ITV

Category: Financials

  • Q1-2016: Inox y-o-y box office collections up 53%, PAT more than quadruples

    Q1-2016: Inox y-o-y box office collections up 53%, PAT more than quadruples

    BENGALURU: Inox Leisure Limited reported 53 per cent increase in box office collection (GBO) to Rs 239.38 crore (68.7 per cent of Total Revenue or TR) in the quarter ended 30 June, 2015 (Q1-2016) as compared to the Rs 156.56 crore (67.4 per cent of TR) in Q1-2015 and a whopping 77.5 per cent more than the Rs 134.80 crore (61.9 per cent of TR) in Q4-2015, hence reversing falling GBO trend in FY-2015.

     

    Performance of movies like Tanu Weds Manu Returns (GBO Rs 31.11 crore, 19 lakh footfalls); Piku (GBO Rs 21.80 crore, 13 lakh footfalls), Furious 7 (GBO Rs 18.93 crore, 11 lakh footfalls), ABCD2 (GBO Rs 18.45 crore, 10 lakh footfalls) and Avengers-Age of Ultron drove the resurgence in revenue as well profit after tax (PAT).

     

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

             (2) Figures include Satyam Cineplexes Limited, which became wholly owned subsidiary of the company on 8 August, 2014.

    The company’s PAT in Q1-2016 more than quadrupled (up 4.52 times) to Rs 25.26 crore (7.2 per cent margin) as compared to the Rs 4.52 crore (two per cent margin) in Q1-2015. Inox had reported a loss of Rs 4.06 crore in the immediate trailing quarter.

     

    The company’s TR in Q1-2016 at Rs 348.68 crore was 50 per cent more than the Rs 232.38 crore in Q1-2015 and was 60 per cent more than the Rs 217.75 crore in Q4-2015.

     

    Footfalls, occupancy rates and average ticket price:

     

    Inox reported 1.45 crore footfalls in Q1-2016 and an occupancy rate of 33 per cent as compared to the 0.99 crore footfalls and an occupancy rate of 26 per cent in Q1-2015 and 0.82 crore footfalls and an occupancy rate of 20 per cent in the immediate trailing quarter.

     

    Average ticket price (ATP) in Q1-2016 increased to Rs 165 as compared to Rs 159 in the corresponding year ago quarter and Rs 164 in the previous quarter.

     

    Advertising, food and beverages and other operating revenues:

     

    The company reported 38.5 per cent higher advertising revenue in Q1-2016 at Rs 20.72 crore (5.9 per cent of TR) from Rs 14.96 crore (6.4 per cent of TR) in Q1-2015 and was 4.7 per cent more than the Rs 19.79 crore (9.1 per cent of TR) in Q4-2015.

     

    Food and Beverages (F&B) revenue in Q1-2016 increased 45.5 per cent to Rs 73.89 crore (21.2 per cent of TR) as compared to the Rs 47.21 crore (20.3 per cent of TR) in Q1-2015 and almost doubled (up 97.4 per cent) as compared to the Rs 37.43 crore (17.2 per cent of TR) in Q4-2015.

     

    Other operating revenue increased 7.8 per cent to Rs 14.70 crore (4.2 per cent of TR) in Q1-2016 from Rs 13.64 crore (5.9 per cent of TR) in Q1-2015, but fell 42.9 per cent as compared to the Rs 25.73 crore (11.8 per cent of TR) in Q4-2015.

     

    Entertainment Tax, distributors’ share, F&B costs, rents, et al:

     

    Inox paid 61.8 per cent higher entertainment tax in Q1-2016 at Rs 42.63 crore (13.3 per cent of TR) as compared to the Rs 28.57 crore (12.3 per cent of TR) in Q1-2015 

    and more than double (2.03 times) the Rs 22.76 crore (10.5 per cent of TR) in Q4-2015.

     

    Distributors’ share in Q1-2016 at Rs 85.21 crore was (24.4 per cent of TR, 35.6 per cent of GBO) was 45.9 per cent more than the Rs 58.40 crore (25.1 per cent of TR, 37.3 per cent of GBO) in Q1-2015 and was 78.5 per cent more than the Rs 47.75 crore (20.5 per cent of TR, 37.7 per cent of GBO) in Q4-2015.

     

    F&B costs in Q1-2016 increased 50 per cent to Rs 18.38 crore (5.3 per cent of TR) as compared to the Rs 12.25 crore (5.3 per cent of TR) and was 77.6 per cent more than the Rs 10.35 crore (4.8 per cent of TR) in Q4-2015.

     

    Inox paid 26.9 per cent higher property rent, conducting fees and common facility charges (rent) in Q1-2016 at Rs 49.05 crore (14.1 per cent of TR) as compared to the Rs 38.64 crore (16.6 per cent of TR) in Q1-2015 and 5.2 per cent more than the Rs 46.63 crore (21.4 per cent of TR) in Q4-2015.

  • Hindustan Media Ventures y-o-y PAT up 23%; ad & circulation revenue grows

    Hindustan Media Ventures y-o-y PAT up 23%; ad & circulation revenue grows

    BENGALURU: Hindi newspaper ‘Hindustan’, Hindi socio cultural magazine ‘Kadambini’ and children’s Hindi magazine ‘Nandan’ publishers Hindustan Media Ventures Limited reported 23.1 per cent increase in profit after tax (PAT) to Rs 41.71 crore (18.6 per cent of Total Income from Operations or TIO) in the quarter ended 30 June, 2015 (Q1-2016) from Rs 33.88 crore (16.1 per cent of TIO) in Q1-2015 and 7.1 per cent more than the Rs 38.94 crore (19.3 per cent of TIO) in Q4-2015. (HMVL – not to be confused with HT Media Limited of Hindustan Times, Mint and Fever FM fame).

