ITV

Category: Financials

  • Time Warner reports y-o-y increase in Q3-2014

    Time Warner reports y-o-y increase in Q3-2014

    BENGALURU: Time Warner Inc (Time Warner) posted 34 per cent higher adjusted EPS for Q3-2014 (quarter ended 30 September 2014) at US$ 1.22 (on a lower adjust outstanding share base) and better than last quarter’s US$ 0.98.

     

    Diluted income per share in Q3-2014 was US$1.11 (average 870.2 million diluted shares outstanding) versus the US$ 1.25 (average 938.8 million diluted shares outstanding) in Q3-2013 and US$ 0.98 (average 894.2 million diluted shares outstanding) in Q2-2014.

     

    For Q3-2014, Time Warner reported total revenue (TIO) of US$  6243 million, which was 3.3 per cent more y-o-y at US$ 6042 million, but 8 per cent less that the US$ 6788 million in Q2-2014. Total adjusted operating income at US$ 993 million in Q3-2014 was 37.5 per cent less than the US$ 1589 million in Q3-2013 and 38.6 per cent lower than the US$ 1618 million in Q2-2014.

     

    Time Warner chairman and CEO Jeff Bewkes said, “We had another good quarter, featuring solid revenue growth as well as strong growth in Adjusted EPS. As we discussed at our Investor Event last month, we’ve refocused the company over the past few years to aggressively pursue the huge global opportunities we see in video content. And once again, we are seeing the benefits of our increased investments in great content and storytelling. In the quarter, both Turner and HBO had double-digit increases in subscription revenues, reflecting the growing strength and appeal of their programming. HBO received 19 Primetime Emmy Awards, the most of any network for the 13th straight year, including five Emmys for newcomer True Detective. At Turner, TNT ranked as ad-supported cable’s #1 primetime network for the second consecutive quarter, TBS was the #2 ad-supported cable network in primetime among adults 18-49 and 25-54, and Adult Swim again shined as ad-supported cable’s #1 total day network among its key adult demos. Turner’s extension last month of its longstanding relationship with the NBA through the 2024-25 season is another great example of investing in distinctive programming that will serve us well for years to come. This fall, Warner Bros. is once again the number one producer for broadcast television, including a strong slate of new shows. Season-to-date, Gotham ranked as broadcast’s #2 new show among adults 18-49, while The Flash had the most-watched telecast ever on The CW. These shows are among five series featuring DC characters that will air this season. DC is also a key component of the ambitious film slate that Warner Bros. recently unveiled. Further demonstrating our continuing commitment to shareholder returns, so far this year we’ve returned over $5.7 billion to our shareholders in the form of share repurchases and dividends.”

     

    Time Warner has three segments that contribute to its numbers – Turner, Home Box Office (HBO) and Warner Bros (WB). Turner, which contributes about 40 per cent of TIO, disappointed with a drop in its share of adjusted operating income to 35.2 per cent versus the approximately 60 per cent during Q2-2013, Q3-2013 and Q2-2014. All of Time Warner’s segments reported y-o-y reduction of adjusted operating income in Q3-2014.

     

    Let us look at the numbers reported by the segments of Time Warner for Q3-2014

     

    Turner

     

    Turner reported revenue of US$ 2556 million (39.2 per cent of TIO), which was 4.6 per cent more than the US$  2338 million (38.7 per cent of TIO), but 11.1 per cent lower than the US$  2750 million (40.5 per cent of TIO) in the immediate trailing quarter ended June 30, 2014.

     

    Adjusted operating income from this segment fell a massive 64 per cent to US$ 350 million (35.2 per cent of total adjusted operating income) from US$ 971 million (61.1 per cent of total  operating income) and was 62.8 per cent lower than the US$ 940 million (35.2 per cent of total adjusted operating income)in Q2-2014.

     

    Here is what the company has to say about its Turner segment results:

     

    Revenues rose 5 per cent (US$ 108 million) to US$ 2.4 billion, mainly due to growth of 10 per cent (US$ 117 million) in subscription revenues and 17 per cent (US$ 12 million) in content revenues, offset in part by a decline of 2 per cent (US$ 18 million) in advertising revenues. The increase in subscription revenues was primarily due to higher domestic rates and international growth. Advertising revenues decreased due to declines at Turner’s international networks. Advertising revenues at Turner’s domestic networks were essentially flat.

     

    Adjusted Operating Income declined 64 per cent (US$ 621 million) to US$ 350 million, as higher revenues were more than offset by higher programming costs and increased restructuring and severance costs. Programming costs grew 84 per cent due to the current year quarter’s US$ 482 million of charges related to Turner’s decision to no longer air certain programming. Excluding these charges, programming costs increased in the low double digits due to higher costs associated with increased volume of original programming and the first year of Turner’s new agreement with Major League Baseball. The current year quarter included US$ 199 million of restructuring and severance costs compared to US$ 30 million in the prior year quarter. Excluding the programming and restructuring and severance charges, Adjusted Operating Income would have been US$ 1.0 billion.

     

    HBO segment

    HBO reported 9.9 per cent increase in revenue in Q3-2014 at US$   1304 million (20.9 per cent of TIO) from US$   1186 million in Q3-2013, but was 8 per cent less than the US$   1417 million (20.9 per cent if TIO) in Q2-2014.

     

    HBO’s adjusted operating income at US$   380 million (38.3 per cent of total adjusted operating income) was 4.3 per cent lower than the US$   397 million (25 per cent of total adjusted operating income) in Q3-2013 and 31.2 per cent lower than the US$   552 million (34.1 per cent of total adjusted operating income) in Q2-2014.

     

    Here is what the company has to say about its HBO segment results:

     

    Revenues grew 10 per cent (US$ 118 million) to US$ 1.3 billion, reflecting increases of 10 per cent (US$ 106 million) in subscription revenues and 7 per cent (US$ 10 million) in content revenues. The increase in subscription revenues resulted from higher domestic rates and subscribers as well as the consolidation of HBO Asia and HBO South Asia (collectively, HBO Asi”). The growth in content revenues was primarily due to increased home video revenues.

     

    Adjusted Operating Income decreased 4 per cent (US$ 17 million) to US$ 380 million, as higher revenues were more than offset by increased expenses due to higher programming and distribution costs as well as increased restructuring and severance costs. Programming costs grew 16 per cent due to increased expenses for original and acquired programming as well as the consolidation of HBO Asia. Distribution costs increased primarily due to higher participation expenses. The current year quarter included US$ 48 million of restructuring and severance costs compared to US$ 24 million in the prior year quarter. Excluding the restructuring and severance charges, Adjusted Operating Income would have been US$ 428 million.

     

    Operating Income declined 24 per cent (US$ 122 million) to US$ 380 million. The prior year quarter included a US$ 105 million gain related to Home Box Office’s acquisition of its former partner’s interests in HBO Asia in September 2013.

