ITV

Category: Financials

  • Q1-2016: Adlabs revenue gets boost as theme park footfalls triple

    Q1-2016: Adlabs revenue gets boost as theme park footfalls triple

    BENGALURU: Adlabs Entertainment Limited (Adlabs) reported almost three times (2.98 times) the footfalls at its two theme parks Adlabs Imagica and Adlabs Aquamagica-Water Park in the quarter ended 30 June, 2015 (Q1-2016) at 5.392 lakh as compared to the 1.81 lakh in Q1-2015. 

     

    Consequently, the company’s operating revenue (total income from operations, TIO) was 2.34 times in this quarter at Rs 85.01 crore as compared to the Rs 36.37 crore in Q1-2015 and 72 per cent more than the Rs 49.43 crore in Q4-2015.

     

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

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

     

    Four segments namely ticket sales, food and beverages (F&B); merchandise; and other operations contribute to Adlabs revenue. 

     

    The largest segment by far in terms of percentage of TIO, ticket sales, reported an operating profit of Rs 1.05 crore in Q1-2016 as compared to a y-o-y operating loss of Rs 16.13 crore in Q1-2015 and a q-o-q operating loss of Rs 18.89 crore in Q4-2015. All other segments also showed healthy growth and reported operating profits during the current quarter.

     

    The company’s loss in Q1-2016 has almost halved at Rs 14.81 crore as compared to the loss of Rs 28.67 crore in the corresponding quarter of last year and was less than half the Rs 31.16 crore in Q4-2015.

     

    EBIDTA in Q1-2016 was positive Rs 24.74 crore (29.1 per cent margin) as compared to the negative EBIDTA of Rs 2.25 crore in Q1-2015 and the positive EBIDTA of Rs 3.78 crore (7.7 per cent margin) in Q4-2015. Adlabs EBIDTA in the current quarter has already surpassed the EBIDTA of Rs 20.51 crore for FY-2015. 

    Segment details

     

    Ticket Sales

    Ticket sales revenue more than doubled (2.21 times) in Q1-2016 at Rs 61.91 crore (72.8 per cent of TIO) as compared to the Rs 28.05 crore (77.1 per cent of TIO) in the corresponding year ago quarter and was 76.1 per cent more than the Rs 35.16 crore (71.1 per cent of TIO) in the immediate trailing quarter. Results of this segment have been mentioned above.

     

    Food & Beverages (F&B)

    Adlabs F&B segment revenue more than doubled (2.4 times) in Q1-2016 at Rs 13.28 crore (15.6 per cent of TIO) as compared to the Rs 5.59 crore (15.4 per cent of TIO) in Q1-2015 and was 53.9 per cent more than the Rs 8.63 crore (17.5 per cent of TIO) in Q4-2015.

     

    F&B reported operating profit of Rs 3.83 crore in Q1-2016 as compared to an operating loss of Rs 0.13 crore in Q1-2015 and an operating profit of Rs 1.72 crore in the immediate trailing quarter.

     

    Merchandise

    Merchandise segment reported more than triple (3.3 times) revenue at Rs 7.31 crore (8.6 per cent of TIO) in Q1-2016 as compared to the Rs 2.27 crore (6.2 per cent of TIO) in Q1-2015 and was 66.4 per cent more than the Rs 4.39 crore (8.9 per cent of TIO) in Q4-2015.

     

    The segment reported an operating profit of Rs 1.07 crore in Q1-2016 as compared to an operating loss of Rs 0.18 crore in Q1-2015 and an operating loss of Rs 0.14 crore in the prior quarter Q4-2015.

     

    Other Operations

    Other operations’ revenue more than quintupled (5.4 times) in Q1-2016 at Rs 2.51 crore as compared to the Rs 0.46 crore in Q1-2015 and was more than double (2.02 times) the Rs 1.24 crore in Q4-2015.

     

    The segment reported an operating profit of Rs 0.09 crore as compared to an operating loss of Rs 0.97 crore in Q1-2015 and an operating loss of Rs 0.03 crore in Q4-2015.

     

    Let us look at the other numbers reported by Adlabs

     

    The company’s total expenditure in the current quarter at Rs 81.05 crore (95.3 per cent of TIO) was 47.4 per cent more than the Rs 54.97 crore (151.2 per cent of TIO) in Q1-2015 and was 18.7 per cent more than the Rs 62.87 crore (138.1 per cent of TIO).

     

    The company’s advertising costs in Q1-2016 almost doubled (up 97.6 per cent) at Rs 19.13 crore (22.5 per cent of TIO) as compared to the Rs 9.68 crore (26.6 per cent of TIO) in Q1-2015 and was 60.4 per cent more than the Rs 11.93 crore (24.1 per cent of TIO) in the previous quarter.