     

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

     

    Advertising and Circulation Revenue:

     

    HMVL advertisement revenue in the current quarter increased 6.9 per cent to Rs 166.2 crore from Rs 155.50 crore in Q1-2015 and 13.4 per cent more than the Rs 146.60 crore in the immediate trailing quarter. Circulation revenue in Q1-2016 increased 8.3 per cent to Rs 53.40 crore from Rs 49.30 crore in Q1-2015 and 5.1 per cent more than the Rs 50.80 crore in Q4-2015.

     

    Let us look at the other results reported by HMVL:

     

    The company reported 6.5 per cent increase in TIO in the current quarter to Rs 233.72 in Q1-2016 crore as compared to the Rs 210.03 crore in Q1-2015 and 10.7 per cent more than the Rs 199.3 Q4-2015.

     

    The company’s total expenditure (TE) in Q1-2016 at Rs 174.72 crore was up 0.8 per cent from Rs 173.32 crore in Q1-2015 and was seven per cent more than the Rs 163.3 crore in Q4-2015.

     

    A major component of HMVL’s TE is cost of raw materials (RM). In Q1-2016, HMVL’s RM cost at Rs 84.80 crore was 2.3 per cent lower than the Rs 86.81 crore in Q1-2015 and was 7.2 per cent more than the Rs 79.14 crore in Q4-2015. 

     

    The company’s employee benefit expense (employee cost) in Q1-2016 at Rs 28.72 crore was 3.1 per cent lower than the Rs 29.64 crore in Q1-2015. In Q4-2015 and was 8.3 per cent more than the Rs 26.52 crore in Q4-2015.

     

    Company Speak:

     

    HMVL chairperson Shobana Bhartia said, “We started the year on a positive note despite predictions of a weak monsoon and subdued rural economic growth. The quarter’s performance was according to plan, and we saw a healthy growth in operating revenue and profits. Our operations in Uttar Pradesh and Uttarakhand continue to drive growth in advertising and profitability. And we have further strengthened our dominant leadership positions in Bihar and Jharkhand despite a higher intensity of competition. We believe we are in a good position to continue our growth momentum in the year ahead as we reap the benefits of our investments.”

  • Q2-2015: Mattel gross sales down 6.5%

    Q2-2015: Mattel gross sales down 6.5%

    BENGALURU: Mattel, Inc reported a 6.5 per cent decline in gross worldwide sales at $1095.1 million in Q2-2015 (quarter ended 30 June, 2015) as compared to the $1171.1 million in the corresponding year ago quarter. 

     

    Net sales dropped seven per cent to $988.2 million in the current quarter as compared to $1062.3 million in Q2-2014.

     

    The toymaker reported a net loss of $11.4 million in Q2-2015 as compared to a net profit (income) of $28.3 million in Q2-2014. Last quarter (Q1-2015), Mattel has reported a higher loss of $58.2 million.

     

    “In the second quarter, we made solid progress as we work to return Mattel to improved growth and profitability,” said Mattel chairman and CEO Christopher Sinclair. “Our financial results in the quarter largely met our expectations, and we are encouraged by improved performance across our core brands, as well as strong momentum in emerging markets like China and Russia. Although we are still early in our turnaround effort, I believe we are taking all the right steps to be more competitive in the growing global toy industry.”

     

    Worldwide gross sales for the six-month period ended 30 June, 2015 (HY-2015) also declined 4.4 per cent to $2115.3 million from $2212.4 million in HY-2014. Net sales in HY-2015 fell 4.9 per cent to $1910.9 million as compared to the $2008.4 million in HY-2014. Mattel reported a net loss of $69.5 million during the current six month period as compared a net income of $17.1 million during the corresponding year ago period.

     

    Worldwide gross sales by brands

     

    Mattel Girls and Boys brands

    Mattel Girls and Boys brands sales in Q2-2015 declined 12.7 per cent to $601.8 million from $689 million in Q2-2014. The effect of the strong US dollar slowed the decline on a constant currency basis to three per cent. For HY-2015, gross sales of Mattel Girls and Boys brands declined 10.3 per cent to $1206.9 million from $1345.8 million in HY-2014. Currency exchange rate change reduced the decline to just one per cent.

     

    Within Mattel Girls and Boys brands, Barbie worldwide gross sales declined 19 per cent to $130.3 million from $160.8 million, with the currency exchange rate change reducing the decline to 11 per cent. In HY-2015, Barbie gross sales declined 16.4 per cent to $276.3 million from $330.7 million in HY-2014. Currency exchange rate change reduced the drop to eight per cent.

     

    Other Girls worldwide gross sales declined 16.6 per cent in the current quarter to $175.9 million from $201.9 million in Q2-2014. Currency exchange rate change reduced the drop to six per cent. HY-2015 Other Girls worldwide sales declined 13.8 percent to $365.4 million from $276.3 million in HY-2014, with currency exchange rate change reducing the decline to four per cent.

     

    Wheels gross worldwide sales increased 14.8 per cent in Q2-2015 to $160.6 million from $139.9 million in Q2-2014. Currency exchange rate change improved the growth to 26 per cent. Wheels gross worldwide sales in HY-2015 increased by 8.2 per cent to $292.6 million from $270.4 million in HY-2014. Currency exchange rate change improved the growth to 18 per cent.

     

    Entertainment business, which includes Radica and Games declined 23.9 per cent in Q2-2015 to $135 million from $177.4 million in Q2-2014. In HY-2015, Entertainment business worldwide sales declined 15 per cent to $272.6 million from $320.8 million in the corresponding year ago period.

     

    Fisher-Price brands

     

    Fisher-Price brands worldwide gross sales increased 2.4 per cent to $336.8 million in Q2-2015 as compared to the $328.8 million in Q2-2014. Currency exchange rate change improved the growth to nine per cent. For HY-2015 worldwide gross sales for Fisher-Price brands was flat (grew by 0.7 per cent) at $600.7 million as compared to the $600.2 million in HY-2014. Currency exchange rate change improved the growth to seven per cent. Fisher-Price Brands includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands.

