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Category: Financials

  • Wavemaker India presents Earned Equity report – IPL 2023 edition

    Wavemaker India presents Earned Equity report – IPL 2023 edition

    Mumbai: Wavemaker MESH – real time data intelligence solution today released the eight edition of Earned Equity report that reads real time environmental signals on IPL 2023. The report analyses how the audience perception of IPL has evolved over the years. It focuses on the digital audience and uses data points like consumption data around digital content and social and search insights. 

    The report records the social conversations around IPL 2023 based on multiple data points collated to create meaningful and actionable insights. This season report has data sources from multiple consumer touchpoints across digital ecosystem ranging from social listening, video analytics in partnership with Intuition Intelligence Inc. (viral analytics & insights partner), Tubular Labs, CrowdTangle, user generated content with logo recognition and interaction data points collected from Facebook, Twitter, Instagram, and YouTube. 

    Commenting on the report, Wavemaker CEO – South Asia Ajay Gupte said, “I am extremely pleased to introduce the highly anticipated 8th edition of the ground-breaking Earned Equity report, meticulously crafted by our in-house MESH team. In today’s competitive landscape, brands cannot afford to overlook the power of social conversations. I believe, the earned equity report can serve as a valuable resource for brands, offering them the insights they need to navigate the ever-changing social media landscape and reach new heights in terms of audience engagement and brand awareness. This report is a reflection of our commitment to staying ahead of the curve, leveraging the power of data analysis and cutting-edge technologies to provide our clients with unparalleled insights and guidance”.

    Key highlights of the report: 

    • IPL 2023 edition generated even more interest, interactions & video views when compared to the previous season leading to a 39 per cent increase in overall buzz. The tournament featured two months of captivating engagements, including iconic matches and moments that significantly elevated its popularity.
       
    • The buzz score for IPL 2023 season 16 reached an impressive 484 million, surpassing the 334 million in IPL 2022. The primary reason for this surge was the emergence of several new players who showcased their talents, delivering match-winning performances and leaving a lasting impact.
       
    • IPL continues to gain popularity on a global scale as well, ranking as the second most popular sports event after the English Premier League. It surpasses other major sports events such as NFL, NBA, Major League Baseball, and T20 Cricket World Cup. The report suggests that IPL is expected to surpass EPL and become the most popular sporting event worldwide. 
       
    • The consumption of video content related to IPL 2023 has seen significant growth, almost 2.5 times more than the previous period. The rise in video consumption reflects the increasing engagement and interest of fans across the globe
       
    • This year, according to Wavemaker MESH Earned Equity Report on IPL 2023 season, Chennai Super King and Royal Challenger Bangalore continue to be the conversation driver teams with Gujarat Titans climbing the popularity spot rapidly
       
    • One of the hallmarks of IPL is its unpredictability. The IPL finals kept fans on the edge of their seats, where Ravindra Jadeja played a match-winning inning, making it one of the most iconic/talked about matches in IPL history ever and creating a rollercoaster ride of emotions throughout the match. This match generated six times more conversations than the most conversed match during the league stage
       
    • While the IPL showcases established superstars, it also serves as a platform for young and emerging talent to shine. The league has been instrumental in unearthing hidden gems, providing a launchpad for promising cricketers to showcase their skills on a grand stage. Fans eagerly await the emergence of new heroes who can make a lasting impact on the game and capture their hearts with their electrifying performances. To capture the impact of young blood, Wavemaker MESH introduced a ‘Disruptive XI’ leader board to recognize emerging talent, with players like Rinku Singh and Yashaswi Jaiswal standing out as the ‘hottest property’ of IPL 2023.
       
    • Amongst Wavemaker MESH XI Player leader board, King Kohli continued to be the most popular sports figure in this IPL season. This year, we also saw the emergence of rising stars like Shubman Gill, Vishnu Vinod, and Rinku Singh, who quickly gained popularity during the tournament because of their nail-biting performances.
       
    • This year Wavemaker MESH has launched a new measurement currency – Most Visible Principal Sponsor on any digital asset around IPL using technology like image recognition. According to the report, Jio emerged as most visible Principal Sponsor followed by Gulf, Slice and Happilo. Team Principal Sponsors, Jio led the leader board since it had partnered with 4 teams, followed by Gulf Oil’s ‘Gulf Fan Academy’ campaign for Chennai Super King which received significant engagement from the audience, Slice for Mumbai Indians, and Happilo for Royal Challenger Bangalore.
       
