Category: Financials

Q3-2015: Den Network reports 18 per cent y-o-y growth in cable subscription revenue

BENGALURU: Den Networks Ltd’s (Den Networks) cable business subscription revenues net off LCO share grew 18 per cent, up 11 per cent y-o-y to Rs 116 crore in the current quarter from Rs 97 crore in Q3-2014 and its cable business operation margin was maintained at 19 per cent q-o-q.

Den added 1,97,000 set top boxes (STB) in Q3-2015, taking the total STBs deployed to approximately 68 lakh. The company said that its current digital subscriber base in phase 1 and 2 is approximately 50 lakh. Digital subscribers are expected to increase significantly with acceleration in non-DAS market informs the company.

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

Den Networks TIO at Rs 269.82 crore in Q3-2015 fell two per cent from Rs 274.26 in Q3-2014 and fell 7.9 per cent from Rs 291.72 crore in the preceding quarter. However, TIO in 9M-2015 at Rs 859.34 crore was 5.5 per cent more than the Rs 814.83 crore in HY-2014.

Den Networks recently launched its high speed broadband service, which is gaining great traction having achieved an average ARPU of Rs 740 per month in Q2-2015. This quarter, Den says that ARPU has improved to Rs 748 per month.

The company also says that its joint venture (JV) with Snapdeal.com has been received extremely well. Within the first month, Den Network claimed in Q2-2015 that the company has clocked an annualised Gross Merchandise Value (GMV) in excess of Rs 50 crore based on the annualised latest daily run rate and was expected to scale significantly as the channel gets distributed across networks. For Q3-2015, the company says that the market place based model now reaches 1.9 crore homes clocking Gross Merchandise Value (GMV) of Rs 100 crore.

Let us look at the other numbers reported by Den Networks:

Total expense (TE) in Q3-2015 at Rs 316.75 crore (117.8 per cent of TIO) was 32.7 per cent more than the Rs 238.63 crore (87 per cent of TIO) in Q3-2014 and was 6.4 per cent more than the Rs 297.81 crore (102.1 per cent of TIO) in Q2-2015. In 9M-2015, TE at Rs 899.48 crore (104.7 per cent of TIO) was 29.8 per cent more than the Rs 692.75 crore (85 per cent of TIO) in 9M-2014.

The company’s content cost in Q3-2015 at Rs 1100.96 crore (40.9 per cent of TIO) was 15.5 per cent more than the Rs 95.33 crore (34.8 per cent of TIO) in Q3-2014 and was 1.1 per cent more than the Rs 108.91 crore (37.3 per cent of TIO) in the immediate trailing quarter. For 9M-2015, content cost at Rs 325.39 crore (37.9 per cent of TIO) was 20.1 per cent more than the Rs 270.88 crore (33.2 per cent of TIO) in 9M-2014.

Den’s placement fee in Q3-2015 at Rs 8.86 crore was 76.1 per cent more than the Rs 5.03 crore in Q3-2014 and 57.4 per cent more than the Rs 5.63 crore in Q2-2015. 9M-2015 placement fee at Rs 19.81 crore was 19.1 per cent more than the Rs 16.64 crore in 9M-2014.

Den’s other expense in Q3-2015 increased 68.6 per cent to Rs 123.32 crore (45.9 per cent of TIO) from Rs 73.15 crore (26.7 per cent of TIO) in the corresponding year ago quarter and was 45.9 per cent more than the Rs 78.61 crore (26.9 per cent of TIO) in the preceding quarter. For 9M-2014, other expense at Rs 272.40 crore (31.7 per cent of TIO) was 27.6 per cent more than the Rs 213.51 crore (26.2 per cent of TIO) in 9M-2014.

Den’s EBIDTA (without considering other income) in Q3-2015 fell to just Rs 0.28 crore as compared to the EBIDTA of Rs 72.26 crore (26.3 per cent of TIO) in Q3-2014 and the Q2-2015 EBIDTA of Rs 40.94 crore (14 per cent of TIO). EBIDTA for 9M-2015 fell by 2.33 times to Rs 98.38 crore (11.4 per cent of IO) from Rs 228.98 crore in 9M-2014.

Other Income for the periods under consideration is as follows: Q3-2015 – Rs 23.94 crore; Q2-2015 – Rs 22.47 crore; Q3-2014 – Rs 22.98 crore; 9M-2015 Rs 64.96 crore; 9M-2014 – Rs 34.42 crore.

The company reported a loss of Rs 62.60 crore in Q3-2015 as against a profit after tax (PAT) of Rs 16.08 crore. The loss in the current quarter was more than thrice the loss of Rs 20.45 crore reported for Q2-2015. The company reported loss of Rs 81.93 crore in 9M-2015 as compared to a PAT of Rs 28.35 crore in 9M-2014.

