Category: Financials

FY-2105: Dish TV in black; adds 1.5 million subscribers

BENGALURU: Last quarter (Q3-2015, quarter ended 31 December, 2015), India’s largest DTH operator, Dish TV Limited had reported a lower loss at just Rs 2.87 crore as compared to double-digit crore loss numbers in the previous or like-to-like quarters.

However that is now a thing of the past as the company has reported a standalone net profit after tax (PAT) of Rs 35.01 crore in Q4-2015 and a standalone PAT of Rs 1.01 crore in FY-2015 as compared to a standalone loss of Rs 154.21 crore in FY-2014.

This probably makes Dish TV the first among listed DTH companies in the country to report a profit after tax as opposed to the operating profits reported by a segment of the other goliaths for whom DTH services is just another small segment. Dish TV’s consolidated PAT for FY-2015 was Rs 3.14 crore as against a consolidated loss of Rs 157.61 crore in FY-2104.

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

The company also added 1.5 million net subscribers in FY-2015 and closed the year with a subscriber base of 12.9 million. With the addition of 4.04 lakh subscribers in Q4-2015, Dish TV maintained the tempo it had set in the previous quarter (Q3-2105) by adding a slightly higher number of subscribers at 4.16 lakhs.

Dish TV also reported higher average revenue per user (ARPU) of Rs 179 in Q4-2014 as against Rs 177 in Q3-2015 (1.13 per cent increase in ARPU). In Q4-2014, the company had added 2.26 lakh net subscribers and its annual ARPU was Rs 170 (Q4-2105 ARPU increased 5.3 per cent as compared to Q4-2014).

Dish TV chairman Subhash Chandra said, “The DTH sector is a direct beneficiary of a positive consumer sentiment. Dish TV achieved a strong, sector leading, subscriber growth of 1.5 million net subscribers during the year. Fiscal 2015 also saw Dish TV swing to net profit, a first for any DTH company in India. Through this milestone to the next and thereafter, Dish TV remains committed to outperform the industry growth rate and create shareholder value while continuing to entertain its subscribers with rich content and compelling value added services using updated modes of delivery.”

Dish TV managing director Jawahar Goel added, “During the quarter, we garnered net subscribers that were almost equal to the numbers during the festival quarter of October – December 2014. While Zing gained ground in Phase 3 and 4 markets, high definition (HD) driven sports offerings were the mainstay, in Rest of India, during the Cricket World Cup 2015.”

Let us look at the other numbers reported by Dish TV:

Dish TV’s standalone and consolidated net Total Income from Operations (TIO) in FY-2016 at Rs 2781.64 crore was 10.9 per cent more than the Rs 2508.97 crore in FY-2014. Standalone TIO in Q4-

2015 at Rs 754.72 crore grew 18.5 per cent as compared to the Rs 636.91 crore in the corresponding year ago quarter and was 10.3 per cent more than the Rs 684.26 crore in Q3-2015.

As mentioned above, net profit for Q4-2015 was Rs 35.01 crore as against a loss of Rs 149.05 crore in Q4-2014 and a loss of Rs 2.87 crore in the immediate trailing quarter.

The company’s EBIDTA in FY-2015 increased 17.5 per cent to Rs 733.1 crore as compared to the Rs 624 crore in FY-2014. EBIDTA in Q4-2015 at Rs 221.9 crore was a whopping 72.1 per cent more than the Rs 128.9 crore in Q4-2014 and 16.1 per cent more than the Rs 191.2 crore in the preceding quarter.

The company’s total expenditure (TE) in FY-2015 increased 8.7 per cent to Rs 2048.5 crore as compared to the Rs 1884.9 crore in the previous year. TE in the current quarter increased 4.9 per cent to Rs 532.8 crore as compared to the Rs 508 crore in the corresponding year ago quarter and was 1.9 per cent more than the Rs 522.7 crore in Q3-2015.

Programming, content/other costs (programming) in FY-2015 increased 2.9 per cent to Rs 800.75 crore from Rs 778.44 crore in FY-2014. Programming cost in Q4-2015 at Rs 207.63 crore was three per cent more than the Rs 201.57 crore in Q4-2014 and 4.4 per cent more than the Rs 1988.86 crore in Q3-2015.

License Fees in FY-2015 increased 10.5 per cent to Rs 288.83 crore from Rs 261.38 crore in the previous year. Dish TV paid 16.7 per cent higher license fees in Q4-2015 at Rs 78.17 crore as compared to the Rs 66.98 crore in Q4-2014 and 5.1 per cent more than the Rs 74.35 crore in Q3-2015.

Advertisement expense in Q4-2015 at Rs 11.5 crore was 10.6 per cent more than the Rs 10.4 crore in Q4-2014, but declined 7.3 per cent from Rs 12.4 crore in Q3-2015.

Consolidated Employee Benefit Expense (EBE) in FY-2015 increased 14.1 per cent to Rs 101.75 crore as compared to Rs 89.16 crore in FY-2014. EBE in Q4-2015 at Rs 25.71 crore was 17.6 per cent more the Rs 21.02 crore in Q4-2014 and was 4.3 per cent lower than the Rs 25.83 crore in Q3-2015.

Summing up Dish TV’s performance, Goel said, “Fiscal 2015 was a satisfying year. Our single-minded devotion to being the leader in the DTH industry along with uncompromised financial discipline enabled us to reach the net profitability milestone much ahead of our peers. With cost line items under control, the resultant EBITDA for the quarter increased by a strong 72.1 per cent y-o-y. EBITDA margin improved to 29.4 per cent. PAT of Rs 35.01 crore resulted in Free Cash Flow (FCF) of Rs 70.2 crore for the quarter. Churn for the quarter was maintained at 0.7 per cent per month.”

Click here to read the financial statement

May 26, 2015
FY-2015: Inox ad revenues up 64.5%; F&B improves share of profits

BENGALURU: Inox Leisure Limited reported 64.5 per cent growth in advertising revenue to Rs 81.49 crore (eight per cent of Total Revenue or TR) for the year ended 31 March, 2015 (FY-2015, current year) as compared to the Rs 49.55 crore (5.6 per cent of TR) in the previous year.

