ITV

Category: Financials

  • Q1-2016: Despite drop in QoQ revenue, B.A.G. Films TV segment operating profit flat

    Q1-2016: Despite drop in QoQ revenue, B.A.G. Films TV segment operating profit flat

    BENGALURU: B.A.G. Films and Media Limited (BAG Films) Television Broadcasting segment (TV segment) reported 20.6 per cent drop in segment revenue to Rs 20.69 crore (79.7 per cent of Total Income from Operations or TIO) in the quarter ended 30 June, 2015 (Q1-2016) as compared to the Rs 26.06 crore (82.8 per cent of TIO) in Q4-2015. The TV segment reported 9.5 per cent drop in revenue in the current quarter as compared to the Rs 22.85 crore (69.9 per cent of TIO) in the corresponding year ago quarter.

     

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

     

    (2) All numbers in this report are consolidated unless stated otherwise

     

    Despite the drop in operating revenue, BAG Films TV segment reported almost flat operating profit at Rs 8.08 crore in the sequential quarters Q4-2015 and Q1-2016. The segment’s operating profit in Q1-2016 however dropped 5.7 per cent as compared to the Rs 8.57 crore in Q1-2015.

     

    BAG Films TIO in the current quarter at Rs 25.96 crore was 17.5 per cent lower than the Rs 31.46 crore in the immediate preceding quarter and was 20.6 per cent lower than the Rs 32.70 crore in the corresponding year ago quarter.

     

    Let us look at the other numbers reported by BAG Films

     

    BAG Films reported a lower loss of Rs 1 crore in the current quarter as compared to the loss of Rs 11.53 crore in Q4-2015, but the loss in the current quarter was higher than the Rs 0.67 crore in Q1-2015. The company’s simple EBIDTA calculated without including other income in the current quarter at Rs 6.06 crore (23.3 per cent margin) was 1.5 per cent lower than the Rs 6.15 crore (19.6 per cent of TIO) and was 12.2 per cent lower than the Rs 6.91 crore (21.1 per cent margin) in Q1-2015.

     

    The company’s total expenditure in the current quarter at Rs 23.67 crore (91.2 per cent of TIO) was 38.3 per cent lower than the Rs 38.38 crore (122 per cent of TIO) in Q4-2015 and was 19.9 per cent lower than the Rs 29.54 crore (90.3 per cent of TIO) in Q1-2015.

     

    Employee Cost in Q1-2016 at Rs 4.74 crore (18.2 per cent of TIO) was 11.8 per cent lower than the Rs 5.37 crore (17.1 per cent of TIO) in Q4-2015 but was 0.4 per cent more than the Rs 4.72 crore (14.4 per cent of TIO) in Q1-2015.

     

    Segment Numbers

     

    The five segments mentioned in the company’s financial results are: Audio-Visual Production (AVP); Movies: Leasing; FM Radio; and Television Broadcasting. While BAG Films Movies segment made no contribution to the company’s revenue or operating results in the current quarter, Q4-2015 or Q1-2015, TV Broadcasting segment numbers have already been mentioned above.

     

    Audio Visual Production segment (AVP segment)

     

    AVP segment reported 9.7 per cent growth in revenue in Q1-2016 at Rs 3.60 crore as compared to the Rs 3.28 crore in Q4-2015 and a growth of 34 per cent as compared to the Rs 2.69 crore in Q1-2015. The segment reported an operating profit of Rs 2.24 crore in Q1-2016 as compared to an operating loss of Rs 1.38 crore in the immediate trailing quarter and 14.4 per cent growth in operating profit in Q1-2016 as compared to the operating profit Rs 1.96 crore in Q1-2015.

     

    Leasing segment

     

    BAG Films Leasing segment reported a little more than one fourth (26.4 per cent) revenue in the current quarter at Rs 0.1 crore as compared to the Rs 0.38 crore in Q4-2015 and less than one seventh (16 per cent) the revenue of Rs 0.62 crore in Q1-2015. The segment reported an operating loss of Rs 0.93 crore in Q1-2016; and operating loss of Rs 3.14 crore in Q4-2015 and an operating loss of Rs 0.41 crore in Q1-2015.

     

    FM Radio segment

     

    BAG Films FM Radio segment reported a 9.5 per cent decline in revenue in Q1-2016 at Rs 1.58 crore as compared to the Rs 1.74 crore in Q4-2015, but a growth of 2.1 per cent as compared to the Rs 1.55 crore in Q1-2015. The company’s FM Radio segment reported an operating loss of Rs 0.24 crore in Q1-2016; an operating loss of Rs 2.05 crore in Q4-2015 and an operating loss of Rs 0.08 crore in Q1-2015.

  • FY-2015: News & Info services retard News Corp revenue growth to 0.7%

    FY-2015: News & Info services retard News Corp revenue growth to 0.7%

    BENGALURU: A seven per cent drop in revenue in its largest segment – News & Information services dragged News Corporation’s total revenue to just 0.7 per cent growth to $8633 million in the year ended 30 June, 2015 (FY-2015) as compared to $8574 million in FY-2014. During the quarter ended ?30 June, 2015 (Q4-2015), the company’s NIS segment 10 per cent drop in revenues combined with the drop of two per cent from the Cable Programming Segment (CPS) saw News Corp total revenue drop 2.1 per cent to $2141 million as compared to the $2186 million in Q4-2014.

     

    The company explains that the majority of the revenue decline reflects adverse foreign currency fluctuations and lower advertising revenues at the News and Information Services segment, partially offset by growth in the Digital Real Estate Services and Book Publishing segments, primarily as a result of the acquisitions of Move and Harlequin, respectively.

     

    News Corp total EBIDTA however increased 10.6 per cent in the current year to $852 million as compared to the $770 million in FY-2014. YoY, News Corp total EBIDTA improved 50.4 per cent to $191 million in Q4-2015 as compared to the $127 million in Q4-2014. The company says that this increase was primarily driven by lower expenses at the News and Information Services and Digital Education segments, partially offset by adverse foreign currency fluctuations. Adjusted Total Segment EBITDA increased 62 per cent compared to the prior year.

