Category: Financials

Mukta Arts revenue, loss down in Q2-2015

BENGALURU: Mukta Arts Limited (MAL) reported lower Total Income from Operations (TIO) of Rs 23.95 crore in Q2-2015 versus the Rs 24.99 crore in the immediate trailing quarter and almost a fourth of the Rs 85.16 crore in the corresponding year ago quarter.

The company also reported lower loss in Q2-2015 at Rs 0.03 crore versus a loss of Rs 24.62 crore in Q1-2015 and a nominal PAT of Rs 0.16 crore in Q2-2014. TIO in HY-2015 was Rs 48.93 crore, less than a third of the Rs 156.60 crore in HY-2014. The company has reported y-t-d a loss of Rs 24.65 crore versus PAT of Rs 0.91 crore in HY-2014.

The company’s financial statements indicate that its income from operations include Rs 3.5 crore relating to certain rights in Q2-2015. MAL’s other income includes Rs 1.19 crore, the proceeds of a keyman insurance policy.

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

Let us look at the other figures reported by the company

MAL total expenditure (TE) in Q2-2015 at Rs 23.74 crore was 52.3 per cent lower (less than half) the Rs 49.74 crore in Q1-2015 and 71.9 percent lower (less than a third) of the Rs 84.61 crore in Q2-2014. HY-2015 TE at Rs 73.48 crore was 52.6 per cent less than the Rs 154.95 crore in HY-2014.

Distributors/producers share in Q2-2015 was less than a fourth at Rs 5.74 crore of the Rs 23.04 crore in Q1-2015 and 1/13.6 times the Rs 78.21 crore in Q2-2014. Distributors/producers share in HY-2015 was Rs 28.78 crore, for HY-2014, it was Rs 143.15 crore.

Amortisation of tangible assets including film rights (amortisation expense) in Q2-2015 was Rs 9.26 crore versus the Rs 19.5 crore in Q1-2015 and the Rs 0.37 crore in Q2-2014. HY-2015 amortisation was Rs 28.76 crore, in HY-2014 it was Rs 0.42 crore.

During the current quarter, the company commenced its cinemas at Sangli and Hyderabad. Its Theatrical Exhibition segment’s revenue in Q2-2015 was Rs 8.11 crore as compared to the Rs 6.32 crore in Q1-2015 and the Rs 3.52 crore in Q2-2014. For HY-2015, revenue from Theatrical Exhibition segment revenue rose to Rs 14.43 crore from Rs 7.2 crore in HY-2014. The segment reported operating profit of Rs 0.07 crore versus an operating a loss of Rs 0.14 crore in Q1-2015 and an operating loss of Rs 0.24 crore in Q2-2014. Operating loss for HY-2015 at Rs 0.7 crore was lower than the Rs 0.16 crore in HY-2014.

November 14, 2014
DQ Entertainment reports profit for Q2-2015 versus loss in Q2-2014: Animation segment back in black

BENGALURU: The Tapas Chakravarti led DQ Entertainment (International) Limited (DQEIL) reported a profit after tax (PAT) of Rs 14.43 crore (27.4 per cent of Total Income from Operations or TIO) in Q2-2015 (quarter ended 30 September 2014, current quarter) versus a loss of Rs 12.06 crore in Q1-2015. PAT for the current quarter, however was down 36.5 per cent as compared to the Rs 22.72 crore (40.27 per cent of TIO). PAT in HY-2015 at Rs 2.38 crore (3.3 per cent of TIO) was less than a twelfth (1/12.4 times) the Rs 29.35 crore (33.7 per cent of TIO) in HY-2014.

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

Two segments contribute to DQEIL revenues – animation and distribution. The company’s animation segment which had reported operating loss of Rs 1.07 crore on segment revenue of Rs 9.93 crore in the previous quarter, reported an operating profit of Rs 23.62 crore on segment revenue of Rs 39.94 crore in Q2-2015. For Q2-2014, animation segment had reported operating profit of Rs 22.7 crore on higher operating revenue of Rs 41.57 crore. For HY-2015, this segment reported revenue of Rs 49.86 crore and an operating profit of Rs 16.47 crore versus higher revenue of Rs 69.14 crore and higher operating profit of Rs 29.43 crore in HY-2015.

The company’s distribution segment reported the following numbers: Q2-2015 – Revenue Rs 12.71 crore, operating profit Rs 12.02 crore; Q1-2015 – Revenue Rs 10.71 crore, operating loss Rs 1.19 crore; Q2-2014 – Revenue Rs 15 crore, operating profit Rs 9.44 crore; HY-2015 – Revenue Rs 23.41 crore, operating profit Rs 10.83 crore; HY-2014 – Revenue Rs 17.86 crore, operating profit Rs 7.58 crore.

Let us look at the other numbers reported by DQEIL for Q2-2015

DQEIL TIO in Q2-2015 at Rs 52.64 crore was more than double (2.5 times) the Rs 20.64 crore in the immediate trailing quarter, but 7 per cent lower than the Rs 56.58 crore in Q2-2014. TIO in HY-2015 at Rs 72.38 crore was 16.8 per cent lower than the Rs 87 crore in HY-2014.

The company’s total expenditure (TE) in Q2-2015 at Rs 25.24 crore (47.9 per cent of TIO) was 9 per cent less than the Rs 27.72 crore (134.3 per cent of TIO) in the previous quarter and 36.5 per cent lower than the Rs 41.77 crore (73.8 per cent of TIO). In HY-2015, TE at Rs 52.56 crore (72.6 per cent of TIO) was 33.5 per cent lower than the Rs 79.07 crore (90.9 per cent of TIO) in HY-2014.