     

    Other expense in Q1-2016 declined 8.5 per cent to Rs 6.15 crore (7.2 per cent of TIO) as compared to the Rs 6.72 crore (18.5 per cent of TIO) in the corresponding year ago quarter and declined 39.2 per cent as compared to the Rs 10.12 crore (20.5 per cent of TIO) in the immediate trailing quarter.

     

    Employee Benefits Expense in Q1-2016 at Rs 15.47 crore (18.2 per cent of TIO) was 40.3 per cent more than the Rs 11.03 crore (30.3 per cent of TIO) in Q1-2015 and was 18.7 per cent more than the Rs 13.04 crore (26.4 per cent of TIO) in Q4-2015.

     

    Company Speak

     

    Adlabs CEO Kapil Bagal said, “As envisaged the theme park and the waterpark are complimenting each other and working extremely well as a combination. Imagica is focused on attracting children, families, groups and corporate and Aquamagica is focused on attracting the youth and college segments and together both parks covering all segments of customers. We are seeing great response from our promotional marketing activities and new properties of Happy Tuesdays and Lazy Sundays. All our sales channels activation is looking promising with a multi-city expansion of sales agents with expansion of our reach across India. Further, we have pre-paid approximately Rs 250 crore of debt with the funds in our IPO and we now have comfortable debt to equity ratio and our interest outgo has also reduced.”

     

    “Our hotel Novotel Imagica Khopoli is on the verge of launching in August and we are already seeing encouraging advance bookings by corporate for their MICE and social events. Once the hotel is operational, we will become a complete integrated holiday destination in India,” he added.

  • Q1-2016: Colgate-Palmolive marketing spends up 11%

    Q1-2016: Colgate-Palmolive marketing spends up 11%

    BENGALURU: Colgate-Palmolive (India) Limited (Colgate-Palmolive) spent 11 per cent more towards advertisement and sales promotion (ASP) in Q1-2016 (quarter ended 30 June, 2015) at Rs 200.50 crore (19.8 per cent of Total Income or TI) as compared to the Rs 180.55 (18.7 per cent of TI) in Q1-2016 and 29.8 per cent more than the Rs 154.49 crore (15 per cent of TI) in the immediate trailing quarter. 

    The company’s marketing or ASP spends are made up of two components – Advertisement spends; and Sales Promotion spends. The company does not share the breakup of these two spends in its quarterly financials. The breakup is mentioned on an annual basis in the company’s annual report (Fig A1 below).

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

    Colgate-Palmolive’s major brands include Colgate for oral care, Palmolive, Charmis and Halo for personal care, and Axion for household care. Some of the other other brands/prodcuts are Active Salt Neem, Max Fresh, Total Charcoal, Sensitive Pro-Relief Enamel Repair, Zig Zag Black, Colgate Dental Cream.

    Please refer to Fig A below. Over a thirteen quarter period starting from Q1-2013 until the current quarter (Q1-2016), Colgate-Palmolive’s ASP shows a linear increasing trend both in terms of percentage of TI as well as in absolute rupees. 

    In Q2-2015, Colgate-Palmolive spent the highest amount towards ASP in terms of absolute rupees as well as percentage of TI in a quarter at Rs 201 crore and 20.1 per cent of TI during the period under consideration. The company’s ASP in the current quarter was just a little less than the ad spends in Q2-2015. The lowest ASP by the company during the thirteen quarters was in Q4-2013 at Rs 82.1 crore and 9.7 per cent of TI.

    Colgate-Palmolive’s TI in Q1-2016 at Rs 1010.15 crore was 4.8 per cent more than the Rs 963.35 crore in Q1-2015, but was 1.8 per cent lower than the Rs 1028.51 in Q4-2015. The company’s TI shows a linear increasing trend during the thirteen quarter period under consideration in this report.

    Further, across eight financial years starting FY-2008 until FY-2015, the company’s TI, ASP and ASP as percentage of TI show an upward linear trend, with the company’s marketing spends being the highest both in terms of absolute rupees and percentage of TI in FY-2015 at Rs 714.25 crore (17.9 per cent of TI). Fig A1 below indicates the breakup of Colgate-Palmolive’s advertising and sales promotion across three financial years for which data is available.

    Figure A1 below shows the split of ASP into advertising and sales promotion spends for four financial years starting FY-2012 until FY-2015.

    Please refer to Fig B below. PAT in Q4-2015 at Rs 114.28 crore (11.4 per cent of TI) declined 15.3 per cent as compared to the Rs 134.91 crore (14.1 per cent of TI) in Q1-2015 and declined 30.2 per cent as compared to the Rs 163.63 crore (16 per cent of TI) in Q4-2015. During the thirteen quarter period under consideration, PAT shows a linear increasing trend in absolute rupees.  