     

    American Girls brands

     

    American Girls brands gross sales increased 1.3 per cent in Q2-2015 to $84.2 million from $83.1 million in Q2-2014. For HY-2015, gross sales was flat (up 0.6 per cent) to $190.2 million from $189.1 million in HY-2014.

     

    Construction and Arts & Crafts Brands

     

    Construction and Arts & Crafts Brands gross sales grew 5.2 per cent to $64.8 million in Q2-2015 from $61.6 million in Q2-2014. For HY-2015, gross sales grew 67.4 per cent to $103.1 million from $61.6 million in HY-2014. Sales of Construction and Arts & Crafts products include the Mega Bloks and RoseArt brands. Mattel acquired Mega Brands Inc. on 30 April, 2014.

     

    Worldwide gross sales by region

     

    North American

     

    North American gross sales declined 2.9 per cent to $583.6 million in Q2-2015 from $601.2 million in Q2-2014. Currency exchange rate change reduced the fall to one per cent. For HY-2015, North American gross sales improved 2.5 per cent to $1181.7 million from $1153.2 million in HY-2014. Currency exchange rate change improved the growth to three per cent.

     

    International

     

    International gross sales declined 10.2 per cent to $511.5 million in Q2-2015 from $569.9 million in Q2-2014. Currency exchange rate change had a appositive impact, which showed a growth of five per cent. HY-2015 gross international sales declined 11.9 per cent to $933.6 million in Q2-2015 from $1059.2 million in HY-2014, with currency exchange rate change resulting in a growth of four per cent.

     

    Dividend 

     

    The Mattel board has declared 2015 third quarter cash dividend of $0.38 per share, which is flat compared to the third quarter of 2014.

  • Q1-2016: DB Corp y-o-y revenue down 3.2%; My FM revenue up 3.7%

    Q1-2016: DB Corp y-o-y revenue down 3.2%; My FM revenue up 3.7%

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, reported a 3.2 per cent fall in Total Income from Operations (TIO) to Rs 473.36 crore in the quarter ended 31 June, 2015 (Q1-2016, current quarter) from Rs 489.20 crore in Q1-2015 and 2.5 per cent fall from the Rs 485.60 crore in Q4-2015 on the back of lower advertising revenue.

     

    The company’s radio segment under the brand My FM reported a 3.7 per cent growth in operating revenue to Rs 21.50 crore (4.5 per cent of TIO) in Q1-2016 from Rs 20.73 crore (4.2 per cent of TIO) in Q1-2015, but 19.4 per cent lower than the Rs 26.68 crore (4.2 per cent of TIO) in the immediate trailing quarter. Operating results from the company’s radio segment dropped sharply and have been mentioned later in this report.

     

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

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

     

    Advertising and Circulation revenue

    The company says that print advertising revenues declined by eight per cent in Q1-2016 to Rs 342.30 crore as against Rs 373 crore, due to base effect of election revenue in Q1-2015 along with focus on high yield growth. Ad revenue in Q1-2016 was 7.3 per cent more than the Rs 319.10 crore in Q4-2015.

     

    Circulation revenue increased by 16 per cent in the current quarter to Rs 102.20 crore from Rs 88.50 crore primarily due to yield driven growth says the company. Circulation revenue increased 21.8 per cent as compared to the Rs 83.9 crore in Q4-2015.

     

    Company speak

     

    DB Corp managing director Sudhir Agarwal said, “Through this quarter, we continued our efforts to consolidate our positions across our all markets with a key focus on continuing to implement our strategy of yield increase, which was undertaken last quarter with an aim to monetize better yield growth, as we progress towards achieving our ambitious long term growth plans and goals. We took some important strategic steps to strengthen the foundations of our business over the last few years which continue to hold us in good stead and Bhaskar is working fiercely in an environment that continues to demand aggressive marketing efforts across all regions with our presence. In an environment that continues to be challenging, we are confident of our current strategies and business fundamentals that are directed towards enterprise growth while ensuring that we continue to operate efficiently and in a calibrated manner for the future. Our operating efficiencies continue to be validated while we also continue to benefit from softened newsprint prices. Several market expansion initiatives are underway and we look forward to completing our Bihar foray within the next few month. As the government continues with its efforts and initiatives to boost economic growth, we remain confident of our operating strengths and highly differentiated business approach that positions us very well to capitalize on better opportunities, as we move ahead.”

     

    Let us look at the other results reported by DB Corp 

     

    DB Corp reported 16 per cent lower PAT (Profit after Tax) at Rs 66.46 crore in Q1-2016 as compared to the PAT of Rs 79.13 crore in Q1-2015 and 3.8 per cent more than the PAT of Rs 64 crore in Q4-2015.

     

    The company’s total expenditure (TE) in Q1-2016 at Rs 373.20 crore was 0.7 per cent lower than the Rs 374.99 crore in Q1-2015 and 4.7 per cent lower than the Rs 390.74 crore in Q4-2015.

     

    Raw material consumption (RMC) in Q1-2016 at Rs 144.74 crore was 12.7 per cent lower than the Rs 165.88 crore in Q1-2015 and was 4.6 per cent lower than the Rs 151.7 crore Q4-2015. 

     

    Segment Revenue 

     

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

     

    Printing segment revenue at Rs 440.19 crore in Q1-2016 was 4.5 per cent lower than the Rs 461.07 crore in corresponding quarter of the previous year and was 1.8 per cent lower than the Rs 448.41 crore in Q4-2015.

     

    Printing segment reported operating result of Rs 108.56 crore in Q1-20165, which was eight per cent lower than the Rs 117.95 crore in Q1-2015 but was 3.3 per cent lower than the Rs 112.21 crore in the immediate trailing quarter.

     

    The company’s radio segment (My FM) revenue has been mentioned above. My FM reported a 22.5 per cent drop in operating profit to Rs 4.08 crore in Q1-2016 as compared to the Rs 5.27 crore in Q1-2015 and a massive 59 per cent lower (less than half) than the Rs 9.95 crore in Q4-2015.