DQEIL’s employee expense (EBE) in Q2-2015 at Rs 15.34 crore (29.1 per cent of TIO) was 7.8 per cent lower than the Rs 16.64 crore (80.6 per cent of TIO) and 22.3 per cent lower than the Rs 19.74 crore (34.9 per cent of TIO) in Q2-2014. HY-2015 EBE at Rs 31.98 crore (44.2 per cent of TIO) was 20 per cent lower than the Rs 39.97 crore (45.9 per cent of TIO) in HY-2014.

The company’s depreciation, amortization and impairment expense (depreciation) in Q2-2015 went up 4.6 per cent to Rs 7.98 crore (15.2 per cent of TIO) from Rs 7.63 crore (36.9 per cent of TIO) in Q1-2015 and was 18.9 per cent lower than the Rs 9.84 crore (17.4 per cent of TIO) in Q2-2014. HY-2015 depreciation at Rs 15.6 crore (21.6 per cent of TIO) was 17.5 per cent less than the Rs 18.92 crore (21.7 per cent of TIO) in HY-2014.

DQEIL’s production expense in Q2-2015 at Rs 1.78 crore (3.4 per cent of TIO) was 17.4 per cent lower than the Rs 2.15 crore (10.4 per cent of TIO) and almost 5 times the Rs 0.36 crore (0.6 per cent of TIO) in Q2-2014. Production expense in HY-2015 at Rs 3.93 crore (5.4 per cent of TIO) was almost double (1.95 times) the Rs 2.01 crore (2.3 per cent of TIO) in HY-2014.

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November 14, 2014
Viacom net profit up 2.6 per cent in FY-2014

BENGALURU: Viacom Inc., (Viacom) reported 2.6 per cent rise in net profit to US$ 2376 million for FY-2014 (year ended 30 September 2014) from US$ 2316 million in FY-2013. Revenue in FY-2014 at US$ 13783 million was almost flat as compared to the US$ 13794 million in FY-2013.

For Q4-2014 (quarter ended 30 September 2014, current quarter), Viacom reported a 1.4 per cent drop in profit to US$ 729 million from US$ 739 million in the corresponding quarter of last fiscal. Revenue in Q4-2014 at US$ 3991 million was 9.3 per cent more than the US$ 3652 million in Q4-2013.

Viacom executive chairman Sumner M. Redstone said, “As we conclude another fiscal year, Viacom remains well-positioned as a creative leader with many of the world’s most innovative media properties and best entertainment brands.”

Viacom president and CEO Philippe Dauman said, “Viacom’s record financial results in 2014 demonstrate the strength of our brands and continuing momentum for our strategy of investing in creativity, with a relentless focus on growing demographic and geographic markets and embracing new distribution platforms. Our Media Networks achieved continued growth in the fourth quarter and the fiscal year. Viacom’s affiliate distribution business remains a reliable engine for high-margin revenue expansion and provides significant opportunities to build new consumer experiences with long term distributors and emerging technology partners alike. Despite ratings challenges and uncertainty in the scatter advertising market at the close of the year, Viacom’s advertising revenues grew in fiscal 2014, as our creative and marketing teams rolled out innovative new offerings. We also continue to take the lead in defining the next generation of measurement tools that will more fully capture the growing multiplatform engagement of our audiences. Our September acquisition of Channel 5 has already made a positive impact on our business, and points the way to further significant long-term growth of our international business. Paramount delivered the top movie of 2014 and the largest-ever theatrical release in China – Transformers: Age of Extinction – and the studio successfully launched another long-term franchise with the Teenage Mutant Ninja Turtles.”

“This performance allowed us to continue the strong delivery of value directly to investors. Over the past five years, Viacom has returned US$ 16.1 billion to shareholders,” concluded Dauman.

Two main segments – Media Networks and Filmed Entertainment contribute to Viacom’s figures.

Media Networks

Media Networks in Q4-2014 reported 8.3 per cent higher revenue at US$ 2664 million as compared to the US$ 2460 million in Q4-2014. The segment also reported a 5.3 per cent revenue increase in FY-2014 to US$ 10171 million from US$ 9656 million in FY-2013.

Operating income for Media Networks grew 5 per cent to US$ 1087 million in Q4-2014 from US$ 1035 million and increased 4 per cent to US$ 4271 million in FY-2014 from US$ 4096 million in FY-2013.

The company says that Media Networks segment increased reflecting a 10 per cent increase in affiliate fees and a 2 per cent gain in advertising revenues driven by higher international advertising revenues.

Filmed Entertainment

Though Filmed Entertainment segment reported a 12.3 per cent increase in revenue in Q4-2014 to US$ 1357 million from US$ 1208 million in Q2-2013, for FY-2014, revenue dropped 13 per cent to US$ 3725 million from US$ 4282 million in FY-2014.

Operating Income from Filmed Entertainment fell 27 per cent to US$ 213 million in Q4-2014 from US$ 291 million in Q4-2013. Operating Income in FY-2014 fell 12 per cent to US$ 205 million from US$ 234 million in FY-2013.

Strong results from the current quarter releases and the carryover performance of Transformers: Age of Extinction drove Theatrical revenues up 226 per cent to US$ 557 million. Home entertainment revenues declined 38 per cent, reflecting two fewer releases in the current quarter while in FY-2014, Filmed Entertainment revenues decreased principally due to lower revenues across the distribution windows reflecting the number and mix of films says the company.

