ITV

Category: Financials

  • Q2-2015: Warner Bros revenue growth boosts Time Warner revenues by 8.2%

    Q2-2015: Warner Bros revenue growth boosts Time Warner revenues by 8.2%

    BENGALURU: A 14.9 per cent revenue growth in its Warner Bros segment at $3298 million in the quarter ended 30 June, 2015 (Q2-2015) as compared to the $2870 million in Q2-2014 helped boost Time Warner Inc by 8.2 per cent. 

     

    The other two segments – Turner and Home Box Office (HBO) also reported revenue growth to the extent of 2.8 per cent and 1.5 per cent respectively. Time Warner’s revenue in Q2-2015 was $7348 million as compared to the $6788 million in the corresponding year ago quarter. Adjusted Operating Income grew 15 per cent to $1862 million due to increases at Turner and Warner Bros., partially offset by a decline at HBO. Operating Income increased 19 per cent to $1859 million.

     

    Company speak

     

    Time Warner chairman and CEO Jeff Bewkes said, “We had a very strong second quarter, with revenues up 8 per cent and Adjusted Operating Income growing 15 per cent to a quarterly record of $1.9 billion. Our results were led by Turner and Warner Bros and were achieved at a time when we’re investing aggressively to position the company for continued growth, including the successful launch of HBO NOW, our standalone domestic streaming service. HBO and its sister service Cinemax recently received a combined 131 Primetime Emmy nominations, with a record 126 for HBO – the 15th year in a row that HBO has led in nominations. In addition to being nominated for Outstanding Drama Series, Game of Thrones‘ fifth season set a new record for viewers of an HBO series.”

     

    Bewkes continued, “At Turner, TNT and TBS ranked as the #1 and #2 ad-supported cable networks, respectively, in primetime among adults 18-49, and together with Adult Swim claimed the top 3 spots in primetime among adults 18-34. Cartoon Network was again the only top 3 kids network to grow its 6-11 audience during the quarter and claimed the #2 spot for the first time. And CNN grew primetime viewership in its key 25-54 demo 25 per cent with the help of its award-winning original programming. Warner Bros concluded a very successful upfront, with 62 programs slated for the upcoming television season, including 29 on broadcast networks. That includes a record 20 returning shows and makes Warner Bros. the top supplier of broadcast series again this year. In the quarter, Warner Bros games business also shined with releases of Batman: Arkham Knight and Mortal Kombat X helping make it the top videogame publisher for the first half of the year. Reflecting our commitment to provide direct returns to shareholders, we have returned more than $2.6 billion in dividends and share repurchases year-to-date.”

     

    Segment performance

     

    Turner

     

    Revenues increased 2.8 per cent ($77 million) to $2827 million, benefiting from growth of 48 per cent ($69 million) in Content and other revenues and two per cent ($20 million) in Subscription revenues, partially offset by a decline of one per cent ($12 million) in Advertising revenues. The increase in Content and other revenues was due to the licensing of select Turner original programming to Hulu. Subscription revenues grew due to higher domestic rates and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates. Advertising revenues declined due to the impact of foreign exchange rates, partially offset by growth at Turner’s domestic businesses and local currency growth at Turner’s international networks. The increase in domestic advertising was due to growth at Turner’s domestic news businesses and the 2015 NCAA Division I Men’s Basketball Championship tournament, partially offset by lower delivery at certain domestic networks and the absence of NASCAR programming. Advertising revenue growth was also adversely impacted by fewer NBA playoff games in the quarter.

     

    Adjusted Operating Income increased 20 per cent ($190 million) to $1130 million, due to the increase in revenues and lower expenses, including lower programming costs. Programming costs decreased nine per cent primarily due to the absence of NASCAR programming as well as lower syndicated programming expenses as a result of the abandonment of certain programming in 2014. Operating Income increased 22 per cent ($201 million) to $1130 million.

     

    Home Box Office

     

    HBO revenue increased one per cent ($21 million) to $1438 million, due to an increase of four per cent ($40 million) in subscription revenues, partially offset by a decline of seven per cent ($19 million) in Content and other revenues. Subscription revenues grew due to higher domestic rates, partially offset by lower international revenue, which included the impact of the transfer to Turner of the operation of HBO’s basic cable network in India. The decrease in Content and other revenues reflected lower home entertainment revenues.

     

    Adjusted Operating Income decreased eight per cent ($44 million) to $508 million, as the increase in revenues was more than offset by higher marketing and technology costs, primarily related to the launch of HBO NOW, HBO’s stand-alone streaming service. Operating Income decreased seven per cent ($40 million) to $508 million.

     

    Warner Bros

     

    The revenue increase mentioned above reflects higher videogames and television licensing revenues, partially offset by lower theatrical revenues and the impact of foreign exchange rates. The increase in videogames revenues was primarily due to the releases of Batman: Arkham Knight and Mortal Kombat X. Television licensing revenues benefited from the second-cycle syndication of The Big Bang Theory and the subscription video-on-demand licensing ofSeinfeld. Theatrical revenues decreased primarily due to lower worldwide television licensing revenues of theatrical product and a decline in home entertainment revenues due to the comparison against the release of The Hobbit: The Desolation of Smaug in the prior year quarter.