February 14, 2015
Q3-15: Dabur q-o-q marketing spends up 15.4 per cent

BENGALURU: Dabur India Limited (Dabur) spent 15.4 per cent more towards Advertisement and Publicity (ASP) in Q3-2015 at Rs 319.38 crore (15.4 per cent of Total Income from Operations or TIO) as compared to the Rs 253.35 crore (13.1 per cent of TIO) in the immediate trailing quarter and 10.3 per cent more than the Rs 289.62 crore (15.2 percent of TIO) in Q3-2014. This quarter’s ASP is the highest the company has spent over 9 quarters starting Q3-2013 until Q3-2015, both in absolute rupees and in terms of percentage of TIO. In Q1-2015 also, Dabur had spent 15.4 per cent of TIO towards ASP, but the amount was Rs 254.22 crore.

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

In 9M-2015, Dabur spent Rs 858.99 crore (14.6 per cent of TIO) towards ASP as compared to the Rs 771.29 crore (14.5 per cent of TIO) in 9M-2014. The company’s lowest ASP in terms of percentage of TIO as well as absolute rupees during the period under consideration was 12.5 per cent and Rs 191.92 crore in Q4-2013. Dabur’s simple average ASP in terms of percentage of TIO is 14.1 per cent during the nine quarter period under consideration.

Fig 1 below indicates that Dabur’s ASP shows an upward linear trend both in terms of absolute rupees and ASP as percentage of TIO.

Among the products that Dabur has include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin hara fizz; OTC and Ethicals such as Lal Tail, Honitus Syrup; Haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine marks; Toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem natural fairness, Gold Bleach, Gulabari; Homecare brands such as Odomos, Odonil and Sanifresh; Food brands such as Real and Real Active.

Dabur’s TIO in Q3-2015 was 7.7 per cent higher at Rs 2079.02 crore more than the 1929.58 crore in Q2-2015 and 9.2 per cent higher than the Rs 1904.56 crore in the corresponding year ago quarter. In 9M-2015, TIO at Rs 5887.46 crore was 11 per cent more than the Rs 5305.89 crore in 9M-2014. Figure 2 below indicates that TIO has an increasing linear trend during the 9 quarter period under consideration.

Dabur PAT in Q3-2015 at Rs 282.78 crore (13.6 per cent of TIO) was 1.6 per cent lower than the Rs 287.48 crore (14.9 per cent of TIO) in Q2-2015 and 16.4 per cent more than the Rs 242.88 crore in Q3-2014. 9M-2015 PAT at Rs 781.07 crore (13.3 per cent of TIO) was 15.1 per cent more than the Rs 678.63 crore in 9M-2014. Fig 2 below indicates that PAT in absolute rupees and in terms of percentage of TIO shows a linear increasing trend.

“While the macroeconomic environment continues to be challenging and competitive intensity remains high, we continue to pursue a prudent growth strategy and have been efficiently managing the risks and challenges. Despite a sharp fall in growth rates in most consumer products segments, Dabur continued to focus on brand-building and market expansion programmes and reported strong growth in its core categories, which have been significantly ahead of the market. Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy,” said Dabur chief executive officer Sunil Duggal. Going forward, we will continue to pursue an aggressive growth strategy,” Duggal added.

Category Growths as per the company’s release

The Toothpaste business for Dabur grew much ahead of the industry ending the quarter with a strong 19 per cent surge. The Home Care business also reported an over 16 per cent growth during the quarter, while the Health

Supplements business grew by 13.5 per cent. The Hair Care category, led by strong growth in Shampoo business, ended the third quarter of 2014-15 fiscal with a 12.1 percent growth while the Foods category reported a near 12 per cent growth during the quarter.

The quarter also saw Dabur’s beauty retail subsidiary – NewU – mark a turnaround and report Profits for the first time in a quarter. The growth in Dabur’s International Business was led by Egypt at 29 per cent, Levant (comprising Yemen, Jordan, Lebanon & Syria markets) at 17 per cent and GCC at 14 per cent.

February 14, 2015
Q3-2015: Eros International q-o-q PAT, revenues more than double

BENGALURU: The Sunil Lulla led Indian motion picture production and distribution company Eros International Media Limited (Eros) reported more than double (up 2.18 times) PAT at Rs 109.34 crore (22.3 per cent of net Total Income from Operations or TIO or revenue) versus the Rs 50.14 crore (20.9 per cent of TIO) in Q2-2015 and 18.9 per cent more than the Rs 91.99 crore (21.3 per cent of TIO) in Q3-2014. In 9M-2015, PAT grew 23.4 per cent to Rs 195.32 crore (20.1 per cent of TIO) from Rs 158.30 crore (19.3 per cent of TIO) in 9M-2014.

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

The company has also reported more than double q-o-q TIO (up 2.05 times) in Q3-2015 at Rs 490.73 crore as compared to the Rs 239.90 crore in the preceding quarter and 13.4 per cent more than the Rs 43.268 crore in Q3-2014. Revenue (TIO) for 9M-2015 grew by 18.5 per cent to Rs 972.12 crore from Rs 820.05 crore in 9M-2014.