     

    News Corp CEO Robert Thomson said, “Thanks to solid performance across a number of our businesses, including the fast-growing realtor.com, we had a strong fourth quarter finish to a good fiscal year. Despite an uneven global economy, very tough currency headwinds and the ongoing transformation of the media landscape, for fiscal 2015 we posted stable revenues, robust EBITDA growth and healthy free cash flow.”

     

    “With disciplined internal investments, strategic acquisitions and ongoing product innovation, we have aggressively shifted the company to be more global and more digital. We have clearly emerged as an international leader in digital real estate, opened up new territories at HarperCollins, expanded digital subscriber penetration at our mastheads and successfully integrated our programmatic exchange, creating new digital and mobile advertising opportunities across News Corp. We have begun to execute on a capital return program that signifies our confidence in the prospects of the company and the efficacy of its long-term strategy. The year ahead will be an opportunity to build on the sound and profitable platform we have collectively created,” he added.

     

    Net loss available to News Corp stockholders in FY-2015 was $379 million as compared to net income available to News Corp stockholders of $12 million in FY-2014. Impairment and restructuring charges were $424 million and $21 million in Q4-2015 and Q4-2014 respectively. The impairment and restructuring charges for the three months ended 30 June, 2015 include an impairment charge of $371 million related to Amplify, as discussed above. Adjusted net income available to News Corp stockholders was $38 million compared to $6 million in the prior year.

     

    Segment Results

     

    News & Information Services (NIS)

     

    NIS FY-2015 full revenues decreased by $422 million, or seven per cent, compared to the prior year. Total segment advertising revenues declined 10 per cent, driven primarily by weakness in the print advertising market coupled with the negative impact of foreign currency fluctuations. Circulation and subscription revenues declined four per cent, due to adverse foreign currency fluctuations. Adjusted revenues declined three per cent compared to the prior year.

     

    In FY-2015, NIS segment EBITDA decreased $62 million, or nine per cent, as compared to the prior year. The corporation says that results were impacted by lower advertising revenues, higher legal expenses at News America Marketing of $20 million, negative foreign currency fluctuations and one-time expenses of $11 million related to the termination of a distribution contract in connection with continued cost reduction initiatives, which more than offset lower operating expenses. Adjusted Segment EBITDA decreased six per cent compared to FY-2014.

     

    Revenues for the fourth quarter of fiscal 2015 decreased $154 million, or 10 per cent, compared to the prior year, as a result of a 13 per cent decline in advertising revenues and a five per cent decline in circulation revenues, driven by negative foreign currency fluctuations. Adjusted revenues declined two per cent compared to the prior year. Segment EBITDA increased $38 million in the quarter, or 29 per cent, as compared to Q4-2014. The increase was driven by lower operating expenses, partially offset by lower advertising revenues, one-time expenses of $11 million related to the termination of a distribution contract in connection with continued cost reduction initiatives and negative foreign currency fluctuations. Adjusted Segment EBITDA increased 34 per cent compared to the prior year.

     

     

    Book Publishing

     

    FY-2015 revenues for News Corp Book Publishing segment increased $233 million, or 16 per cent, compared to the prior year driven by the inclusion of Harlequin results and strong backlist sales in the general books category, resulting from the success of American Sniper by Chris Kyle, partially offset by lower revenues from the Divergent series by Veronica Roth. Digital sales, which consist of revenues generated through the sale of e-books and digital audio books, represented 22 per cent of Consumer revenues for fiscal 2015. Segment EBITDA increased $24 million, or 12 per cent, from the prior year primarily due to the inclusion of the results of Harlequin and lower expenses, partially offset by lower contribution from the Divergent series. Adjusted revenues and Adjusted Segment EBITDA each decreased 2 per cent, compared to the prior year.

     

    Book Publishing Revenues in Q4-2015 increased $29 million, or eight per cent, compared to Q4-2014 driven by the inclusion of Harlequin results, partially offset by lower revenues from the Divergent series. Digital sales represented 23 per cent of Consumer revenues for the quarter. Segment EBITDA was flat from the prior year as the inclusion of results from Harlequin and lower expenses offset lower contribution from the Divergent series.

     

    Digital Real Estate Services (DRES)

     

    FY-2015 revenues increased for the DRES segment to $217 million, or 53 per cent, compared to FY-2014, primarily due to the inclusion of the results of Move, which was acquired in November 2014, coupled with higher revenues at REA Group Limited (REA Group) due to the impact of increased listing depth product penetration and higher pricing, despite a decline in Australian listing volumes across the market and the negative impact of foreign currency fluctuations. Segment EBITDA decreased $13 million, or six per cent, compared to the prior year primarily due to the inclusion of a loss of $39 million related to the acquisition of Move and negative foreign currency fluctuations, partially offset by increased revenues at REA Group. Segment EBITDA includes $21 million of stock-based compensation expense and $19 million of one-time transaction costs, both related to the acquisition of Move. Adjusted revenues and Adjusted Segment EBITDA increased 18 per cent and 23 per cent, respectively, compared to the prior year.

     

    For the full year, Move saw strength in its Connection for Co-Brokerage product and Media revenues. Based on Move’s internal data, average monthly unique users of realtor.com’s web and mobile sites for the fiscal fourth quarter grew 42 per cent year-over-year to approximately 45 million, which was driven by almost 80 per cent growth in mobile users; traffic accelerated in July to 48 million monthly unique users, or 43 per cent growth year-over-year.

     

    Revenues in Q4-2015 increased $76 million, or 67 per cent, compared to Q4-2014 due to the inclusion of the results of Move coupled with higher listing depth product penetration and higher pricing at REA Group. Segment EBITDA in the quarter decreased $17 million, or 27 per cent, compared to the prior year due to certain expenses at Move and the negative impact of foreign currency fluctuations, partially offset by the improvement at REA Group. At Move, strong revenue performance was offset by $7 million of legal expenses and $5 million of stock-based compensation expense related to the acquisition.

