doing well. The segment witnessed further price deflation in the quarter due to soft commodity costs.

    Personal Products: Healthy double digit growth

    Skin Care delivered broad based growth across Fair and Lovely, Pond’s, Lakme and Vaseline. Fair and Lovely continued to do well, while the performance of Pond’s was led by premium skin lightening and Lakme by Perfect Radiance and CC Cream. The facial cleansing portfolio sustained high growth.

    Hair Care maintained its momentum with another strong quarter of volume led double digit growth, as Dove growth accelerated and TRESemmé gained further ground.

    In Oral Care, Close Up registered double digit growth on the back of impactful activation.

    In Colour Cosmetics, Lakme delivered another quarter of innovation led double digit growth across the core, Absolute and 9 to 5 ranges.

    Beverages: Steady performance

    Tea growth was led by Red Label and another quarter of high growth on Lipton Green Tea, driven through impactful market activation. In Coffee, Bru Gold continued to lead category premiumisation and performed well.

    Packaged Foods: Eighth successive quarter of double digit growth

    Packaged Foods saw double digit growth across all key brands, driven by the continued focus on market development. Kissan sustained robust activation led growth across both Ketchups and Jams while Knorr growth was led by the strong performance on Instant Soups. In Ice Creams, Kwality Walls had a good quarter on sharper in-market execution and Magnum continues to perform well and delight its consumers.

    Water: Leadership sustained in a challenging market context In a soft market, Pureit continued to drive the performance of premium devices with a focus on Modern Trade and in-store execution. The business benefited from a strong performance in the e-commerce channel.

    The Board of Directors have declared an interim dividend of Rs 6.5 per equity share of face value Re 1 each, for the year ending 31 March, 2016.

  • Q2-2016: Reliance Jio to ramp beta program; organized retail on growth path

    Q2-2016: Reliance Jio to ramp beta program; organized retail on growth path

    BENGALURU: The Mukesh Ambani led Reliance Industries Limited (RIL) organised retail segment – Reliance Retail, continued its growth momentum and profitability in the quarter ended 30 September, 2105 (Q2-2016, current quarter).

     

    RIL chairman and managing director Ambani said, “Reliance Retail achieved a milestone of Rs 5,000 crore quarterly turnover mark for the first time, reflecting continuing growth momentum in physical retailing. In Digital Services, we have substantially completed the network roll-out across the country and initiated the process of beta testing of our network and platforms.”

     

    “We achieved record levels of EBITDA and profits for the quarter, underscoring our ability to optimally utilise our assets across the value chain to leverage favourable market conditions. Refining business performance was notable, as it benefited from a combination of high utilisation levels, advantageous crude market opportunities and strong global fuels demand. Petrochemicals segment performance reflects strong volume growth, product mix improvement and lower energy costs,” he said.

     

    “We maintained a rapid pace of construction activity during the quarter. The company’s world-scale petroleum coke gasification facility and ethylene cracker complex remains on track for its planned 2016 start-up,” added Ambani.

     

    Revenues for Q2-2016 grew by 22 per cent Yo-Y to Rs 5,091 crore from Rs 4,167 crore and 8.4 per cent QoQ from Rs 4698 crore. RIL says that all format sectors grew through store additions as well as like for like growth ranging up to 16 per cent. The business delivered PBDIT growth of 12.9 per cent at Rs 210 crore in Q2-2016 as against Rs 186 crore in the corresponding period of the previous year, and PBIT growth of 3.4 per cent from Rs 203 crore in Q1-2016.

     

    Further, Reliance Retail expanded its reach with a net addition of 110 stores during the quarter. As on 30 September, 2015, Reliance Retail operated 2,857 stores across over 250 cities in India.

     

    The company says that Reliance Retail 2.0 initiatives encompassing fashion and lifestyle e-commerce, development of market place platform and building distribution ecosystem for Reliance Jio devices are on track and gearing up for rollout in a staged manner.