Eros released 42 films – 28 Hindi and 14 Tamil/Telugu regional films in 9M-2015 as compared to the 41 films (15 Hindi, 25 Tamil/Telugu and one other regional language film) in 9M-2014. Eros says that five of the films were high budget, seven were medium budget and 30 were low budget films in 9M-2015 as against two high budget, 18 medium budget and 21 low budget films in the corresponding nine month period of the last financial year.

The company informs that of the 12 films released in Q3-2015, three films were high budget while nine were medium and low budget films versus the two high budget films and 13 medium and low budget films in the corresponding year ago quarter.

Let us look at the other numbers reported by Eros for Q3-2015 and 9M-2015

Eros Total Expenditure (TE) in Q3-2015 at Rs 354.34 crore (70.4 per cent of TIO) was also more than double (up 2.05 times) the Rs 168.19 crore (70.1 per cent of TIO) in the immediate trailing quarter and 15.7 per cent more than the Rs 298.40 crore (69 per cent of TIO) in Q3-2014. TE in 9M-2015 at Rs 696.77 crore (71.7 per cent of TIO) was 16.6 per cent more than the Rs 597/64 crore (72.9 per cent of TIO) in 9M-2014.

The company’s finance cost in Q3-2015 at Rs 9.74 crore (two per cent of TIO) was 10.8 per cent lower than the Q2-2015 finance cost of Rs 10.92 crore (4.6 per cent of TIO) but was 31.8 per cent more than Rs 7.39 crore (1.7 per cent of TIO) in Q3-2014. For 9M-2015, finance cost at Rs 30.03 crore (3.1 per cent of TIO) was 65 per cent more than the Rs 18.20 crore (2.2 per cent of TIO) in 9M-2014.

Eros managing director Sunil Lulla said, “We are pleased to report robust results, which reflect the success of our strategy to invest in high quality film content and monetize it across existing and emerging revenue streams. In line with our core de-risking approach, we also registered strong pre-sales from our high profile Hindi and Tamil films such as Lingaa, Action Jackson and Kaththi. Our content pipeline has seen some impressive signings and we are excited to announce our entry into the Malayalam market enhancing our regional breadth.”

“ErosNow, our online service showcasing movies, music, music videos and television shows, is developing as a robust offering that carries tremendous potential. Along with improving internet connectivity and forecast of smartphones user base in India expanding to over 650 million (65 crore) in the next four years, we expect the demand for on-the-go entertainment to grow exponentially. We strongly believe ErosNow is well positioned to capitalize on the growing online consumption opportunity in India,” added Lulla.

February 13, 2015
Q3-2015: Higher depreciation, finance cost pares SAB profit; EBIDTA up

BENGALURU: Sri Adhikari Brothers Television Network Limited (SAB TV) reported less than one fifth (down 1/5.7 times) PAT in Q3-2015 at Rs 0.54 crore (2.4 per cent of Total income from Operations or TIO) as compared to the Rs 3.1 crore (16.2 per cent of TIO) in the corresponding year ago quarter, and one fifth of the PAT of Rs 2.73 crore in Q2-2015.

The company’s depreciation expense in Q3-2015 was 58.9 per cent higher y-o-y at Rs 3.70 crore versus Rs 2.33 crore and 66.8 per cent more than the Rs 22.21 crore in the immediate trailing quarter.

SAB TV’s interest/finance costs have more than trebled (up 3.28 times) in Q3-2015 at Rs 2.42 crore (10.5 per cent of TIO) versus the Rs 0.8 crore (4.8 per cent of TIO) in the corresponding year ago quarter and more than double (up 2.29 times) the Rs 1.06 crore in the immediate trailing quarter.

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

SAB’s simple EBIDTA without other income calculated using the data furnished by the company to the bourses in Q3-2015 at Rs 6.65 crore (28.8 per cent of TIO) was 9.2 per cent higher y-o-y versus the Rs 6.09 crore (31.8 per cent of TIO) in Q3-2014 and 10.9 per cent more than the Rs 6 crore (27.2 per cent of TIO) in Q2-2015

Let us look at the other numbers reported by SAB TV for Q1-2015

SAB reported 20 per cent higher TIO at Rs 23.10 crore in Q4-2015 as compared to the Rs 19;13 crore in Q3-2014 and 5 perceent more than the Rs 22.01 crore in Q2-2015.

SAB’s total expenditure was up 31.1 per cent at Rs 20.16 crore (87.2 per cent of TIO) in Q3-2015 as compared to the Rs 15.37 crore (80.4 per cent of TIO) in Q3-2014 and was 10.5 per cent more than the Rs 18.24 crore (82.9 per cent of TIO) in Q2-2015.