    • IPL has been associated with the super bowl of India and is the time of the year when advertisers create engaging ads to make an impact with the audience. According to our technology partner Intuition Intelligence (Viral analytics and Insights provider), Jio Cinema created the top four most viral video ads during IPL 2023, securing the top spot. Their collaboration with Sachin Tendulkar played a crucial role in creating engaging and widely shared content. Garnier Facewash Rap and Qatar Airways #PlayBold followed on the viral video content leader board.
       
    • According to Wavemaker MESH The Earned Media Equity for IPL 2023 reached Rs 3,738 crores, with sponsor Earned Media valued at Rs 871 crores. Tata, as the title partner, held the highest valuation, followed by Jio Cinema, Gulf, and Star Sports.
       
    • The earned media valuation of teams stands at Rs 2,867 crores with Chennai Super Kings with the highest Earned Media Value, followed by Royal Challengers Bangalore and Mumbai Indians. Chennai Super Kings’ popularity, backed by their association with MS Dhoni, contributed to their significant valuation, which was twice that of Royal Challengers Bangalore.

    These highlights from the report illustrate the increased buzz, player performances, global appeal, sponsorships, and media value associated with IPL 2023, making it an exciting and impactful event for cricket enthusiasts.

  • Persistent sustains growth momentum, revenue up by 17.1 per cent Y-o-Y, 3.0 per cent Q-o-Q

    Persistent sustains growth momentum, revenue up by 17.1 per cent Y-o-Y, 3.0 per cent Q-o-Q

    Mumbai: The 33rd Annual General Meeting of the Company was held on 18 July, 2023. All the resolutions, including a final dividend payment of Rs 12 per share and a special dividend of Rs 10 per share on achieving $1 Billion in annual revenue, were passed with the requisite majority. This makes the total dividend for FY23 to be Rs 50 per share as compared to Rs 31 per share for FY22. 

    Consolidated Financial Highlights for the Quarter ended June 30, 2023:

    * In Q1FY24, there was a one-time expense towards client events and employee gifts on account of achieving the $1B revenue milestone. Adjusted for this, PAT margin was 11.4% for Q1FY24, with Q-o-Q growth of 5.4% and Y-o-Y growth of 25.2%.

    Persistent CEO & executive director Sandeep Kalra said, “We commenced the year by celebrating a significant milestone of surpassing $1 billion in annual revenue with our clients, partners, and team members. As we enter our new fiscal year, I’m pleased to share that we have sustained our growth momentum despite the challenging macroeconomic conditions. Our Digital Engineering leadership, extensive experience across key industries, curated partner ecosystem, and the ability to stay ahead of disruptive technology trends has led to our ongoing success. 

    We also want to extend our warm welcome to Dr. Ajit Ranade, a renowned academician, corporate executive, economist, and thought leader, as an Independent Director to our Board. He will bring his impressive experience of 32+ years to help guide our strategy and accelerate our growth journey.” 

    First Quarter FY24 Client Wins and Outcomes

    The order booking for the quarter ended on 30 June, 2023, was at $380.3 million in Total Contract Value (TCV) and at $271.9 million in Annual Contract Value (ACV) terms.

    Some of the key wins for the quarter include:

    Software, Hi-Tech & Emerging Industries 

    • Establishing a software lab to engineer new products and enhance existing products for a leading SaaS provider related to customer support, sales, and other customer communications. 
    • Providing engineering services and support of Network Services Orchestration (NSO) platform for a multinational digital communications conglomerate.
    • Developing Generative AI proofs of concept and building database connectors for serverless data integration for a multinational technology company.

    Banking, Financial Services & Insurance

    • Driving digital transformation for customer acquisition and service, along with sales and marketing automation platforms for the financial services arm of a Fortune 500 automobile company. 
    • Supporting application migration and providing managed services to ensure seamless integration of an acquired automation platform for a leading US-based financial software company. 
    • Developing a Data Science platform for Risk Management, Identity Access Management and Regulatory/compliance applications for a leading corporate investment banking services provider. 

