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Category: Financials

  • Zee Media Q2: posts 76 per cent growth in ad revenues

    Zee Media Q2: posts 76 per cent growth in ad revenues

    MUMBAI: Zee Media Corporation (ZMCL) has reported a 57.9 per cent rise in its operating revenue (Total Income from Operations – TIO) in Q2-2015 to Rs 131.12 crore from Rs 83.02 crore in the corresponding quarter last year (Q1-2014) and a one per cent drop than the Rs 133.46 crore reported in the trailing quarter (Q1-2015).

    The Company posted a 76 per cent growth in its advertising revenue to Rs 93.14 crore (71 per cent of TIO) in Q2-2015 as compared to Rs 52.92 crore in Q2-2014 and 16 per cent rise from the Rs 80.1 crore in Q1-2015. The ad revenue from existing channels reported a 42 per cent rise at Rs 68.58 crore versus Rs 48.28 crore in the corresponding quarter last year while the ad revenue from new channels posted a 62 per cent fall at Rs 2.52 crore as compared to Rs 6.64 crore in Q2-2014.

    The subscription revenue for the company grew by 12.8 per cent to Rs 28.07 crore in the current quarter versus Rs 24.90 crore in Q2-2014. The subscription revenue from the existing channels at Rs 24.62 crore was 1.1 per cent less than the Rs 24.90 crore in Q2-2014.

    The media corporation posted a Rs 12.8 crore loss in the current quarter as compared to Rs 14.57 crore loss in Q1-2015 and a profit of Rs 4.27 crore in the corresponding quarter last year (Q2-2014).

    Zee Media posts revenue from two segments: print and television.

    For television business, the company reported total revenue of Rs 98.56 crore, 51 per cent less than the Rs 202.43 crore in Q2-2014 and 5 per cent less than Rs 103.87 crore in Q1-2015.

    While for the print business, it posted total revenue of Rs 32.59 crore for Q2-2015 which was 47.5 per cent below the Rs 62.18 crore reported in Q2-2014 and 10 per cent more than Rs 29.59 crore, the total revenue in Q1-2015.

    The total expenditure for the company in Q2-2015 rose 65.5 per cent at Rs 125 crore from Rs 75.54 crore. The total expenditure for the television segment was reported at Rs 88.05 crore, while for the print segment it was at Rs 36.95 crore in Q2-2015. The total expense for the existing channels is 11.2 per cent at Rs 75.41 crore in Q2-2015 from Rs 67.84 crore in Q2-2014 while for the new channels; the expenditure has been reported at Rs 12.65 crore in Q2-2015, 64.2 per cent higher than the Rs 7.7 crore in Q2-2014.

    The cost of goods and operations for the current quarter increased 70.6 per cent at Rs 29.02 crore (23.2 per cent of TIO) versus Rs 17.01 crore (22.5 per cent of TIO) in Q2-2014.

    The employee cost for the quarter was reported at Rs 41.67 crore (33.3 per cent of TIO), 68.97 per cent more than the Rs 24.66 crore (32.6 per cent of TIO) in Q2-2014.

    The company posted its other expenses at Rs 54.31 crore (43.5 per cent of TIO) which was 69.34 per cent per cent more than the Rs 33.87 crore (44.9 per cent of TIO) in Q2-2014.

    The EBITDA for the company fell 18.2 per cent at Rs 6.12 crore in Q2-2015 versus Rs 7.48 crore in Q2-2014. The EBITDA for the existing channels have been reported at Rs 20.62 crore. For the new channels EBITDA is at a loss of Rs 10.13 crore in the current quarter versus a loss of Rs 3.06 crore in Q2-2014. The EBITDA for the existing channels is up by 95.6 per cent as compared to Rs 10.54 crore in Q2-2014.

    Speaking about the earnings for the current quarter, ZMCL non-executive chairman Subhash Chandra said, “Even as GDP growth in the second quarter is likely to be lower than that in the first quarter of this financial year, domestic industry is likely to witness improved margins which help in developing the investment climate in the country. With India emerging as the only country in the BRICS block to pick up a growth momentum, foreign investors are expected to inject the much needed funds into the system. The honorable Prime Minister’s recent visit to Japan and the US are also likely to augment the same. The mood of public as well as business confidence has improved in general. Providing further buoyancy to the economy is the new hope on the horizon that inflation may finally start softening on the back of steady fall in international crude oil prices and easing of food inflation in the second quarter. A vibrant economy, helped by government’s policy push, will benefit the media and entertainment industry in the mid to long run.”

    The company reached 146.7 million viewers across India and continues to be the largest news network riding on the strength of its two national, eight regional news channels, DNA newspaper and its digital platforms – zeenews.com, dnaindia.com, Facebook, YouTube and Twitter, the press release stated.

     

      Click here for Financial Statement

     

  • Q2-2015: HT Media: Radio segment reports 45 per cent higher operating result

    Q2-2015: HT Media: Radio segment reports 45 per cent higher operating result

    BENGALURU: HT Media Limited (HT Media) radio segment reported a 45.3 per cent q-o-q growth in operating result for Q2-2015 at Rs 6.64 crore versus Rs 4.57 crore in Q1-2015 and 41.6 per cent more than the Rs 4.69 crore in the corresponding quarter of 2014. The segment’s HY-2015 operating result at Rs 11.21 crore was 34.1 per cent more than the Rs 8.36 crore in HY-2014.
     