November 13, 2014
DirecTv’s US, Brazil ARPU up; Latin, pan-Americana ARPU down in Q3-2014; rev improves

BENGALURU: DirecTv announced its Q3-2014 results (quarter ended 30 September 2014, current quarter). The company reported 4.8 per cent growth in its US segment’s monthly average revenue per user (ARPU) from $ 102.37 in Q3-2013 to $ 107.27 in the current quarter. During the nine month period ended 30 September 2014 (9M-2104, ytd) ARPU from the US segment rose 4.6 per cent to $ 103.57 from $ 99 in 9M-2013.

Its Sky Brasil segment reported 6.2 per cent growth in ARPU to $ 60 in Q3-2014 from $ 56.50 in Q3-2013. During 9M-2014, ARPU reduced fractionally by 0.6 per cent to $ 59.57 from $ 59.9 in 9M-2013.

DirecTv’s Latin America segment ARPU at $ 48.88 in Q3-2014 fell 1.1 per cent from $ 49.92 in Q3-2013. 9M-2014 ARPU at $ 49.02 was 5.1 per cent lower than the $ 51.68 in 9M-2013.

Pan Americana segment reported the sharpest ARPU fall of 8 per cent to $ 39.64 in Q3-3014 from $ 43.07 in the corresponding year ago quarter. ARPU in 9M-2014 fell 9.4 per cent to $ 40.12 from $ 44.27 in 9M-2013.

Subscribers:

The company reported a subscriber churn of 1.73 per cent in its US segment in Q3-2014 versus a churn of 1.61 per cent in Q3-2013. Ytd subscriber churn was 1.58 per cent versus 1.53 per cent in 9M-2013. The number of cumulative subscribers rose 0.2 per cent to 20.203 million in Q3-2014 and 9M-2014 from 20.160 million in Q3-2013 and 9M-2013.

DirecTv Latin America (DTVLA ) owns approximately 93 per cent of Sky Brasil, 41 per cent of Sky Mexico and 100 per cent of PanAmericana, which covers most of the remaining countries in the region. Sky Mexico, whose results are accounted for as an equity method investment and therefore are not consolidated by DTVLA, had approximately 6.52 million subscribers as of 30 September 2014, bringing the total subscribers in the region to 18.87 million.

To its Sky Brasil segment, the company added net 27,000 subscribers in Q3-2014 to reach a total of 5.644 million as compared to 88,000 subscribers added to reach cumulative subscribers of 5.255 million in Q3-2013. During 9M-2014, Sky Brasil added 273,000 subscribers versus the 216,000 subscribers added in 9M-2013. The company has not reported churn for its Sky Brasil segment.

The number of cumulative subscribers for Latin America segment in Q3-2014 and 9M-2014 rose 9 per cent to 12.353 million from 11.337 million in Q3-2013 and 9M-2013. Average total subscriber churn in Q3-2014 was 2.99 per cent against 2.27 per cent in Q3-2013. Churn during 9M-2014 was 1.94 per cent, lower than the 2.18 per cent churn in 9M-2013.

For its Pan Americana and other segment, DirecTv reported a reduction of 146,000 subscribers in Q3-2014 to 6.709 million as compared to an increment of 172,000 subscribers and a base of 6.082 million in Q3-2013. During 9M-2014, the company added 512,000 subscribers as compared to the 792,000 subscribers added in 9M-2013. Subscriber churn figures for this segment have not been mentioned by the company in its Q3-2014 result.

Financials (Company speak)

DirecTv announced that third quarter 2014 revenues increased 6 percent to $ 8.37 billion, adjusted operating profit before depreciation and amortisation (OPBDA) and adjusted operating profit both increased 5 percent to $ 2.04 billion and $ 1.28 billion, respectively, and adjusted diluted earnings per share increased 4 percent to $ 1.33 compared to last year’s third quarter. Adjusted financial results exclude a pre-tax charge of $ 62 million in the third quarter of 2014 resulting from the revaluation of the net monetary assets of the company’s subsidiary in Venezuela. Reported OPBDA increased 2 percent to $ 1.98 billion, reported operating profit was relatively unchanged at $ 1.22 billion and reported diluted earnings per share declined to $ 1.21 compared to last year’s third quarter.

“Our third quarter financial results continue to demonstrate the strong execution of our operations,” said DirecTv president and CEO Mike White. “In the US, although competition for subscribers continues to be intense, revenue growth was very solid while operating profit before depreciation and amortisation margin expanded year-over-year for the fifth consecutive quarter, highlighting our commitment to profitably grow our businesses through disciplined subscriber acquisitions and expense management, as well as smart pricing.” White added, “In Latin America, due to challenging macroeconomic and foreign exchange headwinds, we continue to focus on local currency performance which has allowed us to profitably grow our businesses, as well as begin generating positive cash flow in the region – one of our primary goals for the year.”

Segment financials

US segment

In the third quarter, DirecTv US revenues increased 5 percent to $ 6.51 billion compared with the third quarter of 2013 primarily due to strong ARPU growth of 4.8 percent. The improvement in ARPU to $ 107.27 was driven by price increases on programming packages, higher advanced receiver service fees, increased ad sales, higher fees for the enhanced warranty program and increased commercial business revenues. These improvements were partially offset by increased promotional offers to existing customers and lower revenue from pay-per-view events.

Third quarter OPBDA increased 11 percent to $ 1.55 billion and OPBDA margin improved from 22.6 percent to 23.8 percent principally due to higher revenues combined with lower upgrade and retention expenses mostly related to reduced equipment costs, as well as relatively unchanged subscriber service expense. Also contributing to the margin improvement was slower relative growth in subscriber acquisition costs mainly associated with the decrease in gross additions. Operating profit increased 13 percent to $ 1.11 billion and operating profit margin improved from 16.0 percent to 17.1 percent in the third quarter mainly due to the higher OPBDA and OPBDA margin.