The company’s production/direct expense (prodn exp) is a major part of the expenditure. In Q3-2015, SAB TV’s production expense at Rs 14.34 crore (62.1 per cent of TIO), which was 3.7 per cent more than the Rs 11.60 crore (60.6 per cent of TIO) in Q3-2014 and was 1.9 per cent more than the Rs 14.07 crore (63.9 per cent of TIO) in the immediate trailing quarter.

Click here to read the unaudited results

February 12, 2015
Q3-2015: Hathway reports 2 per cent y-o-y revenue growth

BENGALURU: Indian multi system operator (MSO) Hathway Cable and Datacom Limited (Hathway) reported 1.9 per cent y-o-y growth in Q3-2015 with Total Income from Operations (TIO) of Rs 239.14 crore as compared to the Rs 234.78 crore but was 9.2 per cent lower than the Rs 263.51 crore in Q2-2015.

The company reported a higher loss of Rs 58.05 crore in Q3-2015 than the loss of Rs 36.86 crore in the corresponding year ago quarter and the loss of Rs 39.26 crore reported in Q2-2015.

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

Hathway’s EBIDTA calculated based on the figures submitted by the company (without other income) fell to Rs 24.58 crore (10.3 per cent of TIO) in the current quarter as compared to the Rs 36.74 crore (15.7 per cent of TIO) in Q3-2014 and also fell when compared to the Rs 40.03 crore (15.2 per cent of TIO) in the previous quarter.

Hathway’s income from operations consists mainly of subscription income from cable TV and broadband business, carriage and placement business, advertisement income, activation income from STB and other operating income.

In Q3-2015, the company’s cable business was 10.8 per cent lower at Rs 99 crore versus the Rs 111 crore in the previous quarter, placement income was down 8 per cent to Rs 75.8 crore from Rs 82.4 crore in Q2-2015, activation business at Rs 7.2 crore was less than a third of the Rs 22.2 crore in the immediate trailing, while broadband income, the only exception, was up 13 per cent at Rs 51.3 crore in the current quarter from Rs 45.4 crore in Q2-2015. The company says that placement revenues were affected due to content related issues in the current quarter that have since been resolved with the broadcasters.

Let us look at the other figures reported by Hathway:

Total Expenditure (TE) in Q3-2015 at Rs 274.39 crore (114.7 per cent of TIO) was 17.6 per cent more than the Rs 254.03 crore (108.2 per cent of TIO) in Q3-2014 and was almost same as the Rs 274.27 crore (104.1 per cent of TIO) in Q2-2015.

A major fraction of TE is the pay channel cost for Hathway. The company’s pay channel cost in Q3-2015 at Rs 94.04 crore (39.3 per cent of TIO) was 12.3 per cent more than the Rs 83.72 crore (35.7 per cent of TIO) in Q3-2014 and was 2.9 per cent lower than the Rs 96.81 crore (36.7 per cent of TIO) in the immediate trailing quarter.

The company reported 6.9 per cent higher depreciation and amortization expense (depreciation) in Q3-2015 at Rs 59.82 crore (25 per cent of TIO) versus the Rs 55.98 crore (23.9 per cent of TIO) and 17.8 per cent more than the Rs 50.78 crore (19.3 per cent of TIO) in Q2-2015.

Hathway’s finance cost in Q3-2015 at Rs 26.86 crore (11.2 per cent of TIO) was 19.5 per cent more than the Rs 22.48 crore (9.6 per cent of TIO) and 11.6 per cent lower than the Rs 30.39 crore (11.5 per cent of TIO) in Q2-2015.

Employee Benefit Expense (EBE) in Q3-2015 was Rs Rs 13.96 crore, in Q3-2014 EBE was Rs 13.79 crore and in Q2-2015 it was Rs 16.03 crore.

While Hathway’s cable universe subscription numbers and cable paying subscribers remained stagnant at 1.17 crore and 64 lakh respectively in Q3-2015 as compared to Q2-2015, Hathway has seeded 70000 set top boxes in Q3-2015, taking its digital subscription base to 85 lakh. Further, the company’s broadband home passed and broadband subscribers increased by 5000 and 10000 to 2 lakh and 4.3 lakh respectively, in Q3-2015 as compared to the previous quarter. Hathway also informs that it has about 600,000 STB’s in stock and plans to seed them at a rapid rate.

Earlier, Hathway had informed BSE that the Board of Directors of the Company at its meeting held on 13 November, 2014, inter alia, has considered and approved the subdivision of face value of Equity Shares into Equity Shares of smaller amount than is fixed in the Memorandum of Association; i.e. to subdivide 1(One) equity share of Rs 10/- each to 5 (Five) equity shares of Rs 2/- each, subject to approval of shareholders.

February 11, 2015
Q3-2015: ENIL reports 41 per cent higher q-o-q PAT

BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL) reported 40.9 per cent higher q-o-q PAT for Q3-2015 at Rs 32.84 crore (28.1 per cent of Total Income from Operations or TIO) as compared to the Rs 23.30 crore (22.4 per cent TIO) and 26.9 per cent more as compared to the Rs 25.88 crore (26.4 per cent of TIO) in the year ago quarter (Q3-2104).