     

    Adjusted Operating Income increased 46 per cent ($108 million) to $344 million, due to the increase in revenues, partially offset by associated film and print and advertising costs, as well as higher theatrical valuation adjustments. Operating Income increased 46 per cent ($107 million) to $341 million.

  • Q1-2016: Zee Media revenue up 1.3%, boosted by 15% jump in subscription rev

    Q1-2016: Zee Media revenue up 1.3%, boosted by 15% jump in subscription rev

    BENGALURU: Zee Media Corporation Limited (ZMCL) reported 1.3 per cent growth in Total Income from Operations (TIO) to Rs 135.26 crore in Q1-2016 (quarter ended 30 June, 2015) as compared to Rs 133.46 crore in Q1-2015, but 3.3 per cent lower than the Rs 139.88 crore in the immediate trailing quarter.

     

    The growth was due to a 15 per cent growth in subscription revenue in the current quarter at Rs 28.67 crore (21.2 per cent of TIO) as compared to the Rs 24.93 crore (18.7 per cent of TIO) in Q1-2015 partially offset by the 5.1 per cent decline in advertising revenue at Rs 96.75 crore (71.5 per cent of TIO) in Q1-2016 as compared to the Rs 101.92 crore (76.4 per cent of TIO) in Q1-2015.

     

    Subscription revenue in the immediate trailing quarter was however 5.1 per cent higher at Rs 30.21 crore and advertising revenue was 1.9 per cent higher at Rs 98.69 crore than the corresponding Q1-2016 revenue.

     

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

     

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

     

    Other Sales and services revenue in the current quarter at Rs 9.84 crore (7.3 per cent of TIO) was 48.9 per cent more than the Rs 6.61 crore (4.9 per cent of TIO) in Q1-2015, but 10.4 per cent lower than the Rs 10.98 crore (7.8 per cent of TIO) in the immediate trailing quarter.

     

    Television business advertising and subscription numbers

     

    Television advertising revenue in the current quarter was almost flat (declined 0.4 per cent) at Rs 79.72 crore as compared to the Rs 80.01 crore in the corresponding year ago quarter. Advertising revenue for new channels more than doubled (went up 2.1 times) to Rs 5.68 crore in Q1-2016 as compared to the Rs 2.71 crore in Q1-2015, while advertising revenue from the older existing channels declined 4.2 per cent to Rs 74.05 crore as compared to the Rs 77.30 crore in Q1-2015.

     

    Television subscription revenue in Q1-2016 increased 23 per cent to Rs 25.84 crore as compared to the Rs 21.01 crore in Q1-2015.

     

    Let us look at the other numbers reported by ZMCL

     

    ZMCL reported a lower loss of Rs 7.1 crore in Q1-2016 versus a loss of Rs 17.52 crore in Q1-2015 and loss of Rs 7.18 crore in Q4-2015.

     

    Total expense (TE) in Q1-2016 at Rs 133.01 crore was 7.5 per cent lower than the Rs 143.80 crore in Q1-2015 and 3.3 per cent lower than the Rs 137.48 crore in Q4-2015.

     

    ZMCL’s employee benefit expense (EBE) in Q1-2016 at Rs 42.11 crore was 5.4 per cent more than the Rs 39.55 crore in Q1-2015 and was seven per cent more than Rs 39.34 crore in Q4-2015.

     

    In Q1-2016, ZMCL’s operational cost at 20.79 was 36.9 per cent lower than the Rs 32.96 crore in Q1-2015 and 25.6 per cent less than the Rs 27.94 crore in Q4-2015.

     

    ZMCL News Cluster group CEO Bhaskar Das said, “We are exploring new areas of innovation, both in form and content, in such a way that media is again established as the fourth pillar of democracy. We seek to improve our understanding and increase our collaboration with the change agents who are creating a positive impact on the development of our country. This I am hopeful will help us break the clutter and create meaningful content differentiation in the highly fragmented news TV genre.”

     

    ZMCL CEO Ashish Kirpal Pandit added, ”As the company sets itself apart from the me-too content environment, we are hopeful that new-age advertisers will find immense value in partnering with us for pushing their communication through our differentiated media vehicles. While we are looking at investing to upgrade our content, we remain focused on maintaining a robust bottomline. We are also trying to gauge the full impact of BARC ratings, and how it is going to play out in the future.”

  • Q1-2016: Emami spends Rs 142.06 crore towards marketing

    Q1-2016: Emami spends Rs 142.06 crore towards marketing

    BENGALURU: Emami Limited spent 38.1 per cent more towards Advertisement and Sales Promotion (ASP, marketing) in Q1-2016 (quarter ended 30 June, 2015) at Rs 142.06 crore (24.1 per cent of Total Income from Operations or TIO) as compared to the Rs 102.84 crore (21.3 per cent of TIO) in the corresponding quarter of the previous year. Emami’s Q1-2016 ASP was 72.3 per cent more than the Rs 82.47 crore (14.9 per cent of TIO) in the immediate trailing quarter (Q4-2015).

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

    Among the brands in Emami’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona ChandiChyawnprash Plus, Zandu Kesari Jivan,etc. 

    Emami director Mohan Goenka said, “The first quarter of 2015 has been challenging with subdued economic environment and unfavourable weather, which is expected to continue. Notwithstanding such hurdles, Emami has ensured a good performance to deliver a profitable growth during the quarter. Strong performance by all our power brands in key categories coupled with growth in International business has helped us to register a 22.4 per cent top line growth.”