    Healthcare & Life Sciences

    • Engineering Data and Machine Learning platforms and accelerating product capabilities to drive an innovation roadmap for a multinational managed healthcare and insurance company.
    • Building and managing a Unified Data Platform encompassing analytics for sales inventory, sales order pipeline etc. for a European multinational medical equipment manufacturing firm.
    • Engineering platforms for data curation, analytics, and laboratory management and migrating data lake to the cloud for a leading molecular diagnostics company in the space of early-stage cancer detection.  

    News in the Quarter

    • Persistent Expands Relationship with AWS to Adopt Amazon CodeWhisperer
    • Persistent Unveils New Global Hub in Texas for Private Equity Value Creation
    • Persistent Inaugurates New Office in Poland to Expand Footprint in Europe
    • Forbes: Persistent Systems: Balancing Culture and Values with Rapid Growth, featuring Sandeep Kalra
    • The Times of India: Persistent Systems Positive on Generative AI-led Growth, featuring Sandeep Kalra
    • The Stack: Tech services firm Persistent is rolling out an AI coding companion to 16,000 engineers. Its CTO recognises the risk, featuring Pandurang Kamat

    Awards and Recognitions

    • Sandeep Kalra recognized as the Best CEO in the IT and ITeS category by Business Today
    • Persistent named the fastest-growing IT Services brand in India in the Brand Finance India 100 2023 report
    • Persistent recognized as a Leader in Everest Group’s Payments IT Services PEAK Matrix Assessment 2023
    • Persistent featured in Everest Group’s 2023 PEAK Matrix Service Provider of the Year awards under the Top 10 ITS Challengers list
    • Persistent named a Leader in ISG Provider Lens Digital Engineering Services Quadrants U.S. 2023
    • Persistent named a Leader in the Salesforce Ecosystem Partners 2023 ISG Provider Lens Study
  • Disney explores strategic options for its Star India business

    Disney explores strategic options for its Star India business

    Mumbai: Disney is exploring strategic options for its Star India business, including a joint venture or a sale, a sign of strain at one of the premier properties it acquired from Fox. The company has talked to at least one bank about ways to help the India business grow, while sharing some of the costs, according to people familiar with the matter. The talks are in the early stages and it is unclear which options, if any, Disney might pursue. Disney and many of its rivals are in the throes of a costly pivot toward streaming and away from traditional TV businesses. Toward that efort, they spent heavily on deals, content and technology at home and abroad, with mixed success. Disney paid $71.3 billion in 2019 for entertainment assets of 21st Century Fox.At the time, Star India was considered one of Fox’s crown jewels, and it was an important part of Disney’s plan to build out its fledgling streaming business globally. The deal gave Disney the broadcast and streaming rights for increasingly popular Indian Premier League cricket matches as well as dozens of TV channels in several languages and a stake in a production company that makes Bollywood movies. Star’s Hotstar mobile-first streaming service, which at the time offered most of its content free, had 150 million monthly active users and was growing rapidly, largely because of the popular cricket rights.That business’s fortunes changed last year after Disney lost a bidding war for the rights to continue streaming those cricket matches. Without that programming, the service became less appealing to many users. Hotstar is expected to lose 8 million to 10 million subscribers in its fiscal third quarter, some of the people familiar with the matter said. Star’s overall revenue for the fiscal year ending September 2023 is expected to drop around 20 per cent to slightly less than $2 billion, the people said. Its earnings before interest, taxes, depreciation and amortisation is expected to fall roughly 50 per cent for that time period, from about $200 million last year, they said. That is a sharp decline from Fox’s projections before the deal that Star India would earn $1 billion in Ebitda by 2020. Star is expected to lose money in Disney’s 2024 fiscal year, the people said. Disney earns far less per streaming customer in India than in the U.S., and that number has dropped. Hotstar generated an average of 59 cents in revenue per subscriber each month in the April quarter, down from an average of $1.20 at its peak in the summer of 2022, according to Disney earnings reports. Disney lost the digital cricket rights in a bidding war last year to Viacom18, a joint venture between Paramount Global and Indian billionaire Mukesh Ambani’s Reliance Industries. That joint venture also includes Bodhi Tree Systems, run by Uday Shankar, a former CEO of Star India, and is backed by Lupa Systems, a holding company controlled by James Murdoch, former CEO of 21st Century Fox. James Murdoch is the son of media baron Rupert Murdoch, executive chair of Wall Street Journal parent News Corp. At the time, Disney agreed to pay $3 billion to retain the rights to broadcast the IPL on its Star India television network through 2027, a price tag that raised eyebrows among Wall Street analysts. Research firm Media Partners Asia projected Disney+ Hotstar could lose 15 million subscribers in fiscal 2023 as a result of the lost streaming rights. Disney has told investors it aims to make its streaming business profitable by September 2024, a goal that was set by former CEO Bob Chapek and that current CEO Bob Iger has said he will hit. Some of the businesses that had helped subsidise streaming have experienced weakness of late, including the legacy TV business and theme parks.