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

ENIL TIO in Q3-2015 at Rs 116.98 crore was 12.4 per cent more that the Rs 104.03 crore in the immediate trailing quarter and was 19.1per cent more than the Rs 98.21 crore (26.3 per cent of TIO) in Q3-2014.

Let’s look at the other numbers reported by ENIL:

ENIL total expense (TE) in Q3-2015 at Rs 80.53 crore (68.8 per cent of TIO) was almost flat (down 0.4 per cent) as compared to the Rs 80.89 crore (77.8 per cent of TIO) in the previous quarter and was 18.3 per cent more than the Rs 68.38 crore (69.6 per cent of TIO) in Q3-2014.

The company’s production expense (Prod) in Q3-2015 at Rs 4.74 crore (4.1 per cent of TIO) was 5 per cent more than the Q2-2015 Prod cost of Rs 4.52 crore (4.3 per cent of TIO) and was 7.9 per cent more than the Rs 4.39 crore (4.5 per cent of TIO) in Q3-2014.

ENIL paid 11 per cent higher license fee in Q3-2015 at Rs 5.84 crore (5 per cent of TIO) versus the Rs 5.27 crore (5.1 per cent of TIO) in Q2-2015 and 11.9 per cent more as compared to the Rs 5.22 crore (5.3 per cent of TIO) in the corresponding year ago quarter.

The company’s marketing expense in Q3-2015 at Rs 25.75 crore (22 per cent of TIO) was 8.5 per cent more than the Rs 23.73 crore (22.8 per cent of TIO) in Q2-2015 and a whopping 85.9 per cent more than the Rs 13.85 crore (14.1 per cent of TIO) in Q3-2014.

Employee Benefit Expense (EBE) in Q3-2015 at Rs 21.21 crore (18.1 per cent of TIO) was 5.2 per cent more than the Rs 20.17 crore (19.4 per cent of TIO) in Q2-2015 and was was 14.6 per cent more than the Rs 18.51 crore (18.8 per cent of TIO) in Q3-2014.

Other expense in Q3-2015 reduced 23 per cent to Rs 14.66 crore (12.5 per cent of TIO) from Rs 19.05 crore (18.3 per cent of TIO) in Q2-2015 and was 20.1 per cent lower when compared to the Rs 18.34 crore (18.7 per cent of TIO) in Q3-2014.

“The bull-run in the radio business continues! A near 19 per cent revenue growth, matched by equally strong growth in EBITDA and PAT, is reflective of this. With Phase-3 auctions finally about to kick-off, the bull-run is expected to continue for the next three – five years. Our game plan for Phase-3 is aggressive, yet we are ever mindful of our profitability objectives,” said ENIL managing director and CEO Prashant Panday.

February 11, 2015
Q3-2015: TV Today y-o-y PAT up 28%; income up 18%; Radio segment disappoints

BENGALURU: TV Today Network Limited (TVTN) reported a 27.6 per cent growth in Profit after Tax (PAT) to Rs 26.34 crore in the current quarter (quarter ended 31 December, 2015, Q3-2015) as compared to the Rs 20.65 crore in Q3-2014 and almost double (up 99.5 per cent) the Rs 13.21 crore in the immediate trailing quarter Q2-2015. For 9M-2015 PAT at Rs 72.34 crore was 59.1 per cent more than the Rs 45.46 crore in 9M-2014.

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

The company reported 18.2 per cent growth in Net Total Income from Operations (TIO) at Rs 131.72 crore in Q3-2015 (quarter ended 31 December, 2015, current quarter) from Rs 11.142 crore in Q3-2014 and 17.9 per cent more than the Rs 116.69 crore in the immediate trailing quarter. 9M-2015 TIO improved 30.3 per cent to Rs 380.42 crore when compared to the Rs 292.03 crore in 9M-2014.

Two segments contribute to TVTN’s numbers – Television Broadcasting and Radio Broadcasting. TVTN’s Radio Broadcasting segment, which operates under the brand Oye! FM, disappointed by reporting 8.5 lower revenue at Rs 4 crore in Q3-2015 as compared to the Rs 4.37 crore in the corresponding year ago quarter and 5.1 per cent less than the Rs 4.21 crore in Q2-2015. For 9M-2015 this segment reported 1 per cent growth in revenue at Rs 11.57 crore from Rs 11.46 crore in 9M-2014.

The company’s radio broadcasting reported loss of Rs 1.94 crore in Q3-2015; loss of Rs 2.90 crore in Q3-2014 and loss of Rs 1.80 crore in Q2-2015. In 9M-2015, loss was lower at Rs 6.30 crore as compared to the Rs 7.24 crore in 9M-2014.

Let us look at the other results reported by TVTN

Total expense (TE) in Q3-2015 was 16.2 per cent higher at Rs 95.52 crore as compared to the Rs 82.23 crore in Q3-2014 and down 0.3 Rs 95.76 crore in Q2-2015. For 9M-2015, TE at Rs 290.59 crore was 28 per cent lower than the Rs 292.03 crore in 9M-2014.