Sky Brasil

Excluding changes in foreign exchange rates, Sky Brasil’s third quarter revenues grew 14 percent versus the prior year period driven by an 8 percent increase in the average number of subscribers and a 5 percent increase in local currency ARPU. The increase in local currency ARPU was principally due to a reduction in credits to existing subscribers. When factoring in changes in foreign exchange rates, Sky Brasil’s revenues increased 15 percent to $ 1.01 billion and ARPU improved 6 percent to $ 60 compared to the third quarter of 2013.

Excluding the impact of the favourable ECAD settlement in the third quarter of 2013, Sky Brasil OPBDA increased 8 percent to $ 307 million, while OPBDA margin declined from 32 percent to 30 percent. The decline in OPBDA margin was principally due to increased expenses related to customer service and systems initiatives. Also excluding the impact of the favourable ECAD settlement, operating profit increased 19 percent to $ 118 million and operating profit margin increased from 11.2 percent to 11.6 percent. Operating profit margin improved as the decline in OPBDA margin was more than offset by the impact of relatively unchanged depreciation expense.

Pan Americana and other regions

Excluding changes in foreign exchange rates, third quarter revenues in the PanAmericana and other segment grew 45 percent versus the prior year period driven by a 13 percent increase in the average number of subscribers and a 28 percent increase in local currency ARPU. The increase in local currency ARPU was principally due to price increases and growth in advanced services, partially offset by the higher penetration of lower ARPU mass market subscribers. When factoring in unfavorable changes in foreign exchange rates, most notably in Argentina and Venezuela, revenues increased 3 percent to $ 806 million compared to the third quarter of 2013, while ARPU decreased 8.0 percent to $ 39.64.

Also in the third quarter, adjusted OPBDA in the PanAmericana and other segment increased slightly to $ 208 million while adjusted OPBDA margin declined to 25.8 percent. The decline in adjusted OPBDA margin was primarily driven by higher programming costs in Venezuela and increased subscriber acquisition costs mostly due to inflationary pressure on labor costs. In addition, adjusted operating profit decreased to $ 81 million and adjusted operating profit margin declined to 10.0 percent mainly due to the impact of higher depreciation and amortization resulting from leased equipment and infrastructure capital expenditures made over the last year. Reported OPBDA and reported operating profit decreased to $ 146 million and $ 19 million, respectively.

November 13, 2014
IMAX Corp net income triples in Q3-2014

BENGALURU: Toronto, Canada based, New York Stock Exchange traded entertainment, technology and distribution company IMAX Corp (IMAX) reported more than 3 times (3.01 times) income attributable to common shareholders (income) in Q3-2014 (Quarter ended September 30, 2014, or current quarter) at US$ 4.858 million versus the US$ 1.609 million in the corresponding year ago quarter Q3-2013. During the 9 month period ended 30 September 2014 (9M-2014), the company’s income rose 15.1 per cent to US$ 18.744 million from US$ 16.286 million in 9M-2013.

IMAX revenue in the current quarter at US$ 60.742 million was 17.9 per cent more than the US$ 51.507 million in Q3-2013. Revenue in 9M-2014 at US$ 188.084 million was 2.8 per cent higher than the US$ 182.886 million in Q3-2013.

Notes: (1) The primary revenue sources for the Company can be categorised into two main groups: theatre systems and films. On the theatre systems side, the Company derives revenues from theatre exhibitors primarily through either a sale or sales-type lease arrangement or a joint revenue sharing arrangement. Theatre exhibitors also pay for associated maintenance and extended warranty services. Film revenue is derived primarily from film studios for the provision of film production and digital re-mastering services for exhibition on IMAX theatre systems around the world. The Company derives other film revenues from the distribution of certain films and the provision of post-production services. The Company also derives a small portion of other revenues from the operation of its own theatres, the provision of aftermarket parts for its system components, and camera rentals

(2)The Company has seven reportable segments identified by category of product sold or service provided: IMAX systems; theatre system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production; and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theatre projection system equipment. The theatre system maintenance segment maintains IMAX theatre projection system equipment in the IMAX theatre network. The joint revenue sharing arrangements segment provides IMAX theatre projection system equipment to an exhibitor in exchange for a share of the box-office and concession revenues. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films for which the Company has distribution rights. The film post-production segment provides film post-production and film print services. The Company refers to all theatres using the IMAX theatre system as “IMAX theatres”.

IMAX Theatre Systems:

IMAX Theatre Systems reported 13.1 per cent growth in revenue in the current quarter to US$ 33.899 million from US$ 29.965 million in Q3-2013. 9M-2014 revenue was down 0.2 per cent to US$ 106.742 million from US$ 106.948 million in 9M-2013.

Gross Margin from IMAX Systems increased 18.9 per cent to US$ 20.188 million in Q3-2014 from US$ 17.576 million in Q3-2013. Gross margins in 9M-2014 rose 1 per cent to US$ 62.993 million from US$ 62.376 million in 9M-2013.
The rise in revenue and gross margins in Q3-2014 and 9M-2014 is because of corresponding increases in Joint Revenue Sharing Arrangement (JSRA) segments. Revenue fell in 9M-2014 because of lower performance of IMAX Systems segment.

Films:

Revenue from ‘Films’ increased 21.1 per cent to US$ 23.678 million in Q3-2014 from US$ 19.547 million in Q3-2013. During 9M-2014, revenue increased 6.3 per cent to US$ 72.935 million from US$ 68.594 million in 9M-2013.

Gross margins’ for ‘Films’ increased 55 per cent in Q3-2014 to US$ 15.472 million from US$ 9.984 million in Q3-2013. For 9M-2014, gross margins increased 35.7 per cent to US$ 46.853 million from US$ 34.526 million in 9M-2013.