    The slope of the broken blue trend line indicates that the company’s PAT in terms of percentage of TI shows a decline. This is likely to change over the next few quarters, if the company’s PAT continues to buck the trend as it has in Q4-2015. 

    Colgate-Palmolive’s PAT has been the highest at Rs 185.22 crore (21.5 per cent of TI) in Q1-2014 during the twelve quarter period under consideration, while the lowest PAT in absolute rupees and in terms of percentage of TI was in Q2-2013 at Rs 109.52 crore and 12.2 per cent of TI.

    Colgate-Palmolive says that it has continued to enhance its leadership position in the Toothpaste category by registering a volume market share of 57.9 per cent during the January-June 2015 period, an increase of 90 basis points over the same period of the prior year. It says that its flagship brands Colgate Dental Cream, Active Salt and Max Fresh have majorly contributed to this growth. Further, the company says that it has maintained its leadership in the Toothbrush category by registering a volume market share of 42.7 per cent in the period January-June 2015.

    Colgate-Palmolive’s board of directors at its meeting held on 30 July, 2015 has considered and recommended a bonus issue of one equity share for every equity share held, as on the record date to be determined by the board.

  • Q1-2016: Titan ad spends up 30% at Rs 128.84 crore

    Q1-2016: Titan ad spends up 30% at Rs 128.84 crore

    BENGALURU: Titan Company Limited (Titan) spent the highest amount in absolute rupees and in terms of per centage of Total Income from operations (TIO) towards advertisements in the quarter ended 30 June, 2015 (Q1-2016), during a 14 quarter period that has been considered in this report. The company‘s ad spend in the current quarter at Rs 128.84 crore (4.8 per cent of TIO) was 29.8 per cent more than the Rs 99.25 crore (3.4 per cent of TIO) in Q1-2015 and 60.4 per cent more than the Rs 80.30 crore (3.2 per cent of TIO) in the immediate trailing quarter.

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

    Businesses and Brands

    Titan has three revenue segments – watches comprising the brands –Titan, Xylus, Nebula, Sonata, Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    Segment Performance

    Titan’s watches business in Q1-2016 recorded a growth of 9.1 per cent with income of watches business growing from Rs 444.19 crores to Rs 484.54 crores. The Jewellery income in Q1-2016 was Rs 2072.03 crores as against Rs 2325.27 crores, a decline of 10.9 per cent. The company says that jewellery business continues to face regulatory pressures that have an adverse impact on sales. Titan’s Eyewear business grew by 19.7 per cent from Rs 89.21 crores last year to Rs 106.77 crores in Q1-2016. The company’s other businesses including Precision Engineering grew by 36.3 per cent, to Rs 46.85 crores in the current quarter.

    The companys says that it has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters.

    Retail expansion continued with a net addition of 22 stores across all its businesses in Q1-2016, ending the period with a retail area of over 16.2 lakh square feet nationally. Titan’s retail chain is now 1223 stores strong, as on 30 June, 2015 and is expanding with growth plans in place for all its retail businesses – watches, jewellery and eyewear.

    Advertisement spend trends

    Please refer to Fig A below. As mentioned above, during the fourteen quarter period starting Q4-2014 until Q1-2016, Titan’s ad spends were the highest in the current quarter, both in absolute rupees and in terms of percentage of TIO. Lowest ad spends in absolute rupees and in terms of percentage of TIO was in Q4-2103 at Rs 66.63 crore and 2.5 per cent of TIO respectively during the same period.

    During the fourteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.

    Please refer to Figure B below. The company’s TIO in Q1-2016 fell 6.3 per cent to Rs 2708.59 crore as compared to the Rs 2891.44 crore in Q1-2015 but was 8.5 per cent more than the Rs 2496.19 crore in Q4-2015. During the fourteen quarter period under consideration in this report, TIO shows a linear increasing trend a indicated by the broken orange trend line in the figure below.

    PAT in Q1-2016 at Rs 151.06 crore (six per cent margin) declined 14.8 per cent as compared to the Rs 177.27 crore (6.1 per cent margin) and was 29.8 per cent lower than the Rs 215.09 crore (9.6 per cent of TIO) in Q4-2015. PAT in absolute rupees and in terms of percentage of TIO (margin) show a linear increasing trend as indicated by the broken military green and broken grey trend lines in the figure below.