Ad revenue for Q4-2015 increased 22.7 per cent to Rs 19.79 crore (9.1 per cent of TR) from Rs 16.13 crore (8.6 per cent of TR) in Q4-2014, but was 31.6 per cent less than the Rs 28.92 crore (9.5 per cent of TR) in Q3-2015. While advertising revenues per operating screen (355 screens excluding management screens) in FY-2015 increased to Rs 0.23 crore as compared to the Rs 0.17 crore in FY-2014, the corresponding figure for both Q4-2015 and Q4-2014 was Rs 0.056 crore.

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

(2) Q4-2015 and FY-2015 Figures include Satyam Cineplexes Limited which became wholly owned subsidiary of the company on 8th Aug 2014.

Inox’s total revenues in FY-2015 increased 15.5 per cent to Rs 1014.11 crore from Rs 877.78 crore in FY-2015. In Q4-2015, TR increased 15.6 per cent to Rs 217.75 crore from Rs 188.31 crore in Q4-2014, but declined 28.6 per cent as compared to the Rs 304.85 crore in Q3-2015.

Gross Box Office

Gross box office (GBO) revenue contribution to total revenue has been falling with time. In FY-2015, GBO increased 12.4 per cent to Rs 670.38 crore (66.1 per cent of TR) as compared to the Rs 596.56 crore (68 per cent of TR) in FY-2014. Q4-2015 GBO revenue at Rs 134.80 crore (61.9 per cent of TR) was 8.3 per cent more than the Rs 124.49 crore (66.1 per cent of TR) in Q4-2014, but declined 33.2 per cent as compared to the Rs 201.75 crore (66.2 per cent of TR) in Q3-2015.

Footfalls with management properties in FY-2015 increased 6.5 per cent to 4.11 crore from 3.86 crore in FY-2014. Footfalls increased by 2.4 per cent to 0.84 crore in Q4-2015 from 0.82 crore in Q4-2014, but declined 15.2 per cent as compared to the 0.99 crore in the previous quarter. Occupancy in FY-2015 declined to 25 per cent from 28 per cent in the previous year and declined from 23 per cent in Q4-2014 to 20 per cent in Q4-2015.

Average Ticket Price (ATP) in FY-2015 increased 5.1 per cent to Rs 164 from Rs 156 in FY-2014. In Q4-2015, ATP increased 3.3 per cent in Q4-2015 to Rs 158 as compared to the Rs 153 in the corresponding year ago quarter, but declined 10.9 per cent as compared to the Rs 175 in Q3-2015.

Food and Beverages

Inox’s Food and Beverages (F&B) revenue stream has been growing over time and its contribution to profitability has been increasing reports the company. In FY-2015, F&B contribution to profitability increased to 77 per cent as compared to 74 per cent in FY-2014, however, the segment’s contribution to profitability declined one per cent in Q4-2015 to 75 per cent from 76 per cent in Q4-2014.

F&B revenue in FY-2015 at Rs 191.03 crore (18.8 per cent of TR) improved 17.7 per cent as compared to the Rs 162.33 crore (18.5 per cent of TR) in FY-2014. In Q4-2015, revenue from F&B segment increased 9.4 per cent to Rs 37.43 crore (17.2 per cent of TR) as compared to the Rs 34.2 crore (18.2 per cent of TR) in Q4-2014, but declined 32.7 per cent from the Rs 55.63 crore (18.2 per cent of TR) in the preceding quarter.

Other operating revenue in FY-2015 increased 2.7 per cent to Rs 71.21 crore (7 per cent of TR) as compared to the Rs 69.34 crore (7.9 per cent of TR) in FY-2014. Other operating revenue in Q4-2015 almost doubled (1.9 times) to Rs 25.73 crore (11.8 per cent of TR) as compared to the Rs 13.49 crore (7.2 per cent of TR) and was 38.7 per cent more than the Rs 18.55 crore (6.1 per cent of TR) in Q3-2015.

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

Entertainment tax in FY-2015 at Rs 121.45 crore (12 per cent of TR) increased 14.5 per cent from Rs 106.07 crore (12.1 per cent of TR) in FY-2014. In Q4-2015, entertainment tax increased 2.9 per cent to Rs 22.76 crore (10.5 per cent of TR) from Rs 22.12 crore (11.7 per cent of TR) in Q4-2014, but was 40.3 per cent lower than the Rs 38.12 crore (12.5 per cent of TR) in Q3-2015.

Distributors’ share in FY-2015 at Rs 249.32 crore (24.6 per cent of TR; 37.2 per cent of GBO) was 11.6 per cent more than the Rs 223.49 crore (25.5 per cent of TR; 37.5 per cent of GBO) in FY-2014. In Q4-2015, distributors share increased three per cent to Rs 47.75 crore (21.9 per cent of TR; 35.4 per cent of GBO) as compared to the Rs 46.36 crore (24.6 per cent of TR; 37.2 per cent of GBO) in Q4-2014, but was 36.6 per cent lower than the Rs 75.37 crore (24.7 per cent of TR; 37.4 of GBO) in Q3-2015.

F&B cost in FY-2015 at Rs 49.55 crore (4.9 per cent of TR) was 6.2 per cent more than the Rs 46.64 crore (5.3 per cent of TR) in FY-2014. F&B cost in Q4-2015 increased 12.1 per cent to Rs 10.35 crore (4.8 per cent of TR) from Rs 9.23 crore (4.9 per cent of TR) in Q4-2014 and was 23.8 per cent lower than the Rs 13.58 crore (4.5 per cent of TR) in Q3-2015.

Property, rent, conducting fees and common facility charges (rent) form a major percentage of the company’s expenses. Rent charges in FY-2015 increased 28.1 per cent to Rs 175.78 crore (17.3 per cent of TR) from Rs 137.22 crore (15.8 per cent of TR) in FY-2014. Rent in Q4-2015 increased 30.8 per cent to Rs 46.63 crore (21.4 per cent of TR) from Rs 35.64 crore (18.9 per cent of TR) in Q4-2015 and was 0.1 per cent lower (almost flat) as compared to the Rs 46.67 crore (15.5 per cent of TR) in Q3-2015.