    Note: (1) 100,00,000 = 100 Lakhs = 10 million = 1 crore
    (2) The figures mentioned in this report are consolidated figures unless stated otherwise.
     
    HT Media’s radio segment reported revenue of Rs 24.35 crore in Q2-2014, which was 1.6 per cent more than the Rs 23.97 crore in Q1-2015 and 9.9 per cent more than the Rs 22.16 per cent in Q2-2014. The company operates four radio stations in the country under the brand Fever 104 FM.
     
    Let us look at the other Q2-2015 and HY-2015 figures reported by HT Media
     
    HT Media reported total income from operations (TIO) of Rs 560.88 crore in Q2-2015, which was 2.6 per cent more than the Rs 546.41 crore in Q1-2015 and 4.9 per cent more than the Rs 534.65 crore in Q2-2014. For HY-2015, HT Media reported TIO of Rs 1107.29 crore which was Rs 1075.58 crore in HY-2014.
     
    The company’s PAT for Q2-2015 at Rs 43.89 crore (7.8 per cent of TIO) was 34.3 per cent more than the Rs 32.67 crore (6 per cent of TIO) in Q1-2015 but 24.6 per cent lower than the Rs 58.18 crore (10.9 per cent of TIO) in Q2-2014. For HY-2015, HT Media reported PAT of Rs 94.64 crore (8.6 per cent of TIO), which was 18 per cent lower than the Rs 115.42 crore (11.7 per cent of TIO) in HY-2014.
     
    Three segments contribute to HT Media’s revenue – (1) Printing and publishing of newspapers and periodicals (Publishing) (2) Radio and (3) Digital.
     
    Radio segment’s results have been mentioned above. HT Media’s publishing segment reported revenue of Rs 510.75 crore (91.1 per cent of TIO) in Q2-2015, which was 1.8 per cent more than the Rs 501.54 crore (19.8 per cent of TIO) in Q1-2015 and 3 per cent more than the Rs 495.85 crore (12 per cent of TIO). In HY-2015, the publishing segment reported revenue of Rs 1012.29 crore (91.4 per cent of TIO) which was 1.2 per cent more than the Rs 1000.43 crore in HY-2014.
     
    HT Media’s publishing segment reported a fall of 6.6 per cent in operating result at Rs 131.59 crore in HY-2015 versus Rs 140.94 crore in HY-2014. For Q2-2015, the segment reported 3.9 per cent higher operating result at Rs 67.04 crore versus Rs 64.55 crore in Q1-2015 and 12.7 per cent more than the Rs 495.85 crore in the corresponding quarter of last fiscal.
     
    The digital segment reported a 5.1 per cent higher revenue at Rs 24.93 crore in Q2-2015 as compared to the Rs 23.72 crore in Q1-2015 and more than double (up 2.4 times) the Rs 10.38 crore in Q2-2014. For HY-2015, HT Media’s digital segment reported a 39.6 per cent growth in revenue to Rs 48.65 crore versus the Rs 34.86 crore in HY-2014. This segment has been regularly reporting loss. Loss is Q2-2015 was Rs 14.7 crore; for Q1-2015 loss was Rs 12.19 crore; for Q2-2014 loss was Rs 10.29 crore. For HY-2015, HT Media’s digital segment reported loss of Rs 26.89 crore versus Rs 27.33 crore in HY-2014.
     
    Speaking about the performance this current quarter, HT Media chairperson and editorial director Shobhana Bhartia said, “We are glad to report a stable growth in operating revenue and profit this quarter on the back of increased advertising volumes and yields for most of our dailies. Our growth initiatives in Mumbai and UP continue to deliver results.”

    “Our digital businesses have shown robust growth and our radio business continues to outperform. We remain optimistic on the medium term outlook for HTML as the economy revives and industrial growth gets back on track. We believe there will be significant opportunities for the company as the economic environment improves,” he added.

     

    Click here to see financial result

  • Q2-2015: ZEEL reports 7 per cent growth in ad revenue

    Q2-2015: ZEEL reports 7 per cent growth in ad revenue

    BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited (ZEEL) reported a 7.3 per cent hike in advertising revenue in Q2-2015 at Rs 625.94 crore versus the Rs 583.30 crore in the corresponding quarter of last year and a negligible 0.6 per cent more than the Rs 622.10 crore in Q1-2015. The company’s ad revenue in HY-2015 reported at Rs 1248.04 crore is 12.1 per cent more than the Rs 1133.37 crore in HY-2015.

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

    According to the company, due to mandatory accounting changes necessitated by change in content aggregator regulation by TRAI, the current quarter’s subscription and TIO figures can’t be compared with the figures of last year.  

    ZEEL’s subscription figures stood at Rs 424.45 crore in Q2-2015 with domestic subscriptions of Rs.337.3 crore and international subscription figure at Rs 87.2 crore. Subscription figures for Q1-2015 was Rs 412.13 crore while Rs 458.12 crore for Q1-2014. HY-2015 subscription revenue has been reported at Rs 836.58 crore versus Rs 882.19 crore in HY-2014.