    Company speak

    Titan managing director Bhaskar Bhat said, “The first quarter this year has been an extremely challenging one. Retail sales for both our core businesses watches & jewellery, have been below expectations due to reduced walk-ins. May and June, in particular were poor months. Rural demand too was affected due to lower realizations and monsoon conditions. With good monsoon in sight and festive season ahead, we look forward to a better year ahead. ”

  • Q1-2016: Den Networks revenue down 11%, posts net loss of Rs 52 crore

    Q1-2016: Den Networks revenue down 11%, posts net loss of Rs 52 crore

    BENGALURU: Den Networks Ltd (Den Networks) reported lower Total Income from operations (TIO) in the quarter ended 30 June, 2015 (Q1-2016) at Rs 265.60 crore, 11.1 per cent less than the Rs 298.81 crore in Q1-2015 and 1.7 per cent lower than the Rs 270.30 crore in Q4-2015. 

     

    The company’s loss in the current quarter at Rs 51.89 crore was lower than the Rs 61.15 crore reported in the immediate trailing quarter Q4-2015. The company had posted a profit of Rs 1.12 crore (0.4 per cent margin) in the corresponding year ago quarter – Q1-2015.

     

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

     

    However, there were a few silver linings in the in the gloomy financial picture. Den’s Broadband revenue increased sharply to Rs 5.21 crore against Rs 1.06 crore in Q1-2015. Den, through a wholly owned subsidiary has participated in India Soccer League through the Delhi Dynamos FC. The company says that the response to the ISL is unprecedented and has given a huge advantage to the Den brand. Soccer revenue flow has started in current quarter at Rs 93 lakh, reveals Den.

     

    Some of Den Networks operational highlights in the current quarter include the fact that Den says that it has seeded 20 lakh boxes in phase III markets ahead of December 2015 deadline. It claims a 21 per cent market share in India’s digital cable subscribers (25 per cent in Phases 1 and 2). Further, the company’s Cable EBITDA improved by 26 per cent from Rs 14 crore in Q4-2015 to Rs 18 crore in the current quarter.

     

    Den Networks’ Broadband reach has increased 50 per cent in terms of number of homes passed and subscribed and broad band ARPU is Rs 760. Also, the company reports a strong growth in Den-Snapdeal clocking with the venture clocking an annualised GMV of Rs 144 crore in the current quarter as compared to the Rs 117 crore in previous quarter.

     

    Den Network’s operating loss (EBIDTA) in the current quarter was lower at Rs 4.67 crore as compared to the Rs 5.97 crore in Q4-2015. The company had reported a positive EBIDTA of Rs 57.16 crore (19.1 per cent margin) in the corresponding year ago quarter.

     

    The company’s Total Expenses in Q1-2016 at Rs 320.33 crore (120.6 per cent of TIO) was 12.4 per cent higher than the Rs 284.93 crore (95.4 per cent of TIO) in Q1-2015, but was one per cent lower than the Rs 323.70 crore (119.8 per cent of TIO) in Q4-2015. 

     

    Content cost in Q1-2016 at Rs 136.06 crore (51.2 per cent of TIO) was 27.9 per cent more than the Rs 106.42 crore (35.6 per cent of TIO) in Q1-2015, but was 2.2 per cent lower than the Rs 139.13 crore (51.5 per cent of TIO) in the immediate trailing quarter.

     

    The company’s finance costs in Q1-2016 declined 7.8 per cent to Rs 18.27 crore (6.9 per cent of TIO) as compared to the Rs 19.82 crore (6.6 per cent of TIO) in Q1-2015, but was 11.6 per cent more than the Rs 16.37 crore (6.1 per cent of TIO) in the immediate trailing quarter.

     

    Employee Benefit Expense at Rs 34.15 crore (12.9 per cent of TIO) in Q1-2016 was 20 per cent more than the Rs 28.46 crore (9.5 per cent of TIO) in Q1-2015 and was 13.4 per cent more than the Rs 30.12 crore (11.1 per cent of TIO) in Q4-2015.

     

  • Q2-2015: Twitter sees 61% revenue growth, ad revenue up 63.2%

    Q2-2015: Twitter sees 61% revenue growth, ad revenue up 63.2%

    BENGALURU: Twitter, Inc. reported 60.9 per cent growth in revenue for the quarter ended 30 June, 2015 (Q2-2015) at $502.38 million as compared to the $312.17 million in the corresponding year ago quarter. Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased 68 per cent says Twitter.Advertising revenue increased 63.2 per cent to $452 million as compared to $277 million in Q2-2014.

     

    GAAP net loss of $136.66 million in Q2-2015 was lower than the net loss of $144.64 million in Q2-2014, while non-GAAP income in the current quarter was $48.52 million as compared to the $14.60 million in the corresponding year ago quarter. Adjusted EBIDTA for Q2-2015 at $120.19 million more than doubled (up 2.2 times) as compared to the $54.13 million in Q2-2014.