Profit After Tax (PAT)

Inox reported 45.7 per cent drop in PAT to Rs 20.04 crore (two per cent of TR) from Rs 36.94 crore (4.2 per cent of TR) in FY-2014. The company reported loss of Rs 4.06 crore in Q4-2015 as compared to a PAT of Rs 1.54 crore in Q4-2014 and a PAT of Rs 14.3 crore in Q3-2015.

May 25, 2015
Q3-2015: Gillette India y-o-y marketing spends down 5.8%

BENGALURU: Gillette India Limited reported a 5.8 per cent drop in advertisement and sales promotion (ASP) spends in Q3-2015 (quarter ended 31 March, 2015, current quarter) to Rs 116.71 crore (23.6 per cent of Total Income from Operations or TIO) as compared to the Rs 123.84 crore (27.2 per cent of TIO) in the corresponding year ago quarter (Q3-2014), but was 1.3 per cent more than the Rs 115.25 crore (23.1 per cent of TIO) in the immediate trailing quarter (Q2-2015).

During the nine month period ended 31 March, 2015 (9M-2015), Gillette ASP at Rs 323.46 crore (22.6 per cent of TIO) was 4.7 per cent more than the Rs 308.84 crore (24.3 per cent of TIO) in 9M-2014.

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

(2) Gillette Financial year closes of June 30, hence, the quarter ended June 30 is Q1, while the quarter ended September 30 is Q2; quarter ended December 31 is Q2 and quarter ended March 31 is Q3.

Three businesses contribute to the company’s TIO – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care includes toothbrushes, toothpaste and oral care products. Gillette India’s products are sold under the brand Gillette with sub-brands like Fusion and Mach 3.

Gillette TIO in Q3-2015 at Rs 494.14 crore was 8.5 per cent more than the Rs 455.50 crore in Q3-2015, but was 0.9 per cent lower than the Rs 498.47 crore in Q2-2015. Across 13 quarters starting Q3-2012 (quarter ended 31 March, 2014) until Q3-2015 (quarter ended 31 March, 2015), the company’s TIO shows a linear increasing trend as represented by the broken blue line. In 9M-2015, Gillette’s TIO at Rs 1432.59 crore was 12.8 per cent more than the Rs 1270.07 crore in 9M-2014.

During the 13 quarter period under consideration in this report, Gillette’s ASP shows an upward linear trend both in terms of absolute value as well as percentage of TIO as is indicated by the broken green trend line and the broken maroon trend line respectively. The highest ASP in absolute rupees and in terms of percentage of TIO spent by the company in these 13 quarters was in Q3-2014 (quarter ended June 30, 2014), at Rs 123.84 crore and 27.2 per cent of TIO while the lowest in both parameters was in Q3-2013 at Rs 66.61 crore and 18.7 per cent of TIO respectively.

Gillette’s ASP is made up of two components – advertisement and trade incentives. Please refer to figure 1A below for the breakup and the ratio across five years starting FY-2010 until FY-2014. As is evident, the company’s ad spend ratio has increased to 1.558 times, 1.424 and 1.412 times as compared to trade incentives in FY-2014, FY-2013 and FY-2014 respectively. In FY-2010 and FY-2011 ratio of advertisement to Trade Incentives was 1.199 and 1.2013 respectively. Based on the past trends, it is likely that the ratio in FY-2015 will be skewed towards ad spends, and consequently during the three completed quarters and the balance single quarter of the current Financial Year as well.

Gillette PAT had been steadily going down until Q1-2015 both in terms of absolute rupees and in terms of percentage of TIO. Also, in FY-2014, Gillette reported PAT of Rs 51.42 crore (2.9 per cent of TIO) as compared to the Rs 87.16 crore (6.1 per cent of TIO) in FY-2013. However, during the 13 quarter period under consideration, a reversal happened in Q2-2015. Further, the company’s 9M-2015 PAT at Rs 85.30 crore (six per cent of TIO) was more than double (2.47 times) the PAT of Rs 34.56 crore (2.7 per cent of TIO) in 9M-2014. This 9M-2015 PAT is already more than the PAT reported by the company for FY-2012, FY-2013 and FY-2014, and is almost at par with PAT in FY-2011.The company is a profitable company, and should earn profit after taxes in the remaining quarter – Q4-2015. Hence, it should report much better, if not record numbers for FY-2015.

As mentioned above, post Q2-2015, at least in terms of absolute rupees, Gillette PAT shows a linear increasing trend, as is evident from the broken orange trend line. In Q3-2015, the company’s PAT at Rs 30.76 crore more than tripled (3.63 times) the PAT of Rs 8.68 crore in Q3-2014, but was 16.5 per cent lower than the Rs 36.86 crore in Q2-2015. In terms of percentage of TIO, the broken brown trend line indicates a downward linear trend, which may yet change.

In its earnings release for Q3-2015, Gillette India says that grooming business sales were up nine percent, portable power business sales were up four per cent and oral care business sales were up six per cent as compared to the corresponding year ago quarter.

May 25, 2015
Splash eyes revenues of Rs 150 crore; plans 21 stores by year-end

BENGALURU: The Landmark Group’s international youth oriented hi-street value fashion brand Splash is eyeing revenues of Rs 150 crore this year. The brand, closed last year with 12 stores across India and is planning to increase the count to 21 by the end of 2015.

Additionally, company sources told Indiantelevision.com that Splash was also looking at spending more than five per cent of its revenues towards ATL and BTL activities.

Splash has 200 stores globally, had revenues of Rs 90 crore last year across an average store count of eight in India.

In 2015, the brand has already launched four new stores including one in Mumbai taking the count to 16. Now, Splash has unveiled its 17th store in the country in Bengaluru’s hi-street – Commercial Street, on 23 May. Next on the cards is a store launch in Noida in the near future.

At the Bengaluru store opening, Splash also launched its new collection Love Summer.

“Splash is consistently involved in delivering high fashion season after season. We are delighted to bring out the best of the brand’s personality and sync it with our new collection – #LoveSummer – this season’s key collection, which has an easy tropical vibe to it. Consumers have received the collection very well. It is young, tropical, quirky and conversational – a true reflection of our customer. With Splash’s launch at Commercial Street, we look forward to increase our reach to the fashion enthusiasts of Bangalore,” said Splash COO Kalyan Kumar.