    Please refer to Fig A below for ASP during the 17 quarter period starting Q1-2012 until the current quarter. ASP in Q1-2016 has been the highest by the company in terms of absolute rupees and in terms percentage of TIO at Rs 142.06 crore and 24.1 per cent. Historically, as is evident from the figure below, Emami’s ASP has been the highest in Q3 of a financial year (the festival season in India) and the next highest in Q1, with the company spends the lowest towards marketing in Q4.

    During the 17 quarter period under consideration in this report, Emami has spent the lowest towards ASP in terms of absolute rupees and percentage of TIO in Q4-2012 at RS 36.60 crore and 9.2 per cent of TIO. The broken blue and maroon trend lines indicate that the company’s ASP shows a linear increasing trend in terms of absolute rupees and percentage of TIO.

    Also historically, Q3 of a financial year has been the best quarter for Emami in terms of TIO and PAT, which peaked in Q3. The next best quarter has been the fourth quarter of a financial year before sales and profits dip to the lowest in a year in Q1 (the summer and the beginning of the educational holiday season in India) followed by a rise in Q2. Please refer to Fig B below.
    In Q1-2016, Emami reported TIO of Rs 589.87 crore, which was 22.4 per cent more than the Rs 481.73 crore in Q1-2015 and was 6.5 per cent more than the Rs 553.66 crore in Q4-2015..
    During the 17 quarter period under consideration, Emami TIO was highest in Q3-2015 at Rs 692.26 crore and lowest in Q1-2012 at Rs 299.91 crore. The broken brown trend line shows that the company’s TIO is increasing linearly.
    PAT in Q1-2016 at Rs 87.75 crore (14.9 per cent of TIO) was 23.9 per cent more than the Rs 70.80 crore (14.7 per cent of TIO) in Q1-2015 but was 36.6 per cent lower than the Rs 138.33 crore (25 percent of TIO) in Q4-2015.

    Company Speak
    Domestic business in the first quarter grew steadily to achieve a healthy topline growth of 23.4 per cent. Despite prevailing macro-economic challenges and not very favourable weather, both the consumer care and the health care segments have performed considerably well.
    New brands such as Fair and Handsome Instant Fairness Facewash, Emami 7 Oils in One, Zandu Balm Ultra Power and ‘HE’ Deodorant continue to contribute to the growth during the first quarter.
    The quarter also witnessed the launch of a brand extension – Zandu Gel Balm Junior, the first ever gel based balm for kids in the country. The company also scaled up its spend on both advertisement and brand building during the quarter. Despite the high increase in ad spends, the company’s EBIDTA during the quarter rose by 32.9 per cent, bettering industry average.
    Aggressive marketing campaigns, both ATL and BTL delivered rich dividends in terms of growth of most of Emami’s Power Brands. Navratna Oil, Navratna Cool Talcum Powder, Zandu Balm, MenthoPlus Balm, Fair & Handsome and Zandu HCD Range grew in healthy double digits and enhanced their respective market shares.
    With increased emphasis, improved visibility and focused execution, the Modern Trade business and Direct Rural business continued to grow at a steady pace.
    Emami director Harsha V Agarwal said, “Prudent approach, efficient cost management and robust business model have helped us to meet the challenging environment to remain competitive and profitable. For the long term, we will continue to focus on cost efficiencies and invest in R&D and brands to further grow our market share. As part of our aggressive growth strategy, we acquired the Kesh King business during the first quarter FY-2016 and forayed into the Ayurvedic Hair & Scalp care segment. The Kesh King business is being integrated with Emami’s existing business and it has already started contributing to the growth. We plan to make Kesh King a pan-India brand soon.”
    Emami acquired hair and scalp care business under the ‘Kesh King’ and allied brands for Rs 1684 crores. The company raised around Rs 950 crore debt to partially fund the acquisition. The balance was funded by internal accrual.

  • FY-2015: Cable and Filmed Entertainment boost Fox op income 3.1%

    FY-2015: Cable and Filmed Entertainment boost Fox op income 3.1%

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (Fox) reported a 3.1 per cent increase in adjusted annual total segment operating income before depreciation and amortisation (OIBDA) of $6488 million for the year ended 30 June, 2015 (FY-2015) as compared to the $6291 million last year due to higher contributions from the company’s Cable Network Programming and Filmed Entertainment segments.

     

    The company reported total revenues in FY-2015 of $28.99 billion, a $2.88 billion decrease from prior year revenues of $31.87 billion. Excluding the net revenues from the Direct Broadcast Satellite Television (DBS) businesses, Sky Italia and Sky Deutschland AG, which were sold in November 2014 to Sky plc (Sky), in both years, adjusted revenues increased $890 million, or 3.4 per cent, over the $26.06 billion of adjusted revenues in the prior year. This increase was primarily driven by double-digit revenue growth at the Cable Network Programming segment.

     

    Fox reported annual total segment operating income before depreciation and amortization (OIBDA) of $6.72 billion, which is equal to the amount reported in the prior year. Excluding the OIBDA contributions from the DBS businesses in both years, OIBDA increased $197 million, or the above mentioned 3.1 per cent, over the $6.29 billion of adjusted OIBDA in the prior year.