  • L Catterton invests $60 million in Drools

    L Catterton invests $60 million in Drools

    Mumbai: Drools Pet Food Pvt. Ltd., India’s pet food brand, has announced the successful completion of funding with L Catterton (LVMH), the world’s leading consumer growth investor. The private equity firm has invested $60 million in Drools, which amounts to 10 per cent of the company’s valuation, making it one of the largest investments till date in the pet care industry in India. This builds on L Catterton’s longstanding track record of growing pet food businesses across the world and marks its foray into the sector in India.

    Founded by Fahim Sultan in 2010, Drools Pet Food Pvt. Ltd. has achieved remarkable success as an MNC pet food company and emerged as the market leader in India, commanding a significant 38% market share. Expanding its reach globally, the brand now exports its products to over 22 countries, including Australia, Israel, and the UAE. With ambitious plans to enter the Russian market this year and the United States in the near future, Drools is poised for further international growth. Backed by a dedicated sales force of 1,800 employees out of a total of 3,400, the brand’s products are available at an extensive network of 34,000 retail outlets nationwide. The company also runs on SAP, Salesforce and other technology platforms.

    With the largest manufacturing capacity in the sector, Drools operates three state-of-the-art production facilities and a consolidated warehouse facility spanning a consolidated area of 8-lakh sq. ft. This robust infrastructure enables Drools to cater to a vast number of pets, offering a diverse range of 650 SKUs, with 50 per cent of the prescription diet coming from the brand. Notably, Drools also holds the distinction of being India’s leading cat food brand. The brand feeds the maximum number of pets in the country and consistently delivers a wide range of assortment that meets the evolving needs of discerning pet parents in India.

    The investment from L Catterton is a significant milestone for Drools, validating its innovative approach to the pet food industry and positioning the company for strategic expansion. The funding will be utilised to enhance manufacturing capabilities to meet the growing demand for high-quality pet food products. Additionally, it will accelerate the company’s retail plan, bolster the marketing budget, and attract top talent to support future growth.

    Drools Pet Food Pvt. Ltd. founder Fahim Sultan, remarked that this development emphasised the company’s commitment to sustainable long-term growth as a key element of its overall strategy. He said, “At Drools, we are dedicated to driving sustainable growth that aligns with our core values. Our focus is on building a strong foundation for the future by delivering high-quality pet food products while embracing responsible business practices. This partnership will unlock a new phase of growth as India’s developing pet market matures across metros, as well as Tier 1 and Tier 2 cities.  This funding milestone enables us to further solidify our position in the market and continue our journey towards creating a positive impact in the pet food industry. L Catterton’s expertise and ability to create value for companies in the pet food sector is well known across the industry. We are keen to leverage its consumer insights, operating know-how, as well as commercial network to further strengthen our brands and recruit talent as we see many years of secular growth ahead.”

    Drools Pet Food Pvt. Ltd. CEO & veterinarian Shashank Sinha, believes that this new development would play a major catalyst in the company’s long-term plans. “We are thrilled to have secured this funding, which will play a vital role in driving our company’s growth and expansion strategies. With the support of our new partner, we will strengthen our production capabilities, expand our retail footprint, and invest in strategic marketing initiatives. This investment reflects the confidence in our business model and our commitment to providing superlative pet food products to our customers,” he said.