The company’s advertisement, distribution and sales promotion expenses (ad spends) in Q3-2015 were almost flat (up 0.8 per cent) at Rs 25.19 crore as compared to the Rs 25 crore and 0.3 per cent lower than the Rs 25.28 crore in Q2-2015. 9M-2015 ad spends at Rs 71.99 crore were 6.5 per cent lower than the Rs 67.62 crore in 9M-014.

Production cost in Q3-2015 at Rs 12.89 crore was 18.8 per cent more than the Rs 10.85 crore in the year ago quarter and was 1.2 per cent more than the Rs 12.74 crore in Q3-2014. For 9M-2015, Production cost at Rs 39.08 crore was 39.8 per cent more than the Rs 27.94 crore in 9M-2014.

TVTN’s Television Broadcasting (Television) segment reported 19.3 per cent growth in revenue to Rs 127.73 crore in Q3-2015 as compared to the Rs 107.06 crore in Q3-2014 and 18.8 per cent more than the Rs 107.48 crore in the immediate trailing quarter. Television segment reported 30.8 per cent revenue growth to Rs 366.84 crore in 9M-2105 from Rs 280.57 crore in 9M-2014.

The Television segment’s operating profit in Q3-2015 at Rs 39.22 crore was 16.2 per cent more than the Rs 33.75 crore in Q3-2014 and was 85.4 per cent more than the Rs 21.16 crore in Q2-2015. 9M-2015 operating profit at Rs 111.81 crore was 46.7 per cent more than the Rs 76.2 crore in 9M-2014.

February 6, 2015
Q3-2015: NDTV y-o-y revenue up 18%; company reports profit

BENGALURU: New Delhi Television Limited (NDTV) reported 17.9 per cent y-o-y growth in consolidated Total Income from Operations (TIO, revenue) to Rs 149.93 crore in the current quarter (quarter ended 31 December, 2014, Q3-2015) as compared to the Rs 127.21 crore in Q3-2014 and 26.4 per cent more than the Rs 110.38 crore in Q2-2015. TIO for 9M-2015 at Rs 407.73 crore was 21.4 per cent more than the Rs 335.79 crore in 9M-2014.

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

The company reported consolidated profit after tax (PAT) of Rs 1.56 crore in the current quarter as compared to a consolidated loss of Rs 10.43 crore in Q3-2014 and a consolidated loss of Rs 26.89 crore in Q2-2015. Loss in 9M-2015 at Rs 26.82 crore was lower than the Rs 49.75 crore in 9M-2014.

Let us look at the other results reported by NDTV

The company says that NDTV and allied business unit revenue went up to Rs 134 crore in Q3-2015 from Rs 122 crore in the year ago quarter. This segment’s EBIDTA doubled to Rs 18 crore in the current quarter from Rs 9 crore in Q3-2014. This business unit reported PAT of Rs 7 crore as compared to a loss of Rs 3 crore in Q3-2014.

NDTV’s Convergence business unit reported revenue of Rs 30 crore in Q3-2014 as compared to revenue of Rs 19 crore in Q3-2014. This segments EBIDTA reduced to Rs 2 crore in Q3-2015 from Rs 6 crore in Q3-2014.

The company’s Total Expenditure (TE) in Q3-2015 at Rs 145.94 crore was 9.8 per cent more than the Rs 132.95 crore in Q3-2014 and 10.2 per cent more than the Rs 132.43 crore in Q2-2015. 9M-2015 TE at Rs 426.54 crore was 8.7 per cent more than the Rs 392.3 crore in 9M-2014.

Q3-2015 Production expense went up 24.8 per cent to Rs 28.63 crores as compared to the Rs 22.93 crore in the year ago quarter and was 32.3 per cent more than the Rs 21.64 crore in the immediate trailing quarter. Production expense increased 24.7 per cent to Rs 86.93 crore in 9M-2015 as compared to the Rs 69.74 crore in 9M-2014.

Marketing, distribution and promotional expense (marketing expense) went up 17.7 per cent in Q3-2015 to Rs 30.91 crore as compared to the Rs 26.27 crore in Q3-2015 and was 23.8 per cent higher than the Rs 24.96 crore in Q2-2015. For 9M-2015, the company spent 11.4 per cent more at Rs 81.64 crore towards marketing than Rs 73.27 crore in 9M-2014.

Employee Cost (EBE) in Q3-2015 was 6.8 per cent higher at Rs 46.24 crore than the Rs 43.29 crore in Q3-2014 and was 1.3 per cent more than the Rs 45.65 crore in Q2-2015. EBE in 9M-2015 at Rs 137.75 crore was 3.5 per cent more than the Rs 133.14 crore in 9M-2014.