Geographic information:
Revenue by geographic area is based on the location of the customer. Revenue related to IMAX DMR is presented based upon the geographic location of the theatres that exhibit the re-mastered films. IMAX DMR revenue is generated through contractual relationships with studios and other third parties and these may not be in the same geographical location as the theatre.

No single country in the rest of the world, Western Europe, Latin America and Asia (excluding Greater China) classifications comprise more than 10 per cent of the total revenue.

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November 13, 2014
Eros International reports 40 per cent PAT q-o-q growth in Q2-2015

BENGALURU: The Sunil Lulla led Indian motion picture production and distribution company Eros International Media Limited (Eros) reported 39.9 per cent growth in PAT at Rs 50.14 crore (20.9 per cent of net Total Income from Operations or TIO) in Q2-2015 from the Rs 35.84 crore (14.8 per cent of TIO) in Q1-2015 and 35.6 per cent growth from the Rs 36.97 crore (18.4 per cent of TIO) in the corresponding year ago quarter. In HY-2015, PAT grew 35.1 per cent to Rs 85.98 crore (17.9 per cent of TIO) from Rs 63.64 crore (16.4 per cent of TIO) in HY-2014.

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

The company reported almost flat q-o-q TIO (down by 0.7 per cent) in Q2-2015 at Rs 239.90 crore versus the Rs 241.49 crore in Q1-2015 and 19.3 per cent TIO growth from the Rs 201.05 crore in Q2-2014. Revenue (TIO) for HY-2015 grew by 24.3 per cent to Rs 481.39 crore from Rs 387.37 crore in HY-2014.

Eros released 30 films -20 Hindi and 10 Tamil/Telugu regional films in HY-2015 as compared to the 26 films (11 Hindi, 14 Tamil/Telugu and 1 other language) in HY-2014. Eros says that 2 of the films were high budget and 28 were medium and low budget films.

Let us look at the other numbers reported by Eros for Q2-2015 and HY-2015

Eros Total Expenditure (TE) in Q2-2015 at Rs 168.19 crore (70.1 per cent of TIO) was 8.9 per cent lower than the Rs 184.68 crore (76.5 per cent of TIO) in Q1-2015 and 11.3 per cent more than the Rs 151.16 crore (75.2 per cent of TIO) in Q2-2014. TE in HY-2015 at Rs 352.87 crore (73.3 per cent of TIO) was 17.9 per cent more than the Rs 299.24 crore (77.2 per cent of TIO) in HY-2014.

The company’s finance cost in Q2-2015 at Rs 10.92 crore (4.6 per cent of TIO) was 16.5 per cent more than the Rs 9.37 crore (3.9 per cent of TIO) in Q1-2015 and 76.1 per cent more than the Rs 6.2 crore (3.1 per cent of TIO) in Q2-2014. For HY-2015, finance cost at Rs 20.29 crore was almost double (up 1.88 times) the Rs 10.81 crore in HY-2014.

Eros managing director Sunil Lulla said, “We reported healthy results in the first half driven by the performance of new releases in Hindi and regional languages and robust monetization of library films over existing and emerging distribution channels. We remained focused towards diversifying mix of movies with increasing emphasis on high profile regional language films with our tentpole Hindi language films.”

“Our ErosNow initiative continued to gain momentum as we premiered a whole host of films on this online service. We will be launching a new mobile app for ErosNow by the end of this year and along with our recently announced Techzone acquisition, we are positive about increased uptake of this unique service in the near future,” added Lulla.

November 12, 2014
Shemaroo’s debut Q2-2015 result on bourses: Good

BENGALURU: After its initial public offering (IPO) in September 2014, Shemaroo Entertainment has filed reasonably good results that could improve further towards the end of fiscal 2015, if the trends shown in some of its IPO documentation continue.

Note: 100,00,000 = 100 lakhs = 10 million = 1 crore
All numbers in this report are consolidated numbers

The company has reported a 31.7 per cent increase in Total Income from Operations (TIO) at Rs 84.96 crore in Q2-2015 from Rs 64.49 crore in Q1-2015 and 21.4 per cent increase from the Rs 69.96 crore in the corresponding quarter of last year. The company’s net consolidated profit after tax has reduced 10.4 per cent quarter on quarter to Rs 8.57 crore (10.1 per cent of TIO) from Rs 9.56 crore (14.8 per cent of TIO) in Q1-2015, but jumped 37.1 per cent from Rs 6.25 crore (8.9 per cent of TIO) in Q2-2014.

For HY-2015, PAT at Rs 18.14 crore (12.1 per cent of TIO) was 73.3 per cent more than the Rs 10.47 crore (8.3 per cent of TIO) for HY-2014. For FY-2014, PAT at Rs 27.95 crore was 10.6 per cent of TIO and PAT for FY-2013 at Rs 24.58 crore was 11.4 per cent of TIO.

Diluted EPS (not annualised) is lower in Q2-2015 at Rs 4.30 versus the Rs 4.82 in Q1-2015, but higher than the Rs 3.15 in Q2-2014. For HY-2015, diluted (not annualised) EPS was Rs 9.10 and for HY-2014, it was Rs 5.25. An EPS of Rs 14.08 for FY-2014 and Rs 12.38 for FY-2013 was reported for the company during its IPO.

The company’s Total Expenditure (TE) in Q2-2015 has gone up 41.4 per cent to Rs 64.91 crore (76.4 per cent of TIO) from Rs 45.89 crore (71.2 per cent of TIO) in the immediate trailing quarter and was 21.4 per cent more than the Rs 54.85 crore (78.4 per cent of TIO) in Q2-2014. For HY-2015, TE at Rs 110.8 crore (74.1 per cent of TIO) was 14.5 per cent more than the Rs 96.76 crore in HY-2014.