     

    “Our Q2 results show good progress in monetization, but we are not satisfied with our growth in audience. However, product initiatives we’ve mentioned in previous earnings calls, like instant timelines and logged-out experiences, have not yet had meaningful impact on growing our audience or participation. This is unacceptable and we’re not happy about it. In order to realize Twitter’s full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter’s value faster, and better communicate that value,” said Twitter interim CEO Jack Dorsey.

     

    YTD, Twitter’s revenue increased 66.6 per cent to $938 million in Q2-2015 from $563 million in the six month period ended 30 June, 2014 (6M-2014). Ad revenue in 6M-2015 increased 67 per cent to $840 million as compared to the $503 million in 6M-2014. GAAP Net loss in 6M-2015 increased to $299.10 million as compared to the net loss of $277 million in the corresponding period of last year. Non GAAP net income in 6M-2015 increased to $95.03 million as compared to the $14.80 million in 6M-2014. YTD EBIDTA increased to $224.21 million as compared to the $91.08 million in 6M-2014.

     

    Twitter says that Monthly Active Users – Average Monthly Active Users (MAUs) were 316 million for Q2-2015, up 15 per cent y-o-y, and compared to 308 million in Q1-2015. The vast majority of MAUs added in the quarter on a sequential basis came from SMS Fast Followers. Excluding SMS Fast Followers, MAUs were 304 million for Q2-2015, up 12 per cent y-o-y, and compared to 302 million in Q1-2015. Mobile MAUs represented approximately 80 per cent of total MAUs.

     

    In Q2-2015, Twitter launched a new autoplay feature for native videos, Vines and GIFs, as well as Periscope live video streaming on Android.

  • Q1-2016: Sun TV results sunny; PAT up 19%; ad revenue up 16%

    Q1-2016: Sun TV results sunny; PAT up 19%; ad revenue up 16%

    BENGALURU: Despite being in trouble recently with the Ministry of Home Affairs over security clearance for its channels, the Marans’ media behemoth Sun TV Network Limited (Sun TV) reported 9.1 per cent growth in standalone revenue (Total income from operations or TIO) in Q1-2016 (quarter ended 01 June, 2015) at Rs 691.09 crore as compared to the Rs 633.58 crore in Q1-2015 and 26 per cent more than the Rs 548.58 crore in Q4-2015. The company’s advertisement revenue in the current quarter increased 16 per cent to Rs 323.89 crores.

     

    The company reported 19.1 per cent higher profit after tax (PAT) in the current quarter at Rs 197.28 crore (28.5 per cent margin) as compared to the Rs 165.64 crore (26.1 per cent margin ) in the corresponding year ago quarter. PAT in the immediate trailing quarter (Q4-2015) was 2.8 per cent higher than Q1-2016 at Rs 202.99 crore (37 per cent PAT margin)

     

    PAT in Q1-2016 would have been higher, but for the operating loss of Rs 56.61 crore by the company’s IPL franchisee SunRisers Hyderabad in the current quarter. The company’s Broadcasting segment reported EBIDTA of Rs 465.77 crore (78.3 per cent margin) on revenue of Rs 594.54 crore in Q1-2016. The company’s EBIDTA was Rs 409.61 crore (59.21 margin) because of the negative EBIDTA by Sun TV’s SunRisers segment.

     

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

     

    All figures in this report are standalone.

     

    The company’s subscription revenues continued to grow with cable TV revenue growing q-o-q by about 13 per cent and DTH revenue growing q-o-q by nine per cent. 

     

    The board of directors of the company has declared an interim dividend of Rs 6 (120 per cent) per equity share of face value Rs 5 per equity share.

     

    Let us look at the other numbers reported by Sun TV

     

    Sun TV’s total expenses (TE) in the current quarter at Rs 412.10 crore (59.6 per cent of TIO) was 1.8 per cent more than the Rs 405.00 crore (63.9 per cent of TIO) in Q1-2015 and 56.3 per cent more than the Rs 263.74 crore in Q4-2015.

     

    The company’s TE in Q1 includes IPL Franchisee of Rs 85.05 crore (12.3 per cent of TIO), which is a non-recurring item during the other three quarters of the year. Sun TV’s ‘Other Expenditure’ (OE) is a major expense head that has changed q-o-q by a huge margin. OE in Q1-2016 at Rs 91.65 crore (13.3 per cent of TIO) declined 1.8 per cent as compared to the Rs 93.33 crore (14.7 per cent of TIO) in Q1-2015, but was more than three times (3.2 times) the Rs 28.26 crore (5.2 per cent of TIO) in Q4-2015.