     

    Company Speak

     

    Fox executive chairman Rupert Murdoch said, “We made clear operational strides over the last year that will further position us to benefit from the strong and growing global demand for high quality video content. We delivered a solid financial performance, driven by sustained gains in affiliate fees, while we continued to invest in building our new channels Fox Sports 1, FXX and Star Sports. The appeal of our new sports rights resonated with consumers globally, whether it was Star Sports in India setting new records with hundreds of millions of viewers for the ICC Cricket World Cup, or the more than 25 million viewers who watched the Women’s World Cup Final on Fox. Our film studio achieved outstanding critical and box-office success with a truly diverse range of films and we are proud of the creative excellence that earned it the most Academy Awards in the industry. Our company is well positioned for this time of opportunity in our industry. We will balance the utilization of our strong balance sheet to drive growth. Today’s announcement of our new $5 billion buyback authorization reflects our ongoing program to provide direct shareholder returns.”

     

    Cable Network Programming

     

    Cable Network Programming annual segment OIBDA increased five per cent to $4.65 billion, driven by a 12 per cent revenue increase led by continued strong affiliate revenue growth and higher advertising revenues. The revenue improvement was partially offset by a 16 per cent increase in expenses, representing higher sports programming costs driven by the broadcasts of the ICC Cricket World Cup at Star Sports, increased Major League Baseball and NASCAR rights costs at Fox Sports 1 (FS1), and higher professional team rights costs at the regional sports networks (RSNs) as well as increased entertainment programming costs at FX Networks. The segment OIBDA growth was adversely impacted by five per cent from foreign exchange rate fluctuations, primarily in Latin America and Europe.

     

    Domestic affiliate revenue increased 17 per cent reflecting the combination of sustained growth at the regional sports networks (RSNs), Fox News Channel and FX Networks, increased contribution from FS1, and the consolidation of the Yankees Entertainment and Sports Network (the YES Network). International affiliate revenue increased three per cent driven by strong local currency growth at the Fox International Channels (FIC) and Star, partially offset by a 12 per cent adverse impact from the strengthened US dollar.

     

    Domestic advertising revenue grew four per cent over the prior year period led by double-digit growth at the sports channels, including the impact of the consolidation of the YES Network, as well as growth at Fox News and FX Networks. International advertising revenue increased 14 per cent due to strong local currency growth at Star and FIC, which was partially offset by a five per cent adverse impact from the strengthened US dollar.

     

    OIBDA from the domestic channels increased 12 per cent from the prior year, led by strong double-digit growth at the RSNs, which includes the impact of the consolidation of the YES Network, as well as higher contributions from Fox News Channel and National Geographic Channels. Annual OIBDA at the company’s international cable channels declined 16 per cent from the prior year as double digit local currency growth at the FIC channels and Star entertainment channels was more than offset by the impact of the ICC Cricket World Cup at Star Sports and the adverse impact from the strengthened US dollar, primarily in Latin America and Europe.

     

    Television

     

    Full year segment OIBDA of $718 million decreased $164 million or 19 per cent versus the prior year. The decline principally reflects the absence of advertising revenue and OIBDA generated from the broadcast of the Super Bowl in the prior year. Excluding the impact of the Super Bowl in the prior year, segment revenues were consistent with the year ago as strong retransmission consent revenue growth was counterbalanced by a 6 percent decline in advertising revenues reflecting overall lower general entertainment ratings at the Fox Broadcast Network.

     

    Filmed Entertainment

     

    Full year segment OIBDA of $1.45 billion increased $87 million, or six per cent, over prior year amounts reflecting higher film studio contributions partially offset by lower contributions from the television production businesses and the absence of full year contributions from Shine Group (Shine), which was contributed into the Endemol Shine Group joint venture in December 2014. The film studio’s growth was led by strong worldwide theatrical and home entertainment performance across a diverse set of releases, including Dawn of the Planet of the Apes, The Fault In Our Stars, Taken 3, Gone Girl, Kingsman: The Secret Service and The Maze Runner as well as the home entertainment performance of Rio 2. The film studio’s commercial and creative success was further highlighted by the all-time industry record it set of more than $5.5 billion in global box-office receipts for calendar 2014, as well as its industry leading eight Academy Awards for Fox Searchlight, including Best Picture for Birdman: Or (The Unexpected Virtue of Ignorance). Segment OIBDA growth was also adversely impacted by nine per cent from foreign exchange rate fluctuations.

     

    Total equity (losses) earnings of affiliates

     

    Annual equity earnings from affiliates were $904 million as compared with $622 million in the prior year. The increased contributions from affiliates reflects increased contributions from Sky primarily resulting from the Company’s share of Sky’s gains on the sale of its ownership stakes in National Geographic Channels International, Sky Betting & Gaming (Sky Bet) and its shares in ITV partially offset by purchase price amortization recorded by Sky related to its acquisition of the DBS businesses from the Company, as well as the absence of pre-tax gains related to the Company’s participation in Sky’s share repurchase program which ended last fiscal year. The higher Sky contributions were partially offset by the inclusion of equity losses of Endemol Shine Group, the absence of the YES Network contributions in the current year resulting from its consolidation in February 2014 and higher losses from Hulu.