    The company reported PAT at Rs 227 crore (20.3 per cent of Total Operating Revenue or TIO) in Q2-2015 which is 7.8 per cent more than the Rs 210.57 crore (19.4 per cent of TIO) in Q1-2015 crore and 3.9 per cent less than the Rs 236.31 (21.5 per cent of TIO) crore in Q2-2014. HY-2015 PAT at Rs 460.18 crore (21.2 per cent of TIO) was 5.3 per cent more than the Rs 437.04 crore (21.2 per cent of TIO) in HY-2014.

    Let us look at the other Q2-2015 and HY-2014 reported by ZEEL

    The company reported other sales and services income (other income) of Rs 67.43 crore in Q2-2015, which is 3.24 times the Rs  20.83 crore in Q1-2015 and 12.7 per cent more than the Rs 59.86 crore in Q2-2014. Other income announced by the company for HY-2015 at Rs 88.26 crore was 11.8 per cent more than the Rs 78.97 crore in HY-2014.
    ZEEL’s TIO in Q2-2015 is at Rs 1117.82 crore versus Rs 1085.70 crore in Q1-2015 and Rs 1101.28 crore in Q2-2014. In HY-2015, the company reported Rs 2172.88 crore TIO and Rs 2074.53 crore for HY-2014.

    The company’s Total expenditure (TE) for Q2-2015 at Rs 810.75 crore was 1.8 per cent more than the Rs 796.10 crore in Q1-2015 and 1.4 per cent more than the Rs 799.89 crore in Q2-2014. For HY-2015 TE was 5.8 per cent more at Rs 1576.21 crore as compared to the Rs 1490.31 crore in HY-2014.

    Q-o-q, the company’s operating cost went up 8.4 per cent to Rs 470.03 crore in Q2-2014 from Rs 434.02 crore. The operating cost for this quarter was 6.7 per cent lower than the Rs 504.11 crore in Q2-2014. HY-2015 operating cost is 4.5 per cent lower at Rs 873.68 crore versus Rs 914.87 crore in HY-2014.

    Employee Benefit Expense (EBE) for Q2-2015 announced at Rs 107.96 crore was 3.4 per cent less than the Rs 111.71 crore in Q1-2014 and 8.8 per cent more than the Rs 99.19 crore in Q2-2014. EBE for HY-2015 at Rs 219.67 crore was 12.8 per cent more than the Rs 194.82 crore in HY-2014.

    ZEEL chairman Subhash Chandra said, “We expect the media industry to benefit from the improvement in the overall economic environment.  TV spends are likely to improve and we expect television media industry to grow faster than the recent past.”

    Commenting on the second quarter earnings,  ZEEL managing director and CEO Punit Goenka said, “It has been a mixed quarter as far as television advertising is concerned. Even though overall economic sentiment was positive during the quarter, it translated into increased advertising spends only during the fag end of the quarter.  Our expectation is that advertising spends will continue to increase during the rest of the year. Our performance in the quarter reflects the industry wise trends.”

     “On the subscription front, the transition of distribution of channels from MediaPro to Taj Television is now complete, and we continue to grow in high single digits,” he added.

     

    Click here for Financial Statements

  • DB Corp: Q2-2015; DB Corp radio operating profit up 2.6 times y-o-y

    DB Corp: Q2-2015; DB Corp radio operating profit up 2.6 times y-o-y

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported a 1.8 per cent drop in Q2-2015 total income from operations (TIO) to Rs 449.32 crore from Rs 461.07 crore in Q1-2015, but saw an increase from the Rs 416.15 crore TIO reported in the corresponding quarter of last year.

     
    The company’s radio segment revenues however, went up 9.8 per cent in Q2 2015 to Rs 22.77 crore (4.7 per cent of TIO) from Rs 20.73 crore (4.2 per cent of TIO) in Q1 2015 and a massive 33.3 per cent more than the Rs 17.08 crore (3.9 per cent of TIO) in Q2 2014.

    While DB Corp’s Q2-2015 PAT fell 13.9 per cent to Rs 68.11 crore (14.2 per cent of TIO) from Rs 79.13 crore (16.2 per cent of TIO) in Q1-2015 and rose by 13.2 per cent  from Rs 60.16 crore (13.7 per cent of TIO), the company’s radio segment’s operating profit went up by 24.7 per cent in Q2-2015 to Rs 6.57 crore from Rs 5.27 crore in Q1 2015 and more than double (2.58 times) the operating profit of 2.54 crore in Q1-2014

    Let us look at the other Q2-2015 and HY-2015 figures reported by DB Corp

    DB Corp’s TIO for HY-2015 has been reported at Rs 969.41 crore which is 9.2 per cent more than the Rs 887.39 crore in HY-2014. It’s PAT for HY-2015 at Rs 147.23 crore (15.2 per cent of TIO) is 8.1 per cent higher than the Rs 136.26 crore (15.4 per cent of TIO) in HY-2014.

    The company’s total expenditure (TE) for Q2-2015 at Rs 377.53 crore was 0.7 per cent more than the Rs 374.99 crore in Q1-2015 and 9.1 per cent more than the Rs 356.15 crore in Q2-2014. During HY-2015, the company’s TE went up to Rs 752.52 crore from Rs 678.49 crore in HY-2014.