     

    Adjusted revenues and Adjusted Segment EBITDA increased 15 per cent and 18 per cent, respectively, compared to the prior year.

     

    Cable Networking Programming (CNP)

     

    CNP’s FY-2015 revenues increased $9 million, or two per cent, compared to the prior year driven by higher affiliate and advertising revenues, partially offset by adverse foreign currency fluctuations. Segment EBITDA increased $7 million, or five per cent, from FY-2014, primarily driven by higher revenues, partially offset by adverse foreign currency fluctuations and higher programming costs. Adjusted revenues and Adjusted Segment EBITDA for FY-2015 increased 11 per cent and 15 per cent, respectively, compared to FY-2014.

     

    In Q4-2015, revenues decreased $3 million, or two per cent, compared to Q4-2014, as higher affiliate and advertising revenues were more than offset by negative foreign currency fluctuations. Segment EBITDA in the quarter increased $3 million, or 16 per cent, compared to the prior year. Adjusted revenues increased 15 per cent and Adjusted Segment EBITDA increased 37 per cent, compared to the prior year.

     

    Digital Education

     

    Revenues for the full year increased $21 million, or 24 per cent, compared to the prior year. Segment EBITDA improved $100 million, or 52 per cent, compared to the prior year, primarily due to the impact of the capitalization of Amplify Learning’s software development costs of $53 million, reduced development expenses and increased revenues.

     

    Revenues in Q4-2015 increased $6 million, or 33 per cent, and Segment EBITDA improved $29 million, or 55 per cent.

     

    Others

     

    In FY-2015, Others Segment EBITDA improved by $26 million, primarily due to decreased fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the U K Newspaper Matters”).

     

    The net expense related to the U K Newspaper Matters was $50 million for the full year, as compared to $72 million in the prior year.

     

    Segment EBITDA in the quarter improved by $11 million. The net expense related to the UK Newspaper Matters was $8 million for the three months ended 30 June, 2015, as compared to $16 million in the prior year.

  • Q1-2016: Distribution segment pulls down Animation gains to loss for DQE

    Q1-2016: Distribution segment pulls down Animation gains to loss for DQE

    BENGALURU: The Tapas Chakravarti led DQ Entertainment (International) Limited (DQEIL) reported consolidated loss of Rs 12.65 crore in the quarter ended 30 June, 2015 (Q1-2016) as compared to a loss of Rs 12.06 crore in Q1-2015 and a loss of Rs 26.33 crore in the immediate trailing quarter.

     

    The loss in the current quarter would have been higher but for a foreign exchange (forex) gain of Rs 6.8 crore as compared to a forex loss Rs 0.39 crore in Q1-2015 and a forex gain of Rs 3.95 crore in Q4-2015.

     

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

    (2) All numbers are consolidated unless stated otherwise.

     

    Segment Performance

     

    The company’s distribution segment reported an operating loss of Rs 6.51 crore on operating revenue of Rs 1.80 crore in Q1-2016 as compared to the operating loss of Rs 1.19 crore on operating revenue of Rs 10.71 crore in Q1-2015 and an operating loss of Rs 12.53 crore on operating revenue of Rs 5.94 crore in Q4-2015.

     

    The company’s Animation segment reported an operating profit of Rs 2.08 crore in Q1-2016 from operating revenue of Rs 23.93 crore as compared to the operating loss of Rs 1.07 crore from operating revenue of Rs 9.93 crore in Q1-2015 and an operating profit of Rs 33.88 crore from operating revenue of Rs 69.87 crore in the immediate trailing quarter.

     

    Let us look at the other numbers reported by DQEIL

     

    DQEIL reported 24.6 per cent increase in total income from operations (TIO) in Q1-2016 to Rs 25.73 crore as compared to the Rs 20.64 crore in Q1-2015. TIO in the current quarter was a little more than a third (33.9 per cent) of the TIO of Rs 75.81 crore in Q4-2015.

     

    Total Expenditure in Q1-2016 increased 6.8 per cent to Rs 29.62 crore as compared to the Rs 27.72 crore in Q1-2015, but declined 65.3 per cent as compared to the Rs 85.3 crore in Q4-2015.

     

    The company’s finance expense in Q1-2016 was almost double (increased 93 per cent) at Rs 14.56 crore as compared to the Rs 7.55 crore in Q1-2015 but dropped 13.2 per cent as compared to the Rs 16.78 crore in Q4-2015.

     

    DQEIL Production expense (PE) in Q1-2016 increased 74.4 per cent to Rs 3.75 crore as compared to the Rs 2.15 crore in Q1-2015 and declined 77.6 per cent as compared to the Rs 16.75 crore in Q4-2015.

     

    The company’s Employee Expenses (EBE) in Q1-2016 at Rs 13.30 crore declined 20 per cent as compared to the Rs 16.64 crore in Q1-2015 and was 2.1 per cent lower than the Rs 13.59 crore (in Q4-2015.

     

  • Q1-2016: Balaji Telefilms’ net down 80% at Rs 2.08 crore; revenue down 45%

    Q1-2016: Balaji Telefilms’ net down 80% at Rs 2.08 crore; revenue down 45%

    MUMBAI: Balaji Telefilms Limited (BTL) reported lower consolidated profit after tax (PAT) (less than one-fifth) in the quarter ended 30 June, 2015 (Q1-2016) at Rs 2.09 crore (2.8 per cent margin), which was down 80 per cent as compared to the Rs 10.56 crore (7.8 per cent margin) in Q1-2015 and less than one-fourth the PAT of Rs 9.54 crore (12.3 per cent margin) in the immediate trailing quarter.

     

    BTL reported 44.8 per cent drop in consolidated total income from operations (TIO) in Q1-2016 to Rs 74.64 crore as compared to the Rs 135.34 crore in Q1-2015. The company’s Q1-2016 TIO dropped 2.6 per cent as compared to the Rs 76.94 crore in the immediate trailing quarter.