     

    Reliance Retail would soon launch its own brand of 4G LTE smartphones under the brand LYF. The brand built on the premise of unmatched user experience will offer high performance handsets that deliver a true 4G experience comparable to the best in the world. LYF range of smartphones with features like Voice over LTE (VoLTE), Voice over Wi-Fi (VoWi-FI), HD Voice and HD quality video calling will enable users to experience a new digital life.

     

    LYF phones will reach consumers across the country through one of the widest distribution and retail network for smartphones. The devices will soon be available at multi-brand outlets (MBOs) and modern trade including Reliance Retail stores across India.

     

    RIL numbers

     

    For Q2-2016, RIL achieved a turnover of Rs 75,117 crore, a decrease of 33.8 per cent, as compared to Rs 113,396 crore in Q2-2015 and 9.6 per cent lower than the Rs 83064 crore in the immediate trailing quarter.

     

    However, RIL’s net profit after tax (PAT) increased 12.5 per cent in Q2-2016 to Rs 6720 crore as compared to the Rs 5972 crore in Q2-2015 and increased 8 per cent as compared to the Rs 6222 crore in the previous quarter.

     

    Sale of Network18 shares

     

    In July 2015, RIL sold 3.25 crore shares of Network18 Media & Investments Limited, (representing 3.10 per cent of the equity capital of NW18) to bring down the aggregate shareholding of the promoter and promoter group to 75 per cent and increase the public shareholding to 25 per cent as mandated by Clause 40A of the listing agreement pursuant to Securities Contract (Regulation) Rules, 1957.

     

    Reliance Jio Infocomm Limited

     

    Reliance Jio Infocomm Limited (RJIL), a subsidiary of RIL, has substantially completed its network roll-out across the country. The network is currently being tested and optimised. Most of the business platforms have been rolled out and are being tested in a limited use environment. Large number of testers have been employed by the company across the country to facilitate extensive testing of network and business platforms.

     

    The company expects to ramp up its beta program over the next few weeks to further optimise the network, prior to commercial launch of operations. Financial year 2016-17 is projected to be the first year of commercial operations for RJIL.

     

    RJIL has launched Wi-Fi hot spots across several locations in the country and has entered into agreements with some of the State and Local Authorities to provide Wi-Fi services. RJIL has also started rolling out last-mile connectivity for its fibre-to-the-home (FTTH) business.

  • Q2-2016: DB Corp print revenue drops marginally; radio revenue up 5%

    Q2-2016: DB Corp print revenue drops marginally; radio revenue up 5%

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported a 0.4 per cent fall in YoY Total Income from Operations (TIO) in the quarter ended 30 September, 2015 (Q2-2016, current quarter). The company reported a TIO of Rs 478.33 crore in the current quarter as compared to the Rs 480.21 crore in the corresponding year ago quarter and a one per cent growth as compared to the Rs 473.36 crore in Q1-2016.

     

    Note: (1) 100,00,000 = 100 Lakhs = 10 million = 1 crore

     

    (2) The figures mentioned in this report are consolidated figures unless stated otherwise.

     

    Segment Numbers

     

    The company reports revenue from five segments: Printing and publishing of newspaper and periodicals (Printing segment); Radio segment; Events; Internet; and power. Two of the segments are major contributors to the revenue – printing and radio and their numbers have been considered below.

     

    Radio segment

     

    DB Corp’s radio segment reported a 5.2 per cent growth in operating revenue to Rs 23.96 crore in the current quarter as compared to the Rs 22.77 crore in Q2-2015 and 11.5 per cent more than the Rs 21.50 crore in Q1-2016. The segment reported an eight per cent drop in operating profit to Rs 6.04 crore in the current quarter as compared to the Rs 6.57 crore in Q2-2015, but 48 per cent more than the Rs 4.08 crore in the immediate previous quarter. The company’s radio business PAT stands at Rs 4 crore. 