    The company reported 2.3 per cent lower raw material consumption in Q2-2015 at Rs 162.09 crore (33.8 per cent of TIO) versus the Rs 165.88 crore (33.9 per cent of TIO) in Q1-2015 and 7.8 per cent more than the Rs 150.36 crore (29 per cent of TIO) in Q2-2014. DB Corp’s raw material consumption in HY-2015 at Rs 327.97 crore (33.8 per cent of TIO) was 11.6 per cent more than the Rs 293.95 crore (33.1 per cent of TIO) in HY-2014.

     Segment Revenue

    DB Corp reports revenues from 5 segment: Printing and Publishing of Newspaper and Periodicals segment (Publishing); Radio business; events; internet and power.

    The company’s radio segment details have been mentioned above. The results of the other three segments are quite small as compared to the contributions to overall revenue by DB Corp’s Printing and Publishing of Newspaper and Periodicals and Radio Business segments.

     DB Corp’s Publishing segment revenue fell 2.6 per cent in Q2-2015 to Rs 449.32 crore from Rs 461.07 crore in Q1-2015 and rose by 8 per cent from Rs 416.17 crore in Q2-2014. Revenue in HY-2015 at Rs 910.39 crore was 7.7 per cent more than the Rs 845.32 crore in HY-2014.

    The segment reported a 15.2 per cent drop in operating profit in Q2-2015 to Rs 100.67 crore from Rs 117.95 crore in Q1-2015 and an increase of 2.9 per cent from Rs 97.27 crore in Q2-2014. Operating profit of this segment in HY-2015 at Rs 210.02 crore dropped 1.9 per cent from Rs 222.16 crore in HY-2014.

    According to the company, revenues from advertising reported a growth of 9 per cent y-o-y to Rs 361.0 crore in current period from Rs 331.1 crore in Q2 last fiscal, on a high base of Q2-2014.

    DB Corp Managing Director Sudhir Agarwal, said “We are happy to report a quarter of satisfactory performance driven by satisfactory advertisement revenue growth with strong traction from segments such as FMCG, real estate, Auto and Life Style categories. On an overall basis, we have ensured that our legacy and emerging markets maintain steady growth as we continue to focus on delivering a content-backed news product that has become an integral part in the lives of our readers in various age-groups and with diverse interests.

     
    Through continuous strategic reviews on product quality, DBCL is working diligently in each market to bring to its readers unbiased news reports based on local region-wise developments and on news of national importance. It is through this larger mission of unearthing the local potential that we continue to progress along the path of our vision to be the largest and most admired media brand enabling socioeconomic change.

    While the print media business segment on a self-growth momentum, we have maintained a steady focus on the non-print segment. 52 per cent of India’s population is 24 years or younger comprising audiences of Generation X, Y and Z. We have very successfully adapted ourselves to this digital and social era and are harnessing our strengths to offer greater value to audiences across radio, digital and mobile platforms.

    Over the past few months, macroeconomic sentiments have improved especially with several global institutions positively revising their India outlook, which has had a good impact on consumer and industrial confidence. We believe that the current outlook indicates broad economic stability and a pick-up in growth, which DBCL is very well positioned to capitalise on, given our inherent business strengths and position as the only media conglomerate that enjoys a leadership position in multiple states, and in multiple languages.”

     

     

    Click here to read the financial statement

  • Hindustan Media Ventures posts improved y-o-y, reduced q-o-q results for Q2-2015

    Hindustan Media Ventures posts improved y-o-y, reduced q-o-q results for Q2-2015

    BENGALURU: Hindi newspaper ‘Hindustan’, Hindi socio cultural magazine ‘Kadambini’ and children’s Hindi magazine ‘Nandan’ publishers Hindustan Media Ventures Limited (HMVL – not to be confused with HT Media Limited of Hindustan Times, Mint and Fever FM fame) reported a 18.7 per cent growth in consolidated total income from operations (TIO) in Q2-2015 to Rs 211.6 crore from Rs 178.2 crore in Q2-2014, but was 4.9 per cent lower than the Rs 222.6 crore in the immediate trailing quarter. The company reported TIO for HY-2015 at Rs 401.2 crore which was 14.1 per cent more than the Rs 351.6 crore in HY-2014.

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

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

    Let us look at the other Q2-2015 and HY-2015 figures reported by HMVL.

    HMVL’s PAT in the current quarter at Rs 31.5 crore (14.9 per cent of TIO) was 26.5 per cent more than the Rs 24.9 crore (14 per cent of TIO) in the corresponding year ago quarter and 7.1 per cent lower than the Rs 33.9 crore (15.2 per cent of TIO) in Q1-2015. The company’s PAT in HY-2015 at Rs 65.3 crore (16.3 per cent of TIO) was 18.3 per cent more than the Rs 55.2 (15.7 per cent of TIO) in HY-2014.

    The company’s total expenditure (TE) in Q2-2015 was up 18.2 per cent at Rs 160.04 crore (75.8 per cent of TIO) versus Rs 135.7 crore (76.2 per cent of TIO) in Q2-2014 and 4.1 per cent lower than the Rs 167.2 crore (76.2 per cent of TIO) in Q1-2015. For HY-2015, HMVL has reported 18.6 per cent higher TE at Rs 327.6 crore (81.7 per cent of TIO) versus Rs 276.3 crore (78.6 per cent of TIO) in HY-2014.