  • Q1-2016: NDTV digital segment sees 51% YoY growth; net loss at Rs 24.3 crore

    Q1-2016: NDTV digital segment sees 51% YoY growth; net loss at Rs 24.3 crore

    MUMBAI: Consolidating its transition to a digital media company from a pure television play, New Delhi Television’s (NDTV) digital business has shown a growth of 51 per cent YoY. 

     

    In Q1-2016, the company’s digital and e-commerce revenues account for 21 per cent of total group topline, up from 13 per cent, last year. This reflects the ongoing commitment and investments of the NDTV group into building key digital assets.

     

    However, in Q1-2016, NDTV reported a loss of Rs 24.3 crore as compared to Rs 1.5 crore of last year. Of the Rs 24.3 crore loss, Rs 11 crore pertains to the e-commerce business.

     

    Speaking exclusively to Indiantelevision.com, NDTV CEO Vikram Chandra says, “Last year Q1 results of NDTV was one of the best quarters since inception generally for Television business Q3 and Q4 are stronger compared to Q1 and Q2.”

     

    “One of the biggest achievements for us in this quarter is the fact that we successfully closed the funding of our two new ventures Gadgets 360 and Fifth Gear Auto. We have put in constant efforts since the last two years to enhance our digital business and valuation and we are extremely happy to have quality investors investing in the two new projects,” he adds. 

     

    The group has raised funds at a combined valuation of $80 million, wherein $50 million was allocated for Gadgets expertise and $30 million for the Fifth Gear Auto venture. NDTV’s other e-commerce venture, Indiaroots also raised an additional $5 million.

     

    “Overall NDTV’s digital business has expanded to over $160 million, which shows our emphasis towards digital,” asserts Chandra. 

     

    The investors who invested in NDTV’s e-commerce ventures Gadgets and Car & Bike include: Inflexionpoint co-founder John Scully, Genpact founder Pramod Bhasin, Sixth Sense Ventures founder Nikhil Vora, former Unilever chairman Vindi Banga, M&S Partners founder and director Hiro Mashita and other high-net-individuals (HNIs).

     

    The total revenue generated by the group from its various businesses in the current year stands at Rs 125 crore compared to Rs 151 crore of last year. According to the financial analysis, the group has also cut down its expenses too shows the financial analysis of Q1 2015 as the expenses registered in the current quarter is Rs 140.3 crore compared to Rs 141.7 crore of last year.

     

    The company’s marketing spends have gone up to Rs 21.98 crore in the quarter as compared to Rs 19.43 crore last year.

     

    Click here for unaudited financial report

  • DreamWorks Animation loses $38.6 million in Q2 due to restructuring

    DreamWorks Animation loses $38.6 million in Q2 due to restructuring

    MUMBAI: Including the impact of the restructuring plan, DreamWorks Animation SKG, Inc reported net loss attributable of $38.6 million, or $0.45 per share for the quarter ended 30 June, 2015. The company’s operating loss stood at $21.8 million.

     

    DreamWorks Animation’s revenues for the quarter ended 30 June, 2015 at $170.8 million, were up 39.7 per cent from the same period in 2014. In addition, the company reported an adjusted operating loss of $1 million and adjusted net loss attributable to DWA of $11.6 million.

     

    Adjusted financial results exclude a $20.9 million pre-tax charge associated with company’s restructuring plan announced in January 2015.

     

    Of the restructuring-related charges totaling $20.9 million or a loss of $2.4 million was due to employee termination and other employee-related costs, $10.9 million was related to accelerated depreciation and amortization charges associated with the closure of its Redwood City facility, and $7.6 million was primarily related to excess staffing and other costs associated with previously announced changes in the feature film slate.

     

    “Our second quarter financial results were solid, highlighted by the theatrical success of Home and the rapid expansion of our Television and New Media businesses. The appetite for premium content across platforms continues to grow both domestically and internationally, and it’s clear DreamWorks Animation is well-positioned to capitalize on the growing demand,” said DreamWorks Animation CEO Jeffrey Katzenberg.

     

    Home, which was released theatrically on 27 March, 2015 has reached $177 million at the US box office and $207 million at the international box office to date. 

     

    Second Quarter Review:

     

    DreamWorks Animation’s second quarter revenues of $170.8 million increased 39.7 per cent versus the prior-year period primarily driven by the performance of the feature film, television series and specials and new media segments.

     

    Television Segment

     

    Revenues for the quarter ended 30 June, 2015 from the Television series and specials segment increased to $54.5 million, compared to $20 million during the prior-year period. The increase in revenues was attributable to a significantly higher number of episodes delivered under episodic content licensing arrangements.

     

    Segment gross profit increased to $19.2 million in the current quarter, from $1.2 million in the same period of the prior year. The increase was primarily driven by favorable amortization rates associated with episodic series, partially offset by higher up-front marketing costs associated with the release of its new television series.

     

    In addition, for the three months ended 30 June, 2014 segment gross profit was negatively impacted by higher than expected returns of seasonal and newly-released home entertainment product, as well as increased selling costs, related to the company’s Classic Media properties.

     

    Film Segment

     

    Revenues for the quarter ended 30 June, 2015 from the Feature Film segment increased to $87.8 million, up from $69.7 million in the prior-year period. Segment gross profit also increased to $31.7 million compared to $23.9 million in the same period last year.