     

    Sun TV’s Employee Benefit Expense (EBE) in Q1-2016 increased 19.1 per cent to Rs 54.51 crore (7.9 per cent of TIO) as compared to the Rs 45.77 crore (7.2 per cent of TIO) in Q1-2015 and increased 4.5 per cent as compared to the Rs 52.16 crore (9.5 per cent of TIO) in the immediate trailing quarter.

  • Q1-2016: Shemaroo revenue up 20% at Rs 78 crore, PAT up 88%

    Q1-2016: Shemaroo revenue up 20% at Rs 78 crore, PAT up 88%

    BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 20.4 per cent higher consolidated Total Income from Operations (TIO) for the quarter ended 30 June, 2015 (Q1-2016) at Rs 77.63 crore as compared to the Rs 64.49 crore in Q1-2015. However, q-o-q, Shemaroo’s TIO in the current quarter was 10.6 per cent lower than the Rs 86.82 crore in Q4-2015.

     

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

     

    (2) All numbers are consolidated unless stated otherwise.

     

    Shemaroo’s PAT for the current quarter improved 88 per cent at Rs 11.75 crore (15.1 per cent margin) as compared to the Rs 6.25 crore (9.7 per cent margin) in Q1-2015, but eight per cent lower than the Rs 12.77 crore (14.7 per cent margin) in the immediate trailing quarter.

     

    Shemaroo’s EBIDTA including other income at Rs 24.48 crore (31.5 per cent margin) in Q1-2016 was 23.9 per cent more than the Rs 19.75 crore (31.1 per cent margin), but 9.2 per cent lower than the Rs 26.97 crore (31.1 per cent margin) in Q4-2015.

     

    Two Business Divisions contribute to Shemaroo’s numbers – New media and Traditional Media and Services. On a standalone basis, New Media revenue increased by 83.5 per cent to Rs 13.40 crore in Q1-2016 as compared to the Rs 7.30 crore in Q1-2015, while Traditional Media and Services revenue improved by 12.3 per cent to Rs 64.23 crore in Q1-2016 as compared to the Rs 57.19 crore in Q1-2015.

     

    The company’s Total Expenditure (TE) in Q1-2016 at Rs 54.50 crore (70.2 per cent of TIO) was 18.8 per cent more than the Rs 45.89 crore (71.2 per cent of TO) in Q1-2015, but was 10.9 per cent lower than the Rs 61.17 crore (70.5 per cent of TIO) in Q4-2015.

     

    The company’s cost of Raw Materials consumed went up by 16.2 times in Q1-2016 to Rs 92.65 crore (119.3 per cent of TIO) as compared to the Rs 5.73 crore (8.9 per cent of TIO) in Q1-2015 and was 3.1 per cent more than the Rs 89.86 crore (103.5 per cent of TIO) in Q4-2015. The company would have incurred a heavy loss, but for the fact that changes in inventories of finished goods and work in progress (inventory) had a negative impact and hence reduced TE to the extent of Rs 47.09 crore in the current quarter and Rs 39.18 crore in Q4-2015. Inventory had increased TE by Rs 32.25 crore in Q1-2015.

     

    Employee Benefit Expense (EBE) in Q1-2015 increased 11.4 per cent to Rs 4.58 crore (5.9 percent of TIO) as compared to the Rs 4.11 crore (6.4 per cent of TIO) in the corresponding year ago quarter, but was almost flat (down 0.4 per cent) as compared to the Rs 4.60 crore (5.3 per cent of TIO) in Q4-2015.

     

    Basic and undiluted EPS in Q1-2016 was Rs 4.29, whereas in Q1-2015, it was Rs 5.41 and for Q4-2015, it was Rs 4.82.

  • Q1-2016: Despite 4% drop in revenue, Zee Learn PAT up 11%

    Q1-2016: Despite 4% drop in revenue, Zee Learn PAT up 11%

    BENGALURU: The Essel Group’s education company Zee Learn Limited reported 11.1 per cent higher profit after tax (PAT) for the quarter ended 30 June, 2015 (Q1-2016) at Rs 3.96 crore (11.1 per cent margin) as compared to the Rs 3.56 crore (9.6 per cent margin) in Q1-2015. PAT in the current quarter was also 3.8 per cent higher than the Rs 3.81 crore (9.2 per cent margin) in the immediate trailing quarter.

     

    Zee Learn’s Total Income from Operations (TIO) in the current quarter at Rs 35.79 crore was four per cent lower than the Rs 37.30 crore in the corresponding year ago quarter and 14.1 per cent lower than the Rs 41.69 crore in Q4-2015.