The company’s operating and administrative expense (O&E) in Q3-2015 at Rs 27.73 crore was 14.6 per cent lower than the Rs 32.48 crore in Q3-2014 and 14.4 per cent lower than the Rs 32.41 crore in Q2-2015. 9M-2105 O&E at Rs 94.59 crore was 3.8 per cent lower than the Rs 90.95 crore in 9M-2014.

February 6, 2015
Q3-2015: Balaji q-o-q income up 22% on higher programming, less loss

BENGALURU: Balaji Telefilms Limited (Balaji Telefilms) reported 21.6 per cent growth in consolidated Total Income from Operations (TIO) at Rs 71.54 crore in Q3-2015 (quarter ended 31 December, 2014, current quarter) from Rs 58.84 crore in the immediate trailing quarter and 69.1 per cent more than the Rs 42.30 crore in the corresponding year ago quarter. 9M-2015 TIO was however 16.6 per cent lower at Rs 268.68 crore than the Rs 322.38 crore in 9M-2014.

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

All numbers are consolidated unless stated otherwise

The company reported a lower consolidated loss of Rs 6.96 crore in the current quarter as compared to the Rs 7.58 crore in the previous quarter, but higher loss than the loss of Rs 5.75 crore in the year ago quarter. The company reported a loss of Rs 3.98 crore in 9M-2015 versus a profit after tax of Rs 10.18 crore in 9M-2014.

On a standalone basis, Balaji’s EBIDTA at Rs 4.25 crore was more than double the EBIDTA of Rs 2.01 crore in Q3-2014. Standalone EBIDTA for Q2-2015 was negative Rs 2.98 crore, while for 9M-2015, it was Rs 5.07 crore against an EBIDTA of Rs 0.09 crore in 9M-2014.Standalone PAT at Rs 3.09 crore was 86 per cent more than the Rs 1.66 crore in Q3-2014. The company had reported a standalone loss of Rs 2.39 crore in Q2-2015. For 9M-2015, standalone profit was 73 per cent lower at Rs 2.66 crore as compared to the Rs 9.89 crore in 9M-2015.

Higher revenue in the current quarter can be attributed to the fact that Balaji produced 60.1 per cent more hours of programming at 277 hour in the current quarter versus the 173 hours in Q3-2014 and 26.5 per cent more than the 219 hours in Q2-2015. However, the company reported lower revenue per hour of Rs 20.64 lakh in Q3-2015 as compared to the Rs 21.18 lakh in the corresponding year ago quarter and a little higher than the Rs 20.45 lakh in the immediate trailing quarter. The revenue per hour and the hours of programming excludes regional segment, event business and incentives.

Consequently, revenue from commissioned programmes went up 50.6 per cent in Q3-2015 to Rs 61.97 crore from Rs 41.16 crore in Q3-2014 and was 25.6 per cent more than the Rs 49.33 crore in Q2-2015. Commissioned programmes segment reported 41.4 per cent higher operating profit at Rs 7.56 crore in the current quarter from Rs 5.35 crore in Q3-2014 and was 29.2 per cent more than the Rs 5.85 crore in the previous quarter.

Revenue from commissioned programmes increased 68 per cent to Rs 157.30 crore in 9M-2015 as compared to the Rs 98.89 crore in 9M-2015. Operating profit from this segment more than doubled to Rs 19.57 crore in 9M-2015 as compared to the Rs 9 crore in 9M-2014.

Soon, with Balaji’s content portfolio comprises more than 20 films that are expected to hit the silver screen in the near term, the company’s films segment should again start churning out larger numbers and consolidated profits.

February 6, 2015
Q2-2014: News Corp reports flat results due to lower advertising, forex; EPS down

BENGALURU: A 3.9 per cent drop in advertising revenue and negative foreign exchange (forex) impacted News Corporation (News Corp., company) numbers for the quarter ended 31 December, 2014 (Q2-2015, current quarter).

Total revenues went up marginally by 2.8 per cent to US$ 2280 million in the current quarter from US$ 2238 million in the corresponding year ago quarter (Q2-2014, quarter ended 31 December, 2013). The company says that the majority of the revenue increase reflects strength in the Book Publishing and Digital Real Estate Services segments.

News Corp adds that Australian newspapers revenues declined 8 per cent due to negative foreign currency fluctuations and modest advertising revenue declines. Total News and Information Services segment advertising revenues declined 9 per cent, driven primarily by weaknesses in the UK print advertising market, lower revenue from free-standing insert products at News America Marketing and negative foreign currency fluctuations.

Net income available to News Corp stockholder was down 5.3 per cent in Q3-2015 to US$ 142 million from US$ 150 million in the corresponding year ago quarter resulting in a 7.7 per cent drop in basic and diluted EPS to US$ 0.24 in Q2-2015 from the US0.26 in Q2-2014. Adjusted was US$ 0.26 compared to US$ 0.31 in the prior year.