    “What truly differentiates Drools is its ability to manufacture high-quality products across the price ladder and make them available to pet parents via every relevant channel, be it online on Amazon or Flipkart, or offline in over 34,000 points of sale spanning specialty vet shops, veterinary clinics, and general trade stores,” commented L Catterton Asia partner Anjana Sasidharan. “Its focus on product quality has helped it become a brand that has gained a reputation for providing high protein content at value-for-money price points, cultivating a very loyal base of customers. This is an exciting time to be entering the country’s pet food market, which we believe is at an inflection point, and we look forward to working closely with the Drools team to further scale its business.” L Catterton has significant experience building brands in the pet food space across the world. Current and past investments in the sector include Butternut Box, Canidae, Inspired Pet Nutrition, Instinct, JustFoodForDogs, Lily’s Kitchen, Old Mother Hubbard, Partner Pet, Petlove, Pure & Natural, and Rachael Ray Nutrish. In India, the company has made investments in renowned consumer brands such as FabIndia and Sugar Cosmetics.”

    With the funding boost, Drools aims to ramp up its production capacity, streamline operations, and strengthen its distribution network. The company will focus on expanding its retail stores network while leveraging e-commerce channels to reach a wider customer base. With a portfolio encompassing renowned dog and cat food brands such as Drools, Pure Pet, Meat Up, Canine Creek, and Kitty Yum, making it the largest seller in the segment on Amazon with a 100% e-commerce presence.

  • ZEEL records Rs 8168 Cr as revenue for FY23

    ZEEL records Rs 8168 Cr as revenue for FY23

    Mumbai: Zee Entertainment Enterprises Ltd.’s revenue for the fiscal ended 3 March 2023 stands at Rs 8167.62 crore compared to last fiscal’s Rs 8305.86 crore.

    The company has recorded ad revenue of Rs 4057.89 crore, a drop of 7.6 per cent compared to last year’s Rs 4396.15 crore.

    Subscription revenue saw a 2.7 per cent growth at 3335.47 crore on 31 March 2023, compared to Rs 3246.6 crore last fiscal.

    The company said that its other sales and services revenue YoY was down 25 per cent, and up 71 per cent QoQ aided by new launches and higher syndication revenue.

    The total revenue for its OTT platform ZEE5 stood at Rs 741 crore, up by 36 per cent in FY23 compared to the previous fiscal.

    The company said that the programming and technology costs were higher YoY due to higher content cost in movies, investment in ZEE5 and Sports.

    Advertising & Promotional expenses surged by 23 per cent to Rs 1055.4 crore from Rs 858.5 crore as new content launches on Digital increased the marketing cost on a YoY and QoQ basis.

  • Zomato Q4FY23 results – Growth and profitability dilemma continues

    Zomato Q4FY23 results – Growth and profitability dilemma continues

    Mumbai: Zomato has reported muted revenue growth of 22.6 per cent YoY in the food business this quarter, as MTU’s decline 4.6 per cent QoQ due to 1) initiative of Zomato Gold and 2) shut down in 225 cities; in terms of GOV, the growth was mere 12.2 per cent YoY (MTU growth of 5.7 per cent YoY), due to inflationary pressure impacting overall delivery revenue.

    AOV and delivery charges remain flat, as order volume was more driven by new user acquisition and increased frequency; respite for profitability continues on the back of lower discounts, which had the biggest impact for moving contribution margin 70bp higher QoQ to 5.8 per cent in the food segment. The management maintains their guidance of 4-5 per cent of EBITDA as a percentage of GOV in the food business over medium term, however, there may be pressure on revenue growth rates too, to keep AOV under check and drive higher frequency within the existing customer base, rather than spend more on discounts/new customer acquisition.

    We believe food GOV growth rates will come closer towards 15-20 per cent over the near term, whereas food revenue growth rates could be towards 20 per cent-22 per cent driven by better take rates.

    We continue to believe that initiativesl like ONDC and direct ordering platforms won’t disrupt Zomato’s business model as unit economics are not favourable for restaurants due to lower AOV and higher delivery costs; however, it may keep take rates stable for most chains, restaurants that have a higher AOV vs average (Rs 400); we may also see a scenario of take rates being linked to AOV, as latter will lead to savings (lower take rates) for restaurants.

    Quick commerce segment continues to report robust GOV growth (17 per cent QoQ in Q4FY23) with an improved margin profile, but concerns persist on the same due to low scale potential, as launching the offering in more cities could negatively impact AOV and eventually potential unit economics; reduction in losses is a key monitorable for this segment as concerns in the form of higher competitive intensity and discounts persist.