     

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

     

    Let us look at the other numbers reported by Zee Learn

     

    Zee Learn’s Total expenditure (TE) in Q1-2016 at Rs 29.14 crore (81.4 per cent of TIO) was 6.5 per cent lower than the Rs 31.17 crore (83.6 per cent of TIO) in Q1-2015 and 19.5 per cent lower than the Rs 36.18 crore (86.8 per cent of TIO) in Q4-2015. 

     

    The company’s marketing, advertisement and publicity expense (marketing expense) for Q1-2016 at Rs 4.68 crore (13.1 per cent of TIO) was 89.3 per cent (almost double) more than the Rs 2.47 crore (6.6 per cent of TIO) in Q1-2015, but 45.6 per cent lower (almost half) than the  Rs 8.6 crore (20.6 per cent of IO) in Q4-2015.

     

    Employee Benefit Expense (EBE) Q1-2016 at Rs 6.17 crore (17.2 per cent of TIO) was 8.3 per cent lower than the Rs 6.73 crore (18 per cent of TIO) in Q1-2015 but 17.2 per cent more than the Rs 6.05 crore (14.5 per cent of TIO) in the immediate trailing quarter. 

     

    In Q1-2016, Zee Learn’s operating cost at Rs 0.56 crore (1.6 percent of TIO) was 18 percent lower than  the Rs 0.68 crore (1.8 per cent of TIO) in Q1-2015 and 55.7 per cent lower (less than half) the Rs 1.25 crore (three per cent of TIO) in Q4-2015. 

     

    Other expense in Q1-2016 at Rs 7.69 crore (21.5 per cent of TIO) was 28.7 per cent higher than the Rs 5.98 crore (16 per cent of TIO) in Q1-2015 and 3.8 per cent more than the Rs 7.41 crore (17.8 per cent of TIO) in the immediate trailing quarter.

     

    Zee Learn says that on 28 June, 2015 a fire occurred in one of the warehouses of the company at Bhiwandi near Mumbai and the inventory of educational material lying at the said warehouse amounting to Rs 1416.61 lakh got completely destroyed. Further, Zee Learn says that it has lodged a claim with the insurance company for the loss incurred. Pending the settlement of insurance claim, the loss is accounted as ‘Claims Receivables’ under other current assets to the extent of the above amount. On settlement of the claim by the Insurance company, the difference in loss claim and actual claim received, if any, will be charged to the statement of profit and loss account.

  • FY-2015: Subscription growth leads Sky revenue growth of 4.7%; EPS declines 2%

    FY-2015: Subscription growth leads Sky revenue growth of 4.7%; EPS declines 2%

    BENGALURU: London, UK headquartered pan-European satellite broadcasting, on-demand Internet streaming media, broadband and telephone services company Sky reported 4.7 per cent broad based total adjusted revenue growth for the year ended 30 June, 2015 (FY-2015) at ?11,2083 million as compared to the ?10,776 million in the previous year (FY-2014). Subscription is the biggest contributor to Sky’s revenue. The group’s revenue growth in the current year was led by a 4.6 per cent increment in adjusted subscription revenue at ?9697 million (85.9 per cent of total revenue) as compared to the ?9272 million (86 per cent of total revenue) in FY-2014.

     

    Across its five territories (UK, Ireland, Germany, Austria and Italy), the group reported 973,000 new customer additions in FY-2015, 45 per cent more than previous year, and 158,000 new customers in Q4-2015. Subscription revenue growth was underpinned by excellent customer growth across the group and strong product growth of 4.6 million (829,000 in Q4-2015), with the largest proportion of revenue growth continuing to be delivered through the UK where revenues were up over ?300 million. Alongside this, the group’s best year of customer growth in Germany drove a 10 per cent increase in subscription revenues, whilst Italy held total customers and revenue flat.

     

    Other segments

     

    Sky’s advertising revenue in FY-2015 grew 3.8 per cent to ?716 million (6.3 per cent of total revenue) as compared to the ?690 million (6.4 per cent of total revenue) in FY-2014. Sky attributes growth in advertising revenues with Germany delivering growth of 26 per cent through higher sellout rates and increased inventory around Bundesliga. Advertising revenues in the UK grew strongly, up five per cent, due to the benefit of incremental AdSmart revenues combined with Sky Media increasing their share of net advertising revenue by almost 170 basis points, whilst advertising revenue was down in Italy as we lapped the €27 million benefit of the FIFA World Cup revenues in Q4 last year.

     

    Transactional revenue increased 21.8 per cent to ?173 million (1.8 per cent of total revenue) in FY-2015 as compared to the ?142 million (1.3 per cent of total revenue) in the previous fiscal. Sky says that it benefited from the success of its Buy and Keep service, which surpassed weekly revenue of ?1 million in Q4-2015, and NOW TV transactions, which totaled almost 1.5 million over the past twelve months.