    A major component of HMVL’s TE is cost of raw materials (RM). In Q2-2015, HMVL’s RM cost at Rs 84.8 crore (54.9 per cent of TE) was 201.1 per cent more than the Rs 70.6 crore (52 per cent of TE) in Q2-2014 and 2.3 per cent less than the Rs 86.8 crore (51.9 per cent of TE) in Q1-2015. HY-2015 RM cost at Rs 171.6 crore (52.4 per cent of TE) was 23.4 per cent more than the Rs 139.1 crore (50.3 per cent of TE) in HY-2014.

    The company’s employee cost in Q2-2015 at Rs 25.8 crore (16.1 per cent of TE) was 19.4 per cent more than the Rs 21.6 crore (15.9 per cent of TE) in Q2-2014. Its HY-2015 employee cost at Rs 55.4 crore (16.9 per cent of TE) was 28.8 per cent more than the Rs 43 crore (15.6 per cent of TE) in HY-2014.

    HMVL attributes the increase in its EBIDTA in Q2-2015 versus Q2-2014 to increase in advertising and circulation revenues. According to the company, it had a 12 per cent increase in advertising revenues to Rs. 142.2 crore from Rs. 127 crore primarily due to increase in advertising yields and volumes and also had a 11 per cent increase in circulation revenues to Rs. 49.6 crore.

    HMVL chairperson Shobna Bhartia said, “We are glad to report yet another quarter of sustained growth in revenue and profits. The company has registered steady revenue growth and coped with the challenge posed by rising input costs.
    Growth in both advertising and circulation revenue was driven by our strong performance in Uttar Pradesh and Uttarakhand, and continuing dominance in Bihar and Jharkhand. With a strong brand, growing readership, and a healthy balance sheet we are confident of continuing to deliver value to our shareholders.”

     

    Click here to read Financial Results

  • Q2-2015: Reliance Retail juggernaut grows 20 per cent y-o-y

    Q2-2015: Reliance Retail juggernaut grows 20 per cent y-o-y

    BENGALURU:  The Mukesh Ambani led Reliance Industries Limited (RIL) announced its Q2-2015 results on 13 October reporting a y-o-y  de-growth of 4.3 per cent in consolidated turnover to Rs 1,13,396 crore in Q2-2015 from Rs 1,18,439 crore in Q2-2014, and a growth of 5.1 per cent versus the immediate trailing quarter Q1-2015 turnover of Rs 1,07,905 crore. During HY-2015, the company’s revenue grew just 1 per cent to Rs 2,21,301 crore from Rs 2,19,054 crore in HY-2014.
     
    The company’s organised retail segment contribution to RIL’s turnover grew from 2.93 per cent (Rs 3470 crore) in Q2-2014 to 3.67 per cent (Rs 4167 crore) in Q2-2015, registering a 20.1 per cent growth y-o-y. In Q1-2015, RIL’s retail segment contributed 3.71 per cent (Rs 3999 crore) to the company’s turnover registering a 4.1 per cent growth q-o-q.  In FY-2014, the segment had reported revenue of Rs 14,566 crore or 2.69 per cent of RIL’s turnover of Rs 5,41,599 crore. A Reliance earnings release for Q2-2014 says reports EBDIT figures for its retail segment at Rs 186 crore, recording a y-o-y EBDIT growth of 96 per cent.

    This quarter, the company’s overall operational outlet count crossed 2000 with a presence in 155 cities of the country.  Some of the store formats under Reliance Retail Brands include Reliance Retail, Reliance Market, Reliance Fresh, Reliance Digital, Reliance Trends, Reliance Footprint and Reliance Jewels.

     

    In the overall context of RIL numbers, its retail segment figures may seem small, but how many companies can boast of annual revenues of about Rs 15,000 crore plus, that the segment must cross this fiscal? Not too many.

     

    According to an Economic Times report, in comparison, Tata group’s retail divisions, including Titan, Croma, Trent and Landmark, had revenue of about Rs 17,000 crore. Kishore Biyani’s Future Retail had revenue of Rs 11,336 crore in fiscal 2014.

     

    India’s retail industry has been pegged at a quarter of India’s gross domestic product (GDP) about $525 million or Rs 31.5 lakh crore and is expected to double over the next five years leading to 2020. There is more than enough scope for the company’s organised retail segment to grow and contribute in a big way to RIL’s numbers over the next few years.

     

     

    Click here for the financial statement

     

  • Network18 Q2-2015 results a little better q-o-q and y-o-y

    Network18 Q2-2015 results a little better q-o-q and y-o-y

    BENGALURU: Bringing Network18 Media and Investments Limited (Network 18) to the black is still work in progress for its new board, but it should get there soon, considering the company’s Q2-2015 numbers and TAM data for its bouquet of news and GEC channels led by Colors, CNBC, CNN-IBN and ETV among others.

     

    Please refer to the attached financial performance statement and press release for the various figures and TAM data reported by Network18.
     
    Network18 reported 11.2 per cent y-o-y and 5.1 per cent q-o-q growth in consolidated Total Income from Operations (TIO) in Q2-2015. The company’s consolidated TIO in Q2-2015 was Rs 744.84 crore versus Rs 669.85 crore in Q2-2014 and Rs 708.39 crore in Q1-2015. Corresponding HY-2015 and HY-2014 TIO numbers were Rs 1226.48 crore and Rs 1023.98 crore respectively, indicating a decent 18.1 per cent growth in the current half year.
     