     

    In the quarter, Home contributed revenue of $23.9 million, The Penguins of Madagascar contributed $8.3 million, How to Train Your Dragon 2 contributed $17.9 million, Mr. Peabody and Sherman contributed $8.4 million and Turbo contributed $1 million.

     

    Library titles contributed feature film revenue of $28.3 million to the quarter.

     

    Consumer Products Segment

     

    Revenues from the Consumer Products segment decreased to $12.7 million in the second quarter, compared to $18.5 million in the same period last year. The prior year period benefitted from merchandise and licensing revenue associated with How to Train Your Dragon 2, which was released theatrically in June 2014. Segment revenues in the current quarter were primarily generated by licensing arrangements related to a variety of intellectual property rights associated with the characters from films.

     

    Segment gross profit decreased to $1.8 million from $7.3 million in the prior year period, largely due to higher costs incurred across a variety of segment activities.

     

    New Media Segment

     

    Revenues for the quarter ended 30 June, 2015 from the company’s New Media segment were $14.6 million compared to $11.5 million during the three months ended 30 June, 2014. This increase was primarily attributable to revenue generated under new licensing agreements and the delivery of newly-created content versus the prior-year period.

     

    Segment gross profit increased to $7.5 million from $2.5 million in the prior-year period, primarily due to higher revenue contributions from newly licensed content. 

  • Q1-2016: ENIL revenue up 9.1%, PAT up 6.3%

    Q1-2016: ENIL revenue up 9.1%, PAT up 6.3%

    BENGALURU:  Indian private FM player Entertainment Network (India) Limited (ENIL) reported 9.1 per cent increase in Total Income from Operations (TIO) in the quarter ended 30 June, 2015 (Q1-2016) to Rs 101.56 crore as compared to the Rs 93.12 crore in Q1-2015, but declined 18.4 per cent as compared to the Rs 124.43 crore in Q4-2015.

     

    The company’s profit after tax (PAT) in the current quarter increased 6.3 per cent to Rs 25.88 crore (25.5 per cent of TIO) as compared to the Rs 24.35 crore (26.2 per cent margin) in Q1-2015 and was 1.5 per cent more than the Rs 25.49 crore (20.5 per cent margin) in Q4-2015. It may be recalled that the company had entered the Rs 100 crore PAT club in FY-2015 with a PAT of Rs 105.98 crore (24.2 per cent margin) on a TIO of Rs 483.48 crore

     

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

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

     

    Let us look at some of the other numbers reported by ENIL

     

    The company’s EBIDTA in Q1-2016 at Rs 35.38 crore (34.8 per cent margin) was 1.8 per cent more than the Rs 34.74 crore (37.3 per cent margin) and was 2.5 per cent more than the Rs 34.53 crore (27.7 per cent margin) in Q4-2015.

     

    ENIL total expense (TE) in Q1-2016 at Rs 74.38 crore (73.2 per cent of TIO) in Q1-2016 was 11.7 per cent more than the Rs 66.58 crore (71.5 per cent of TIO) in Q1-2015, but was 24.2 per cent lower than the Rs 98.10 crore (78.8 per cent of TIO) in Q4-2015.

     

    ENIL paid 10 per cent higher license fee in Q1-2016 at Rs 5.11 crore (five per cent of TIO) as compared to the Rs 4.65 crore (five per cent of TIO) in Q1-201, but was 15.3 per cent lower than the Rs 6.03 crore (4.8 per cent of TIO) in the immediate trailing quarter. 

     

    The company’s marketing expense in Q1-2016 at Rs 11.29 crore (11.1 per cent of TIO) was 59.3 per cent more than the Rs 7.09 crore (7.6 per cent of TIO) in Q1-2015, but was a little more than a third (64.5 per cent lower) than the Rs 31.57 crore (25.4 per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense (EBE) in Q1-2016 at Rs 22.10 crore (21.8 per cent of TIO) was 8.3 per cent more than the Rs 20.41 crore (21.9 per cent of TIO) in the corresponding quarter of the previous year and was 5.3 per cent more than the Rs 20.98 crore (16.9 per cent of TIO) in Q4-2015.

     

    ENIL managing director and CEO Prashant Panday said, “It’s been a sombre quarter for radio companies, largely on account of the high base of election advertising last year. Overall advertising growth remains satisfactory, though below expectations, possibly because of the sluggish economy. The good news is that Phase-3 auctions have finally started. This will spur new growth in the years to come.”

  • Q1-2016: Airtel DTH revenue up 15.8% at Rs 684.8 crore

    Q1-2016: Airtel DTH revenue up 15.8% at Rs 684.8 crore

    BENGALURU:  Bharati Airtel Limited’s Digital TV services – Airtel DTH reported 15.8 per cent increase in y-o-y revenue to Rs 684.8 crore in the quarter ended 30 June, 2015 (Q1-2016) as compared to the Rs 591.5 crore in Q1-2015 and 7.9 per cent more than the Rs 634.8 crore in Q4-2015.

     

    The telecom major’s DTH segment reported a 67 per cent growth in operating profit (EBIDTA) in the current quarter at Rs 240.8 crore (46.1 per cent margin) as compared to the Rs 143.8 crore (24.3 per cent margin) in Q1-2015 and 15.9 per cent more than the Rs 207.8 crore (32.7 per cent margin) immediate trailing quarter.