     

    Radio segment EBIDTA declined 6.7 per cent in Q2-2016 to Rs 8 crore as compared to the Rs 8.6 crore in Q2-2015, but grew 31.6 per cent as compared to the Rs 6.1 crore in Q1-2016.

     

    Printing segment

     

    The company’s printing segment reported a 1.6 per cent decline in operating revenue at Rs 442.24 crore in Q2-2016 as compared to the Rs 449.32 crore in Q2-2015, but 0.5 per cent more than the Rs 440.19 crore in Q1-2016. The segment reported a 6.2 per cent decline in operating result to Rs 93.91 crore as compared to the Rs 110.07 crore in Q2-2015 and was 6.2 per cent lower than the Rs 108.56 crore in the immediate trailing quarter.

     

    DB Corp’s profit after tax (PAT) in the current quarter declined 13.2 per cent to Rs 59.12 crore as compared to the Rs 68.11 crore in Q2-2015 and declined 11 per cent as compared to the Rs 66.46 crore in Q1-2016.

     

    DB Corp achieved EBIDTA margins of 24 per cent at Rs 117.1 crore from Rs 127.1 crore in Q2-2015, after factoring in forex loss of Rs 1.56 million and its Bihar launch preoperative expenditure of Rs 2.77 crore.

     

    Total Expenditure in the current quarter grew 2.8 per cent to Rs 388.14 crore as compared to the Rs 377.53 crore in Q2-2015 and was 4.3 per cent more than the Rs 372.30 crore in Q1-2016. Raw Material consumption in Q2-2016 declined 7.7 per cent to Rs 149.69 crore as compared to the Rs 162.09 crore in Q2-2015 and was 3.4 per cent more than the Rs 144.74 crore in Q1-2016.

     

    Advertising and Circulation revenue

     

    The company says that its advertising revenue declined to Rs 343.3 crore in the current quarter as compared to Rs 316 crore in the corresponding quarter of last year on account of the impact of the difference in the dates of the Navratri festival during the years FY-2015 and FY-2016.

     

    Circulation revenue increased 16 per cent in Q2-2016 to Rs 105.7 crore as compared to the Rs 91.5 crore, primarily due to yield driven growth, largely coming from its mature markets.

     

    Company speak

     

    DB Corp managing director Sudhir Agarwal said, “This quarter we established another expansion milestone as we consolidated our presence in Bihar, a region of strong strategic importance and we are able to provide a better reach to our advertisers and cater to an under-tapped, yet potential readership base. The yield strategy we have adopted has begun delivering good results as is evident from a consistent growth in yields. We are patiently continuing to have intensive successful discussions with our national and local level advertisers who have supported our yield strategy and highly appreciate the value we bring to support their plans. We are committed to strengthen these relationships as we progress.”

     

    “DB Digital has been performing well as we continue to gather commendable momentum with 177 per cent growth in page views and unique visitors. Our radio business strategy to be the market leading radio business in ‘Unmetro ‘ regions is well aligned to print business and with the recent acquisition of 14 frequencies in the Phase III auctions, we are now strongly placed to offer compelling package and reach to advertisers in Maharashtra, Rajasthan, CPH and Gujarat. On an overall basis, we continue to take all measures to leverage our strengths across print, radio and digital businesses to drive growth aggressively, while also ensuring that we continue to achieve better organisational efficiencies.“

  • Q2-2016: Ad & subscription revenue growth drives Zee net up 9%; income up 24%

    Q2-2016: Ad & subscription revenue growth drives Zee net up 9%; income up 24%

    BENGALURU: Riding on the back of higher advertising and subscription based revenues in the quarter ended 30 September, 2015 (Q2-2016), the Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited’s (Zeel) net income was up nine per cent at Rs 247.40 crore (17.9 per cent margin) than the Rs 229 (20 per cent margin) in Q2-2015. This was also 1.5 per cent more than Rs 243.76 crore (18.2 per cent of consolidated total revenue or TR) in the immediate trailing quarter.