  • Q1-2016: HT Media revenue up 7.5%; radio revenue up 2.3%, PAT down

    Q1-2016: HT Media revenue up 7.5%; radio revenue up 2.3%, PAT down

    BENGALURU: HT Media Limited (HT Media) reported 7.5 per cent growth in total income from operations (TIO) for the quarter ended 30 June, 2015 (Q1-2015) at Rs 587.18 crore as compared to the Rs 546.41 crore in Q1-2014 and 1.8 per cent higher than the Rs 576.92 crore in Q4-2015. 

     

    Its radio segment also reported a 2.3 per cent increase in revenue to Rs 24.52 crore (4.2 per cent of TIO) in Q1-2016 as compared to the Rs 23.97 crore (4.4 per cent of TIO) in the corresponding year ago quarter, but five per cent less than the Rs 25.82 crore (4.5 per cent of TIO) in the immediate trailing quarter.

     

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

     

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

     

    The company’s consolidated profit after tax (PAT) in Q1-2016 fell 23.6 per cent to Rs 24.95 crore (4.2 percent of TIO) from Rs 32.67 crore (6 per cent of TIO) in Q1-2014 and fell 36.5 per cent from Rs 39.28 crore in Q4-2015.

     

    Advertising and Circulation revenue

     

    HT Media’s advertising revenue grew by five per cent in Q1-2016 to Rs 467.5 crore (79.6 per cent of TIO) from Rs 445.4 crore (81.5 per cent of TIO); Circulation revenues grew by 6.3 per cent in Q1-2016 to Rs 72.9 crore (12.4 per cent of TIO) as compared to the Rs 68.6 crore (12.6 per cent of TIO) in Q1-2014. 

     

    Let us see how the segments performed

     

    Three segments contribute to HT Media’s numbers – (1) Printing and publishing of newspapers and periodicals (Publishing) (2) Radio and (3) Digital.

     

    HT Media’s publishing segment reported 6.2 per cent growth in revenue to Rs 532.44 crore (90.7 per cent of TIO) in Q1-2016 from Rs 501.54 crore (91.8 per cent of TIO) in Q1-2015 and was 1.8 per cent more than the Rs 522.85 crore (90.6 per cent of TIO) in Q4-2015.

     

    The publishing segment reported operating profit of Rs 79.29 crore in Q1-2016, 22.8 per cent more than the Rs 64.55 crore in Q1-2015 and 11.6 per cent more than the Rs 70.12 crore in Q4-2015.

     

    HT Media has four FM radio stations – Fever 104 in Delhi, Mumbai, Bengaluru and Kolkata.

    Radio segment revenue numbers have been mentioned above. HT Media’s radio segment reported operating profit of Rs 6.68 crore in Q1-2016 was 46.2 per cent higher than the Rs 4.57 crore in Q1-2015 but 22 per cent lower than the Rs 8.56 crore in Q4-2015.

     

    The company’s digital segment reported 28.8 per cent growth in revenue to Rs 30.56 crore (5.2 per cent of TIO) in Q1-2016 as compared to the Rs 23.72 crore (4.3 per cent of TIO) in Q1-2015 and 6.9 per cent more than the Rs 28.60 crore (five per cent of TIO) in Q4-2015. Digital segment reported higher loss of Rs 23.88 crore in Q1-2016; loss of Rs 12.19 crore in Q1-2015; loss of Rs 14.02 crore in Q4-2015.

     

    The company reported unallocated losses of Rs 20.01 crore in Q1-2016; loss of 22.28 crore in Q1-2015 and loss of Rs 39.49 crore in Q4-2015.

     

    Company Speak

     

    HT Media chairperson and editorial director Shobana Bhartia said, “The year started well for us although economic growth is still slow and there are mixed signals on account of global macroeconomic concerns. Our English dailies saw volume-led growth across markets. Hindustan maintained its upward growth trajectory, driven by our investments in both UP and Bihar. Our digital assets are increasingly gaining a foothold in their markets. The Radio business continues to be profitable and we aim to add to our portfolio of stations in Phase- III auctions. As the year progresses, we believe that we will continue on the growth path and deliver positive results even as the economic environment improves.”

     

    Click here for financial results

     

    Click here for earnings presentation

  • Q1-2016: Zeel’s 25% spurt in y-o-y ad revenue ups PAT by 16%

    Q1-2016: Zeel’s 25% spurt in y-o-y ad revenue ups PAT by 16%

    BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited (Zeel) reported a 25.4 per cent hike in advertisement revenue in the quarter ended 30 June, 2015 (Q1-2016) to Rs 779.93 crore (58.21 per cent of Total Revenue or TR) as compared to the Rs 622.10 crore (57.3 per cent of TR) in the corresponding quarter of last year. This is also 16.5 per cent more than the Rs 669.66 crore (49.7 per cent of TR) in Q4-2015.

     

    Profit after Tax (PAT) in Q1-2016 increased by 15.8 per cent to Rs 243.76 crore (18.2 per cent of TR) as compared to the Rs 210.57 crore (19.4 per cent of TR) in Q1-2015 and 5.6 per cent more than the Rs 230.77 crore (17.1 per cent of TR) in Q4-2015.

     

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

     

    Zeel’s PAT was affected by lower q-o-q subscription revenue and other sales and service income. Subscription revenue in Q1-2016 was at Rs 462.53 crore (34.5 per cent of TR) just 4.5 per cent more than the Rs 442.77 crore (40.8 per cent of TR) in Q1-2015 and 9.4 per cent lower than the Rs 510.77 crore (37.9 per cent of TR) in the immediate trailing quarter.