     

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

     

    The Airtel DTH segment customer base reported 10.9 per cent y-o-y growth for the current quarter at 104.12 lakh as compared to the 93.88 lakh in Q1-2015 and 3.4 per cent growth as compared to the 100.73 lakh in Q4-2015. Average revenue per user (ARPU) in Q1-2016 improved to Rs 222 as compared to the Rs 214 in both Q1-2015 and Q4-2015. Monthly churn in the current quarter was higher at 0.8 per cent as compared to the 0.6 per cent in the corresponding year ago quarter, but lower than the one per cent in the immediate trailing quarter.

     

    Airtel MD and CEO, India & South Asia Gopal Vittal said, “The year has begun on a healthy note, with underlying revenue growth accelerating to 12.7 per cent in India. Our customer base has continued to steadily expand. Mobile minutes and data traffic have grown by 7.4 per cent and 83.4 per cent respectively. I am pleased that our revenue growth is broad based across all business units, especially the domestic enterprise and corporate segment, which saw revenues grow by 18.1 per cent, and DTH business, which had an underlying topline growth of 26.8 per cent. Our capex programme is mostly directed at increasing 3G / 4G coverage and improving all-round customer experience.”

     

    Overall, Airtel says that consolidated revenues for Q1-2016 at Rs 23,671 crore grew by 3.1 per cent over the corresponding quarter last year. Consolidated Mobile data revenues at Rs 3,459 crore, grew by 56.9 per cent y-o-y, uplifted by data traffic growth of 86.5 per cent. India revenues reported a growth of 10 per cent y-o-y, led by 22.2 per cent in Airtel business (B2B) and 15.8 per cent in Digital TV.

     

    Adjusted for the impact in reduction of termination rates, India revenues grew on an underlying basis by 12.7 per cent and Mobile revenues by 12.2 per cent y-o-y. Mobile Data revenue at Rs 2,609 crore registered a growth of 67.3 per cent y-o-y in India, uplifted by increase in the Data customer base by 25.8 per cent and traffic by 83.4 per cent. Data ARPU has moved up by Rs 42 to Rs 181 in Q1-2016, led by 42.7 per cent increase in data usage per customer. Mobile Data revenues contribute to 19.2 per cent of Mobile India revenues vis-?-vis 12.4 per cent in the corresponding quarter last year.

     

    Consolidated EBITDA in Q1-2016 at Rs 8262 crore grew by 6.4 per cent y-o-y with EBITDA margin expanding by 1.1 per cent to 34.9 per cent, driven by India’s margin expansion by 2.1 per cent y-o-y. Net Profit after tax (PAT) increased 40.2 per cent to Rs 1554.3 crore (6.6 per cent margin) in Q1-2016 as compared to the Rs 1108.5 crore (4.8 per cent margin) and was 23.8 per cent more than the Rs 1255.3 crore (5.4 per cent margin) in Q4-2015.

  • Q1-2016: TV Today revenue down 4.6% to Rs 127.11 crore, PAT down 45%

    Q1-2016: TV Today revenue down 4.6% to Rs 127.11 crore, PAT down 45%

    BENGALURU: TV Today Network Limited (TVTN) reported 4.6 per cent decline in standalone Total Income from Operations (TIO) in the quarter ended 30 June, 2015 (Q1-2016) to Rs 127.11 crore as compared to the TIO of Rs 133.22 crore Q1-2015. TIO, in the current quarter however increased 11 per cent as compared to the Rs 114.54 crore in the immediate trailing quarter Q4-2015.

     

    Profit after tax (PAT) for Q1-2016 declined 45.2 per cent to Rs 17.96 crore (14.1 per cent margin) as compared to the Rs 32.79 crore (24.6 per cent margin) in the corresponding year ago quarter, but more than doubled 2.07 times) the Rs 8.69 crore (7.6 per cent margin) in Q4-2015.

     

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

     

    All numbers in this report are standalone unless stated otherwise.

     

    Segment revenue

     

    TVTN’s Television Broadcasting segment (TV segment) reported a four per cent decline in operating revenue in Q1-2016 to Rs 124.65 crore as compared to the Rs 129.85 crore in Q1-2015. However, revenue from the segment in the current quarter increased 12.7 per cent as compared to the Rs 110.63 crore in Q4-2015.

     

    TV segment reported a steep 45.6 per cent decline in operating result (profit) to Rs 29.98 crore as compared to the Rs 51.43 crore in Q1-2015, but reported almost double (1.88 times) the operating profit of Rs 14.90 crore in Q4-2015.

     

    The company’s radio segment also reported improved q-o-q operating results, but y-o-y operating results declined. Revenue from TV Today’s radio segment declined 26.7 per cent to Rs 2.47 crore in Q1-2016 as compared to the Rs 3.37 crore in the corresponding year ago quarter and declined by an even larger 36.8 per cent as compared to the Rs 3.90 crore in Q4-2015. Though operating loss in the current quarter was higher at Rs 2.62 crore as compared to the Rs 2.56 crore in Q1-2015, it was lower than the Rs 2.98 crore in Q4-2015.