     

    Warner Bros (WB)

    WB reported 3 per cent growth in revenue in Q3-2014 to from US$   2775 million (44.4 per cent of TIO) from US$   2694 million (44.6 per cent of TIO) in Q3-2014, but was 3.3 per cent lower than the US$   2870 million (42.3 per cent of TIO) in Q2-2014.

     

    WB’s adjusted operating income at US$   241 million (24.3 per cent of total adjusted operating income) was 20.2 per cent lower than the US$   302 million (19 per cent of total adjusted operating income) in Q3-2014, but 2.1 per cent higher than the US$   236 million (14.6 per cent of total adjusted operating income) in Q2-2014.

     

    Here is what the company has to say about its WB segment results:

    Revenues increased 3 per cent (US$ 81 million) to US$ 2.8 billion, mainly due to growth in subscription video-on-demand revenues for television product, higher licensing of theatrical product, growth in television production, including from the acquisition of Eyeworks Group’s operations outside the U.S., and revenues from a patent license and settlement agreement. These increases were partly offset by softer performance of current year quarter theatrical releases compared to the prior year’s slate, which included Pacific Rim, The Conjuring and We’re the Millers, and lower domestic off-network television license fees.

     

    Adjusted Operating Income decreased 20 per cent (US$ 61 million) to US$ 241 million, as higher revenues were more than offset by increased restructuring and severance costs, higher film costs for television product and a value added tax accrual. The current year quarter included US$ 45 million of restructuring and severance costs compared to US$ 2 million in the prior year quarter. Excluding the restructuring and severance charges, Adjusted Operating Income would have been US$ 286 million.

     

    Operating Income declined 23 per cent (US$ 70 million) to US$ 237 million.

     

    Through 2 November, Annabelle grossed over US$ 230 million at the worldwide box office. Season-to-date, Gotham ranked as broadcast’s #2 new drama series among adults18-49. The premiere of The Flash had a total of 6.8 million total viewers in final live +7 ratings, making it The CW network’s most-watched telecast ever.

     

  • 21st Century reports 10 per cent operating income growth for Q1-2015: Television segment lags

    21st Century reports 10 per cent operating income growth for Q1-2015: Television segment lags

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (Fox) reported a 10 per cent growth in operating income before depreciation and amortization (OIBDA) in Q1-2015 (quarter ended September 30, 2014) at $ 1,779 million from $ 1,618 million in the corresponding quarter of last year, and 0.7 per cent more than the $ 1,766 million in Q4-2014. 

     

    Commenting on the results, Fox Chairman and Chief Executive Officer Rupert Murdoch said, “Our strong earnings and revenue growth in the quarter were driven by continued momentum at our Cable Network Programming and Filmed Entertainment segments, reflecting sustained increases in affiliate fees as well as the global box office success of Dawn of the Planet of the Apes and The Fault in Our Stars. Additionally, we continued our focus on driving long-term value through our planned investments in a number of our growing brands, most notably our new channels FXX, Fox Sports 1 and Star Sports.” 

     

    Television segment 

     

    The company’s television segment reported flat y-o-y revenue at $ 1,048 million (13.3 per cent of Q1-2015 revenue or TIO and 14.8 per cent of Q1-2014 TIO), and 1.6 per cent more than the $ 1,031 million (12.2 per cent of TIO) in Q4-2014. The segment reported OIBDA of $ 174 million (9 per cent of overall OIBDA) in Q1-2015, down 24.7 per cent from the $ 231 million (14.3 per cent of overall OIBDA) in Q1-2014, but 20 per cent more than the $ 145 million (8.2 per cent of overall OIBDA) in Q4-2014.

     

     Here is what the company had to say about Television segment 

     

    Quarterly segment revenues were consistent with those from the corresponding period in the prior year as strong retransmission consent revenue growth was counterbalanced by a 5 per cent decline in advertising revenues primarily reflecting the impact from lower general entertainment ratings at the FOX Broadcast Network. The decline in segment OIBDA principally reflects segment expense growth driven by higher programming costs at the Fox Broadcast Network from the investment in additional hours of original scripted content, higher program cancellation costs and higher rights fees related to the new National Football League contract.

     

     Let us look at the other Q1-2015 numbers reported by Fox 

     

    TIO in Q1-2015 at $ 7,887 million was 11.7 per cent more than the $ 7,061 million in Q1-2014 and 6.4 per cent less than $ 8,424 million in the immediate trailing quarter. OIBDA numbers have been mentioned above. 

     

    Cable Network Programming 

     

    Cable Network Programming, the largest contributor to Fox numbers, reported 15 per cent growth in y-o-y revenue to $  3,231 million (41 per cent of TIO) in Q1-2015 from $ 2810 million (39.8 per cent of TIO) but a 3.5 per cent drop from $ 3,347 million (39.7 per cent of TIO) in Q4-2014. This segment reported a 4.7 per cent growth in OIBDA in Q1-2015 to $ 1,038 million (58.3 per cent of overall OIBDA) from $ 991 million (61.2 per cent of overall OIBDA) in Q1-2014, but 13.6 per cent less than the $ 1,202 million (68.2 per cent of overall OIBDA) in the immediate trailing quarter Q4-2014. 

     

    Here is what the company has to say about Cable network programming:  

     

    The revenue improvement was partially offset by a 21 per cent increase in segment expenses, nearly half of which reflected the combined impact of the planned investments in the new sports channels launched in the prior year, coupled with the consolidation of the Yankees Entertainment and Sports Network (the Yes Network). The expense growth at the new sports channels principally reflected increased rights fees related to the broadcast of the India vs. England cricket series at STAR Sports and the inaugural broadcast of regular season Major League Baseball games at Fox Sports 1. In addition to the continued investment in these channels, quarterly segment expenses included increased programming and marketing costs at the FX Networks for additional hours of original programming including The Strain, Tyrant and Sons of Anarchy at FX and the exclusive cable rights to air all 552 episodes of The Simpsons at FXX. Segment OIBDA growth was adversely impacted by 4 per cent from foreign exchange rate fluctuations, primarily in Latin America. 

     

    Domestic affiliate revenue grew 18 per cent reflecting the combination of sustained growth at the regional sports networks (RSNs), FX Networks and Fox News Channel, the contribution from Fox Sports 1, as well as the consolidation of the Yes Network. Reported international affiliate revenue increased 8 per cent driven by strong local currency growth at the Fox International Channels (FIC) and Star channels which was partially offset by an 8 per cent adverse impact from the strengthened US dollar, primarily in Latin America.

     

     Domestic advertising revenue grew 10 per cent in the quarter over the prior year period driven by the consolidation of the Yes Network and solid growth at the FX Networks and Fox News Channel. Reported international advertising revenue increased 13 per cent due to strong growth at the STAR channels.

     

     OIBDA from the domestic channels increased 15 per cent from the corresponding period in the prior year, reflecting OIBDA growth at the Fox News Channel and the RSNs, which included the impact of the consolidation of the Yes Network. This quarterly domestic growth was partially offset by lower contributions from the FX Networks due to the increased investment in programming and marketing. Reported quarterly OIBDA at the Company’s international cable channels’ declined 28 per cent from the corresponding period of the prior year as strong double-digit local currency growth at FIC was more than offset by the timing of the continued investment in STAR Sports and a 19 per cent adverse impact from the strengthened US dollar. 