     

    The company said that during the quarter, domestic subscription revenues in Q1-2016 stood at Rs 368 crore, which was 13.7 per cent more than the Rs 323.8 crore in Q1-2015, but 11.9 per cent lower than the Rs 417.5 crore in Q4-2015. International subscription revenue stood at Rs 94.5 crore in Q1-2016, which was 20.5 per cent lower as compared to the Rs 118.9 crore in Q1-2015 but 1.3 per cent higher than the Rs 93.3 crore in Q4-2015.

     

    While y-o-y other sales and service income more than quadrupled (was up 367.6 per cent) in Q1-2016 to Rs 97.4 crore (7.3 per cent of TR) as compared to Rs 20.83 crore (1.9 per cent of TR) in Q1-2015, it was 41.5 per cent lower than the Rs 166.62 crore (12.4 per cent of TR) in Q4-2015.

     

    The company’s y-o-y operating EBIDTA (Earnings before interest, depreciation, tax and amortisation) increased fractionally by 0.7 per cent in Q1-2016 to Rs 311.20 crore (23.3 per cent of TR) from Rs 309.17 crore (28.5 per cent of TR) in Q1-2015 and was 14.9 per cent more than the Rs 270.75 crore (20.1 per cent of TR) in Q4-2015.

     

    Other results reported by Zeel for Q1-2016:

     

    TR in the current quarter increased 23.4 per cent to Rs 1339.86 crore from Rs 1085.70 crore in Q1-2015, but was 0.5 per cent lower than the Rs 1347.05 crore in the immediate trailing quarter.

     

    Total Expense (TE) in Q1-2016 at Rs 1045.47 crore (78 per cent of TR) was 31.3 per cent more than the Rs 796.10 crore (73.3 per cent of TR) in the corresponding year ago quarter, but 4.4 per cent lower than the Rs 1093.70 crore (81.2 per cent of TR) in Q4-2015.

     

    Zeel’s operating cost increased 40.7 per cent to Rs 610.76 crore (45.6 per cent of TR) in Q1-2016 as compared to the Rs 434.02 crore (40 per cent of TR) in the corresponding year ago quarter, but fell 1.5 per cent from the Rs 620.09 crore (46 percent of TR) in Q4-2015.

     

    Other expense in Q1-2016 fell 20.6 per cent to Rs 183.24 crore (13.7 per cent of TR) from Rs 230.80 crore (21.3 per cent of TR) in Q1-2015 and was 9.7 per cent lower than the Rs 202.86 crore (15.1 per cent of TR) in Q4-2015.

     

    Employee Benefit Expense increased 23.5 per cent to Rs 138.01 crore (10.3 per cent of TR) in Q1-2016 from Rs 111.71 crore (10.3 per cent of TR) in Q1-2015 and was 10.6 per cent more than the Rs 120.89 crore (nine per cent of TR) in Q4-2015.

     

    Advertisement and Publicity expense was 20.3 per cent more in Q1-2016 at Rs 96.65 crore (7.2 per cent of TR) as compared to the Rs 80.37 crore (8.4 percent of TR) in Q1-2015, but 27 per cent lower than the Rs 132.46 crore (9.8 per cent of TR) in Q4-2015.

     

    Company speak

     

    Zeel chairman Subhash Chandra said, “The Indian Media and Entertainment Industry is making strides in the economy, backed by rising advertising revenues and consumer payments. 61 per cent of all households in India are now equipped with a television making us the second largest TV viewership market after China. With digitization, subscription revenues in urban and rural areas are growing , resulting in a healthy impact on the industry.”

     

    Chandra added, “Zee has recorded a satisfactory performance during the first quarter. Our investments have resulted in organic growth, which is in line with our expectations. We continue to build Zee’s presence in this highly competitive space by creating compelling content across genres and by pursuing new opportunities that will yield long term growth.”

     

    Zeel managing director and CEO Puneet Goenka said, “We continue to experience growth in both advertising and subscription revenues through the launch of new and innovative programming. We believe that by delivering excellent content we can benefit from monetizing revenues from an advertising and subscription standpoint.”

  • Brand Zee valued at Rs 41.94 billion

    Brand Zee valued at Rs 41.94 billion

    MUMBAI: Zee Entertainment Enterprises Limited (Zeel) brand, as valued by Interbrand, is estimated to be worth Rs 41.94 billion. The network is looking at increasing its global reach to five times more from its current audience of 959 million viewers. This apart, Zee also plans to increase its content consumption to four times more.

     

    Zee, which recently released its annual report titled ‘Investing in Tomorrow,’ said that it plans to expand its market footprint and its relevance to viewers across a range of ethnicities and nationalities. This reflects in the improvement in Zee’s financial performance – and, along with it, its brand value. Zee with its initiatives is on its way to close the gap in brand value with the global best.

     

    The network is looking at becoming the first global media brand amongst the top 100, with foundations in an emerging market, ensuring greater stickiness and viewer loyalty across the spectrum.

     

    According to the report, Zee is amongst the largest producers and aggregators of Hindi programming in the world. It has over 2,10,678 hours of television content, rights to more than 3500 movie titles and 33 domestic channels.

     

    In pursuit of its ‘Vision 2020,’ Zee aims to invest in adding more channels and offerings to its portfolio.  “At Zee, the Financial Year 2014-15 has been a year of ‘Investing in Tomorrow.’ We envision India playing a major role in the way the entertainment industry, around the world, evolves. Multiple macro factors are driving this growth – stronger internet access, rapid digitisation and increasing globalisation of audience preferences,” said Zeel chairman Dr Subhash Chandra.

     

    Chandra feels that technological advancements in the field of entertainment consumption have bolstered the industry further. “Aspects like 4K, are slated to enrich the viewing experience, and open a whole new arena of premium content consumption. 4G will further empower the consumer to access rich content on the go. These factors are giving the overall entertainment ecosystem a whole new dimension,” added Chandra.

     

    The global media and entertainment industry is expected to grow at a CAGR of 4 per cent from 2015, reaching around USD 2.3 trillion in 2018. “As part of our ‘Vision 2020,’ we see ourselves being at the forefront; targeting growth at a different scale for your company,” informed Chandra.