    Note:  100,00,000 = 100 Lakhs = 10 million = 1 crore
     
    Let us look at the other Q2-2015 and HY-2015 numbers reported by Network18
     
    Consolidated loss for Q2-2015 was lower at Rs 36.47 crore versus the one time adjusted massive loss of Rs 1021.88 crore in the last quarter and the Rs 36.28 crore in Q2-2014. Loss in HY-2015 has widened to a huge Rs 1058.35 crore because of the Q1-2015 adjustments, versus the Rs 20.93 crore loss in HY-2014.
     
    Correspondingly, consolidated profit before depreciation, interest and taxes (PBDIT) numbers for the current quarter has improved to Rs 33.6 crore which was 36.2 per cent higher than Rs 24.7 crore in the immediate trailing quarter and 14.9 per cent more than the Rs 29.3 crore in the year ago quarter. In H1-2015, consolidated PBDIT at Rs. 58.3 crore was 6 times (up 514 per cent) more than the Rs. 9.5 crore in H1-2014.
     
    The company’s consolidated total expenditure at Rs 746.90 crore (100.3 per cent of TIO) was 1.8 per cent more than the Rs 733.45 crore (103.5 per cent of TIO) in Q1-2015 and 11.5 per cent more than the Rs 670.1 crore (fractionally more than 100 per cent of TIO) in Q2-2014. HY-2015 total expenditure at Rs 1480.36 crore (101.9 per cent of TIO) was 15.5 per cent more than the Rs 1281.92 crore (104.5 per cent of TIO) in HY-2014.
     
    Consolidated Programming cost at Rs 172.39 crore (23.1 per cent of TIO) was 1.7 per cent more than the Rs 169.54 crore (26.7 per cent of TIO) in Q1-2015 and 10.5 per cent more than the Rs 143.84 crore (21.5 per cent of TIO)in Q2-2014. HY-2015 programming cost at Rs 341.93 crore (23.5 per cent of TIO) was 46.9 per cent more than the Rs 232.71 crore (19 per cent of TIO) in the corresponding half year -period of last year.
     
    Finance costs in Q2-2015 was 6 per cent lower at Rs 29.01 crore (3.9 per cent of TIO) versus the Rs 30.88 crore (4.4 per cent of TIO) in Q1-2015 and 4.3 per cent more than the Rs 27.83 crore (4.2 per cent of TIO) in Q2-2014. Finance costs in HY-2015 at Rs 59.89 crore (4.1 per cent of TIO) was 0.6 per cent more than the Rs 59.53 crore (4.9 per cent of TIO) in HY-2014.
     
    On a consolidated basis, two segments contribute to the company’s numbers – Media Operations (MO) and Film production and distribution (Film).
     

    Consolidated Segment figures
     
    MO revenue in Q2-2015 was 4.5 per cent more at Rs 727.94 crore versus the Rs 694.08 crore in Q1-2015 and 19.3 per cent more than the Rs 607.8 crore in Q2-2014. In HY-2015, MO reported revenue of Rs 1419.05 crore which was 23.8 per cent more than the Rs 1146.61 crore in HY-2014.
     
    MO reported operating profit of Rs 3.88 crore in Q2-2015 versus an operating loss of Rs 83.88 crore in Q1-2015 and an operating profit of Rs 9.46 crore in Q2-2014. For HY-2015, operating loss from MO widened to Rs 79.90 crore from Rs 30.39 crore in HY-2014.
     
    Film segment reported 38.7 per cent higher revenue at Rs 19.85 crore in Q2-2015 versus the Rs 14.32 crore in Q1-2015, but was 68 per cent lower than the Rs 62.05 crore in Q2-2014. For HY-2015, Film segment revenue fell by 57.7 per cent to Rs 34.17 crore from Rs 80.85 crore in HY-2014.
     
    Film segment reported operating loss of Rs 4.38 crore in Q2-2015, operating loss of Rs 0.95 crore in Q1-2015 against an operating profit of Rs 3.13 crore. For HY-2015, this segment’s operating loss for both HY-2015 and HY-2014 was Rs 5.33 crore .
     

    Network18 Standalone Q2-2015 and HY-2015 numbers
     
    On a standalone basis, Network18 reported lower TIO in Q2-2015 at Rs 16.80 crore versus the Rs 17.77 crore in Q1-2015 and the Rs 29.23 crore in Q2-2014. HY-2015 TIO at Rs 57.95 crore was better than the Rs 34.58 crore in HY-2014. Standalone loss for Q2-2015 at Rs 18.52 crore was lower than the Rs 637.96 crore in Q1-2015 (one-time adjustment) and the Rs 32.59 crore in Q2-2014.
     

    Standalone segment figures
     
    Three segments contributed to Network18 standalone numbers – Event Management (EM), Web operations (WO) and Publishing business (publishing).
     
    Event management had no revenue in Q2-2015 and Q1-2015, and Rs 8.95 crore revenue in Q2-2014. Operating losses from this segment in Q2-2015, Q1-2015 and Q2-2014 were Rs 0.11 crore, Rs 0.06 crore and Rs 0.76 crore respectively.
     