     

    Filmed Entertainment Segment 

     

    Filmed Entertainment Segment reported 16.8 per cent growth in revenue in Q1-2015 to $ 2,476 million (31.4 per cent of TIO) from $ 2,120 million in Q1-2014, but was 11.7 per cent lower than the $ 2803 million (33.3 per cent of TIO) in Q4-2014. 

     

    OIBDA from Fox’s Filmed Entertainment Segment in Q1-2015 at $ 458 million (25.7 per cent of overall OIBDA) was 39.6 per cent more than the $ 328 million (20.3 per cent of overall OIBDA) in Q1-2014 and 39.6 per cent more than the $ 339 million (19.2 per cent of overall OIBDA) in Q4-2014.

     

     This is what the company has to say about Filmed Entertainment: 

     

    This growth was led by the performance of several successful worldwide theatrical releases in the quarter including Dawn of the Planet of the Apes and Maze Runner, which have grossed over $ 700 million and over $300 million in worldwide box office to date, respectively, continued contributions from the worldwide theatrical and domestic home entertainment performance of The Fault in Our Stars, and the worldwide home entertainment performance of Rio 2. As a result of these successful releases, the film studio became the first to cross the $ 4 billion mark in worldwide box office this year. Quarterly results also reflect higher contributions from the television production businesses driven by higher syndication and SVOD revenues. 

     

    Direct Broadcast Satellite Television

     

     Revenue from Filmed Entertainment Segment in Q1-2015 at $ 1449 million (18.4 per cent of TIO) was 11.7 per cent more than the $ 1,390 million (19.7 per cent of TIO) in the year ago quarter but 6.4 per cent lower than the $ 1,593 million (18.9 per cent of TIO) in Q4-2014.

     

    OIBDA for Filmed Entertainment Segment in Q1-2015 at $ 207 million (11.6 per cent of overall OIBDA) was 8.9 per cent more than the $ 190 million (11.7 per cent of overall OIBDA) in Q1-2014 and 41.8 per cent more than the $ 146 million (8.3 per cent of overall OIBDA) in Q4-2014.

     

     This is what the company has to say about Direct Broadcast Television:

     

     This increase reflects a $ 59 million or 4 per cent revenue increase primarily due to Sky Deutschland subscriber growth, partially offset by higher sports programming costs including SKY Italia’s broadcast of the FIFA World Cup. Sky Deutschland grew net direct subscribers by approximately 96,000 during the quarter, bringing total direct subscribers to 3.91 million, while SKY Italia’s subscriber base declined by 21,000 during the quarter bringing total subscribers to 4.70 million.

  • Higher ‘other expense’ pares Dish Network PAT to less than half in Q3-2014

    Higher ‘other expense’ pares Dish Network PAT to less than half in Q3-2014

    BENGALURU:  US pay-TV player Dish Network Corporation (Dish Network) reported net income after taxes of $ 145.52 million ($ 14.552 crore) in Q3-2014, which was less than half the US$ 414.91 million reported during the year ago quarter. Year to date, for 9M-2014, the company’s net income increased by 2.9 per cent to $ 534.76 million from $ 519.45 million in 9M-2013.

     

    Dish Network reported ‘other expense’ of $ 185.39 million in Q3-2014 as compared to the $ 38.93 million in Q3-2013. For 9M-2014, the company reported more than double the other expense at $ 478.13 million as compared to the $ 226.18 million in 9M-2013.

     

    Here are excerpts of the Dish Network’s own review in its press release:

    Dish Network reported revenue totalling $ 3.68 billion for the quarter ending 30 September 2014, compared to $ 3.51 billion for the corresponding period in 2013. Subscriber-related revenue increased 5.3 percent to $ 3.65 billion from $3.46 billion in the year-ago period.

     

    Net income attributable to Dish Network totalled $ 146 million for the quarter ending 30 September 2014, compared to net income of $315 million from the year-ago quarter. Diluted earnings per share for the quarter were $0.31, compared with $0.68 during the same period in 2013.

     

    Pay-TV ARPU for the third quarter totalled $ 84.39, compared to the year-ago period’s pay-TV ARPU of $ 80.98. Pay-TV subscriber churn rate increased slightly to 1.67 percent versus 1.66 percent for third quarter 2013.

     

    Total pay-TV customers decreased by approximately 12,000 in the quarter. Dish Network closed the third quarter with 14.041 million pay-TV subscribers, compared to 14.049 million pay-TV subscribers at the end of third quarter 2013. Dish Network activated approximately 691,000 gross new pay-TV subscribers, compared to approximately 734,000 gross new pay-TV subscribers in the prior year’s third quarter.

     

    Dish Network added approximately 28,000 net broadband subscribers in the third quarter, bringing its broadband subscriber base to approximately 553,000. Dish Network added approximately 75,000 net broadband subscribers in the third quarter 2013.

     

    Year-to-Date Review

     

    For the first nine months of 2014, Dish Network’s revenue of $ 10.96 billion increased 5.7 percent, compared to $ 10.37 billion in revenue from the same period last year. Subscriber-related revenue increased 5.7 percent to $10.85 billion in the first nine months of 2014 from $ 10.26 billion from the year-ago period. Year to date, net income attributable to Dish Network totalled $ 535 million compared with $ 519 million during the same period last year. Diluted earnings per share were $ 1.16 for the first nine months of 2014, compared with $ 1.13 during the same period in 2013.

    Click here for the statements

     

    Click here for the statements

     

  • Higher expenses, loss from F&B and gaming curb PVR Q2-2015 PAT

    Higher expenses, loss from F&B and gaming curb PVR Q2-2015 PAT

    BENGALURU: Last fiscal (FY-2014), Indian motion picture exhibition, production and distribution house PVR Limited (PVR) entered the Rs 1000 crore club by posting operating income (TIO) of Rs 1351.23 crore for the year. In Q2-2015, the company recorded a jump in TIO of 10.5 per cent to Rs 400.20 crore from Rs 362.26 crore in the immediate trailing quarter and recorded a 9.4 per cent increase from the Q2-2014 TIO of Rs 365.77 crore. In HY-2015, PVR reported TIO of Rs 762.46 crore, up 8.8 per cent from the Rs 700.96 crore in HY-2014.

     

    The company’s PAT in Q2-2015, however did not quite keep up with the PT reported in the corresponding quarter of last year. Q2-2015 PAT at Rs 9.2 crore, though 20.1 per cent more than the Rs 7.66 crore in Q1-2015, was just a third of the PAT of Rs 27.55 crore reported in Q2-2014. For HY-2015, PVR’s PAT at Rs 16.86 crore was 59 per cent lower than the Rs 41.15 crore in HY-2014.