     

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

    (2) All numbers are consolidated unless stated otherwise.

     

    Television segment

     

    BTL’s television segment reported 57 per cent growth in revenue from operations at Rs 68.46 crore in the current quarter as compared to the Rs 43.50 crore in Q1-2015 and 15 per cent more than the Rs 59.51 crore in Q4-2015.

     

    The segment reported a 62 per cent growth in PAT to Rs 4.51 crore as compared to the Rs 1.96 crore in the corresponding year ago quarter. PAT in Q4-2015 was however more than double at Rs 9.61 crore. Consolidated EBIDTA in the current quarter was Rs 4.97 crore as compared to the Rs 14.71 crore in Q1-2015.

     

    The segment’s cost of production shot up by 54 per cent in the current quarter to Rs 55.21 crore as compared to the Rs 35.77 crore in Q1-2015 and was 23 per cent more than the Rs 44.91 crore in Q4-2015, though the company had shot more commissioned programming hours in Q4-2015 than in the current quarter.

     

    The company’s television segment reported revenue of Rs 52.76 crores from 240.5 hours of commissioned programs as compared to the Rs 42.57 crore for 208 commissioned hours in Q1-2015 and revenue of Rs 59.51 crore for 258 commissioned hours in Q4-2015. The number of commissioned hours does not include Nach Baliye. Revenue per hour for commissioned programs in Q1-2016 increased 7.4 per cent to Rs 21.94 lakh as compared to the Rs 20.42 lakh in Q1-2015, but was 4.9 per cent lower than the Rs 23.06 lakh in the immediate trailing quarter.

     

    UPCOMING TELEVISION SHOWS

     

    BTL is gearing up to launch four new shows across four general entertainment channels (GECs) in 2015. The first show is a finite series of 130 episodes, which will be aired from Monday to Friday on Sony beginning second week of September. The second show is a daily fiction serial to be aired on Star Plus from Monday to Saturday from the second week of September. The newest GEC &TV from the Zee Entertainment Enterprises stable will air a new Balaji fiction daily from Monday to Friday by end September. On the other hand, Colors will air a finite show called Nagin comprising 26 episodes of one hour programming, which will be aired on Saturday and Sunday by end October this year.

     

    Additionally, the company is also in talks with GECs for various non-fiction ideas.

     

    UPCOMING MOVIES

     

    BTL has multiple films namely Grand Masti, XXX, Kya Kool Hai Hum 3 and Udta Punjab on the floor. These are either in the post production stage or are nearing completion. The company is looking at releasing these in Q3 or Q4 of the current financial year if schedules stand. Another biopic Azhar is expected to be released in Q1-2017, while shooting is also in progress for a superhero film Flying Jat.

  • Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    BENGALURU: Subhash Chandra led Essel Group’s Siti Cable Network Limited (Siti Cable) reported operating revenue (total income from operations, or TIO) of Rs 228.09 crore in the quarter ended 30 June, 2015 (Q1-2016), which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015.

     

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

    (2) All numbers in this report are consolidated unless stated otherwise.

     

    Both television and broadband subscription revenue registered YoY growth, broadband reported 63.6 per cent growth at Rs 9 crore in Q1-2016 as compared to the Rs 5.5 crore in the corresponding year ago quarter and was 13.9 per cent more than the Rs 7.9 crore in the immediate trailing quarter.

     

    Subscription revenue in Q1-2016 at Rs 129 crore was 9.1 per cent higher than the Rs 118.2 crore in Q1-2015, but declined 9.4 per cent as compared to the Rs 142.4 crore in Q4-2015. Activation revenue at Rs 10.9 crore in the current quarter was 25.3 per cent lower than the Rs 14.6 crore in Q1-2015 and was 48.3 per cent lower than the Rs 21.1 crore in Q4-2015. Siti Cable says that effective realisation per subscriber remained flat during the current period.

     

    Siti Cable’s cable universe increased by 200,000 digital subscribers to 107 lakh in Q1-2016 from 105 lakh in Q4-2015. Digital subscriber base increased in the current quarter to 55.8 lakh from 53.8 lakh in Q4-2015. Net broadband additions in the current quarter were 4400 – the count went up to 74,500 from 70,100 in the previous quarter (Q4-2015).

     

    Let us look at the other numbers reported by Siti Cable

     

    Siti Cable reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore in Q1-2015 and a loss of Rs 34.13 crore in Q4-2015.

     

    EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

     

    Total Expenditure in Q1-2016 increased 12 per cent to Rs 228.21 crore (100.1 per cent of TIO) as compared to the Rs 203.76 crore (97.5 per cent of TIO) in Q1-2015, but was 18.6 per cent lower than the Rs 280.49 crore (109.6 per cent of TIO) in the previous quarter.

     

    Pay channel costs in the current quarter increased 8.1 per cent to Rs 135.70 crore as compared to the Rs 125.55 crore in Q1-2015 but was 13.6 per cent lower than the Rs 156.98 crore in Q4-2015.

     

    Siti Cable’s Finance costs in Q1-2016 increased 11.6 per cent to Rs 33.90 crore as compared to the Rs 30.37 crore in Q1-2015 and were 9.2 per cent more than the Rs 31.05 crore in Q4-2015.

     

    Other expenses increased 13.9 per cent in the current quarter to Rs 43.32 crore as compared to the Rs 38.05 crore in Q1-2015 but were 40.3 per cent lower than the Rs 72.53 crore in Q4-2015.

     

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and Margin expansion by 501 bps QoQ,” said Siti Cable executive director and CEO VD Wadhwa.

     

    “We managed to grow our Broadband revenues by 13.4 per cent QoQ and are on track to expand our Broadband operations in new cities. Delays in content availability held back STB seeding, however we are well poised to expand aggressively this quarter. During the quarter we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” added Wadhwa.