     

    Rebranding of Headlines Today to India Today

     

    TVTN rebranded its English news channel from ‘Headlines Today’ to ‘India Today’ from 23 May, 2015 in order to benefit from the brand name of India Today, which is expected to enhance the impact and reach of the channel. The company has incurred a marketing expense of Rs 14.38 crore towards re-branding. Consequently, the company’s advertisement, distribution and sales promotion expense (ad expense) in Q1-2016 at Rs 38.24 crore (30.1 per cent of TIO) was 83.8 per cent more than the Rs 20.81 crore in Q1-2015 and 17 per cent more than the Rs 32.68 crore (28.5 per cent of TIO) in Q4-2015.

     

    Let us look at the other numbers reported by TV Today

     

    Total Expenditure in Q1-2016 at Rs 105.29 crore (82.8 per cent of TIO) was 23.1 per cent more than the Rs 85.52 crore in Q1-2015 (64.2 per cent of TIO), but was 6.6 per cent lower than the Rs 112.70 crore (98.4 per cent of TIO) in the previous quarter.

     

    Production cost in Q1-2016 declined 5.8 per cent to Rs 12.11 crore (9.5 per cent of TIO) as compared to the Rs 12.86 crore (9.7 per cent of TIO) in Q1-2015 and was 32.5 per cent lower than the Rs 17.94 crore (15.7 per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense in the current quarter at Rs 32.81 crore (25.8 per cent of TIO) was 18.9 per cent more than the Rs 27.60 crore (20.7 per cent of TIO) in Q1-2015 and 12.2 per cent more than the Rs 29.25 crore (25.5 per cent of TIO) in Q4-2015.

     

    Other expenses in Q1-2016 at Rs 14.13 crore (11.1 per cent of TIO) declined 15.1 per cent as compared to the Rs 16.64 crore (12.5 per cent of TIO) in Q1-2015 and declined 44.6 per cent as compared to the Rs 25.53 crore (22.3 per cent of TIO) in Q4-2015.

     

    EBIDTA in Q1-2016 at Rs 29.82 crore (23.5 per cent margin) declined 46.1 per cent as compared to the Rs 55.31 crore (41.5 per cent margin) in Q1-2015, but was more than three times (3.27 times) the Rs 9.13 crore (eight per cent margin) in Q4-2015.

  • Q1-2016: Britannia Industries ad and sales promo spends up 16%

    Q1-2016: Britannia Industries ad and sales promo spends up 16%

    BENGALURU: Britannia Industries Limited (Britannia) spent 16 per cent more towards Advertisement and Sales Promotion (ASP) in Q1-2016 (quarter ended 30 June, 2015) at Rs 160.52 crore (eight per cent of Net total Income from Operations or TIO) versus Rs 138.43 crore (7.7 per cent of TIO) inQ1-2015, butspent 20.9 per cent lower than the company’s ASP in Q4-2015 at Rs 202.89 crore (9.8 per cent of TIO). Please refer to Fig 1 below.

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

    Company speak

    Britannia managing director Varun Berry said,”Our results are a reflection of our focus on driving consumer off-take and operational efficiencies to generate sustainable and profitable growth, despite the slowdown that is being witnessed in the FMCG sector. We have passed off the benefits of benign commodity prices and made our brands more affordable to the consumers. We continued our efforts to expand our distribution footprint and ensure efficiency in operations through reduction in wastages and tight management of fixed costs. We move ahead on our innovation journey with the launch of ‘Pure Magic Chocolush’ during the quarter.”

    TIO and Ad & Sales Promotion spends

    In Q1-2015, Britannia’s TIO increased 13 per cent to Rs 2018.60 crore as compared to the 1786.99 crore inQ1-2015, but declined 2.2 per cent as compared to the Rs 2063.64 crore in the immediate trailing quarter. TIO in the previous quarter (Q4-2015) was the highest during a 13 quarter period starting Q1-2013 until the current quarter. The broken grey trend line indicates that the company’s TIO has a linear increasing trend during the period under consideration.

    Also, during the period under consideration in this report, Britannia’s ASP in Q4-2015 was the highest, both in terms of absolute rupees as well as in terms of percentage of TIO. The lowest ASP in absolute rupees was in Q1-2013 at Rs 112.96 crore (8.3 per cent of TIO), while in terms of percentage of TIO, it was 7.3 per cent (Rs 143.48 crore) in Q2-2015. The maroon broken line shows a slight decline in ASP in terms of percentage of TIO, while the blue broken trend line indicates a linear increasing trend for ASP in absolute rupees.

    Please refer to Fig 2 below. In Q1-2016, Britannia reported PAT of Rs 189.58 crore (9.4 per cent of TIO), which was 66.8 per cent more than the Rs 113.66 crore (6.4 per cent of TIO) in Q1-2015 and was 38.2 per cent more than the Rs 167.25 crore (8.1 per cent of TIO) in Q4-2015. During the period under consideration in this report, the company’s PAT shows a linear increasing trend both in absolute rupees as was well as in terms of percentage of TIO.

    During the thirteen quarter period under consideration, PAT in Q2-2015 was the highest recorded by the company, both in terms of absolute rupees as well as in terms of PAT as percentage of TIO at Rs 270.46 crore and 13.7 per cent of TIO respectively.The lowest PAT reported by the company in absolute rupees as well as in terms of percentage of TIO was in Q1-2013 at Rs 46.48 crore and 3.4per cent of TIO during the same period.

    “We remain committed to tap new sources of growth and focus on commercializing consumption opportunites across our product portfolio. We are confident that our team of passionate and motivated Britannians shall take the business to greater heights,” added Berry.