     

    Chandra foresees the company being ranked among the top global media brands in the next five years. “We have invested minimum shareholder value to achieve our objective of global leadership. Our initiatives are based on the orbit shifting thoughts and ambitions set for the year 2020, with clear, quantifiable parameters, giving us visibility of how the future will unfold for us, capitalizing opportunities along the way,” he added.

     

    On the international front, Zee has aggressively forayed into new territories. “Zee holds ambitions of emerging as an entertainment and media leader in rapidly developing newer markets. Despite challenges, we have emerged as a global content powerhouse, catering to the varying aspirations of audiences in a seamless world of entertainment. And we will continue to move forward with confident, determined steps, to make the most of future opportunities,” asserted Chandra.

     

    The network has maintained a steady progress across all quarters and reported revenue of Rs 48,837 million (Y-o-Y growth of 10.4 per cent) with EBITDA of Rs 12,538 million (Y-o-Y growth of 4 per cent) and net post-tax profit of Rs 9,775 million (Y-o-Y growth of 10 per cent). “Despite pricing challenges, and increasing costs, we were able to maintain a healthy net margin of 20 per cent. This outcome indicates that our operations were based on a prudent strategy, and bear testimony to our know-how and expertise. We are confident that we will be able to continue on the path of augmenting shareholder value,” said Zeel MD and CEO Punit Goenka.

     

    According to Goenka, the implementation of digitisation (phase I & II), despite a few delays, has resulted in the creation of new opportunities throughout the media value chain.

     

    “During FY 2014-15, we took many steps towards this very end. We expanded aggressively in the American, European, APAC and Middle East markets. We launched new channels with a clear view on rich and engaging content, customized to specific audience groups. We are also investing in further training our existing talent, together with nurturing new people across diverse competencies,” informed Goenka.

     

    The key elements of Zee’s strategy going forward will be to consistently invest in growth opportunities to safeguard and grow its leadership, in a competitive environment. “We will concentrate on the opportunities that digitisation presents and seek to maximise revenue from this, while operating in a prudent environment. We will consistently seek out newer markets globally, and fortify our existing ones. And through all of this, we will maintain the highest standards of corporate governance and ethics while creating superior value,” he said.

     

    Zee is also geared to offer its entertainment content through ‘Now Media’ i.e. through digital tools and over the top (OTT) platforms, among others. It is also adopting cutting-edge, advance formats like ‘high definition’ and ‘4K’.  The network foresees these formats transforming the viewing experience in the near future. It also predicts that content producers will have to be nimble-footed and geared up to address the technology paradigm, in addition to the content quality. The demarcation between ‘on-air’ and ‘online’ is rapidly disappearing, with almost all devices getting backward and forward integrated using the internet.

     

    Zee aims to become a global content company and in keeping with this launched Zindagi in India and Zee Hiburan in Indonesia, last year. “This helps us remain the preferred entertainment provider to a large audience across the world enhancing our revenue and visibility. The future will see further empowerment of the viewers, and we are investing in making ourselves relevant to this trend,” the company said in its annual report. 

  • FY-2015: Sterling Holiday Resorts Sales Promo spend up 4.1%

    FY-2015: Sterling Holiday Resorts Sales Promo spend up 4.1%

    BENGALURU: Sterling Holiday Resorts (India) Limited (Sterling Holidays) reported Sales Promotion spend (Sales Promo) in FY-2015 (year ended 31 March, 2015) at Rs 17.16 crore (10.2 per cent of net sales), which was 4.1 per cent more than the Rs 16.48 crore (12.5 per cent of nets sales) in the previous year. Sales Promo spends in Q4-2015 (quarter ended 31 March, 2015) at Rs 5.71 crore (13.6 per cent of net sales) was more than double (2.6 times) the Rs 2.19 crore (eight per cent of net sales) in Q4-2014 and 26.9 per cent more than the Rs 4.5 crore (9.8 per cent of net sales) in the immediate trailing quarter.

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

    Please refer to Fig 1 below. During the 13 quarter period starting Q4-2012 until the current quarter, sales promo spends show a linear increasing trend in terms of absolute rupees as is indicated by the broken maroon trend line. However, in terms of percentage of net sales, the linear trend is reducing, as demonstrated by the broken green trend line. The company’s highest sales promo spends in terms of absolute rupees , whilas in the current quarter in terms of percentage of net sales was it in Q2-2013 at 21.7 per cent (Rs 5.10 crore) of net sales.

    Sterling Holidays net sales in FY-2015 at Rs 168.05 crore was 27.4 per cent more than the Rs 131.89 crore in FY-2014. The company’s net sales in Q4-2015 at Rs 42.1 crore was 13.4 per cent more than the Rs 37.11 crore in the corresponding year ago quarter, but was 7.8 per cent lower than the Rs 45.67 crore in Q3-2015. The company’s net sales show a linear increasing trend during the period under consideration as indicated by the black broken trend line. 

    Until the current financial year, Sterling Holidays has in general been a loss making company. Please refer to Fig 2 above. However, for FY-2015, the company has reported a profit after tax (PAT) of Rs 0.52 crore (0.3 per cent of net sales) as compared to a loss of Rs 21.29 crore in the previous year. For Q4-2015, the company has reported PAT of Rs 2.35 crore (5.6 per cent of net sales) as compared to a loss of Rs 5.78 crore in Q4-2014 and a PAT of Rs 0.82 crore (1.8 per cent of nets sales) in Q3-2015.

    Sterling Holidays managing director Ramesh Ramanathan said, “FY-2015 performance speaks for itself. As should the year-on-year improved performance metrics over the last 3 to 4 years. We have begun FY-2016 with a strong, confident note by opening four new resorts in one go at Corbett, Daman, Shirdi and Dindi. Sterling is now in a position to offer varying holiday experiences – from hillside to riverside to spiritual beach and wildlife in 24 resorts across India.”