  • Q1-2016: Eros International revenue doubles at Rs 480.6 crore, PAT up 49%

    Q1-2016: Eros International revenue doubles at Rs 480.6 crore, PAT up 49%

    MUMBAI: Eros International Media Limited’s revenue for the quarter ended 30 June, 2015 almost doubled at Rs 480.6 crore, which was 96.5 per cent more than Rs 244.6 crore in Q1 FY15.

     

    The company’s profit after tax (PAT) was up 48.9 per cent at Rs 53.40 crore in Q1 2016 as against Rs 35.8 crore in the same quarter previous year. The EBIT at Rs 96.3 crore went up by 60.70 per cent. 

     

    The company released a total of 16 films during the quarter as compared to nine in Q1-2015.

     

    Eros International Media executive vice chairman and managing director Sunil Lulla said, “We have had an excellent start to fiscal 2016 with the resounding success of Tanu Weds Manu Returns and our other major new releases, Uttama Villian, Masss, Dil Dhadakne Do (overseas) and Gabbar (overseas), doing well. The portfolio performance reinforces our strategy of investing in content-driven films, which are prudently budgeted and then extensively monetized across traditional and emerging platforms.”

     

    “As a strategy, we continue to diversify our presence across different film genres, budgets and languages. Further, strong pre-sales for our films remains one of the cornerstones of our strategy,” he added.  

     

    “The start to the second quarter has been exceptional with multiple-record breaker Bajrangi Bhaijaan delivering a worldwide gross of over Rs 5 billion. Last week’s Telugu release, the Mahesh Babu starrer Srimanthudu has opened to record breaking box office numbers. In addition, we have a compelling line-up for the remainder of the year featuring high-profile and promising movies such as Bajirao Mastani, Welcome Back, Hero, Gabbar Singh 2, 24 amongst a host of other Hindi and regional movies,” he said.

     

    “Our leadership position in the nascent Indian Media and Entertainment industry, which is witnessing positive structural trends, backed by an expansive library of movies should enable us to create significant value for all our stake holders going forward,” informed Lulla. 

     

    • Diversified revenue mix
      • Theatrical Revenues contributed – 51.5 per cent, Overseas Revenues – 27 per cent and Television & Others – 21.5 per cent as a percentage of Total Income.

     

    • Top 2 Hindi Box Office movies in CY2015 are Eros Films
      • Bajrangi Bhaijaan released in Q2 FY16 crossed the coveted Rs 300 crore net box office in India and the worldwide gross is over Rs 500 crore, smashing multiple records.
        • Fastest Rs 100 crore, Rs 150 crore, Rs 200 crore and Rs 250 crore movie in Bollywood history
        • Highest single day collection of Rs 38.75 crore for any film in India
        • Highest Monday figures of Rs 27.05 crore in India
      • The medium budget movie – Tanu Weds Manu Returns released in Q1 FY16 was the first film of CY2015 to cross the Rs 100 crore mark, and has set new ROI benchmarks in the industry.
  • Q1-2016: Marico marketing spends at Rs 197.52 crore

    Q1-2016: Marico marketing spends at Rs 197.52 crore

    BENGALURU:Indian consumer products in beauty and wellness space company Marico Limited (Marico) spent 2.8 per cent more towards advertisement and sales promotion (ASP, marketing spends) during the quarter ended 30 June, 2015 (Q1-2016) at Rs 197.52 crore (11.1 per cent of total income from operations or TIO) as compared to the Rs 192.18 crore (11.8 per cent of TIO) in Q1-2015 and was 44 per cent more than the Rs 137.15 crore (11.2 per cent of TIO) in the immediate trailing quarter.

    Notes: 100,00,000=100 Lakhs = 1 crore = 10 million

    During a 14 quarter period starting Q4-2012 until the current quarter, the company reported record TIO for the current quarter at Rs 1783.22 crore, which was 9.9 per cent higher YoY than the Rs 1623.13 crore in Q1-2015 and 45.4 per cent more than the Rs 1226.25 crore in the immediate trailing quarter (Ref Fig B below). The company says that its topline growth was driven by sixper cent volume growth in India leading to overall volume growth of fiveper cent. Marico’s Domestic business recorded a value growth of 12 per cent while the International business posted a growth of fourper cent.

    Company speak

    Marico in its Q1-2016 earnings release says that market share gains continue in approximately 80 per cent of its portfolio; almost the entire domestic portfolio gained share. Marico’s FMCG business in India achieved a turnover of RS 1,428 crore ($227 million) during the quarter, a growth of about 12 period over Q1-2015. The Business continues to gain market share in more than 95 per centof the portfolio reveals the company.

    The company says that it has seen healthy volume growth in key categories in India: Parachute Rigids- eightper cent and Value Added Hair Oils (VAHO) 14 per cent with a continued premiumization in VAHO in India with higher share gain in value (230 bps) as compared to volume (124 bps). The company has four Prototypes in the market – three in Value Added Hair Oils and one in Leave-in Conditioners to fuel premiumization of hair nourishment portfolio. These prototypes will be scaled up based on prototype results.

    Marketing spends

    Marketing spends in Q1-2016 have been the highest during the fourteen quarter period under consideration in terms of absolute rupees. In terms of percentage of TIO, ASP was highest in Q3-2013 at 14.1 per cent of TIO (Rs 157.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 14 quarters under consideration, in terms of percentage TIO, the trend declines linearly during the same period. Please refer to Figs. A and A-1 below.

    Profit after Tax

    Marico’s TIO numbers have been mentioned above. During the period under consideration in this report, the company has reported the highest profit after tax (PAT) in the current quarter at Rs 237.83 crore (13.3 per cent of TIO), which was 28.4 per cent more than the Rs 185.28 crore (11.4 per cent of TIO) in Q1-2015 and was more than double (2.16 times) the Rs 110.04 crore (nineper cent of TIO) in Q4-2015.