    WO reported revenue of Rs 12.98 crore in Q2-2015, Rs 12.68 crore in Q1-2015 and Rs 9.22 crore in Q2-2014. Operating losses from this segment were Rs 2.75 crore in Q2-2015, Rs 3.99 crore in Q1-2015 and Rs 9.99 crore in Q2-2014.
     
    Publishing segment reported revenue of Rs 3.82 crore in Q2-2015, Rs 5.09 crore in Q1-2015 and Rs 10.59 crore in Q2-2015. Operating losses from this segment were Rs 1.66 crore in Q2-2015, Rs 2.29 crore in Q1-2015 and Rs 3.91 crore in Q2-2014.
     
    Additional Notes
     
    1.       Pursuant to the enactment of the Companies Act, 2013 (the Act), the Group has, effective from 1st April, 2014, reassessed the useful life of its fixed assets and has computed depreciation with reference to the useful life of assets as recommended in Schedule II to the Act. . Consequently Depreciation for the quarter and half year ended 30th September is higher by Rs.1.16 crore and Rs.9.78 crore respectively and net loss is higher by Rs. 1.16 crore nd Rs.9.78 crore respectively. Further, based on the transitional provision provided in Schedule II, an amount of Rs. 7.13  crore has been adjusted with the opening reserves during the half year ended 30th September 2014.
     
    2.        During the quarter ended 30th June, 2014, based on a review of the (i) investments, and (ii) other current and non-current assets, the Group has accounted for (a) diminution in the value of certain investments to the extent of Rs. 142.83 crore and goodwill Rs. 234.78 crore; (b) obsolescence/impairment in the value of certain tangible and intangible assets to the extent of Rs. 127.43 crore and (b) write-off and provisions of non-recoverable and doubtful loans/advances /receivables to the extent of Rs. 519.41 crore and the same has been disclosed as Exceptional Items. Further, Exceptional Items for the said quarter ended 30th June 2014 also includes Rs. 20.94 crore towards severance pay and consultancy charges. However, these adjustments will have no impact on the future operating profit and cash flows of the businesses of the Group.
     
     
    3.       Equator Trading Enterprises Private Limited (“Equator”) including its subsidiaries Panorama Television Private Limited and Prism TV Private Limited had become wholly owned subsidiary of the Company with effect from 22nd January, 2014. Hence, the consolidated results of the current period also include the results of these subsidiary companies. Eenadu Television Private Limited had also become an associate with effect from 22nd January 2014 and its results have been accounted as “Associate” under accounting standard 23 on Accounting for Investments in Associates in Consolidated Financial Statements. To this extent, the results of this period are not comparable with the corresponding previous period.

     

     

    Click here for the financial statement

  • Q2-2015: TV18 reports improvement over y-o-y and q-o-q results

    Q2-2015: TV18 reports improvement over y-o-y and q-o-q results

    BENGALURU: TV18 Broadcast Limited (TV18) posted a 4.9 per cent q-o-q growth in Total Income from Operations (TIO)  for Q2-2015 at Rs 553.68 crore versus Rs 527.74 crore in Q1-2015 and 14.6 per cent more than the Rs 483.17 crore in Q2-2014. The company’s HY-2015 TIO at Rs 1081.49 crore was 23 per cent more than the Rs 879.36 crore in HY-2014.

     

    TV18 reported PAT at Rs 43.22 crore (7.8 per cent of TIO) as compared to a loss of Rs 154.54 crore (refer additional notes below) in the immediate trailing quarter Q1-2015 and 4.3 times the Rs 10.12 crore (2.1 per cent of TIO) in the year ago quarter Q2-2014. The company reported a loss of Rs 111.32 crore(refer additional notes below)  in HY-2015 versus PAT of Rs 16.05 crore in HY-2014.

     

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

     

     Let us look at the other Q2-2015 and HY-2015 figures reported by TV18

    TV18 reported total expenditure (TE) of Rs 508 crore (91.8 per cent of TIO) in Q2-2015, which was 0.3 per cent lower than the Rs 509.54 crore (96.6 per cent of TIO) in Q1-2015 and 11.4 per cent more than the Rs 455.89 crore (94.4 per cent of TIO) in Q2-2014. For HY-2015, the company’s TE at Rs 1017.53 crore (94.1 per cent of TIO) was 21.2 per cent more than the Rs 839.30 crore (95.4 per cent of TIO) in HY-2014. Please refer to the figure below for TV18’s TIO, TE and PAT across five quarters starting Q2-2014 until Q2-2015.

     

     

    Programming cost at Rs 170.89 crore (30.9 per cent of TIO) was 3.1 per cent more than the Rs 165.71 crore (31.4 per cent of TIO) in Q1-2015 and was 38.1 per cent more than the Rs 123.77 crore (25.6 per cent of TIO) in Q2-2014. For HY-2015, programming cost at Rs 336.6 crore (31.1 per cent of TIO) was a massive 56.7 per cent more than the Rs 210.78 crore in HY-2014.