“Our ATL activities include bursts of radio a week either way of a new store opening or the launch of a new product line, with some print and online campaigns. We also do a number of BTL activities, like in the case of the store launch today, where we have the band ‘Peepal Tree’ performing at the store. A number of models wearing Splash attire that will along a part of Commercial Street before entering the store and walking the ramp set up for the fashion show organized by Sheetal Mehra,” Kumar added.

“In the middle east, we are present on television and across many locations. In India, presently we are located in 10 cities. Once we reach a reasonably good store count in the country, we will use television as we do in other geographies,” informed Kumar.

The average Splash store witnesses around 400 customer walk-ins daily, with an average conversion rate of 30 per cent. Some of the stores located in hi-streets and malls have a conversion rate that is as high as 38 per cent, while the laggards report rates of around 24- 26 per cent.

Splash’s online campaigns cover the usual social sites such as Facebook, Twitter, Instagram and Youtube. Mindshift along with the company manages the online creative duties for the Splash, while media buying is done by the parent group Landmark through GroupM.

May 25, 2015
FY-2015: Zee Media’s revenue up 62.4%; ad revenue up 78.6%

BENGALURU: Zee Media Corporation Limited (ZMCL) reported 62.4 per cent growth in Total Income from Operations (TIO) to Rs 544.33 crore in FY-2015 as compared to Rs 335.15 crore in FY15-2014.

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

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

(3) The consolidated financial results of the Company comprise of financials of following subsidiaries viz.

Zee Akaash News Private Limited (60 per cent), Mediavest India Private Limited (100 pe rcent), Diligent Media Corporation Limited (99.99 per cent), Pri-Media Services Private Limited (100 per cent) and Company’s share in the results of an Associate entity, Maurya TV Private Limited, wherein Company held 37.87 percent till 11 December, 2014 and post 11 December, 2014, consequent to further acquisitions, Maurya TV Private Limited became Wholly owned Subsidiary of the Company.

Advertisement and Subscription revenue

The company says in its earnings release that advertisement revenue in FY-2015 increased 78.6 per cent to Rs 393.88 crore as compared to the Rs 220.51 crore in FY-2014. Advertising revenue in Q4-2015 increased 82.5 per cent y-o-y in Q4-2014 to Rs 98.69 crore from Rs 53.3 crore in Q4-2014 and was 1.5 per cent lower as compared to the Rs 100.13 crore in the immediate trailing quarter.

Television advertisement revenue increased 40.8 per cent in FY-2015 to Rs 310.55 crore as compared to Rs 220.51 crore in FY-2014, out of which advertisement revenue from new channels grew 21.9 per cent to Rs 13.81 crore in the current year from Rs 11.33 crore in the previous year.

Television ad revenue in Q4-2015 at Rs 80.16 crore was 50.4 per cent more than the Rs 53.3 crore in Q4-2014. Ad revenue from new channels in Q4-2015 more than trebled (3.1 times) at Rs 5.26 crore as compared to the Rs 1.7 crore in Q4-2014. Advertising revenue from ZMCL’s new channels in Q3-2015 was Rs 3.33 crore.

Subscription revenue grew 13.7 per cent in FY-2015 to Rs 113.54 crore from Rs 99.90 crore in FY-2014. Subscription revenue grew 11.9 per cent y-o-y to Rs 30.21 crore from Rs 27 crore and was 0.4 per cent lower than the Rs 30.33 crore in Q3-2015.

Let’s look at the other numbers reported by ZMCL

ZMCL reported 52.6 per cent growth in TIO at Rs 139.88 crore in Q4-2015 as compared to the Rs 91.69 crore in Q4-2014 and almost flat as compared to the Rs 139.875 crore in the immediate trailing quarter.

ZMCL reported a loss of Rs 46.65 crore in FY-2015 versus a PAT of Rs 18.93 crore in FY-2014.

The company reported loss of Rs 7.18 crore in Q4-2015 versus a PAT of Rs 4.11 crore in the corresponding quarter of last year and a loss of Rs 10.42 crore in Q3-2015.

Total expense (TE) in FY-2015 at Rs 554.43 crore was 70.2 per cent more than the Rs 325.76 crore in FY-2014. The company’s TE in Q4-2015 at Rs 137.48 crore was 69.1 per cent more than the Rs 81.3 crore in Q4-2014 and was 1.5 per cent more than Rs 135.11 crores in Q3-2015.

ZMCL’s employee benefit expense (EBE) in FY-2015 at Rs 160.66 crore was 60.6 per cent more than the FY-2014 EBE in Rs 99.1 crore. Q4-2015 EBE at Rs 39.34 crore was 51 per cent more than the Rs 25.13 crore but was 1.1 per cent less than Rs 39.76 crore in Q3-2015.

In FY-2015, ZMCL’s operational cost at Rs 104.70 was 58.3 per cent more than the Rs 66.13 crore in FY-2015. ZMCL’s operational cost in Q4-2015 at Rs 27.94 crore was 70.6 per cent more than the Rs 16.38 crore in Q4-2014 and was 19.5 per cent more than the Rs 23.39 crore in Q3-2015.

Company Speak

ZMCL News Cluster group CEO Bhaskar Das said, “The continuing growth of advertising revenue in FY-2015 gave us ample scope to experiment with path breaking content like roping in cricket celebrities for World Cup programming. From ‘update’ to ‘upgrade’ our content philosophy has evolved to cater to the ever increasing demands of an engaged consumer. The initiation of BARC ratings in the new fiscal will bring about a paradigm shift in how the industry and advertisers track the viewership data.”

ZMCL CEO Ashish Kirpal Pandit added, “The company, in addition to upgrading its content and increasing its penetration among advertisers, is also focusing on improving its operational efficiency, which is evident from improving margins. The company plans to make full use of the increase in digitization and expected improvement in viewership measurements and move towards a more analytical approach to doing business.”