November 11, 2014
Higher expenses pare TV Today PAT in Q2-2015; excellent HY-2015 results

BENGALURU: A 58.1 per cent y-o-y increase in production costs coupled with a 40.4 per cent increment in employee benefit expense (EBE) and a 36.6 per cent rise in other expense pared TV Today Network Limited (TVTN) PAT to register a 2.9 per cent increment in Q2-2015. TVTN reported a y-o-y growth of 21.8 per cent in its Total Income from Operations (TIO) in Q2-2015 at Rs 111.69 crore versus the Rs 91.71 crore in Q2-2014, but TIO registered an 18.5 per cent decline when compared to the Rs 137.01 crore for Q1-2015. Higher TIO in Q1-2015 can be attributed to the national elections that saw revenues of most news channels rise during the first quarter of FY-2015.

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

As mentioned above, the company’s PAT at Rs 13.21 crore (11.8 per cent of TIO) was 2.9 per cent more than the Rs 12.83 crore (25 per cent of TIO), but was almost a third (40.3 per cent of TIO) the Rs 32.79 (23.9 per cent of TIO) crore in Q1-2015.

However, when comparing the year to date or HY-2015 versus HY-2014 results, the company has performed very well. For HY-2015, TVTN reported TIO of Rs 248.70 crore, which was 37.7 per cent more than the Rs 180.61 crore in HY-2014. PAT was even better, registering a growth of 85.3 per cent for HY-2015 to Rs 46 crore (18.5 per cent of TIO) as compared to the Rs 24.82 crore (13.7 per cent of TIO) in HY-2014.

The company’s television broadcasting segment reported a y-o-y revenue growth of 22.7 per cent at Rs 107.48 crores from Rs 87.62 crore, but q-o-q was 19.7 per cent lower from the Rs 133.64 crore in the immediate trailing quarter. This segment reported an operating profit of Rs 21.16 crore in Q2-2015, 0.5 per cent lower than the Rs 21.27 crore in Q2-2014, and 58.9 per cent less than the Rs 51.43 crore in Q1-2015.

TVTN’s Television Broadcasting segment’s HY-2015 revenue at Rs 241.12 crore was 39 per cent more than the Rs 173.51 crore in HY-2014. Operating profit of this segment for HY-2015 at Rs 72.59 crore was 71 per cent more than the Rs 42.45 crore in HY-2014.

Let us look at the other Q2-2015 and HY-2015 numbers reported by TVTN.

The company’s total expenditure (TE) in Q2-2015 at Rs 95.76 crore (85.7 per cent iof TIO) was 30.2 per cent more than the Rs 73.54 crore (80.2 per cent of TIO) in Q2-2014 and 7.2 per cent more than the Rs 89.31 crore (65.2 per cent of TIO) in Q1-2015. HY-2015 TE at Rs 185.08 crore (74.4 per cent of TIO) was 61.2 per cent more than the Rs 114.09 crore(63.6 per cent of TIO) in HY-2014.

TVTN’s EBE at Rs 32.04 crore (28.7 per cent of TIO) in Q2-2015 was 40.4 per cent more than the Rs 22.83 crore(24.9 per cent of TIO) in Q2-2014 and 9.4 per cent more than the Rs 29.29 crore (21.4 per cent of TIO) in Q1-2015. For HY-2015, EBE at Rs 61.33 crore (24.7 per cent of TIO) was 32.1 per cent more than the Rs 46.43 crore (25.7 per cent of TIO) in HY-2014.

Production cost in Q2-2015 at Rs 12.74 crore (11.4 per cent of TIO) was 58.1 per cent more than the Rs 8.06 crore (8.8 per cent of TIO) in Q2-2014, but 5.3 per cent lower than the Rs 13.45 crore (9.8 per cent of TIO) in Q1-2015. For HY-2015, Production cost at Rs 26.19 crore (10.5 per cent of TIO) was 53.2 per cent more than the Rs 17.09 crore (9.5 per cent of TIO) in Hy-2014.

Other expense in Q2-2015 at Rs 18.09 crore (16.2 per cent of TIO) was 36.6 per cent more than the Rs 13.24 crore (14.4 per cent of TIO) in Q2-2014 and 3.8 per cent more than the Rs 17.43 crore (12.7 per cent of TIO) in Q1-2015. For HY-2015, other expense at Rs 36.52 crore (14.7 per cent of TIO) was 41.3 per cent more than the Rs 25.85 crore (14.3 per cent of TIO) in HY-2014.

TVTN’s other segment – Radio Broadcasting which operates under the brand Oye! FM reported 3.2 per cent growth in operating revenue in Q2-2015 at Rs 4.21 crore from Rs 4.08 crore in Q2-2014 and 25.1 per cent growth from Rs 3.37 crore in Q1-2015. The segment reported loss of Rs 1.8 crore in Q2-2015, loss of Rs 2.02 crore in Q2-2014 and loss of Rs 2.56 crore in Q1-2015. For HY-2015, Oye!FM operating revenue grew 6.7 per cent to Rs 7.58 crore from Rs 7.1 crore in HY-2014. Oye!FM loss for HY-2015 was Rs 4.37 crore versus a loss of Rs 4.34 crore in HY-2014.

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November 11, 2014
Sun TV posts sunny y-o-y results for Q2-2015; board announces 45 per cent interim dividend

BENGALURU: Sun TV Network Limited (Sun TV) reported 9.1 per cent growth in revenue in Q2-2015 at Rs 509.02 crore versus Rs 466.41 crore in the corresponding quarter of last year on the back of growth of advertising and DTH revenues. Q-o-q performance as well as PAT results declared by the company were however lower in Q2-2015.