     

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

     

    Its movie exhibition segment’s HY-2015 numbers were poor as compared to HY-2014. Further, higher total expenditure, higher loss from its ‘Others segment’ that comprises of bowling, gaming and restaurant services were partly responsible for erosion of the lower HY-2015 operating profits generated by PVR’s Movie exhibition segment.

     

    PVR’s Others’ segments loss widened to more than double in Q2-2015 to Rs 5.04 crore from Rs 2.46 crore in Q1-2015 and Rs 2.42 crore in Q2-2014. Loss in HY-2015 also widened to Rs 1.21 crore from Rs 0.02 crore in HY-2014.

     

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

     

    PVR reported Total Expenditure of Rs 372.66 crore for Q2-2015, which was 10.7 per cent more q-o-q than the Rs 336.68 crore and 19.5 per cent more y-o-y than the Rs 311.88 crore. For HY-2015, TE was 7.1 per cent higher at Rs 709.34 crore against Rs 605.92 crore in HY-2014.

     

    The company’s Film Exhibition Cost (FEC) in Q2-2015 went up 6.6 per cent in Q2-2015 to Rs 93.25 crore from Rs 87.48 crore in Q1-2015 and was 0.9 per cent more than the Rs 92.39 crore in Q2-2014. HY-2015 FEC at Rs.180.73 crore was 1.8 per cent more than the Rs 177.55 crore in HY-2014.

     

    Movie production expense (MPE) in Q2-2015 was Rs 12.68 crore versus Rs 3.32 crore in Q1-2015 and Rs 0.21 crore in Q2-2014. For HY-2015, MPE at Rs 16 crore was 4.4 times the Rs 3.66 crore in HY-2014.

     

    The cost of Food and Beverages consumed (food) in Q2-2015 at Rs 28.65 crore was 3.7 per cent more than the Rs 27.63 crore in Q1-2015 and 14.3 per cent more than the Rs 25.07 crore in Q2-2014. For HY-2015 food costs fell 15.3 per cent to Rs 47.65 crore from Rs 56.28 crore in HY-2014.

     

    PVR’s other expense (OE) in Q2-2015 at Rs 32.78 crore was 16.2 per cent more than the Rs 28.2 crore in Q1-2015 and 5.2 per cent more than the Rs 31.15 crore in Q2-2014. OE in HY-2015 was almost flat (up by 0.5 per cent) at Rs 60.98 crore as compared to the Rs 60.70 crore in HY-2014. 

     

    Segment Revenue

     

    Three segments add to PVR’s numbers-Movies Exhibition, Movie production and distribution and Others that comprises of bowling, gaming and restaurant services.

     

    Movie Exhibition

     

    The largest contributor is Movies Exhibition. Revenue from this segment increased 8.9 per cent to Rs 368.18 crore in Q2-2015 from Rs 338.23 crore in Q1-2015 and by 7.2 per cent from Rs 343.36 crore in Q2-2014. For HY-2015, revenues from the Movies Exhibition segment increase 7.6 per cent to Rs 706.41 crore from Rs 656.44 crore in HY-2014.

     

    Though this segment reported a 2.9 per cent growth in operating profits to Rs 27.14 crore in Q-2015 from Rs 26.37 crore in Q1-2015, its operating profit was just half of the Rs 54.22 crore reported in Q2-2014. For HY-2015, operating profit fell 44.3 per cent to Rs 53.51 crore from Rs 96.13 crore in HY-2014.

     

    Movie production and distribution

     

    Revenue from PVR’s MPD segment in Q2-2015 was 2.7 times at Rs 18.87 crore as compared to the Rs 6.99 crore in Q1-2015 and 3.1 times the Rs 6.12 crore in Q2-2014. In Hy-2015, revenue from the MPD segment went up 2.1 times to Rs 25.86 crore from Rs 12.44 crore in HY-2014.

     

    This segment returned an operating profit of Rs 1.34 crore in Q2-2015 versus a loss of Rs 0.56 crore in Q1-2015 and a small profit of Rs 01 crore in Q2-2014. For HY-2015, this segment reported an operating profit of Rs 0.78 crore versus a loss of Rs 0.95 crore in HY-2014.

     

    Others

     

    PVR’s Others segment reported a 6.7 per cent drop in revenue to Rs 18.19 crore in Q2-2015 from Rs 19.5 crore in Q1-2015 and a drop of 2.8 per cent from Rs 18.72 crore in Q2-2104. For HY-2015, this segment’s revenue was almost flat at Rs 37.69 crore versus Rs 37.62 crore in HY-2014.

     

    Other numbers for this segment has been mentions avove.

  • Q2-2015: Commissioned programmes cushion Balaji Telefilms’ loss

    Q2-2015: Commissioned programmes cushion Balaji Telefilms’ loss

    BENGALURU: Balaji Telefilms reported less than half the q-o-q total income from operations (TIO) (1/2.3 times) for Q2-2015 at Rs 58.89 crore versus the Rs 136.03 crore in Q1-2015 and less than a third (1/3.3 times) of the Rs 194.62 crore in Q2-2014. For HY-2015, the company’s TIO at Rs 195.89 crore was 29.8 per cent lower than the Rs 279.07 crore in HY-2014.

     

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

     

    Commissioned programs cushioned the loss from the company’s film segment. Revenue from commissioned programs went up 7.2 per cent to Rs 49.33 crore in Q2-2015 from Rs 46 crores in Q1-2015 and was 64 per cent more than the Rs 30.09 crore in Q2-2014. For HY-2015, this segment had 81.7 per cent higher revenue at Rs 95.32 crore versus the Rs 52.46 crore in HY-2014.

     

    Commissioned programs reported an operating profit of Rs 5.85 crores in Q2-2015, which was 5 per cent lower than the Rs 6.16 crore in Q1-2015 and 60.8 per cent more than the Rs 3.64 crore in Q2-2014. For HY-2015, operating profit from commissioned programs more than tripled (went up 3.1 times) at Rs 12.01 crore versus Rs 3.86 crore in HY-2014.

     

    Overall, Balaji has returned a loss of Rs 7.58 crore in Q2-2015 versus a profit of Rs 10.56 crore in Q1-2015 and a profit of Rs 12.32 crore in Q2-2014. For HY-2015, Balaji Telefilms reported a profit of Rs 2.98 crore which was less than a fifth (19.7 per cent) of the Rs 15.94 crore in HY-2014.

     

    The company’s film segment, which contributes a major percentage to its TIO, reported poor results. Revenue of Rs 9.43 crore from this segment in Q2-2014 was less than one-ninth (1/9.5 times) the Rs 89.34 crore in Q1-2015 and less than one seventeenth (1/17.4) the Rs 164.05 crore in Q2-2014. For HY-2015, Film segment revenue of Rs 98.77 crore in HY-2015 was less than half (1/2.3 times) the Rs 225.70 crore in HY-2014.

     

    Films segment reported a loss of Rs 7.46 crore versus operating profit of Rs 10.97 crore in Q1-2015 and an operating profit of Rs 11.81 crore in Q2-2014. Operating profit in HY-2015 at Rs 3.52 crore was less than half the Rs 8.24 crore in HY-2014.