    Zomato is currently trading at 39x FY25 EV/EBITDA (core food delivery segment), after factoring a 18 per cent growth in the food GOV, and 3 per cent EBITDA margin as a percentage of GOV; however, including losses of Blinkit (estimated to be in the range of INR 2.75bn in FY25), valuations for Zomato are high at 52x FY25 EV/EBITDA (consolidated business including quick commerce). The stock has already moved up 30 per cent over the last 3M and is trading at fair valuations, offering limited upside in the near term. 

  • Complaints against ads up 14% in half year period in FY23: ASCI report

    Complaints against ads up 14% in half year period in FY23: ASCI report

    Mumbai: The Advertising Standards Council of India (ASCI) released its half-yearly complaints report, which consists of data from April to September 2022.

    During the period, it processed 3,340 complaints against 2,764 advertisements that were in potential violation of the ASCI code. About 55 per cent of these ads were spotted across the digital domain, followed by 39 per cent in print and five per cent on television.

    As compared to 2021-22, ASCI saw a 14 per cent rise in the number of complaints while witnessing a 35 per cent increase in the number of ads processed. Education remained the most violative sector, with 27 per cent of the complaints related to it; 22 per cent belonged to the classical education category, while five per cent were from the ed tech sector.

    These were followed by personal care (14 per cent), food & beverages (13 per cent), healthcare (13 per cent) and gaming (4 per cent). ASCI’s surveillance remains strong, picking up 65 per cent of the ads processed suo motu.

    98 per cent of consumers’ complaints were received by the artificial-intelligence-based complaints management system TARA. The introduction of TARA has given consumers a comprehensive, hassle-free redressal process. About 16 per cent of the total complaints recorded were from consumers, followed by 15 per cent from the government, while intra-industry complaints comprised three per cent. Of the 2,764 potentially objectionable ads processed, 32 per cent were not contested by the advertisers, 59 per cent were found to be in violation of the ASCI code, and eight per cent were found not to be violating the code.

    Speaking about the survey, ASCI CEO and secretary general Manisha Kapoor said: “Looking at the rapid growth of digital advertising, we have invested heavily in ad-surveillance technology. We will continue to upgrade and streamline our processes to provide a more responsive platform to all stakeholders, including consumers, brands, and government bodies. In our constant pursuit of transparency, we have released a comprehensive report about the kinds of complaints and outcomes that ASCI has looked into during the first six months of the financial year.”

    Of the total complaints received by ASCI, 28 per cent of the violations were by influencers. Of the 781 complaints processed against influencers, 34 per cent were from the personal care category, followed by food and beverage at 17 per cent, and virtual digital assets at 10 per cent.

    As part of the report, ASCI also published a list of cases handled as well as non-compliant influencers and brands.

    Check the full report here:

     

  • Zeel Q2 PAT down by 58.3%; revenue up by 2.5%

    Zeel Q2 PAT down by 58.3%; revenue up by 2.5%

    Mumbai: Zee Enterprise Entertainment on Friday reported that second quarter revenue grew by 2.5 per cent to Rs 20,284 million compared to the same quarter in the previous fiscal. Q2 FY23 Ebitda (earnings before interest, taxes, depreciation, and amortisation) was down 28 per cent to Rs 2,973 million. It was impacted by slower growth in revenue and elevated investment in content, marketing, and technology. Ebitda margin was 14.7 per cent compared to 20.8 per cent for the same quarter in the previous fiscal. Profit after tax (PAT) fell by 58.3 per cent to Rs 1,128 million. Profit Before Tax fell by 50.7 per cent to $1,769 million.

    It said that a challenging macroeconomic environment continues to impact operating performance. Domestic ad revenues came in at Rs. 9,610 million, a decline of 7.7 per cent. Ad revenue growth was hampered by FTA withdrawal (Zee Anmol) and a difficult macroeconomic environment. Other sales and services revenue YoY is up 92 per cent aided by theatrical revenues and other syndication deals. Programming and technology costs increased due to higher theatrical releases, investments in Zee5 and higher programming hours in the linear business. Subscription revenue was up 4.2 per cent compared to the same quarter in the previous fiscal year.

    Q2 FY23 subscription revenues were aided by catch-up revenue from the previous quarter in the linear business and underlying organic growth in Zeee5 and music subscription revenues. Other sales and services revenue was up by 92 per cent aided by theatrical revenues and other syndication deals. The increase in marketing costs on a YoY basis is on account of new content launches and higher theatrical releases. Internationally, in Q2 FY23 ad revenue was Rs 518 million and subscription revenue was Rs 1,060 million.