     

    Sky’s wholesale and syndication revenue in the current year increased 5 per cent to ?550 million (4.9 per cent of total revenue) as compared to the ?524 million (5 per cent of total revenue) in FY-2014. Sky says that growth was largely driven by continued growth in the UK where revenues were up 19 per cent as success on screen led to more favourable terms for our channels with wholesale partners. Alongside this, revenues were strong through the distribution of our programming internationally and the first time consolidation of Znak&Jones and Love Productions. In Italy, underlying wholesale revenues were broadly flat year on year (excluding the benefit in the prior year from Champions League resale revenues), whilst revenues in Germany were slightly down following the successful migration of former Deutsche Telekom wholesale customers to a retail relationship in the prior year.

     

    Other revenue was almost flat (declined fractionally) to ?147 million (1.3 per cent of total revenue) as compared to the ?148 million (1.37 per cent of total revenue) in the previous year.

     

    Adjusted profit before tax increased 5.9 per cent to ?1196 million as compared to ?1129 million in FY-2014. Adjusted EPS declined 1.9 per cent to 56p as compared to the 57.1p in the previous year

  • Q2-2015: Facebook Ad revenue up 43 percent

    Q2-2015: Facebook Ad revenue up 43 percent

    BENGALURU: The Mark Zuckerberg led Facebook, Inc (Facebook) reported a 43 per cent increase in advertisement revenue in the quarter ended 30 June, 2015 (Q2-2015) at $3287 million (94.7 per cent of Total Revenue or TR) as compared to the $2676 million (92 per cent of TR) in Q2-2014 and a 15.3 per cent increase as compared to the $4420 million (93.6 per cent of TR) in Q1-2015. As is obvious, advertising revenue, which in any case formed the biggest component of TR is increasing its share of TR even more. Facebook offered fresh evidence of its allure to deep-pocketed big brands, as it and Google Inc., increasingly take the lion’s share of the fast-growing mobile advertising market says a Wall Street Journal report. (http://www.wsj.com/articles/facebook-revenue-rises-39-1438200350). Please refer to Fig A below.

    TR in the current quarter improved by 38.9 per cent to $4042 million as compared to the $2910 million in the corresponding year ago quarter and increased 14 per cent as compared to the $3546 million in Q1-2015, which had seen q-o-q revenues dip. 

    A digression here – over the past few years, Facebook revenues (led by Ad revenue) trend to dip in the first quarter of the year. This could potentially lead to advertisers asking for, and with a higher chance of Facebook accepting/offering discounts in the first quarter of each year.

    For the six month period ended 30 June, 2015 (6M-2015, YTD), TR increased 40.2 per cent to $7586 million as compared to the $5412 million in 6M-2015. Ad revenue in 6M-2015 was up 45 per cent to $7147 million (94.2 per cent of TR) as compared to the $4941 million (91.3 per cent of TR) in the corresponding year ago period.

    Mobile Ad revenue share has been increasing in Facebook’s Ad and TR. Mobile Ad revenue represented approximately 76 per cent of advertising revenue for Q2-2015, up from approximately 62 per cent of advertising revenue in Q2-2014 and approximately 73 per cent in the immediate trailing quarter. Please refer to Fig B below.

    User Data

    Daily active users (DAUs) – DAUs were 96.8 million on average for June 2015, an increase of 17 per cent y-o-y.

    Mobile DAUs – Mobile DAUs were 84.4 million on average for June 2015, an increase of 29 per cent y-o-y.

    Monthly active users (MAUs) – MAUs were 1.49 billion as of 30 June, 2015, an increase of 13 per cent y-o-y.

    Mobile MAUs – Mobile MAUs were 1.31 billion as of 30 June, 2015, an increase of 23 per cent y-o-y.

    “This was another strong quarter for our community,” said Facebook founder and CEO Mark Zuckerberg. “Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services. Users now spend more than 46 minutes a day on average on Facebook and its other properties, including Facebook Messenger and photo-sharing app Instagram “.

    The company’s income however did not keep up with the growth in revenue. Operating Income declined 8.4 per cent to $1273 million (31.5 per cent margin) as compared to the $1390 million (47.8 per cent margin) in Q2-2014, but improved 36.34 per cent q-o-q from $933 million (26.3 per cent margin) in the immediate trailing quarter.

    Net income in the current quarter also declined 9.1 per cent to $719 million (17.8 per cent) as compared to the $791 million (27.2 per cent margin) in Q2-2014, but improved by 40.4 per cent as compared to the $512 million in the immediate trailing quarter. Please refer to Fig C below.