     

    Click here for the financial statement

  • Dish TV reports improved results for Q2-2015

    Dish TV reports improved results for Q2-2015

    MUMBAI: Reporting earnings for the current quarter (Q2-2015), Dish TV India Limited (Dish TV) announced addition of 3,78,000 subscribers in the quarter taking net subscriber base to 1.21 crore at the end of the quarter. The company added 3,32,000 subscribers last quarter and 164,000 subscribers in the corresponding quarter last year.

     

    The subscription revenue for the quarter rose 12.2 per cent to Rs 616.8 crore y-o-y while the total operating income (Total Income from Operations – TIO) at Rs 672.3 crore was 11.9 per cent more than Rs 600.8 crore in Q2-2014 and 4.9 per cent more than Rs 640.6 crore in Q1-2015.

     

    Also reporting the half yearly result, the HY1-2015 TIO for the company at Rs 1290.8 crore was 7.2 per cent more than Rs 1203.9 crore in HY1-2014.

     

    The company announced a decline in loss for the current quarter at Rs 15.1 crore as compared to the Rs 16.05 crore in the trailing quarter but higher than the Rs 8.53 crore in the corresponding quarter last year.

     

    The total expenditure of the company for the current quarter also rose to Rs 661.9 crore, 11.1 per cent up from Rs 595.5 crore in Q2-2014 and 5.2 per cent more than Rs 628.8 in the trailing quarter.

     

    The company reported the total expenditure for HY1-2015 at Rs 1290.8 crore which was 7.2 per cent more than Rs 1203.9 crore in HY1-2014.

     

    The increase in total expenditure can be attributed to rise in Employee benefit expense (EBE), advertising expense (AE) and selling and distribution expenses (S&DE).

     

    The EBE for Q2-2015 was reported at Rs 25.16 crore, up 12.6 per cent from Rs 22.34 crore in the corresponding quarter last year and 1.6 per cent lower than the trailing quarter.

     

    AE in Q2-2015 at Rs 17.7 crore, was 39.4 per cent more than Rs 12.7 crore in Q1-2015 while the selling and distribution expenditure rose 22.1 per cent Q-o-Q.

     

    The S&DE comprises of commission and other selling and distribution expenses.

     

    The commissions for the company in Q2-2015 was reported at Rs 60.74, 12.2 per cent more than Rs 54.12 crore announced in the immediate trailing quarter and  41.3 per cent more than Rs 42.96 crore in Q2-2014.

     

    While the other selling and distribution expenses at Rs 53.8 crore jumped 42.1 per cent from Rs 37.86 in Q1-2015 and 74.9 per cent from Rs 30.76 crore in the corresponding quarter last year.

     

    ARPU for the second quarter increased to Rs 172 from Rs 170 in the previous quarter. Despite significantly higher activations, churn continued to be at a healthy 0.7 per cent per month. Festival driven, higher selling and distribution expenses resulted in the EBITDA margin being marginally lower at 24.1 per cent compared to 24.5 per cent in the previous quarter, said the press release.

     

    EBITDA for the quarter was Rs 162.3 crore, up 4.4 per cent as compared to Rs 155.4 crore in the corresponding quarter last fiscal.

    Talking about the overall industry growth, Dish TV chairman Subhash Chandra said, “The industry, led by Dish TV, recorded a healthy 38 per cent Y-o-Y growth in gross additions during the second quarter of fiscal 2015.”

     

    “Our performance during the second quarter is a reflection of our belief that a financially stable business is best placed to capitalize on any growth opportunity. While we have been growing in the right direction, growth without healthy returns to our shareholders falls below our aspirations. However, we are committed to generate them and by focusing on revenues, expenses and balance sheet quality we are building near term benefits for all our stakeholders,” he added commenting on the company’s earnings report.

     

    Adding to the same, Dish TV MD Jawahar Goel said, “Dish TV maintained its leadership position during the second quarter. Buoyed by a healthy growth in HD sales and good traction coming in from sale of the ‘Zing’ brand.”

     

    He further added, “In view of the Prime Minister’s ‘Make in India’ campaign Dish TV is re-evaluating possibilities for domestic manufacturing of set top boxes.” High Definition (HD) box sales gained Traction. It comprises of 15 per cent of the incremental additions.

     

    Despite the push back of digitization, ‘Zing’ helped propel the sales of the flagship ‘Dishtv’ brand through a wider reach and top of the mind recall. The newly introduced Sports driven packaging also found instant favor with subscribers, thus enabling Dish TV outgrow the industry growth rate, the press release added.

     

    Click here to read the unaudited financial result

     

    Click here to read the press release

  • Higher Operation costs pull down Raj TV Q2-2015 PAT to one fourth of Q1-2015

    Higher Operation costs pull down Raj TV Q2-2015 PAT to one fourth of Q1-2015

    BENGALURU: South Indian television network Raj TV Limited (Raj TV) reported PAT of Rs 0.755 crore (3.8 per cent of Total income from operations or TIO) in Q2-2015, which was a little more than one fourth (1/3.9 times) the Rs 2.922 crore (15.3 per cent of TIO) in Q1-2015 and a little more than one fifth (1/4.6 times) the Rs 3.46 crore (18.9 per cent of TIO) in Q2-2014.

     

    For HY-2015, PAT was less than half (0.42 times) at Rs 3.43 crore (8.7 per cent of TIO) versus Rs 8.13 crore (22.2 per cent of TIO) in HY-2014.

     

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

     

    The company’s operations cost (cost of revenue or COR) in Q2-2015 at Rs 8.65 crore (43.1 per cent of TIO) was 39 per cent more than the Rs 6.22 crore (32.6 per cent of TIO) in Q1-2015 and 66.9 per cent more than the Rs 5.18 crore (28.2 per cent of TIO) in the corresponding quarter of last year.  COR for HY-2015 was reported at Rs 14.87 crore (38 per cent of TIO), 24.6 per cent more than the Rs 11.93 crore (32.6 per cent of TIO) in HY-2014.

     

    An 83 per cent hike in the company’s Employee Benefit Expense (EBE) also contributed to the lower HY-2015 results. Increase in COR and EBE were the major contributors to the higher Total Expenditure in Q2-2015 and HY-2015.

     

    Let us look at the other Q2-2015 results by Raj TV

     

    TIO for the company in Q2-2014 was up 5 per cent at Rs 20.08 crore as compared to the Rs 19.11 crore in Q1-2015 and 9.4 per cent more than the Rs 18.35 crore in Q2-2014. For HY-2015, Raj TV reported 7 per cent higher TIO of Rs 39.19 crore versus Rs 33.64 crore in HY-2014.

     

    Raj TV’s Total Expenditure (TE) in Q2-2015 at Rs 17.61 crore (87.7 per cent of TIO) was 19 per cent more than the Rs 14.8 crore (77.4 per cent of TIO) in Q1-2015 and 34.6 per cent more than the Rs 13.09 crore (71.3 per cent of TIO) in Q2-2014. For HY-2015, the company’s TE was reported at Rs 32.41 crore (82.7 per cent of TIO) was 25 per cent more than the Rs 25.94 crore (70.8 per cent of TIO) in HY-2014.