May 23, 2015
FY-2015: Colgate-Palmolive’s marketing spends up 3.7% at Rs 714 crore

BENGALURU: Colgate-Palmolive (India) Limited spent 3.7 per cent more towards advertisement and sales promotion (ASP) in FY-2015 (year ended March 31, 2015) at Rs 714.25 crore (17.9 per cent of Total Income or TI) as compared to the Rs 688.66 crore (19.2 per cent of TI) in FY-2014. In Q4-2015, the company’s ASP spend at Rs 154.49 crore (15 per cent of TI) was 6.9 per cent lower than the Rs 165.86 crore in the corresponding year ago quarter and 13.3 per cent less than the Rs 178.21 crore (17.9 per cent of TI) in the immediate trailing quarter.

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

Colgate-Palmolive’s brands include Colgate for oral care, Palmolive, Charmis and Halo for personal care, and Axion for household care.

Please refer to Fig A below. Over a 12 quarter period starting from Q1-2013 until the current quarter (Q4-2015), Colgate-Palmolive’s ASP shows a linear increasing trend both in terms of percentage of TI as well as in absolute rupees. The slope of the broken maroon trend line shows that ASP in absolute rupees should intersect the Q4-2015 ordinate at Rs 190.076 crore as compared to the Rs 154.49 crore actually spent by the company. The corresponding slope of the broken olive green trend line indicates an intersection with Q4-2015 at 18.81 per cent of TI , again far more than the 15 per cent of TI actually spent the company

In Q2-2015, Colgate-Palmolive (India) Limited (Colgate-Palmolive) spent the highest amount towards advertisement and sales promotion (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 lowest ASP by the company during the 12 quarters was in Q4-2013 at Rs 82.1 crore and 9.7 per cent of TI.

Colgate-Palmolive’s TI in FY-2015 at Rs 3981.94 crore was 11.3 per cent more than the Rs 3578.81 crore in FY-2015. In Q4-2015, TI at Rs 1028.51 crore was 10.2 per cent more than the Rs 931.22 crore in Q4-2014 and 3.3 per cent more than the Rs 995.99 crore in Q3-2015. The company’s TI shows a linear increasing trend. The slope of the blue broken trend line indicates that the company’s TI intercept on Q4-2015 should be Rs 1032.648 crore, as opposed to the Rs 1028.51 crore TI achieved by the company.

Further, across 8 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 above indicates the breakup of Colgate-Palmolive’s advertising and sales promotion across three financial years for which data is available. The breakup of ASP into Ad spends and Sales Promotion spends for FY-2015 is not available as yet.

Colgate-Palmolive profit after tax (PAT) in FY-2015 at Rs 558.98 crore (14 per cent of TI) was 3.5 per cent more than the Rs 539.87 crore (15.1 per cent of TI) in the previous year.

Please refer to Fig B above. PAT in Q4-2015 at Rs 163.63 crore (16 per cent of TI) increased 23.7 per cent as compared to the Rs 132.3 crore (14.3 per cent of TI) in Q4-2014 and was 25 per cent more than the Rs 130.86 crore (13.2 per cent of TI) in Q3-2015. During the 12 quarter period under consideration, PAT shows a linear increasing trend in absolute rupees. The slope of the orange broken trend line indicates that PAT in absolute rupees intercepts the Q4-2015 ordinate at Rs 140.914 crore, much lower than the actual PAT of Rs 163.63 crore achieved by the company in Q4-2015.

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. The slope of the broke blue trend line indicates an intercept with the Q4-2015 ordinate at 13.53 per cent, again much lower than the PAT at 16 per cent of TI actually achieved by the company.

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 rupeesand in terms of percentage of TI was in Q2-2013 at Rs 109.52 crore and 12.2 per cent of TI.

May 23, 2015
FY-2015: Britannia marketing spends up 8%

BENGALURU: Britannia Industries Limited spent eight per cent more towards Advertisement and Sales Promotion (ASP) in FY-2015 at Rs 651.70 crore (8.3 per cent of Net total Income from Operations or TIO) versus Rs 603.65 crore (8.7 per cent of TIO) in FY-2014.

The company’s ASP in Q4-2015 (quarter ended 31 March, 2015, current quarter) at Rs 202.89 crore (9.8 per cent of TIO) was 33.8 per cent more than the Rs 146.19 crore (8.1 per cent of TIO) in Q4-2014 and was 21.6 per cent more than the Rs 166.90 crore (8.2 per cent of TIO) in the immediate trailing quarter.

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

In FY-2015, Britannia’s TIO increased 13.7 per cent to Rs 7858.42 crore as compared to the Rs 6912.71 crore in FY-2014. Please refer to Fig 1 below. Over the 12 quarter period starting Q1-2013 until the current quarter, Britannia TIO was the highest in Q4-2015 at Rs 2063.64 crore. TIO in the current quarter was 13.9 per cent more than the Rs 1812.44 crorein Q4-2014 and 1.5 per cent more than the Rs 2033.28 crore in the trailing quarter.

The broken grey trend line indicates that the company’s TIO has a linear increasing trend and intercepts Q4-2015 ordinate at Rs 2054.976 crore as compared to the TIO of Rs 2063.64 crore actually achieved by Britannia.

During the period under consideration in this report, Britannia’s ASP in the current quarter 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 and the blue broken trend lines indicate a linear increasing trend for ASP in absolute rupees as well as percentage of TIO. The slope of the maroon broken trend line indicates an intercept at the Q4-2015 ordinate at 8.46 per cent as compared to the 9.8 per cent of TIO actually spent by Britannia. The slope of blue broken trend line indicates an intercept at Q4-2015 of Rs 173.4448 crores, the company actually spent Rs 202.89 crore.

In FY-2015, Britannia reported PAT of Rs 688.64 crore (8.8 per cent of TIO), which was 74.2 per cent more than the Rs 395.35 crore (5.7 per cent of TIO) in FY-2014.

Please refer to Fig 2 below. Britannia’s PAT in Q4-2015 at Rs 167.25 crore (8.1 per cent of TIO) increased 55.4 per cent as compared to the Rs 100.32 crore (5.6 per cent of TIO) in Q4-2014 and was 21.9 per cent more than the Rs 137.22 crore in the immediate trailing quarter. 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.