The company reported 7 per cent growth in HY-2015 revenue at Rs 1142.60 crore from Rs 1068.26 crore in HY-2014.

Sun TV reported 11.4 per cent growth in advertising revenue in Q2-2015 to Rs 260.26 crore and 20 per cent higher DTH revenue at Rs 130.07 crore. However, advertising revenue in Q1-2014 at Rs. 280.42 crore was 7.8 per cent more than the advertising revenue in the current quarter.

The company’s net profit after taxes (PAT) in Q2-2015 at Rs 154.47 crore was 6.9 per cent lower than the Rs 169.16 crore in Q2-2014 and 6.7 per cent lower than the Rs 165.64 crore in Q1-2015. PAT in HY-2015 at Rs 320.11 crore was 4 per cent lower that the Rs 333.60 crore in HY-2014.

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

Let us look at the other results reported by Sun TV for Q2-2015

Y-o-y and HY results have been mentioned above. Sun TV’s revenue for Q2-2015 was 7 per cent less than the Rs 633.58 crore in Q1-2015.

The company’s total expense in Q2-2015 at Rs 298.22 crore was 21.1 per cent more than the Rs 246.29 crore in Q2-2014, and 6.7 per cent less than the Rs 319.80 crore (expenses figure excludes the one time annual SunRisers Hyderabad IPL franchise fee of Rs 85.05 crore paid in Q1-2015) in Q1-2015. Total Expense in HY-2015 was 14.9 per cent more at Rs 703.07 crore than the Rs 611.88 crore in HY-2014.

Sun TV’s depreciation and amortisation charges in Q2-2015 have jumped 57.4 per cent to Rs 185.01 crore from Rs 117.56 crore in Q2-2014 and were 33.1 per cent higher than the Rs 138.99 crore in Q1-2015. For HY-2015, depreciation and amortisation charges were 37.9 per cent higher at Rs 324 crore as against Rs 234.95 crore in HY-2014.

Employee benefit expense in Q2-2015 was up 4.3 per cent at Rs 50.13 crore from Rs 48.27 crore in Q2-2014 and was 9.5 per cent more than the Rs 45.77 crore in Q1-2015. For HY-2015 EBE at Rs 95.90 crore was 3.7 per cent less than the Rs 92.48 crore in HY-2014

The company has reported a 38 per cent drop in other expenditure to Rs 22.65 crore in Q2-2015 from Rs 36.51 crore in Q2-2014 and was less than a fourth (1/4.11 times) the Rs 93.18 crore in Q1-2015. For HY-2015, other expenditure at Rs 115.83 crore was 4.9 per cent higher than the Rs 110.45 crore in Q1-2014.

The board of directors of the company have declared an interim dividend of 45 per cent (Rs 2.25) per share of face value of Rs 5.

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November 7, 2014
Disney FY-2104 op inc grows 21 per cent; Studio Entertainment segment op inc up 234 per cent

BENGALURU: The Walt Disney Company Inc (Disney) reported operating income (op inc) of $ 13,005 million (26.6 per cent of overall revenue or TIO) in the year ended 27 September 2014 (FY-2014), up 21.3 per cent from the $ 10,724 million (23.8 per cent of TIO) in FY-2013. The company’s TIO in FY-2014 at $ 48,813 million was 8.4 per cent more than the $ 45,041 million in 2013.

“Our results for fiscal 2014 were the highest in the company’s history, marking our fourth consecutive year of record performance,” said Disney chairman and CEO Robert A Iger. “We’re obviously very pleased with this achievement and believe it reflects the extraordinary quality of our content and our unique ability to leverage success across the company to create significant value, as well as our focus on embracing and adapting to emerging consumer trends and technology.”

Disney’s Studio Entertainment segment reported a 234.3 per cent growth in op inc in FY-2014 at $ 1,549 million (11.9 per cent of all op inc) from $ 661 million (6.2 per cent of all op inc) in FY-2013. This segment’s revenue in FY-2014 at $ 7,278 million (14.9 per cent of TIO) grew 21.7 per cent to $ 5,979 million (13.3 per cent of TIO) in the previous year.

Here is what Disney has to say about Studio Entertainment numbers:

Higher operating income was driven by increases in worldwide theatrical distribution and worldwide home entertainment. Higher worldwide theatrical distribution results were due to the success of Guardians of the Galaxy and Maleficent in the current quarter compared to Monsters University and The Lone Ranger in the prior year quarter.

The increase in worldwide home entertainment was due to higher unit sales, lower per unit costs and higher net effective price resulting from the success of Frozen. Other significant titles included Captain America 2: The Winter Soldier in the current quarter and Iron Man 3 in the prior-year quarter.

Let us look at the results for FY-2014 and Q4-2014 reported by Disney.

Overall Revenue:

In Q4-2014 (quarter ended September 27, 2014), Disney reported a 7.1 growth of TIO to $ 12,389 million from US$ 11568 million in the corresponding quarter of last fiscal, but was marginally less (0.6 per cent less) than the $ 12,466 million in Q3-2014.

Q4-2014 op inc at $ 2,775 million (22.4 per cent of TIO) in Q4-2014 was 11.7 per cent more than the $ 2,484 million (21.5 per cent of TIO) in Q4-2013, but 28.1 per cent lower than the $ 3,857 million (30.9 per cent of TIO) in Q3-2014.

Segment Revenue:

Five segments contribute to Disney’s numbers – Media Networks; Parks and resorts; Studio entertainment; Consumer products; and Interactive.