     

    Raj TV’s administrative and other expense (A&OE) in Q2-2015 at Rs 2.83 crore (14.1 per cent if TIO) was 11.3 per cent more than the Rs 2.54 crore (13.3 per cent of TIO) but 7.6 per cent lower than the Rs 3.06 crore (16.7 per cent of TIO) in Q2-2014. A&OE for HY-2015 at Rs 5.37 crore (13.7 per cent of TIO) was 6.7 per cent lower than the Rs 5.75 crore (15.7 per cent of TIO) in HY-2014.

     

    EBE in Q2-2015 at Rs 5.52 crore (27.5 per cent of TIO) was 1.7 per cent more than the Rs 5.43 crore (28.4 per cent of TIO) in the immediate trailing quarter and 53.4 per cent more than the Rs 3.6 crore (19.6 per cent of TIO) in the corresponding quarter of 2014. As mentioned above, EBE for HY-2015 at Rs 10.95 crore (27.9 per cent of TIO) was almost double (up 83 per cent) the Rs 5.98 crore (16.3 per cent) in HY-2014.

     

    The company’s finance costs have gone up y-o-y. For Q2-2015, finance cost at Rs 1.4406 crore (7.2 per cent of TIO) was almost flat (down 0.4 per cent) as compared to the Rs 1.4471 crore (7.6 per cent of TIO) in Q1-2015, but 48.3 per cent more than the Rs 0.9715 crore (5.3 per cent of TIO) in Q2-2014. In HY-2015, finance cost at Rs 2.89 crore (7.4 per cent of TIO) was 60 per cent more than the Rs 1.8 crore (4.9 per cent of TIO) in HY-2014.

     

    Click here for unaudited financial results

  • Q3-2014: Rating’s lower Comcast’s NBC Cable Networks Ad Rev; Cable Communications Ad Rev up

    Q3-2014: Rating’s lower Comcast’s NBC Cable Networks Ad Rev; Cable Communications Ad Rev up

    BENGALURU: A few days ago, Comcast Corporation (Comcast) reported a 4 per cent y-o-y growth in consolidated revenue (TR) in Q3-2014 to $ 16,791 million from US$ 16151 million in Q3-2013. However, q-o-q, the company’s revenue was almost flat with a fractional drop of 0.3 per cent from $ 16,844 million.

    As per the company’s press release, it receives advertisement revenue (Ad Rev) from two business streams:  Cable Communications and its subsidiary NBC Universal.

    Ad revenues from two segments that contribute to NBC Universal’s ad revenues include Cable Networks and Broadcast Television while NBC Universal’s other segments includes Filmed Entertainment and Theme Parks.

    Advertisement Revenue dropped in the earlier quarter Q2-2014 by 14.1 per cent as compared to Q1-2014 and it has dropped further q-o-q by 8.4 per cent in Q3-2014. Over the 11 quarter period (period under consideration) starting Q1-2012 (quarter ended 31 March, 2012) till Q3-2014 (quarter ended 30 September, 2014 or current quarter), the company’s Total advertisement revenue (Ad Rev) shows a downward linear trend in terms of percentage of TR.

    However during the period under consideration, the company’s Ad Rev in absolute dollar terms shows a slight upward trend, as do the Ad Rev from Comcast’s Cable Communication as well as NBC Universal business streams.

    For Q3-2014, as mentioned above, the company’s Ad Rev was down 8.4 per cent to $ 2,556 million (15.2 per cent of TR) from $ 2,789 million (16.6 per cent of TR) in Q2-2014, but was 3.1 per cent more than the $ 2,480 million (15.4 per cent of TR) in the corresponding year ago quarter.

    Over the 11 quarters under consideration, the company’s average Ad Rev in terms of percentage of Comcast TR has been reported at 17.3 per cent.  As mentioned above, the company’s Ad Rev in terms of percentage of TR was much lower during Q3-2014 at 15.2 per cent of TR and at 16.6 per cent of TR during Q2-2014.

    Also, for the period under consideration, the highest contribution by Ad Rev in terms of percentage of TR as well as absolute value in dollars was in Q3-12 at $ 3,403 million (20.6 per cent of TR), while the lowest figure for the same period was in Q1-2013 at 14.8 per cent of TR and $ 2,268 million. Please refer to figure 1 for details of Comcast’s Ad Rev during the eleven quarters under consideration.

    Cable Communications Ad Rev

    As shown in figure 1, Ad Rev from Cable Communications is at a lesser fraction of the company’s Total Ad Rev, averaging around 20.3 per cent of the company’s total Ad Rev during the period under consideration.  This trend however seems to be changing with Cable Communications Ad Rev increasing for the second quarter in a row. In Q3-2014, Ad Rev from Cable Communications was 1.3 per cent higher at $ 607 million (5.5 per cent of Cable Communications TR, 23.7 per cent of Comcast Ad Rev, 3.6 per cent of Comcast TR) than the $ 599 million in Q2-2014 (5.4 per cent of Cable Communications TR, 21.5 per cent of Comcast Ad Rev, 3.6 per cent of Comcast TR) and 12.2 per cent more than the $ 541million in Q3-2013 (5.2 per cent of Cable Communications TR, 21.8 per cent of Comcast Ad Rev, 3.3 per cent of Comcast TR).

    Impact of NBC Universal Ad Revenue on Comcast Revenue

    NBC Universal Ad Rev contributes around 80 per cent to Comcast’s Ad Rev. Obviously, a drop in Ad Rev by both or either of these NBC Universal’s segments will affect Comcast Ad Rev and Comcast TR.

    About 60 per cent of NBC Universal’s Ad Rev comes from Broadcast Television. Please refer to figure 2 below for the breakup of NBC Universal’s Ad Rev break-up. In Q3-2014, both of NBC Universal’s segments’ Ad Revs have de-grown. 

    NBC reported a fall of 11 per cent in Ad Rev in Q3-2014 to $ 1,949 million (32.9 per cent of NBC Universal TR, 76.3 per cent of Comcast Ad Rev, 11.6 per cent of Comcast TR) from $ 2,190 in Q2-2014 (36.4 per cent of NBC Universal TR, 78.5 per cent of Comcast Ad Rev, 13 per cent of Comcast TR), but was just 0.5 per cent more than $ 1,939 million in Q3-2013 (33.1 per cent of NBC Universal TR, 78.2 per cent of Comcast Ad Rev, 12 per cent of Comcast TR).