In August 2014, Indiantelevision.com had indicated that Britannia Industries PAT in Q2-2015 would probably be a new record. During the 12 quarter period under consideration, the company’s PAT in Q2-2015 was indeed 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.

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 3.4 per cent of TIO.

However, based on the trends during the period under consideration in this report, the slope of the red broken trend line indicates its intercept on the Q4-2015 ordinate as 9.11 per cent of TIO as opposed to the 8.1 per cent actually achieved by the company. In absolute rupees, the slope of the purple broken trend line indicates its interception of the Q4-2015 ordinate as Rs 182.261 crore as compared to the PAT of Rs 167.25 crore achieved by the company.

The board of directors of the company have recommended a dividend of 800 per cent (Rs 16 per equity share having face value of Rs 2 each) for FY-2015.

May 23, 2015
FY-2015: Despite lower revenue, Balaji Telefilms back in the black; board recommends 30% dividend

BENGALURU: Balaji Telefilms Limited (Balaji Telefilms) reported 15 per cent decline in consolidated Total Income from Operations (TIO) at Rs 346.49 crore in FY-2015 (year ended 31 March, 2015, current year) as compared to Rs 407.46 crore in the previous year. The company reported a consolidated profit after tax (PAT) of Rs 5.62 crore (1.6 per cent of TIO) as compared to a loss of Rs 17.21 crore in the previous year, (FY-2014 results had included survival benefits of a keyman insurance policy to the extent of Rs 6.73 crore).

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

(2) All numbers are consolidated unless stated otherwise.

Consolidated operating revenue in Q4-2015 declined 8.8 per cent to Rs 76.94 crore as compared to Rs 84.4 crore in Q4-2014, but improved 7.5 per cent from Rs 71.54 crore in Q3-2015.

The company reported a positive consolidated EBIDTA in FY-2015 of Rs 6.06 crore as compared to negative EBIDTA (operating loss) of Rs 21.78 crore in the previous year. Consolidated EBIDTA in Q4-2015 was Rs 8.04 crore as compared to negative EBIDTA (operating loss) of Rs 22.37 crore in Q4-2014 and negative EBIDTA (operating loss) of Rs 6.91 crore in Q3-2015.

Balaji Telefilms’ consolidated cost of production of movies and television serials in FY-2015 declined 23 per cent to Rs 296.53 crore as compared to the Rs 395.09 crore reported in FY-2014. Consolidated cost of production of movies and television serials declined 36.1 per cent in Q4-2015 to Rs 59.84 crore as compared to the Rs 93.63 crore in Q4-2014 and declined 13.4 per cent as compared to the Rs 69.14 crore in Q3-015.

Revenue Streams

The following subsidiaries, LLPs’ and revenue streams contribute to Balaji Telefilms consolidated numbers: Balaji Telefilms standalone; wholly owned subsidiaries BMPL and Boll Media Limited; other subsidiaries and LLP – Marinating Films and Event Media LLP.

Balaji Television

On a standalone basis, Balaji Telefilms Total Operating Revenue (TOR) in FY-2015 increased 59 per cent to Rs 205.76 crore as compared to the Rs 129.20 crore in FY-2015. TOR in Q4-2015 at Rs 60.64 crore was 51.4 per cent more than the Rs 40.07 crore in Q4-2014 and 3.6 per cent more than the Rs 58.53 crore in Q3-2015.

Standalone PAT in FY-2015 at Rs 12.27 crore was 22.5 per cent more than the Rs 10.02 crore in FY-2014. Standalone PAT in Q4-2015 was Rs 9.61 crore as compared to PAT of Rs 0.13 crore in Q4-2014 and Rs 3.09 crore in Q3-2015.

Standalone cost of production in FY-2015 at Rs 166.80 crore was 65.8 per cent higher than the Rs 100.6 crore in FY-2014.Standalone cost of production increased by 74 per cent in Q4-2015 to Rs 44.91 crore from Rs 25.82 crore in Q4-2014, but declined 5.7 per cent from Rs 47.61 crore in the previous quarter.

Excluding regional segment and events, on a standalone basis, Balaji Telefilms reported a 49.1 per cent growth in programming hours in the current quarter (Q4-2015) to 258 hours as compared to 177 hours in Q4-2014, but a decline of 6.9 per cent from the 277 hours in the previous quarter (Q3-2015).

The company’s revenue per hour increased by 0.7 per cent to Rs 23.06 lakh in Q4-2015 as compared to the Rs 22.90 lakh in Q4-2014, and increased by 11.7 per cent from the Rs 20.64 lakh in the immediate trailing quarter.

Balaji Telefilms Stock movement

The board of directors of the company has recommended a dividend of Rs 0.60 per equity share having face value of Rs 2 each, or 30 per cent, as compared to the Rs 0.40 per share (20 per cent) in the previous year.

The script closed at Rs 75.10 per equity share on the Bombay Stock Exchange (BSE), up 5.92 percent (up Rs 4.20) from the previous close of Rs 70.90. The share had opened at Rs 73.50 today and saw a volume of 415349 shares. The BSE Sensex witnessed fall of 27.86 points to close at 27809.35 points today.

On the National Stock Exchange (NSE), Balaji Telefilms shares closed at Rs 75.05 each, up 6.23 per cent (Rs 4.40) from the previous close of Rs 70.65 each. The share had opened at Rs 73 today on the NSE and saw a volume of 1627950 shares. NSE’s Nifty closed at 8241 points, down 2.25 points from yesterday.

May 21, 2015
FY-2015: Increased ad revenue propels Zee income by 10.4%; PAT up 9.6%

BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited (Zeel) reported a 9.8 per cent hike in PAT to Rs 977.50 crore (20 per cent of Total Income from Operations or TIO) in FY-2015 (year ended 31 March, 2015, current year) from Rs 892.08 crore (20.2 per cent of TIO) in FY-2014.

The company’s advertising revenue increased 11.8 per cent in the current year to Rs 2660.30 crore (54.5 per cent of TIO) from Rs 2380.05 crore (53.8 per cent of TIO) in the previous year and consequently, Zeel TIO increased 10.4 per cent in FY-2015 to Rs 4883.65 crore from Rs 4421.70 crore in FY-2014.