  • Q1-2016: Hathway YoY revenue up 6%; Broadband subscription revenue up 56%

    Q1-2016: Hathway YoY revenue up 6%; Broadband subscription revenue up 56%

    BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 5.7 per cent growth in standalone Total Income from Operations (TIO) in Q1-2016 (quarter ended 30 June, 2015, current quarter) to Rs 264,41 from Rs 250.11 crore in Q1-2015 and was 2.1 per cent lower than the Rs 270.03 crore in Q4-2015.

     

    The company’s EBIDTA in the current quarter declined 25.4 per cent to Rs 32.73 crore (12.8 per cent margin) as compared to the Rs 43.87 crore (17.5 per cent margin) in the corresponding year ago quarter but was 5.7 per cent more than the Rs 30.98 crore (11.5 per cent margin) in the immediate trailing quarter.

     

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

     

    Hathway’s loss in the current quarter widened to Rs 43.91 crore as compared to the Rs 0.93 crore in Q1-2015, but was considerably lower than the Rs 76.99 crore in Q4-2015.

     

    Subscription numbers

     

    Hathway’s television subscription revenue in Q1-2016 declined five per cent to Rs 105.5 crore as compared to the Rs 111 crore in Q1-2015 and declined 12.7 per cent as compared to the Rs 120.9 crore in Q4-2015. The company says that it has deployed one lakh set top boxes, taking its digital subscriber base to 86 lakh or 72.9 per cent of its total cable TV subscriber base of 118 lakh in the current quarter.

     

    Broadband subscription revenue in Q1-2016 at Rs 65.1 crore improved sharply by 56.5 per cent as compared to the Rs 41.6 crore in Q1-2015 and increased 12.8 per cent as compared to the Rs 57.7 crore in Q4-2015. The company says that it has added 50,000 broadband subscribers in Q1-2016, and claims a broadband subscriber base of 4.6 lakh, of which 1.7 lakh are under Docsis 3.0. Broadband ARPUs increased from Rs 530 to Rs 577 (exit Q1FY16) says Hathway.

     

    Hathway reported Phase I ARPU at Rs 100 (net of tax) and Phase II ARPU at Rs 76 (net of tax) in the current quarter as compared to Rs 67 (net of tax) in Q4 FY15.

     

    Let us look at the other numbers reported by Hathway

     

    Hathway’s standalone Total Expenditure in Q1-2016 increased 14.5 per cent to Rs 290.87 crore (110 per cent of TIO) as compared to the Rs 254.10 crore (101.6 per cent of TIO) in Q1-2015 but was 5.5 per cent lower than the Rs 307.66 crore (113.9 per cent of TIO) in Q4-2015.

     

    Standalone Pay Channel cost in Q1-2016 increased 8.8 per cent to Rs 93.32 crore (35.3 per cent of TIO) as compared to the Rs 85.81 crore (34.3 per cent of TIO) in Q1-2015 but was 13.1 per cent lower than the Rs 107.34 crore (39.8 per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense in Q1-2016 increased 18.3 per cent at Rs 17.21 crore as compared to the Rs 14.55 crore in Q1-2015, and increased 1.2 per cent as compared to the Rs 17.01 crore in Q4-2015.

  • Q1-2016: Sony income triples despite poor performance of mobile & movies

    Q1-2016: Sony income triples despite poor performance of mobile & movies

    BENGALURU: Despite operating losses reported by Sony Corporation’s (Sony) mobile communications, pictures and all other segments, the company’s net attributable to its shareholders more than tripled (up 3.07 times) to ?82.4 billion in the quarter ended 30 June, 2015 (Q1-2016) as compared to the ?26.8 billion in Q1-2015. 

     

    Sony’s Mobile Communications (MC) segment reported a higher operating loss in the current quarter of ?22.9 billion as compared to the ?1.6 billion in the corresponding year ago quarter. Sony Pictures segment reported an operating loss in Q1-2016 of ?11.7 billion as compared to an operating profit of ?7.8 billion in Q1-2015. All others segment reported a lower operating loss in Q1-2016 of ?5 billion as compared to the ?20 billion in Q1-2015. However, Sony’s other segments- Games and Network Services (G&NS), Imaging Products & Solutions (IP&S), Home Entertainment & Sound (HE&S), Devices, Music, and Financial services reported growth in YoY operating income.

     

    Sony’s sales and operating revenue (Sales) decreased by 0.1 per cent in Q1-2016 to ?1808.1 billion compared to ?1,809.9 billion in the corresponding quarter of last year. Sales were essentially flat YoY mainly due to a decrease in Mobile Communications segment sales reflecting a significant decrease in smartphone unit sales and a decrease in Home Entertainment & Sound (HE&S) segment sales reflecting a decrease in unit sales of mid-range LCD televisions, substantially offset by the impact of foreign exchange rates and a significant increase in Devices segment sales reflecting the strong performance of image sensors. On a constant currency basis, sales decreased seven per cent YoY.

     

    Operating income increased ?27.1 billion YoY to ?96.9 billion). This increase was primarily due to an increase in operating income in the Music segment, reflecting the recording of a re-measurement gain, described below, and the impact of the increase in sales in the Devices segment. This increase was partially offset by the negative impact of foreign exchange rates in the MC segment and lower sales in the Pictures segment due to a decrease in theatrical and television licensing revenues for Motion Pictures.

     

    Segment performance

     

    Mobile Communications

     

    Sony’s MC segment sales decreased 16.3 per cent YoY (an 18 per cent decrease on a constant currency basis) to ?280.5 billion in the current quarter as compared to the ?335 billion in Q1-2015. This decrease was due to a significant decrease in smartphone unit sales resulting from a strategic decision not to pursue scale in order to improve profitability.

     

    The above mentioned operating loss increased because of the decrease in smartphone unit sales and an increase in restructuring charges were offset primarily by reductions in marketing and other expenses as well as an improvement in product mix. However, operating loss increased mainly due to the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs. During the current quarter there was a ?25.4 billion negative impact from foreign exchange rate fluctuations.