     

    The company’s total revenue in Q2-2016 increased 23.9 per cent to Rs 1384.90 crore from Rs 1117.82 crore in Q2-2015 and was 3.4 per cent more than the Rs 1339.86 crore in Q1-2016.

     

    Advertising revenues saw a 34.7 per cent hike in Q2-2016 to Rs 843.31 crore (60.9 per cent of TR) as compared to the Rs 625.94 crore (56 per cent of TR) and was 8.1 per cent more than the Rs 779.93 crore (58.2 per cent of TR) in Q1-2016.

     

    Subscription revenue in the current quarter also increased 12.9 per cent to Rs 479.14 crore (34.6 per cent of TR) from Rs 424.45 crore (38 per cent of TR) in the corresponding year ago quarter and rose 3.6 per cent as compared to the Rs 462.53 crore (34.5 per cent of TR) in the immediate trailing quarter.

     

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

     

    Zeel’s total revenue during the half year ended 30 September, 2015 (HY-2016) increased 25.4 per cent to Rs 2724.76 crore from Rs 2172.88 crore in HY-2015.

     

    Advertising revenue increased 30.1 per cent to Rs 1623.24 crore (59.6 per cent of TR) in HY-2016 from Rs 1248.04 crore (57.4 per cent of TR) in the corresponding year ago period. 

     

    Subscription revenue in HY-2016 at Rs 941.67 crore (34.6 per cent of TR) increased 12.6 per cent from Rs 836.58 crore (38.5 per cent of TR) in HY-2015.

     

    PAT for the current half year increased to Rs 491.16 crore (18 per cent margin) from Rs 438.12 crore (20.2 per cent margin) in HY-2015.

     

     

    Other results reported by Zeel for Q2-2016 and HY-2016:

     

    Total Expense (TE) in Q2-2016 at Rs 1050.05 crore (75.8 per cent of TR) increased 29.5 per cent as compared to the Rs 810.75 (72.5 per cent of TR) in Q2-2015 and was 0.4 per cent more than the Rs 1045.47 crore (78 per cent of TR) in Q1-2016.

     

    Zeel’s operating cost increased 28.3 per cent to 603.62 crore (43.6 per cent of TR) as compared to the Rs 470.30 crore (42.1 per cent of TR) in the corresponding year ago quarter, but was 1.2 per cent lower than the Rs 610.76 crore (45.6 per cent of TR) in Q1-2016.

     

    Other expense in Q2-2016 fell 18.3 per cent to Rs 179.05 crore (12.9 per cent of TR) as compared to the Rs 219.11 crore (19.6 per cent of TR) and was 2.3 per cent lower than the Rs 183.24 crore (13.7 per cent of TR) in Q1-2016.

     

    Employee Benefit Expense increased 17.4 per cent to Rs 126.70 crore (9.1 per cent of TR) than the Rs 107.96 crore (9.7 per cent of TR) in Q2-2015, but was 8.2 per cent lower than the Rs 138.01 crore (10.3 per cent of TR) in Q1-2016.

     

    Advertisement and Publicity expense in the current quarter was 64.6 per cent more at Rs 120.90 crore (8.7 per cent of TR) in Q2-2016 as compared to the Rs 73.45 crore (6.6 per cent of TR) and was 25.1 per cent more than the Rs 96.65 crore (7.2 per cent of TR) in Q1-2016.

     

     

    Company speak

     

    Chandra said, “Zee has seen an impressive performance during the second quarter. The improvement in advertisement industry and improved performance of our network has helped us grow ahead of the market. We continue to see the positive results of our investments. We will endeavour to continue on this track going forward and pursue new opportunities that will yield long term growth. Our effort is to entertain audience across the world.”

     

    Zeel managing director and CEO Punit Goenka added, “We are quite pleased with our quarterly performance and it continues to remain on track. We have grown as a network on the back of superior programming on our new and existing products. The improvement in the overall advertisement market has further aided our strong growth. The domestic subscription market has also seen steady growth.”