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

The other revenue streams that add to Zeel TIO are subscription revenues and other sales and services (other) revenues. Zeel’s subscription revenues were almost flat (down 0.5 per cent) in FY-2015 at Rs 1793.48 crore (36.7 per cent of TIO) from Rs 1802.22 crore (40.8 per cent of TIO) in the previous year. Other revenue increased by 79.5 per cent to Rs 429.87 crore (8.8 per cent of TIO) in FY-2015 as compared to the Rs 239.43 crore (5.4 per cent of TIO).

Let us look at the other numbers reported by Zeel for FTY-2015 and Q4-2015:

Zeel PAT in Q4-2015 improved 6.1 per cent to Rs 230.77 crore (17.1 per cent of TIO) as compared to the Rs 217.58 crore (18.8 per cent of TIO) in the corresponding year ago quarter, but declined 25.2 per cent as compared to the Rs 308.61 crore (22.6 per cent of TIO) in the immediate trailing quarter.

Zeel TIO in Q4-2015 at Rs 1347.05 crore was 16.2 per cent more than the Rs 1158.81 crore in Q4-2014, but declined 1.2 per cent as compared to the Rs 1363.72 crore in Q3-2015.

Advertising revenue in Q4-2015 increased 15 per cent to Rs 669.66 crore (49.7 per cent of TIO) as compared to the Rs 582.36 crore (50.3 per cent of TIO) in Q4-2014, but declined 9.8 per cent as compared to the Rs 743.60 crore (54.5 per cent of TIO) in Q3-2015.

Subscription revenue in Q4-2015 increased 10.2 per cent to Rs 510.77 crore (39.9 per cent of TIO) in Q4-2014 and increased 14.5 per cent from Rs 446.13 crore (32.7 per cent of TIO) in the previous quarter.

Zeel says that during Q4-2015, domestic subscription revenues stood at Rs 417.5 crore, while for FY-2015, it stood at Rs 1424 crore. Adjusting for the difference due to accounting changes necessitated by change in the Telecom Regulatory Authority of India’s (TRAI) content aggregator regulation like-to-like growth for the full year FY-2015 is in low teens.

Further, during Q4-2015, international subscription revenues stood at Rs 93.3 crore. Due to change in arrangement with various operators across international territories, the reporting of subscription revenue for the current year has undergone a change and hence previous year figures are not comparable with that of current period. For the full year FY-2015, like-to-like growth in rupee terms was in mid-single digit.

‘Other’ revenue in Q4-2015 increased 47.6 per cent to Rs 166.62 crore (12.4 per cent of TIO) as compared to the Rs 112.91 crore (9.7 per cent of TIO) in the corresponding year ago quarter, but declined 4.8 per cent as compared to the Rs 174.99 crore (12.8 per cent of TIO) in the previous quarter.

The company’s Total Expenses (TE) in FY-2015 increased 13.2 per cent to Rs 3697.27 crore (75.7 per cent of TIO) as compared to the Rs 3267.54 crore (73.9 per cent of TIO) in FY-2014. TE in Q4-2015 increased 26.3 per cent to Rs 1093.70 crore (81.2 per cent of TIO) as compared to the Rs 866.15 crore (74.7 per cent of TIO) in Q4-2014 and increased by 6.5 per cent as compared to the Rs 1027.36 crore (75.3 per cent of TIO) in Q3-2015

Zeel’s operation cost in FY-2015 at Rs 2139.34 crore (43.8 per cent of TIO) was 3.4 per cent more than the Rs 2068.79 crore (46.8 per cent of TIO) in FY-2014. Operation cost in Q4-2015 increased 13.9 per cent to Rs 620.09 crore (46 per cent of TIO) as compared to the Rs 544.42 crore (47 per cent of TIO) in the corresponding quarter of last year but was 4.9 per cent lower than the Rs 645.57 crore (47.3 per cent of TIO) in Q3-2015.

The company’s Employee Benefits Expense (EBE) in FY-2015 increased 15.2 per cent to Rs 449.83 crore (9.2 per cent of TIO) as compared to the Rs 390.52 crore (8.8 per cent of TIO) in the previous year. EBE in Q4-2015 at Rs 120.89 crore (9 per cent of TIO) was 21.1 per cent more than the Rs 99.84 crore (8.6 per cent of TIO) in Q4-2014 and 10.6 per cent more than the Rs 109.27 crore (8 per cent of TIO) in Q3-2015.

Zeel’s advertisement and publicity expenses (ad expenses) in FY-2015 increased 50.1 per cent to Rs 372.2 crore (7.6 per cent of TIO) as compared to the Rs 247.93 crore (5.6 per cent of TIO) in FY-2014. Ad expenses in Q4-2015 more than doubled (2.23 times) to Rs 132.46 crore (9.8 per cent of TIO) as compared to the Rs 59.42 crore (5.2 per cent of TIO) in Q4-2014 and was 54.2 per cent more than the Rs 85.92 crore (6.3 per cent of TIO) in Q3-2015.

Company speak

Zeel chairman Subhash Chandra said, “With a stable government at the centre, the Indian economy has shown some signs for optimism and is expected to see a positive growth trajectory. New initiatives like the Make in India campaign and other reform measures have boosted confidence among investors in the successful and sustainable growth of the economy. Introduction of GST in the coming future should be a positive for the media sector. With the aforementioned developments in the economic environment we hope that the media industry will see improvement in the revenues.”

Chandra added, “Our performance in this quarter is reflective of the investments we are making to further enhance of market position. We continue to pursue opportunities in existing and new markets that will yield long-term growth. Since, financially we are in a sound position, we are confident that we will benefit from exploring such growth opportunities in the coming year.”

Zeel managing director and CEO Puneet Goenka said, “This quarter, our performance has been satisfactory. As expected, advertising spends increased during the quarter backed by consistent performance of our channels. We also witnessed a sustainable growth in our subscription revenues in this period and with the implementation of digitization in Phase III and IV we expect to see our subscription revenues grow further in the future.”