    With effect from 3 September, 2014, Sterling Holidays has become a wholly owned subsidiary of Thomas Cook Insurances Services (India) Limited – (TCISL). As at 31 December, 2015, Thomas Cook (India) Limited through its subsidiaries hold 55.07 per cent of the equity shareholding of the company.

  • FY-2015: Godrej Consumer Products marketing expense up 9.2%; Good Knight is Rs 1500 crore brand

    FY-2015: Godrej Consumer Products marketing expense up 9.2%; Good Knight is Rs 1500 crore brand

    BENGALURU: Godrej Consumer Products Limited (GCPL) reported a 9.2 per cent increment in advertisement and publicity expenses (ad) in FY-2015 (year ended 31 March, 2015) at Rs 909.96 crore (11 per cent of net Total Income from Operations or TIO) as compared to the Rs 832.97 crore (11 per cent of TIO) last year. The company in its earnings release says that its household insecticides brand ‘Good Knight’ has crossed the Rs 1500 crore mark. Further, amongst GPCL’s soap brands, Godrej No. 1 has crossed the Rs 1,000 crore and Cinthol, the Rs 500 crore milestone.

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

    Godrej group chairman Adi Godrej said, “Our performance in the second half of fiscal year 2015 has been much better than that in the first half. Our strong performance is on the back of a gradual recovery we are seeing in FMCG growth in India, aided by our continued focus on innovations and brand building, and supported by competitive marketing investments and enhancements in our go-to-market infrastructure. We have continued to consistently grow ahead of the market and have gained share in our core categories.”

    “Our India branded net sales grew by 12 per cent led by volume growth of around eight per cent. Our international business grew by a healthy 14 per cent (in constant currency terms), in spite of the temporary challenges in our Indonesian business.In this quarter, we also increased our marketing investments significantly to capitalise on the recovery seen in the Indian FMCG market. We believe that this investment will strengthen our brands and enable us to drive further growth in the quarters ahead,” added Godrej.

    In Q4-2015, GCPL ad spends at Rs 230.18 crore (11 per cent of TIO) was 57.9 per cent more than the Rs 145.8 crore (7.5 per cent of TIO) n Q4-2014 and 5.6 per cent more than the Rs 217.89 crore (9.7 per cent of TIO) in the immediate trailing quarter.

    Please refer to Fig A below. During the twelve quarter period starting Q1-2013 until Q4-2015, the company’s ad spends shows a linear increasing trend in terms of absolute rupee spends as is obvious from the broken blue trend line in Fig A below. However, in terms of percentage of TIO, ad spends show a slight declining trend with a very small negative slope of the broken brown trend line because of the lower ad spend by the company in percentage of TIO(9.7 per cent of TIO, Rs 217.89 crore) in the previous quarter. The slope of brown line until Q2-2015 was upwards and positive, and had predicted ad spends of 11.05 per cent and 11.08 per cent of TIO for Q3-2015 and Q4-2015 respectively. As a matter of fact, considering the 9.7 per cent of TIO in Q3-2015, the Q4-2015 intercept of the broken brown tend line indicates lower ad expense of 10.8 per cent of TIO as opposed to the 11.003 per cent of TIO actually spent by the company.

    GCPL’s lowest ad expense both in terms of absolute rupees and percentage of TIO during the period under consideration was in Q4-2015 at Rs 145.78 crore and 7.5 per cent respectively. The company’s highest ad spend in terms of absolute rupees and percentage of TIO during the period in this report was in Q1-2014 at Rs 239.06 crore and 13.8 per cent of TIO respectively.

    GCPL reported 8.9 per cent growth in TIO in FY-2015 at Rs 8276.36 crore as compared to the Rs 7602.41 crore in FY-2014. Please refer to Fig B below. TIO in Q4-2015 at Rs 2092.02 crore was 8.3 per cent more than the Rs 1931.52 crore in the corresponding year ago quarter, but declined 6.4 per cent as compared to the Rs 2235.71 crore in Q3-2015. During the twelve quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken green trend line.

    Profit after tax (PAT) in FY-2015 at Rs 907.12 crore (10 per cent of TIO) was 19.4 per cent more than the Rs 759.73 crore (12.3 per cent of TIO) in FY-2014. PAT in Q4-2015 at Rs 265.57 crore (12.7 per cent of TIO) increased 12.4 per cent as compared to the Rs 236.28 crore (12.2 per cent of TIO) and was almost flat (up 0.8 per cent) as compared to the Rs 263.57 crore (11.8 per cent of TIO) in the preceding quarter. During the twelve quarter period in this report, PAT shows a linear increasing trend both in terms of absolute rupees and percentage of TIO as in obvious from the broken red and black trend lines in Fig B below.

    Segment Performance

    Household Insecticides

    GCPL says that Household Insecticides continued its strong momentum with a growth of 11 per cent and continued to gain market share across formats and exited Q4-2015 with highest ever market share. Good knight Fast Card continues to see strong demand and add new customers, while expanding its category reach, especially in rural.

    Soaps

    The company says that its Soaps business delivered another strong quarter, with a healthy volume and mix led value growth of 15 per cent. Its Godrej No. 1 and Cinthol portfolios delivered double-digit growth, backed by well executed tactical strategies involving focused activation programmes, consumer offers and marketing campaigns.

    Hair Colours

    Hair Colours maintained its competitive performance and delivered a volume led sales growth of 12 per cent and continues to outperform the category and gain further market share. The salience of the cr?me segment in the overall Hair Colour category continues to increase. Godrej Expert Rich Cr?me is the fastest growing brand in this segment informs the company.

    Air Fresheners

    Aer, GPCL’s air freshener brand, continues its strong sales and distribution ramp up. This has been aided by the company’s innovative gel format technology and consumer engagement initiatives. Aer is now the number three player in home sprays and the number two player in car air care claims the company.

    Health and Wellness

    GPCL says that its recently launched Health and Wellness portfolio of hand washes, a hand sanitiser and anti-mosquito spray, under Godrej Protekt, is being well received in modern trade.