     

    “Zee is the leading content player in the Indian TV industry offering maximum hours of content for audiences both home and abroad. Going forward, our endeavor would be to further enhance our offerings and be ahead of the market in delivering innovative and high quality entertainment to our viewers across consumption platforms. We believe that in this fast evolving media and  entertainment space delivering excellent content will remain key for monetising revenues, from both advertising and subscription standpoint,” said Goenka.

  • Q2-2016, H1-2016: Network 18 reports improved results

    Q2-2016, H1-2016: Network 18 reports improved results

    BENGALURU: Network18 Media & Investments Limited (Network18) reported a 7.6 per cent growth in consolidated income from operations (TIO) to Rs 801.1 crore in the quarter ended 30 September, 2015 (Q2-2016, current quarter) as compared to the Rs 744.8 crore in the corresponding year ago quarter. This was a growth of 0.94 per cent as compared to the Rs 793.65 crore in Q1-2016.

     

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

     

    The company reported a lower consolidated loss (before tax and before prior exceptional and period items) of Rs 8.5 crore than the loss of Rs 14.8 crore in Q2-2015. The company had reported a profit before tax and before prior exceptional and period items of Rs 5.8 crore in Q1-2016.

     

    For the half year ended 30 September, 2015 (H1-2016), the company’s TIO at Rs 1594.8 crore was 9.7 per cent more than the Rs 1453.2 crore in H1-2015. For H1-2016, the company reported a lower loss before tax and before prior exceptional and period items of Rs 2.6 crore as compared to a loss of Rs 58.7 crore in H1-2015.

     

    EBIDTA in Q2-2016 was Rs 19.2 crore as compared to the Rs 17.3 crore in Q2-2015 and the Rs 0.1 crore in the Q1-2016. If one were to neglect the profit of Rs 43 crore earned through sale of Network18’s entire stake in Stargaze Entertainment Private Limited during Q1-2016, the company actually had a negative EBIDTA of Rs 43.3 crore in Q1-2016.

     

    Network18 has holdings in TV18 Broadcast Limited (TV18). TV18 reported a 9.9 per cent growth in revenue to Rs 608.5 crore from Rs 553.7 crore in Q2-2015 and was 2.1 per cent more than the Rs 596.7 crore in Q1-2016. TV18 reported less than half profit after tax (PAT) of Rs 20.27 crore in the current quarter as compared to the PAT of Rs 43.23 crore in Q2-2015. The company had reported a loss of Rs 0.04 crore in the immediate trailing quarter.

     

    TV18’s Media Operations segment reported a six per cent growth in segment revenue to Rs 565.91 crore in Q2-2016 from Rs 533.83 crore in Q2-2015 and was almost flat (fractionally lower) than the Rs 566.31 crore in the immediate trailing quarter. This segment reported a 46.9 per cent drop in operating profit to Rs 26.77 crore as compared to the operating profit of Rs 50.46 crore in Q2-2015. The segment had reported a loss of Rs 8.95 crore in the immediate trailing quarter.

     

    TV18’s Film Production and Distribution segment reported more than double the revenue at Rs 42.62 crore in Q2-2016 as compared to the Rs 19,85 crore in Q2-2015, but was 19 per cent lower than the Rs 52.61 crore in Q1-2016. The segment reported an operating profit of Rs 1.90 crore as compared to an operating loss of Rs 4.38 crore in Q2-2015 and a profit of Rs 1.34 crore in the immediate trailing quarter.

     

    Network18 paid 10.6 per cent more towards programming costs in the current quarter at Rs 190.6 crore as compared to the Rs 172.4 crore in the corresponding year ago quarter, but 7.6 per cent less than the Rs 206.3 crore in Q1-2016.

     

    Network18’s distribution, advertisement and business promotion costs in Q2-2016 declined 5.7 per cent to Rs 208.2 crore as compared to the Rs 220.7 crore in Q2-2015 and declined 1.4 per cent as compared to the Rs 211.2 crore in Q1-2016.