May 21, 2015
FY-2015: Forex, PS4, image sensors boost Sony revenue 5.8%

BENGALURU: Sony Corporation reported a 5.8 per cent growth in sales and operating revenue in FY-2015 (year ended 31 March, 2015, current year) at ?8215.9 billion as compared to the ?7767.5 billion in FY-2014. The company says that the increase was primarily due to the impact of foreign exchange rates, a significant increase in Game & Network Services (G&NS) segment sales reflecting the strong performance of PlayStation 4 (PS4) and a significant increase in Devices segment sales due to the strong performance of image sensors. This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business. On a constant currency basis, sales were essentially flat year-on-year says the company.

The company’s operating income more than doubled (up 2.6 times) to ?68.5 billion in the current year from ?26.5 billion in the previous year. Sony says that the increase was primarily due to a significant improvement in the operating results of the Devices, G&NS and Home Entertainment & Sound (HE&S) segments. This improvement was partially offset by a significant deterioration in operating results in the Mobile Communications (MC) segment, primarily due to a ?176.0 billion ($1,467 million) impairment of goodwill.

The net loss attributable to Sony’s stockholders in the year at ?126 billion in FY-2015 was slightly lower than the loss of ?128.4 billion in FY-2014.

Business Segments

Mobile Communications (MC)

Sony’s MC segment reported 11 per cent improvement in sales and operating revenues in FY-2015 to ?1323.3 billion as compared to the ?1191.8 billion in FY-2014. The segment reported an operating loss of ?220.4 billion in the current year as compared to an operating profit of ?12.6 billion last year. As mentioned above, the major contributor to loss was the impairment of goodwill of ?176.0 billion.

Game & Network Services (G&NS)

G&NS segment reported 33 per cent growth in sales and operating income to ?1388 billion in FY-2015 as compared to the ?1043.9 billion in FY-2014. Sales and operating income increase was primarily due to an increase in PS4 hardware unit sales, an increase in network services revenue, the impact of foreign exchange rates and an increase in PS4 software sales, partially offset by a decrease in PlayStation3 (PS3) hardware and PS3 software sales.

The segment’s operating profit improved to ?48.1 billion in the current year as compared to a loss of ?18.8 billion in the previous year.

Imaging Products & Solutions (IP&S)

IP&S reported 2.9 per cent drop in sales and operating revenue to ?720 billion in the current year from ?741.2 billion in the previous year primarily due to a significant decrease in unit sales of digital cameras and video cameras reflecting a contraction of these markets, partially offset by the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models.

Operating income more than doubled (2.08 times) in FY-2015 to ?54.7 billion as compared to the ?26.2 billion in FY-2014. This increase was mainly due to a reduction in selling, general and administrative expenses, the favourable impact of foreign exchange rates and the above-mentioned improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in sales of digital cameras and video says Sony.

Home Entertainment & Sound (HE&S)

HE&S revenue in FY-2015 improved 3.3 per cent to ?1207.3 billion from ?1168.6 billion in the previous year due to the impact of foreign exchange rates and an increase in sales of televisions, partially offset by a decrease in audio and video sales. Unit sales of LCD televisions increased mainly due to increases in North America, Japan and Europe, partially offset by decreases in Latin America and China. In Television, sales increased 10.7 per cent year-on-year to ?835.1 billion in FY-2015.

The segment reported operating profit of ?20.1 billion as compared to a loss of ?25.5 in the previous year due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the unfavourable impact of the appreciation of the U.S. dollar, reflecting the high ratio of US dollar-denominated costs.

Devices

Revenue improved 23.9 per cent in FY-2015 to ?957.8billion from ?773 billion in FY-2014 due to increase in sales of image sensors reflecting higher demand for mobile products, the impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 29.8 per cent year-on-year.

The segment reported operating profit of ?93.1 billion in the current year as compared to a loss of ?12.4 billion in FY-2014 due to the impact of the above-mentioned increase in sales of image sensors, the recording of a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the previous fiscal year and the favourable impact of foreign exchange rates.

Pictures

Sony’s Pictures segment report 5.9 per cent rise in FY-2015 in revenue to ?878.7 billion from ?829.6 billion in FY-2014. However in dollar terms, sales from the segment reduced 4 per cent to $7322 million due to a decrease in sales for Motion Pictures and Television Productions. The decrease in Motion Pictures sales was primarily due to lower theatrical revenues reflecting fewer theatrical releases as compared to the previous fiscal year. The decrease in Television Productions sales was due to the previous fiscal year benefitting from the extension and expansion in scope of a licensing agreement for game shows produced by SPE, including Wheel of Fortune. Sales for Media Networks increased year-on-year due to higher digital game revenues and advertising revenues primarily due to acquisitions made in the previous and current fiscal year.

Pictures segment operating income improved 13.4 per cent to ?58.5 billion in FY-2015 from ?51.6 billion in the previous year due to the favourable impact of the depreciation of the yen against the U.S. dollar. On a US dollar basis, operating income was essentially flat year-on-year. The current fiscal year benefitted from the stronger performance of the current fiscal year’s film slate as the previous fiscal year reflected the underperformance of White House Down and After Earth. The current fiscal year also benefitted from lower restructuring charges. Partially offsetting this increase was a gain recognized on the sale of SPE’s music publishing catalogue in the previous fiscal year, the above mentioned decrease in Television Productions sales and higher programming and marketing costs for SPE’s television networks in India.

Music

Sony’s Music segment reported an improvement of 8.2 per cent in revenue in FY-2105 to ?544.6 billion from ?503.3 in the previous year due to depreciation of the yen against the US dollar.

Operating Income in FY-2015 improved 17.4 per cent to ?59 billion form ?50.2 billion in FY-2014.

Financial Services

Financial Services revenue in FY-2015 increased nine per cent to ?1083.6 billion from ?993.8 billion in FY-2014. Operating income from the segment improved 13.5 per cent in the current year to ?193.3 billion from ?170.3 billion in the previous year.

Cyber attack impact on Sony’s FY-2015 figures

Sony’s FY-2015 numbers also included approximately $41 million (?4.9 billion) in costs primarily related to investigation and remediation expenses relating to a cyber attack on SPE’s network and IT infrastructure, which was identified in November 2014 (the cyber attack).

May 20, 2015