     

    Game & Network Services (G&NS)

     

    G&NS sales increased 12.1 per cent YoY (a seven per cent increase on a constant currency basis) to ?288.6 billion. This significant increase was primarily due to increases in PlayStation4 (PS4) software sales and PS4 peripheral device unit sales as well as the impact of foreign exchange rates, partially offset by a decrease in PlayStation3 (PS3) hardware and software devices.

     

    Operating income increased ?15.1 billion YoY to ?19.5 billion in Q1-2016 as compared to the ?4.1 billion in Q1-2015. This increase was primarily due to PS4 hardware cost reductions, the above-mentioned increases in PS4 software sales and PS4 peripheral device unit sales, partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs and the decrease in PS3 software sales.

     

    Sony says that operating income in the current quarter also includes ?4.7 billion of insurance recoveries related to losses incurred from the cyberattack on Sony’s network services including the PlayStation Network in the fiscal year ended 31 March, 2012. During the current quarter there was a ?15.6 billion negative impact from foreign exchange rate fluctuations.

     

    Imaging Products & Solutions (IP&S)

     

    IP&S sales increased 3.5 per cent YoY (a five per cent decrease on a constant currency basis) to ?170.4 billion in Q1-2016 as compared to the ?164.6 billion in Q1-2015, primarily due to the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models, partially offset by a decrease in unit sales of digital cameras reflecting a contraction of the market.

     

    Operating income increased ?3.9 billion YoY to ?21.3 billion. This increase was mainly due to the improvement in digital camera product mix reflecting a shift to high value-added models, a YoY increase in insurance recoveries related to damages and losses incurred from the floods in Thailand in the fiscal year ended 31 March, 2012, and the positive impact of foreign exchange rates, partially by the impact of the decrease in unit sales of digital cameras. During the current quarter there was a ?2 billion positive impact from foreign exchange rate fluctuations.

     

    Home Entertainment & Sound (HE&S)

     

    Sony’s HE&S sales decreased 13.8 per cent YoY (a 21 per cent decrease on a constant currency basis) to ?253.1 billion yen ($2,075 million). This decrease was primarily due to a decrease in unit sales of LCD televisions, mainly in the mid-range, as well as a decrease in home audio and video unit sales reflecting a contraction of the market.

     

    Operating income increased ?2.1 billion YoY to ?10.9 billion. This increase was primarily due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in LCD televisions and home audio and video unit sales, as well as the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs. During the current quarter there was a ?7.7 billion negative impact from foreign exchange rate fluctuations.

     

    In Televisions, sales decreased 17.6 percent YoY to ?168.9 billion. This decrease was primarily due to a decrease in unit sales. LCD television unit sales decreased YoY in all areas other than North America mainly due to a strategic decision not to pursue scale in order to improve profitability. Operating income decreased ?0.9 billion YoY to ?7 billion. This decrease was primarily due to the impact of the decrease in unit sales and the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, partially offset by an improvement in product mix reflecting a shift to high value-added models and cost reductions.

     

    Devices

     

    Sony’s Devices segment sales increased 35.1 per cent YoY (an 18 per cent increase on a constant currency basis) to ?237.9 billion. This increase was primarily due to a significant increase in sales of image sensors reflecting higher demand for image sensors for mobile products, the impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 41.2 per cent YoY.

     

    Operating income increased ?18.8 billion YoY to ?30.3 billion. This significant increase was primarily due to the impact of the above-mentioned increase in sales of image sensors and the positive impact of foreign exchange rates. During the current quarter there was an ?11 billion positive impact from foreign exchange rate fluctuations.

     

    Pictures

     

    Sales decreased 11.9 per cent YoY (a 26 per cent decrease on a US dollar basis) to ?171.5 billion. The decrease in sales on a US dollar basis was primarily due to significantly lower sales for Motion Pictures reflecting a decrease in theatrical and television licensing revenues. Theatrical revenues decreased due to the stronger worldwide theatrical performance of films released in the same quarter of the previous fiscal year which benefitted from the performances of The Amazing Spider-Man 2 and 22 Jump Street. Television licensing revenues were lower in the current quarter as the same quarter of the previous fiscal year benefitted from sales ofCloudy With A Chance of Meatballs 2 and Captain Phillips.

     

    Sony’s deterioration in operating results was primarily due to the impact of the decrease in theatrical and television licensing revenues noted above.

     

    Music 

     

    Sony’s Music segment comprised the Recorded Music, Music Publishing and Visual Media and Platform categories. Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

     

    Sales increased 8.5 per cent YoY (a three per cent decrease on a constant currency basis) to ?130.2 billion primarily due to the impact of the depreciation of the yen against the US dollar. The decrease in sales on a constant currency basis was primarily due to lower Recorded Music sales. Recorded Music sales decreased primarily due to the continued worldwide contraction of the physical music market. Best-selling titles included Meghan Trainor’s Title, Shogo Hamada’s Journey of a Songwriter and Francis Cabrel’s In Extremis. 

     

    Operating income increased ?20.1 billion YoY to ?31.8 billion. This increase was primarily due to the $151 million (?18.1 billion) gain on the re-measurement to fair value of SME’s 51 per cent equity interest in The Orchard, which had previously been accounted for under the equity method, as a result of SME increasing its ownership interest to 100 per cent and the positive impact of foreign exchange rates.

     

    Financial Services

     

    The segment results include Sony Financial Holdings Inc. (SFH) and SFH’s consolidated subsidiaries such as Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. and Sony Bank Inc. (Sony Bank). The results of Sony Life discussed in the Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

     

    Financial services revenue increased 13.1 per cent YoY to ?279.4 billion primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 15.7 per cent YoY to ?250.9 billion mainly due to an increase in insurance premium revenue reflecting an increase in policy amount in force, as well as an improvement in investment performance in the separate account resulting mainly from a larger rise in the Japanese stock market during the current quarter than in the same quarter of the previous fiscal year.

     

    Operating income increased ?2.2 billion yen YoY to ?46.0 billion. This increase was mainly due to an increase in operating income at Sony Life. Operating income at Sony Life increased ?3.7 billion YoY to ?40.9 billion primarily due to an improvement in investment performance in the general account.