The Company reported almost flat second quarter total segment EBITDA of US$ 328 million compared to US$ 327 million in the prior year quarter. The company says that these results include US$ 13 million and US$ 19 million in fees and costs – net of indemnification – related to the U K Newspaper Matters in the three months ended 31 December, 2014 and 2013, respectively, as well as US$ 16 million of one-time transaction costs in the second quarter of fiscal 2015 related to the acquisition of Move, Inc. (Move). Strong revenue performances in the Book Publishing and Digital Real Estate Services, combined with lower expenses related to the capitalization of Amplify Learning’s software development costs, which were offset by the above mentioned declines at the News and Information Services segment and negative foreign currency fluctuations. Adjusted total segment EBITDA increased 4 per cent compared to the prior year.

Company Speak

News Corp chief executive Robert Thomson said, “The development of the new News Corp continued apace in the second quarter as we began the transformation of the just acquired realtor.com, which has certainly exceeded our expectations in traffic growth in recent weeks. We were clearly buffeted by currency headwinds, but the strength of our brands, the breadth of our reach, the intensifying focus on cost discipline and the power of our portfolio meant that we saw continued growth in revenue and increasing upside in our long-term prospects. Our digital personality has evolved quickly, with realtor.com having given us a new and influential platform, digital subscribers on the rise at our news mastheads, robust growth at REA, and healthy e-book sales at HarperCollins. The vision we outlined for the company is becoming a reality, and while we have much work ahead, the foundations we have laid over the past 18 months put us in a strong position for enduring success and increased shareholder value.”

Segment Results

News and Information services

This segment had witnessed revenue decline in the previous quarter (Q1-2015). In Q2-2015 also revenue declined 5.5 per cent to US$ 1523 million from US$ 1612 million in Q2-2014. This segment’s EBIDTA declined 15.3 per cent to US$ 216 million from US$ 255 million in the year ago quarter.

The declines mentioned above were partially offset by higher advertising revenues at Dow Jones, across the Wall Street Journal franchise. Circulation and subscription revenues declined 3 per cent, due to the decline in professional information business revenues at Dow Jones and lower print circulation volume, partially offset by higher subscription pricing, cover price increases says News Corp.

Book Publishing

Book publishing segment revenues increased 19.9 per cent to US$ 469 million from the US$ 391 million reported for the year ago quarter. This segment’s EBIDTA increased 13.2 per cent to US$ 77 million in the current quarter as compared to the US$ 68 million in Q2-2014.

News Corp informs that revenue growth in this segment was driven by the inclusion of the results of Harlequin Enterprises Limited (Harlequin) and strong performances in Children’s and General Books resulting from higher backlist sales during the holiday season, which largely offset the lower revenues from the Divergent series. E-book revenues improved by 14 per cent versus the prior year period, driven by Harlequin, and represented 17 per cent of consumer revenues.

Cable Network Programming

Revenue from this segment increased marginally by 1.8 per cent to US$ 112 million in the current quarter from US$ 110 in the year ago quarter primarily due to higher affiliate pricing and increased subscribers says the company. Segment EBIDTA was correspondingly up 1.9 per cent to US$ 54 million from US$ 53 million in Q2-2014. The company attributes increase in EBIDTA to higher revenues, partially offset by negative foreign currency fluctuations and higher programming rights and production costs.

Digital Real Estate Services

This segment reported a whopping 49.5 per cent increase in revenue from US$ 103 million in the year ago quarter to US$ 154 million in the current quarter. News Corp says that the increase was primarily driven by the inclusion of the results of Move, coupled with higher residential listing depth product penetration and higher pricing at REA Group Limited (REA Group). However, this segment’s EBIDTA increased marginally by 3.6 per cent in the current quarter to US$ 57 million from US$ 55 million in Q2-2014. The company says that increase in revenue was partially offset by US$16 million of one-time transaction costs related to the acquisition of Move. Excluding the contributions from Move, divestitures and foreign currency fluctuations, Adjusted revenues and Adjusted Segment EBITDA increased 26 per cent and 38 per cent, respectively, compared to the prior year.

Digital Education

This segment reported flat revenue in Q2-2015 and Q2-2014 at US$ 22 million as higher subscription revenues at Amplify Insight and higher revenues at Amplify Access were offset by lower Amplify Insight consulting revenues and lower revenues at Amplify Learning, related to the early grade print and hybrid learning products says the company. Segment EBIDTA improved 45.5 per cent to a negative US$ 24 million in the current quarter from a negative US$ 45 million in the year ago quarter primarily due to the impact of the capitalization of Amplify Learning’s software development costs of US$ 14 million and lower expenses.

Other

News Corp explains that Segment EBITDA in the quarter improved by US$ 8 million compared to the prior year, primarily due to lower fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the U.K. Newspaper Matters) of approximately $ US6 million. The net expense related to the U.K. Newspaper Matters was US$ 13 million for the three months ended 31 December, 2014 as compared to US$ 19 million for the three months ended 31 December, 2013.

February 6, 2015