    It stated that it would continue to invest in ZeeTV, Zee Marathi, Zee Tamil, and Movies in order to increase market share.

    Further, it strengthened its market position in Bangla, Odiya, Telugu and in the Kannada market. Q2 FY23 all-India TV network share was 16 per cent. QoQ it was up by 30 bps.

    Its OTT platform Zee5 reported Q2 revenues of Rs1,671 million, marking a 28 per cent growth over the same period in the previous fiscal. Zee5 global MAUs in Q2 FY23 were 112.4 million. This was an increase of 19 million over the same period in the previous fiscal year. The average watch time per month in Q2 FY23 was 198 minutes, an increase of 12 minutes over the same period in the previous fiscal. Over 66 shows and movies (including six originals) were released during the quarter.

    For Zee Studio, four Hindi and six regional movies were released during the quarter. Zeel also said that Zee Music Company is the second-largest music label with 89 million subscribers on YouTube.

  • Poor showing by Bollywood, Hollywood drags PVR to a Q2 loss of Rs 71.23 crore

    Poor showing by Bollywood, Hollywood drags PVR to a Q2 loss of Rs 71.23 crore

    Mumbai: The July-September quarter two 2023 fiscal for PVR was affected mainly because of the poor performance of Hindi movies. Making matters worse was the fact that Hollywood was also disappointed. As a result, it slipped back into a loss of Rs 71.23 crore compared with a consolidated net profit of Rs 53.38 crore in the first quarter of the fiscal ending June 2022. However, the loss was 53 per cent less than the Rs 153.13 crore for the second quarter of the previous fiscal, which had been affected by covid. Admissions and the average ticket price during the second 2023 fiscal quarter were impacted by the weak performance of Bollywood and Hollywood movies.

    Its revenue from operations has fallen from Rs 981.40 crore in the first quarter of the fiscal to Rs 686.72 crore in the second quarter. But it is a big improvement from the revenue of Rs 120.32 crore in the second quarter of the previous covid-impacted fiscal.

    The quarter, PVR noted, was marked by the continued underperformance of Bollywood movies. With the exception of ‘Brahmastra Part One : Shiva, most of the other big budget Bollywood movies performed below expectations, like Laal Singh Chaddha, Raksha Bandhan, and Liger. Brahmastra Part One : Shiva performed exceedingly well at the box office and emerged as the highest grossing Hindi film post-pandemic for PVR, with a net box office contribution of 19 per cent. The underperformance of Hindi films could be attributed to a number of factors, including films released prior to and during the pandemic that did not resonate well with current consumer tastes; content quality driving performance as opposed to star presence; and negative social media sentiments against certain Bollywood movies and stars.

    In Hollywood, the quarter ending September 2022 was the weakest globally in almost two decades, both in terms of the number of movies released and their box office collections. Box office collections for Hollywood movies for PVR dropped by a huge 47 per cent in Q2 FY’23 as compared to Q2 FY’20. Thor: Love and Thunder was the only big tentpole that performed well at the box office as compared to successful tentpoles like The Lion King, Spiderman : Far Away From Home, and Fast and Furious: Hobbs & Shaw in Q2 FY’20.

    If there was a silver lining, it was regional. For PVR, the box office contribution of regional movies increased nicely from 28 per cent in Q2 FY’20 to 44 per cent in Q2 FY’23. Movies like Sita Ramam, Kartikeya 2, Thiruchitrambalam, Rocketry, and Vikrant Rona performed well during the quarter ended September 2022.

    The multiplex exhibition industry on 23 September celebrated “National Cinema Day.” This was envisaged as an industry-wide initiative to welcome moviegoers back to theatres. More than 11 multiplex chains with 4,000+ screens across India participated in this initiative. Customers were offered movie tickets at Rs 75 and discounts on F&B products. PVR welcomed 6.5 lakh guests on this day, which proved to be the busiest day for it in 2022 and the second highest attended day till date with an occupancy of 80 per cent. PVR added that it is also implementing other initiatives to drive admissions back to cinemas.