     

    Network18’s employee benefit expense increased 20 per cent in Q2-2016 to Rs 162.5 crore as compared to the Rs 135.4 crore in Q2-2015 and increased 1.7 per cent as compared to the Rs 159.8 crore in the immediate trailing quarter.

     

    Network18’s finance costs in Q2-2016 declined 20.3 per cent to Rs 23.1 crore as compared to the Rs 29 crore in Q2-2015 and declined 6.9 per cent as compared to the Rs 24.8 crore in Q1-2016.

  • Q1-2016: Vision Cinemas reports net sales & PAT growth of 69%

    Q1-2016: Vision Cinemas reports net sales & PAT growth of 69%

    BENGLAURU: The good days for the movie business seem to continue in this quarter also. A small three-screen multiplex with a food-court in Bengaluru, Vision Cinema Limited (Vision Cinema) reported 69.2 per cent growth in net sales/income from operations (excluding branch transfer, net of excise duty) or TIO to Rs 156.05 lakh in the quarter ended 30 September, 2015 (Q1-2015, since the company’s financial year is 1 July to 30 June) from Rs 92.22 lakh in the corresponding quarter of last year. TIO was 26.5 per cent higher than the Rs 123.4 lakh in the previous quarter (Q4-2015).

     

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

     

    Vision Cinemas PAT in Q3-2015 more than trebled (3.44 times) at Rs 39.16 lakh as compared to the Rs 11.39 lakh in Q1-2015 and 69.4 per cent more than the Rs 23.12 lakh in Q4-2015.

     

    Total expense (TE) for Q1-2016 at Rs 110.04 lakh was 45.6 per cent more than the Rs 75.58 lakh in Q1-2015 and was 12.1 per cent more than the Rs 98.13 lakh in Q4-2015.

     

    A major component of the company’s TE is ‘Purchase of Traded Goods – Distributor Share of Revenue’ (Distributor share). Vision Cinemas spent Rs 56.68 lakh in Q1-2016 towards distributor share, which was 29 per cent more than the Rs 43.93 lakh in Q1-2015 and 28.9 per cent more than the Rs 43.98 lakh in the immediate trailing quarter.

     

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  • TV Today Network’s shareholders approve raising FDI limit to 26%

    TV Today Network’s shareholders approve raising FDI limit to 26%

    MUMBAI: Shareholders of the Aroon Purie led TV Today Network, which runs the Hindi news channel Aaj Tak and English news channel India Today Television, have approved to increase the foreign direct investment (FDI) limit in the company up to 26 per cent.

     

    As of now, TV Today does not have holdings by any foreign institutional investors (FIIs). Currently, TV Today’s mother company Living Media India has a 56.92 per cent stake in the company, whereas TV Today Network managing director Aroon Purie owns 0.49 per cent, which together totals to 57.42 per cent. The remaining 42.58 per cent is held by various mutual funds, financial institutions, insurance companies, individuals, trusts and NRIs (Non Resident Indians) amongst others.

     

    The company said that subject to approval of the Foreign Investment Promotion Board (FIPB), it’s shareholders had approved to increase the limits of foreign investment by FPI (Foreign Portfolio Investor) and FIIs up to 26 per cent and by NRIs up to 24 per cent of the paid up capital of the company, under the Portfolio Investment Scheme (PIS) of FEMA Regulations 2000.

     

    It may be recalled that in June this year, the company’s board had approved the increase in foreign investment limit, which was subject to shareholder’s approval. 

     

    Purie along with TV Today Network head – legal & compliances, company secretary and vice president (internal audit) Dr Puneet Jain have been authorised to expedite the process by preparing all necessary documents as well as inform the concerned authorities or regulatory bodies for the same. 

     

    Currently the Indian government allows upto 26 per cent FDI and investment by NRIs, PIOs, FIIs and FPIs in media companies that publish newspapers and periodicals or run news and current affairs channels.