    Cable Networks, on the other hand reported a bigger drop of 15.8 per cent in their Ad Rev reported at $ 796 million (40.8 per cent of NBC Universal Ad Rev, 13.4 per cent of NBC Universal TR, 31.1 per cent of Comcast Ad Rev, 4.4 per cent of Comcast TR) from $ 945 million in Q2-2014 (43.2 per cent of NBC Universal Ad Rev, 15.7 per cent of NBC Universal TR, 33.9 per cent of Comcast Ad Rev and 5.6 per cent of Comcast TR), and 4.7 per cent less than the $ 835 million in Q3-2013 (43.1 per cent of NBC Universal Ad Rev, 14.3 per cent of NBC Universal TR, 33.7 per cent of Comcast Ad Rev and 5.2 per cent of Comcast TR). The company attributes lower Ad Rev from this segment to a drop in ratings.

    In Q3-2014, Broadcast TV Ad Rev fell 7.4 per cent in Q3-2014 to $ 1,153 million (59.2 per cent of NBC Universal Ad Rev, 19.5 per cent of NBC Universal TR, 45.1 per cent of Comcast Ad Rev and 6.9 per cent of Comcast TR) from $ 1,245 million in Q2-2014 (56.8 per cent of NBC Universal Ad Rev, 20.7 per cent of NBC Universal TR, 44.6 per cent of Comcast Ad Rev and 7.4 per cent of Comcast TR), but 4.4 per cent more than $ 1,104 million  in Q3-2013(59.2 per cent of NBC Universal Ad Rev, 19.5 per cent of NBC Universal TR, 45.1 per cent of Comcast Ad Rev and 6.9 per cent of Comcast TR).

  • Q3-2014: Comcast income up 50 per cent y-o-y; NBC Universal’s posts TV Broadcasting strong results

    Q3-2014: Comcast income up 50 per cent y-o-y; NBC Universal’s posts TV Broadcasting strong results

    BENGALURU:  Comcast Corporation (Comcast) reported a 4 per cent y-o-y growth in consolidated revenue (TR) in Q3-2014 to $ 16,791 million from $ 16,151 million in Q3-2013. However, q-o-q, the company’s revenue was almost flat with a fractional drop of 0.3 per cent from $ 16,844 million.

     

    Talking about the latest earnings, Comcast chairman and CEO Brian L Roberts said, “I am pleased to report strong revenue, operating cash flow and free cash flow growth for the third quarter of 2014. Cable results highlight the consistent strength of high-speed Internet and business services, and video customer results were the best for a third quarter in seven years. We continue to focus on innovation and providing the best experience for our customers, and we are thrilled with the response to our superior X1 platform, which recently reached five million boxes deployed. At NBC Universal, we had another outstanding quarter with double-digit operating cash flow growth, driven by ratings momentum at NBC Broadcast and the successful opening of The Wizarding World of Harry Potter-Diagon Alley in Orlando.”

     

    Comcast’s consolidated operating expenditure (Expenditure) in Q3-2014 at $ 11,087 million was 2.5 per cent more than the $ 10,821 million in Q3-2013 and 0.4 per cent more than the $ 11,040 million in Q2-2014.

     

    Comcast’s Earnings per Share (EPS) for the third quarter of 2014 was $ 0.99, a 52.3 per cent increase from the $ 0.65 reported in the third quarter of 2013. EPS for Q2-2014 was $ 0.76, (excluding gain on a sale and transaction-related costs, EPS in Q2-2014 was $0.75). Excluding income tax adjustments and transaction-related costs in Q3-2014, EPS increased 12.3 per cent to $ 0.73.

     

    The company’s net income after taxes, attributable to Comcast in Q3-2014 increased 49.7 per cent to $ 2,592 million from $ 1,732 million in Q3-2013. Net Income attributable to Comcast Corporation in Q2-2014 was $ 1,992 million.

     

    Comcast Business Streams

     

    Two main business streams contribute to Comcast: Cable Communications (between 60 and 65 per cent of TR) and NBC Universal (between 35 and 40 per cent of TR). 

     

    Video, high speed internet, voice, business services and other businesses are a part of Cable Communications. Cable Communications Video Revenue consists of analogue, digital, premium, pay-per-view, equipment services and residential video installation revenue. Other Cable Communications Revenue include franchise and other regulatory fees, digital media centre, commissions from electronic retailing networks and fees for other services.

     

    NBC Universal comprises of Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks businesses.  

     

    Cable Communications

     

    Overall, Cable Communications reported a 5.2 per cent growth in Q3-2014 to $ 11,041 million dollars (65.8 per cent of TR) from $ 10,491 million (65 per cent of TR) in Q3-2013 and was almost flat (grew by 0.1 per cent) from the $ 11029 million (65.5 per cent of TR) in Q2-2014.

     

    Cable Communications Expenditure in Q3-2014 at $ 6,577 million was 5.3 per cent more than the $ 6,245 million in Q3-2013 and 1.7 per cent more quarter on quarter than $ 6,465 million.

     

    Here is what the company has to say about Cable Communications:

     

    ‘Customer relationships increased by 82,000 to 26.9 million during the third quarter of 2014, more than three-times the customer relationship net additions in the third quarter of 2013. At the end of the third quarter, penetration of our triple product customers increased to 36 per cent compared to 34 per cent in the third quarter of 2013. High-speed Internet customer net additions improved versus last year and were the strongest for a third quarter in five years. Video customer net losses improved 36 per cent year-over-year and were the best result for a third quarter in seven years. Voice net additions slowed, reflecting a focus on double play during the back-to-school season, as well as X1 availability that was more focused on triple play customers last year, making for a difficult comparison.’

     

    NBC Universal:

     

    Comcast’s NBC Universal grew 1.2 per cent in Q3-2014 to $ 5,921 million (35.3 per cent of TR) from $ 5,851 million (36.2 per cent of TR) in Q3-2013, but shrank 1.6 per cent from $ 6,016 million (35.7 per cent of TR) in Q2-2014. Operating Cash Flow increased 13.3 per cent in Q3-2014 to $ 1.4 billion as compared to $ 1.3 billion in Q3-2013, driven by strong results at Broadcast Television and Theme Parks, says the company.

     

    NBC Universal Expenditure in Q3-2014 at $ 4,505 million was 6.6 per cent lower than the $ 4,601 million in Q3-2013 and 1.7 per cent lower than the $ 4,582 million in Q2-2014.

     

     

    Cable Networks:

     

    NBC Universal’s Cable Networks’ revenue in Q3-2014 at $ 2,255 million was 0.7 per cent more than $ 2,239 million in Q3-2013, but 8.9 per cent lower than $ 2,476 million reported for Q2-2014.

     

    Cable Networks’ expenditure in Q3-2014 at $ 1,387 million was 0.1 per cent more than the $ 1,386 million for the corresponding quarter year ago and 11.2 per cent lower than the $ 1,562 million in Q2-2014.

     

    Advertising revenue from Cable Networks shrank 4.7 per cent to $ 796 million in Q3-2014 from $ 835 million in Q3-2013 and was 15.8 per cent lower than $ 945 million in Q2-2014.

     

    Cable Networks’ distribution revenue grew 5.1 per cent in Q3-2014 to $ 1,281 million in Q3-2014 from $ 1,219 million in Q3-2013 and grew 0.9 per cent from $ 1,270 million in Q2-2014.