    PVR added that the current third quarter has started off on a great note with strong responses received to new releases like Ponniyin Selvan – Part 1, Vikram Vedha and Kantara. The content pipeline over the next three months looks extremely promising. It has Bollywood movies that are up for release, like Ram Setu, Cirkus, Thank God, Drishyam 2, Bhediya, Kisi ka Bhai Kisi ki Jaan, Pathan, etc. From Hollywood, it is hoped for a better performance given the tentpoles like Black Adam, Black Panther: Wakanda Forever, and Avatar: The Way of Water. From the regional genre, there are Shaakuntalam, Vaathi, Kushi, Honeymoon, Padavettu, etc. lined up for release.

    PVR has opened 14 screens across three cinemas in the last quarter (24 screens across five cinemas in H1 FY’23) and is fast ramping up its capex plan to open a total of 110-125 new screens by the end of the current fiscal year.

    The announced merger with Inox Leisure, it said, is progressing well. Both the companies have received their respective shareholders and secured creditors’ approval for the proposed scheme of amalgamation. We expect that the NCLT process will be completed in 3–4 months.

    PVR chairman & MD Ajay Bijli said, “We remain focused on driving admissions back to our cinemas. India’s love for movies was well demonstrated by the massive success of the ‘National Cinema Day’. I am confident of a full recovery in the business, driven by the robust content lineup for this year and the various initiatives that we are implementing to rekindle the cinema-going habit amongst our loyal patrons. As we celebrate the silver jubilee for PVR this year, we are extremely optimistic that we will continue to set and exceed even greater benchmarks in the years to come.”

    PVR’s total income rose to Rs 703.13 crore, compared with Rs 275.21 crore in the same quarter of the previous fiscal. The Ebitda for the quarter was Rs 170 crore, almost double the Rs 86.8 crore for the same quarter in the 2022 fiscal. Its total expenses rose to Rs 813.33 crore, compared with Rs 460.68 crore in the same quarter in the previous fiscal.

  • Dish TV India’s consolidated net profit declines 64.47% in Q1 FY23

    Dish TV India’s consolidated net profit declines 64.47% in Q1 FY23

    Mumbai: Dish TV India on Wednesday announced their financial results for the first quarter of the financial year 2022–2023. The company’s reported net profit declined 64.47 per cent to Rs 17.85 crore in the quarter ended June 2022 as against Rs 50.24 crore during the previous quarter ended June 2021.

    Operating revenues for the quarter stood at Rs 608.6 crore. For the same period, the earnings before interest, taxes, depreciation and amortization (Ebitda) was Rs 323.8 crore with a margin of 53.2 percent and profit after tax was Rs 17.8 crore.

    In the quarter ended June 2022, sales fell 16.74 per cent to Rs 608.63 crore, compared to Rs 730.97 crore in the previous quarter ended June 2021.

    The company paid-off Rs 90.3 crore of debt during the quarter, thus reducing its overall debt to Rs 285.3 crore at the end of the first quarter of 2023 as compared to Rs 375.6 crore at the close of fiscal 2022.

    The first quarter of the current fiscal, to some extent, was an extension of the fourth quarter of the previous fiscal. Not only did inflation-linked cautiousness in viewers remain intact, the changing landscape of the entertainment industry continued to influence subscriber retention and growth.

    Dish TV chose the middle path and maintained a moderate pace of capital expenditure while prioritising debt repayment over new acquisitions.

    External factors dominated and impacted the recharge behaviour of DTH subscribers, with top-end consumers swapping between DTH and streaming content and bottom-end subscribers alternating between free-to-air and pay DTH, thus affecting revenues and net base.

    With a growing number of subscribers having access to OTT subscriptions, India’s streaming video market is expected to garner a revenue of Rs. 490 billion by 2027, up from Rs. 210 billion in 2022, according to the latest industry report.

    Speaking about the results, Dish TV India Group CEO Anil Dua said, “In the changing industry landscape, Dish TV is committed to exploring and embracing new possibilities that would enable it to offer a more contemporary and bespoke service bouquet. As an entertainment distribution company, we would want to be a one-stop destination for viewers seeking video content and continue working towards that objective.”

    Dish TV India chairman Jawahar Goel commented, “The company has been actively pursuing relevant technological developments in the business space and looks forward to aligning with those that will help it achieve its strategic and commercial goals.”

    “As an industry, we also continue to seek and hope for a level playing field in the distribution space, by way of uniform application of licence fees to either all players or to none of them, as Free DTH, Headend in the Sky (HITS), OTT and cable TV still remain outside the ambit of licence fees,” added Goel.