  • H1-2015: Havas revenue up 19% as India, China, Oz lead APAC growth

    H1-2015: Havas revenue up 19% as India, China, Oz lead APAC growth

    MUMBAI: Even as Havas’ operations in Asia Pacific felt the effects of the downturn caused by China’s economic difficulties, the biggest contributors to H1 growth were India, China and Australia in the region.

     
    The Group revenue in the first half (H1) of 2015 were 19.2 per cent up at €1034 million on an unadjusted basis, from €867 million in H1 2014. 
     

    The agency’s Europe ops maintained sound growth of +5.1 per cent in Q2 2015, resulting in a highly satisfactory first half driven by strong performances from France, Spain, Germany and Italy in particular.

    The North America region continued its strong growth, driven mainly by healthcare communications and creative agencies, whereas Latin America region reported satisfactory growth of 3.2 per cent for H1 2015. However, the pace of growth is now slowing due to a downturn in the economies of key countries such as Brazil and Mexico.

    Havas CEO Yannick Bolloré said, “We are pleased to note satisfactory progress across all our regions.”

    The Group’s organic growth (excluding exchange rate variations and changes in the scope of consolidation) was +5.5 per cent in Q2 2015 and +6.3 per cent for H1 2015.

    Exchange rate variations had a positive exchange rate impact of €85.6 million over the half year.

    Havas’ income from operations for H1 2015 was €137 million, an increase of 21.7 per cent over €113 million for H1 2014. Income from operations margin for H1 2015 was 13.3 per cent compared to 13 per cent for the corresponding period in 2014, an increase of 30 basis points.

    Operating income rose by 22.4 per cent to €128 million, compared to €104 million for the corresponding period in 2014.

    The effective tax rate was 30.4 per cent, compared to 29 per cent in H1 2014.

    Net income, Group share of €77 million in H1 2015 was up 27.6 per cent on H1 2014, representing 7.4 per cent of H1 2015 revenue. Net earnings per share (basic and diluted) increased by 23 per cent to €0.18.

    Bolloré added, “Havas reported strong growth in its interim results, with revenue up by 19.2 per cent and income from operations margin up again, by 30 basis points to 13.3 per cent, driven by a powerful commercial dynamic and continued execution of our “Together” strategic plan. Our strategy to create the industry’s most agile and integrated Group continues to deliver strong results because it is focused on supporting our clients through their process of transformation.”

    “We also believe the macroeconomic movements of recent days may offer opportunities for Havas to win new clients attracted to an innovative agency model that offers a better response to their changing needs. This strong first-half performance gives us every confidence that our annual targets will be met. I would like to thank all our clients for placing their trust in us, and our 17,500 employees for their excellent work,” he said.

  • Q1-2016: Films & TV segments contribute to Saregama’s revenue growth

    Q1-2016: Films & TV segments contribute to Saregama’s revenue growth

    BENGALURU: Until the current quarter, revenues of the Indian custodians of music company Saregama Limited (Saregama) Film and Television segment had been contributing about 35 per cent to the company’s Total Income from Operations. For the quarter ended 30 June, 2015 (Q1-2016), the film and TV segment’s contribution of Rs 23.56 crore increased to 45.3 per cent of Saregama’s TIO of Rs 51.97 crore. The company’s Music segment contributed Rs 28.41 crore or 54.7 per cent of the company’s TIO in the current quarter.

     

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

     

    Segment Numbers

     

    The company classifies its numbers by the two segments mentioned above – Music and Film and Television.

     

    Saregama’s Music segment reported operating revenue of Rs 28.41 crore (54.7 per cent of TIO) in Q1-2016, which was 1.9 per cent more than the Rs 27.88 crore (65.9 per cent of TIO) in Q1-2015, but 25.3 per cent lower than the Rs 38.02 crore (64.3 per cent of TIO) Iin Q4-2015.