     

    All Other

     

    All Other included the PC business in the previous fiscal year. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating loss of All Other of the comparable prior period have been reclassified to conform to the current presentation.

     

    Sales decreased 22.9 per cent YoY to ?79.3 billion. This significant decrease in sales was primarily due to the recording of sales in the same quarter of the previous fiscal year from the PC business which was sold in July, 2014.

     

    Operating loss decreased ?15 billion YoY to ?5 billion. This decrease was primarily due to the absence of the operating loss from the PC business in Q1-2015.

  • Q2-2015: Cable Networks props CBS revenue to 1% growth

    Q2-2015: Cable Networks props CBS revenue to 1% growth

    BENGALURU: CBS Corporation reported a one per cent growth in revenue to $3219 million in the quarter ended 30 June, 2015 (Q2-2015) as compared to the $3188 million in the corresponding year ago quarter.

     

    The company’s slight revenue growth was propped by a 19.2 per cent growth by its Cable Network segment, which is one of the four that contribute to the company’s numbers. Cable Networks segment reported revenue of $615 million in the current quarter as compared to the $516 million in the corresponding year ago quarter.

     

    The other three segments-Entertainment, Publishing and Local Broadcasting reported decline in revenue in Q2-2015 by 2.7 per cent, 5.7 per cent and 1.7 per cent respectively as compared to Q2-2014.

     

    Adjusted operating income was $641 million for the second quarter of 2015 compared with operating income of $730 million for the same prior-year period, reflecting higher investment in programming and digital distribution initiatives says CBS. Adjusted net earnings from continuing operations were $365 million for the second quarter of 2015 compared with net earnings from continuing operations of $418 million for the same prior-year period, as a result of the lower adjusted operating income.

     

    Company speak

     

    “CBS is at the center of the action during an extremely exciting time in media. We continue to succeed as a result of our world-class content, and Les and his team are positioning the Company to prosper in the quarters and years ahead,” said CBS executive chairman Sumner Redstone.

     

    “This quarter underscores the key steps we are taking to build out our long-term growth strategy. Central to that strategy is the progress we’re seeing with our fast-growing, non-advertising revenue sources, and there’s so much more to come as our investment in global content and new distribution pathways pays off. We are now on target to surpass our goal of $2 billion in retransmission consent and reverse compensation revenue by 2020 – thanks to a series of recent deals that reset the value of our content in the marketplace. Additionally, the launch of Showtime’s streaming service and the rapid expansion of CBS All Access are generating incremental revenue streams that will continue to grow in the years ahead,” added CBS president and CEO Leslie Moonves.

     

    “Of course, our premium content remains the cornerstone of our success, and I am confident this fall’s new primetime lineup will lead us to another victory next season. In fact, our schedule is so strong that we achieved solid pricing increases and the highest rates overall in the advertising upfront, and we also expect healthy increases in the scatter market throughout the year. As we lay the groundwork for a lucrative 2016 and beyond, we are also holding the line on costs, and we remain as focused as ever on investing in the best content, enhancing our strong financial position, and returning value to shareholders,” Moonves said.

     

    Overall numbers

     

    Revenues for Q2- 2015 increased, driven by affiliate and subscription fees that grew 28.3 per cent to $752 million as compared to the $586 million, driven by Showtime’s distribution of the highest-grossing pay-per-view boxing event of all time, as well as 40 per cent growth in retransmission revenues and fees from CBS Television Network-affiliated television stations. Advertising revenues decreased 2.6 per cent to $1594 million as compared to $1636 million in the corresponding quarter of last year. Content licensing and distribution revenues were down 9.7 per cent to $815 million in the current quarter from $903 million in Q2-2014, primarily reflecting lower domestic television licensing revenues, which were partially offset by higher international television licensing revenues.

     

    Segment numbers

     

    Entertainment

     

    CBS Entertainment segment comprises CBS Television Network, CBS Television Studios, CBS Global Distribution Group, CBS Interactive, and CBS Films.

     

    Entertainment revenues were $1785 million for Q2- 2015 compared with $1835 million for the same prior-year period, primarily reflecting the timing of television licensing revenues. Advertising revenues were down two per cent because of a sale of an Internet business in China during Q1-2015 and the timing of certain sporting events on the CBS Television Network. Affiliate and subscription fees were up 50 per cent, driven by growth in rates.

     

    Entertainment operating income for Q2- 2015 was $262 million compared with $341 million for Q2-2014, reflecting lower revenues and higher investment in programming and digital distribution initiatives.

     

    Cable Networks

     

    Details of Cable Networks revenue comprising Showtime Networks, CBS Sports Network, and Smithsonian Networks have been mentioned above.

     

    Cable Networks operating income for the second quarter of 2015 of $220 million increased from $213 million for the same prior-year period, as the revenue growth was partially offset by higher programming costs for the pay-per-view boxing event.

     

    Publishing (Simon & Schuster)

     

    Publishing revenues for Q2- 2015 were $199 million compared with $211 million for the same prior year period. Digital revenues represented 24 per cent of Publishing’s total revenues for Q2-2015. Bestselling titles in the second quarter of 2015 included The Wright Brothers by David McCullough and Finders Keepers by Stephen King, 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 $25 million for the second quarter of 2015 increased nine per cent from $23 million in Q2- 2014, as the revenue decline was more than offset by lower production and distribution costs.

     

    Local Broadcasting

     

    Local Broadcasting comprises CBS Television Stations and CBS Radio.

     

    Local Broadcasting revenues of $654 million for Q2-2015 decreased two per cent from $665 million in the same prior-year period. The decline was the result of lower advertising revenues, including political spending from last year’s midterm elections. Growth in affiliate and subscription fees partially offset the decline. CBS Television Stations revenues were up one per cent, and CBS Radio revenues decreased five per cent.

     

    Local Broadcasting operating income for the second quarter of 2015 was down eight per cent to $198 million from $215 million for the same prior-year period, primarily reflecting the revenue decline.