     

    Its content licensing and other revenue shrank 3.8 per cent to $ 178 million in Q3-2014 from $ 185 million in Q3-2013 and fell a massive 31.8 per cent from $ 261 million in the immediate trailing quarter.

     

     

    Television Broadcasting:

     

    NBC Universal’s Television Broadcasting revenue grew 7.7 per cent to $ 1,770 million in the current quarter from $ 1,644 million in Q3-2013, but was 2.5 per cent less than the $ 1,816 million in Q2-2014.

     

    Television Broadcasting Expenditure in Q3-2014 at $ 1,628 million was 1.1 per cent more than the $ 1,610 million in Q3-2013 and 3.3 per cent more than the $ 1,576 million in Q2-2014.

     

    Television Broadcasting advertising revenue in Q3-2014 grew 4.4 per cent to $ 1,153 million from $ 1,104 million in Q3-2013, but was 7.4 per cent lower than the $ 1,245 million in Q2-2014. Broadcast Television content licensing revenue grew by 13.2 per cent from $ 355 million in Q3- 2013 to $ 402 million in the current quarter and was 16.9 per cent higher than $ 344 million in Q2-2014. Other revenue for Broadcast Television grew 16.2 per cent to $ 215 million in Q3-2014 from $ 185 million in Q3-2013, but was 5.3 per cent lower than $ 227 million in Q2-2014.

     

    Filmed Entertainment:

     

    NBC Universal’s Filmed Entertainment revenue in Q3-2014 was 15.3 per cent lower at $ 1,186 million from $ 1,400 million in Q3-2013 and 0.9 per cent more than $ 1,176 million in Q2-2014. The company attributes this drop to the tough competition with the strong box office performance of Despicable me 2 in Q3-2013.

     

    Filmed Entertainment Expenditure in Q3-2014 at $ 1,035 million was 14.5 per cent lower than the $ 1,211 million in Q3-2013, but 5.5 per cent higher than the $ 981 million in Q2-2014.

     

    Theatrical revenue in Q3-2014 at $ 265 million was 52.6 per cent lower than the $ 550 million in Q3-2013, and 35.9 per cent more than $ 195 million in Q2-2014. Filmed Entertainment content licensing revenue at $ 439 million was 15.8 per cent more than $ 355 million in Q3-2013 but 5 per cent lower than the $ 462 million in Q2-2014.

     

    Home Entertainment revenue at $ 321 million in Q3-2014 fell 10.6 per cent from $ 359 million in Q3-2013 and was 11.8 per cent less than the $ 364 million in Q2-2014. Filmed Entertainment’s other revenue at US$ 161 million in Q3-2014 was 58.3 per cent more than the $ 103 million in Q3-2013 and was 3.9 per cent more than the $ 159 million in Q2-2014.

     

    Theme Parks

     

    NBC Universal’s Theme Park revenue at $ 786 million was 18.9 per cent more than the $ 661 million in Q3-2013 and 27.8 per cent more than the $ 615 million in Q2-2014.

     

    Theme Park Expenditure in Q3-2014 at $ 384 million was 20.8 per cent more than the $ 318 million in Q3-2013 and 3.5 per cent more than the $ 371 million in Q2-2014.

     

    Click here for earnings presentation

     

    Click here for financial results

  • Q2-2015: Bajaj Corp marketing exp up 20 per cent, ad exp down 2 per cent

    Q2-2015: Bajaj Corp marketing exp up 20 per cent, ad exp down 2 per cent

    BENGALURU: Note: (1) Bajaj Corp’s Limited (Bajaj Corp) Advertisement and Sales Promotion (ASP) expense comprises two parts – Advertisement (Ad) and Sales Promotion (SP). The ASP figures have been obtained from the Company’s investors’ presentations over various quarters and the Ad Exp from its financial results. SP results have been obtained by deducting the Ad Expenses from the ASP. The figures in the investors’ presentations have been rounded off by the company and hence are assumed as approximate. Consequently the SP figures are assumed to be approximate.
    (2) Bajaj Corp Limited is a subsidiary of Bajaj Resources Limited (BRL) and is an exclusive licensee of the brands owned by BRL for a period of 99 years starting 2008.
    (3) Rs 100 lakh = Rs100,00,000 = Rs 1 Crore = Rs10 million.
    Bajaj Corp’s mother brand is Bajaj with sub brands/products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan, and creams, soaps, face washes and face scrubs under the brand name Nomarks.
    Bajaj Corp spent Rs 33.45 crore (17.8 per cent of Total Income from operations or TIO) in Q2-2015 towards advertisement and sales promotion (ASP), which was 19.8 per cent more than the Rs 27.92 crore (17.6 per cent of TIO) in the year ago quarter and 9.6 per cent more than the Rs 30.53 crore (16 per cent of TIO) in the immediate trailing quarter.  In HY-2015, the company’s ASP at Rs 63.97 crore (17.9 per cent of TIO) was 11.8 per cent more than the Rs 56.45 crore (17.2 per cent of TIO) in HY-2014. The company’s ASP shows an upward trend in terms of percentage of TIO as well as in absolute rupee terms across 11 quarters starting Q2-2012 until Q2-2014.
    The company’s advertisement expense (ad expense) in Q2-2014 at Rs 12.38 crore (6.6 per cent of TIO) was 1.7 per cent lower than the Rs 12.60 crore (8 per cent of TIO) in Q2-2014 and 6 per cent less than the Rs 13.17 crore (6.6 per cent of TIO) in Q1-2015. For HY-2015 the company’s ad expense of Rs 25.55 crore (6.7 per cent of TIO) was 7.9 per cent lower than the Rs 27.58 crore (8.4 per cent of TIO) in HY-2014. Overall across the 11 quarters under consideration, Bajaj Corp’s ad expense shows a downward trend in terms of percentage of TIO
    At the same time, the company’s SP shows a linear upward trend, indicating that it is depending more on sales promotion activities. Its SP expense at Rs 21.07 crore (11.2 per cent of TIO) was the highest during the 11 quarters under consideration in terms of absolute rupees.  Please refer to fig A below.


    Bajaj Corp’s TIO shows an upward linear trend during the 11 quarter period under consideration. However, its PAT has shown a downward trend both in terms of absolute rupees as well as in terms percentage of TIO. Please refer to fig B.

    The company had earlier announced that it was focussing on rural penetration to tap the increase in disposable income of rural India and to convert rural consumers from unbranded to branded products by providing them with an appropriate value proposition. The initiative seems to be working.  In its investor presentation for Q2-2015, Bajaj Corp says that in Q2 FY 15 its Bajaj Almond Drops Hair Oil got 39.8 per cent of its sales from Rural India.  The company reports volume growth in rural India by 5 per cent (Urban + Rural) = {-1.2} per cent, hence showing a decline in the urban market) and claims a market share in rural India of 63.1 per cent (urban + rural = 58.5 per cent).

    Click here to read the investor presentation

    Click here to read the unaudited standalone statement