Media Networks Segment:

The company’s Media Network segment is the largest in terms of contribution to overall revenue (TIO) and op inc This segment consists of two sub-segments – Cable Networks and Broadcasting.

In FY-2014, Disney’s Media Network segment reported revenue of $ 21,152 million (43.3 per cent of TIO), up 3.9 per cent from the $ 20,356 million (45.2 per cent of TIO) in FY-2013. Op inc from this segment rose 7.4 per cent to $ 7,321 million (56.3 per cent of overall op inc) in FY-2014 from $ 6,818 million (63.6 per cent of overall op inc) in FY-2013.

Disney’s Media Network segment reported 5.5 per cent rise in revenue from $ 4,946 million (42.8 per cent of TIO) in Q4-2013 to $ 5,217 million (42.1 per cent of TIO) in Q4-2014, but was 5.3 per cent less than $ 5,511 million (44.2 per cent of TIO) in Q3-2014. Op inc dropped marginally by 0.3 per cent from $ 1,443 million (58.1 per cent of overall op inc) in Q4-2013 to $ 1,437 million in Q4-2014, but was 37.2 per cent lower than the $ 2,296 million (59.5 per cent of overall Op Inc) in Q3-2014 (51.8 per cent of op rev).

Parks and Resorts

In FY-2014, this segment’s revenue at $ 15,099 million (30.9 per cent of TIO) grew 7.2 per cent from $ 14,087 million (31.3 per cent of TIO) in FY-2013. Op inc increased 20 per cent in FY-2014 to $ 2,663 million (20.5 per cent of overall op inc) from $ 2,220 million (20 per cent of overall op inc) in FY-2013.

Disney’s Parks and resorts segment reported 6.6 per cent growth in y-o-y revenue to $ 3,960 million (32 per cent of TIO) in Q4-2014 from $ 3,716 million (32.1 per cent of TIO) in Q4-2013, but marginally less (0.5 per cent less) than the $ 3,980 million (31.8 per cent of overall revenue) in Q3-2014. This segment’s op inc grew 6.6 per cent to $ 687 million (24.8 per cent of overall op inc) in Q4-2014 from $ 571 million (23 per cent of overall op inc), but was 19 per cent less than the $ 848 million (22 per cent of overall op inc) in Q3-2014.

Here is what Disney has to say about Parks and Resorts numbers:

Operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations.

Higher operating income at our domestic operations was driven by increased guest spending and attendance, partially offset by higher costs and lower vacation club ownership sales. The increase in guest spending was primarily due to higher average ticket prices for theme park admissions and for sailings at our cruise line and increased food, beverage and merchandise spending. Higher costs reflected increased costs for MyMagic+ and the absence of an offset in the prior-year quarter from a property sale, partially offset by lower pension and post-retirement medical costs. Decreased vacation club ownership sales reflected the prior-year success of The Villas at Disney’s Grand Floridian Resort & Spa, for which sales commenced at the end of the third quarter of fiscal 2013.

The decrease at our international operations was due to lower operating performance at Disneyland.

Lower operating income at Disneyland Paris was driven by higher operating and marketing costs and lower attendance, partially offset by increased guest spending, due to higher average ticket prices, and higher real estate sales.

Studio Entertainment

Three sub-segments of the Studio entertainment segment contribute to Disney’s revenue – Theatrical distribution; Home entertainment; and TV/SVOD distribution and other.

Annual figures for this segment have been mentioned above.

Disney’s Studio entertainment segment reported 18.1 per cent jump in revenue in Q4-2014 at $ 1,778 million (14.4 per cent of TIO) from $ 1,506 million (13 per cent of TIO), but was 1.6 per cent lower than the $ 1,807 million (14.5 per cent of TIO). This segment reported more than double (2.35 times) growth in op Inc in Q4-2014 at $ 254 million (9.2 per cent of overall op inc), but was 38.2 per cent lower than the $ 411 million (10.7 per cent of overall revenue) in Q3-2014.

Consumer Products

This segment has two revenue streams – licensing and publishing (licensing); and retail and other (retail).

Consumer products segment reported 12.1 per cent growth in consumer products to $ 3,985 million (8.2 per cent of TIO) in FY-2014 from $ 3,555 million (7.9 per cent of TIO) in the last year. Op inc from this segment for FY-2014 grew 21.9 per cent to $ 1,356 million (10.4 per cent of overall op inc) from $ 1,112 million (10.4 per cent of overall op inc).

Disney’s Consumer products segment reported 6.8 per cent increase in revenue in Q4-2014 to $ 1,072 million (8.7 per cent of TIO) from $ 1,004 million (8.7 per cent of TIO) in Q4-2013 and 18.8 per cent more than the $ 902 million (7.2 per cent of all revenues) in Q3-2014. This segment reported 9.2 per cent hike in op inc to $ 379 million (13.7 per cent of overall op inc) from $ 347 million (14 per cent of overall revenue) in Q4-2013 and 38.8 per cent more than the $ 273 million (7.1 per cent of overall Op Inc) in Q3-2014.

Disney says that higher operating income from Consumer products was due to an increase at its Merchandise Licensing business driven by the performance of Frozen and Spider-Man merchandise partially offset by lower revenues from Monsters and Iron Man merchandise.

Interactive

Disney says that Interactive revenues for the quarter (Q4-2014) decreased by $34 million to $362 million, and segment operating income increased to $18 million driven by the success of our mobile game Tsum Tsum and recognition of a minimum guarantee for a games licensing contract. These increases were partially offset by lower Disney Infinity performance due to the timing of the launch of Disney Infinity 2.0, which was launched on 23 September 2014, compared to Disney Infinity 1.0, which was launched on 18 August 2013.

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November 7, 2014