     

    Music segment reported operating profit in Q1-2016 of Rs 12.05 crore, which was 6.5 per cent lower than the Rs 12.89 crore in Q1-2015 and less than half (lower by 51.3 per cent ) the Rs 24.76 crore in Q4-2015.

     

    Film and television segment reported operating revenue of Rs 23.56 crore (45.3 per cent of TIO) in Q1-2016, which was 63.3 per cent more than the Rs 14.43 crore (34.1 per cent of TIO) in Q1-2015 and 11.4 per cent more than the Rs 21.14 crore (35.7 per cent of TIO) in Q4-2015.

     

    Film and television segment reported a lower operating loss in Q1-2016 at Rs 0.34 crore as compared to the operating loss of Rs 0.82 crore in the corresponding year ago quarter and lower than the operating loss of Rs 6.06 crore in Q4-2015.

     

    Let us look at the numbers reported by Saregama:

     

    The company’s TIO in Q1-2016 at Rs 51.97 crore increased 22.8 per cent as compared to the Rs 42.31 crore in the corresponding year ago quarter Q1-2015, but declined 12.2 per cent as compared to the Rs 59.16 crore in the immediate trailing quarter Q4-2015.

     

    The company also reports revenue from three other streams – Net Sales Income, License Fee, and other. Net Sales Income in Q1-2016 increased 57.9 per cent to Rs 23.80 crore (45.8 per cent of TIO) as compared to the Rs 15.07 crore (35.6 per cent of TIO) in Q1-2015 and increased 5.7 per cent as compared to the Rs 22.51 crore (38 per cent of TIO) in Q4-2015.

     

    License Fees income in the current quarter increased three per cent to Rs 28.15 crore (54.2 per cent of TIO) as compared to the Rs 27.12 crore (64.1 per cent of TIO) in Q1-2015 but was 23.1 per cent lower than the Rs 36.62 crore (61.9 per cent of TIO) in Q4-2015.

     

    Other Income in the current quarter was Rs 0.02 crore, for Q1-2015 it was Rs 0.03 crore and for Q4-2015 it was Rs 01.2 crore in Q4-2015.

     

    Saregama reported decline in both year on year (YoY) and quarter on quarter (QoQ) profit after tax (PAT) in Q1-2016. PAT in Q1-2016 at Rs 2.63 crore (5.1 per cent margin) was 21.7 per cent lower than the Rs 3.36 crore (7.9 per cent margin) in Q1-2015 and was less than a third (declined by 70.6 per cent) the Rs 8.96 crore (15.1 per cent margin) in Q4-2015.

     

    Saregama’s Total Expenses in the current quarter in Q1-2016 at Rs 49 crore (94.3 per cent of TIO) was 25.1 per cent more than the Rs 39.16 crore (92.6 per cent of TIO) in Q1-2015 but was 8.2 per cent lower than the Rs 53.40 crore (90.3 per cent of TIO) in Q4-2015.

     

    The company’s Royalty Fee expense in Q1-2016 at Rs 4.79 crore (9.2 per cent of TIO) was 10.3 per cent lower than the Rs 5.34 crore (12.6 per cent of TIO) in Q1-2015 but was 76.1 per cent more than the Rs 2.72 crore (4.6 per cent of TIO) in Q4-2015.

     

    Saregama’s advertising and sales promotion expense in Q1-2016 at Rs 2.13 crore (4.1 per cent of TIO) was 12.3 per cent lower than the Rs 2.43 crore (5.7 per cent of TIO) in Q1-2015 but was 19 per cent more than the Rs 1.79 crore (three per cent of TIO) in Q4-2015.

     

    Saregama’s Employee Benefit Expense in the current quarter at Rs 8.80 crore (16.9 per cent of TIO) was 19.6 per cent more than the Rs 7.36 crore (17.4 per cent of TIO) in Q1-2015 and two per cent more than the Rs 8.63 crore (14.3 per cent of TIO) in Q4-2015.