    “With four consecutive quarters of improvement in growth rates in the Indian FMCG sector, we are seeing a gradual improvement in demand. We remain optimistic that as the economy gathers pace in FY-2016, FMCG growth in FY-2016 will be better than that in FY-2015. While the macro-economic environment in some of our international markets remains challenging, we are confident of continuing to grow ahead of the market and improve our market share. We will continue to focus on sustaining and extending leadership in our core categories. We will also accelerate the pace of new product launches as the macro-economic environment improves and capitalise on the uptick in demand. Overall, we will strive to deliver a stronger operating performance in the fiscal year 2016,”Godrej concluded.

    Click here for the Performance Update, press release and full result.

  • FY-2015: Hawkins ad spends up 30.9% to Rs 21 crore

    FY-2015: Hawkins ad spends up 30.9% to Rs 21 crore

    BENGALURU: Hawkins Cookers Limited reported a 30.9 per cent increase in its advertisement expense in FY-2015 (year ended 31 March, 2015, current year) to Rs 20.99 crore (4.1 per cent of Total Income from Operations or TIO) as compared to the Rs 16.04 crore (3.5 per cent of TIO) in FY-2014. The company’s ad expense in Q4-2015 at Rs 4.64 crore (three per cent of TIO) was 33.9 per cent more than the Rs 3.46 crore (2.4 per cent of TIO) in Q4-2014, but was almost half (down 49.9 per cent) the Rs 9.27 crore in Q3-2015.

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

    Hawkins marketing or advertisement and sales promotion spends (ASP) in this report comprises advertisement expenses and discounts, on the assumption that these are some of the tools adopted by the company.

    The company’s ASP in FY-2015 at Rs 66.81 crore (13 per cent of TIO) was 18.1 per cent more than the Rs 56.57 crore (12.4 per cent of TIO) in the previous fiscal. ASP in Q4-205 at Rs 20.58 crore (13.2 per cent of TIO) was 17.3 per cent more than the Rs 17.55 crore (12.4 per cent of TIO) in Q4-2014 but was 44 per cent lower than the Rs 36.78 crore (32.7 per cent of TIO) in the immediate trailing quarter.

    Over a 12 quarter period starting Q1-2013, Hawkins ASP shows a linear increasing trend in absolute rupees as well as in terms of percentage of TIO. Please refer to Figures 1 and 1A below. Even if one were to remove an outlying number such as 32.7 per cent of TIO in Q3-2015, ASP still shows an increasing linear trend in terms of percentage of TIO.

    The company’s highest ASP during the period under consideration was in Q3-2015, both in absolute rupees as well in terms of percentage of TIO at Rs 36.78 crore and 32.7 per cent of TIO respectively. It is quite obvious that when the company increases its discounts, it reduces its ad spends, except in the case of Q3-2015, where both discounts and ad spends increased in terms of percentage of TIO and in the current quarter where there was decline of discounts and ad spends in terms of percentage of TIO.

    In general, ad percentage of ASP in Q1 and Q3 seems to peak, while in Q2 and Q4, it is a trough, with discounts showing the reverse behaviour. However, in no case during the twelve quarter period under consideration has the ad spend exceeded the amount of discounts offered by the company. 

    From Fig A1 below, it is obvious that the company’s marketing strategy is more skewed towards discounts when compared to ad spends. During the period under consideration, discounts in terms of percentage of ASP shows a linear increasing trend, while ad spends in terms of ASP show a linear declining trend. The highest advertisement spend by the company in absolute rupees was in Q3-2015 at Rs 9.27 crore (8.2 per cent of TIO, 25.2 per cent of ASP), during which the corresponding discount at Rs 27.51 crore constituted 74.8 per cent of ASP and 24.4 per cent of TIO.

    The highest ad spends by the company during the period under consideration was Q3-2014 at 49.3 per cent of ASP, 7.8 per cent of TIO at Rs 8.67 crore. During the same period, the company offered discount of Rs 8.90 crore at 50.7 per cent of ASP and eight per cent of TIO. The lowest ad spend in the period under consideration was in Q4-2013 at Rs 0.351 crore (2.9 per cent of ASP, 0.3 per cent of TIO).

    The lowest ASP in absolute rupees during the period under consideration was in Q1-2015 at Rs 8.44 crore (11.2 per cent of TIO). The lowest ASP during the same period under consideration in terms of percentage of TIo was in Q4-2013 at 9.7 per cent at Rs 11.97 crore.

    Please refer to Fig B below. The company’s TIO in FY-2015 at Rs 514.50 crore was 12.6 per cent more than the Rs 457.08 crore in FY-2014.Hawkins TIO in Q4-2015 at 156.27 crore was 10.2 per cent more than the 141.87 crore in Q4-204 and 38.9 per cent more than the Rs 115.53 crore in Q3-2015. During the period under consideration, TIO shows a linear increasing trend as is evident from the dotted green line.

    Hawkins PAT in FY-2015 at Rs 32.12 crore (6.2 per cent of TIO) declined 16.1 per cent from Rs 38.38 crore (8.4 per cent of TIO) in the previous year. PAT in Q4-2015 at Rs 9.65 crore (6.2 per cent of TIO) was 26.5 per cent lower than the Rs 13.13 crore (9.3 per cent of TIO) in the corresponding year ago quarter, but more than three times (3.14 times) the PAT of Rs 3.07 crore (2.7 per cent of TIO) in Q3-2015.

    During the 12 quarter period under consideration, PAT in absolute rupees shows an increasing trend, while in terms of percentage of TIO, it shows a declining trend. However, the PAT numbers in terms of percentage of TIO for Q3-2015 (2.9 per cent of TIO) and Q3-2014 (5.5 per cent of TIO) are actually outliers-if one were to neglect the impact of these numbers, PAT in terms of percentage of TIO also shows an increasing linear trend.