     

    TV18 has reduced marketing distribution and promotional expenses (marketing expense) in this fiscal. Though its spends on this head in Q2-2015 at Rs 117.32 crore (21.2 per cent of TIO) was 14.8 per cent more than the Rs 102.17 crore (19.4 per cent of TIO) in Q1-2015, it was 29.3 per cent lower than the Rs 166.01 crore (34.4 per cent of TIO) in Q2-2014. Marketing expense in HY -2015 at Rs 219.5 crore (20.3 per cent of TIO) was 28.3 per cent less than the Rs 306.17 crore (34.8 per cent of TIO) in HY-2014.

     

    Other expense at Rs 115.01 crore (20.8 per cent of TIO) in Q2-2015 was 6.3 per cent more than the Rs 108.21 crore (20.5 per cent of TIO) in Q1-2015 and 34.6 per cent more than the Rs 85.47 crore (17.7 per cent of TIO) in Q2-2014. Other expense in HY-2015 at Rs 223.21 crore (20.6 per cent of TIO) was 38.6 per cent more than the Rs 161.1 crore (18.3 per cent of TIO) in HY-2014.

     

    Finance cost in Q2-2014 at Rs 11.89 crore (2.2 per cent of TIO) was 20.3 per cent lower than the Rs 14.92 crore (2.8 per cent of TIO) and 22.3 per cent less than the Rs 15.31 crore (3.2 per cent of TIO) in Q2-2014. Finance cost in HY-2015 at Rs 26.81 crore (2.5 per cent of TIO) was 11.4 per cent lower than the Rs 30.27 crore (3.4 per cent of TIO) in HY-2014.

     

    Segment Revenue

     

    TV18 consolidated revenue comes from two streams – (a) Media Operations (Media) and (b) Film production and distribution (film). Media reported operating income (Op Inc) of Rs 533.83 crore in Q2-2015, which was 4 per cent more than the Rs 513.42 crore in Q1-2015 and was 24.4 per cent more than the Rs 429.07 crore in Q2-2014. Media reported Op Inc of Rs 1047.25 crore in HY-2015, which was 28.9 per cent more than the Rs 812.46 crore in HY-2014. This segment reported operating profit of Rs 50.46 crore in Q2-2015, which was almost triple (2.6 times) the Rs 19.36 crore in Q1-2015 and was 85.1 per cent more than the Rs 27.26 crore in Q2-2014. For HY-2015, Media reported operating profit of Rs 60.83 crore which was 41.1 per cent more than the Rs 49.49 crore in HY-2014.

     

    Film segment reported Op Inc of Rs 19.85 crore in Q2-2015, which was 38.7 per cent more than the Rs 14.32 crore in Q1-2015, but less than a third of the Rs 62.05 crore in Q2-2014. Op Inc from this segment fell to less than half (42.3 per cent) to Rs 34.17 crore in HY-2015 from Rs 80.85 crore in HY-2014. This segment reported loss of Rs 4.38 crore in Q2-2015, loss of Rs 0.95 crore in Q1-2015, operating profit of Rs 3.13 crore in Q2-2014, and a loss of Rs 5.33 crore in both HY-2015 and HY-2014.

     

    Additional Notes:  (1) Pursuant to the enactment of the Companies Act, 2013 (the Act), the Group has, effective from 1 April 2014, reassessed the useful life of its fixed assets and has computed depreciation as provided in Schedule II to the Act. Consequently depreciation for the quarter and half year ended 30 September, 2014 is lower by Rs 13.40 lakhs and higher by Rs 716.30 lakhs respectively and the net profit is higher by Rs 13.40 lakhs and lower by Rs 716.30 lakhs respectively. Further, based on the transitional provision provided in Schedule II, an amount of Rs 744.15 lakhs has been adjusted with the opening reserves during the half year ended 30 September, 2014.

     

    (2) During the quarter ended 30 June, 2014, based on a review of the current and non-current assets, the Group has accounted for (a) obsolescence/impairment in the value of certain tangible and intangible assets to the extent of Rs 122.27 crores and (b) write-off and provisions of non-recoverable and doubtful loans/advances /receivables to the extent of Rs 87.70 crores and the same has been disclosed as Exceptional Items in the consolidated accounts. Further, Exceptional Items also includes Rs 13.31crores towards severance pay and consultancy charge.

     

    (3) Equator Trading Enterprises Private Limited (“Equator”) including its subsidiaries Panorama Television Private Limited and Prism TV Private Limited had become wholly owned subsidiary of the Company with effect from 22 January, 2014. Hence, the consolidated results of the current period include the results of these subsidiary companies. Eenadu Television Private Limited had also become an associate with effect from 22 January 2014 and its results have been accounted as “Associate” under accounting standard 23 on Accounting for Investments in Associates in Consolidated Financial Statements. To this extent, the results of this period are not comparable with the corresponding previous period.

     

    Click here for the financial statement

  • ITC marketing spend trends – FY-2014

    ITC marketing spend trends – FY-2014

    BENGALURU: Indian fast moving consumer goods (FMCG), hotels, paperboards and specialty papers, packaging, agri-business, and information technology company ITC Limited (ITC) advertisement and sales promotion spend (ASP) in FY-2014 was 1 per cent lower at Rs 825.81 crore (2.28 per cent of Total Revenue or TR) as compared to the Rs 834.23 crore(2.57 per cent of TR) in FY-2013.

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

    The company has a huge brand and sub-brand portfolio and is one of the biggest player in the highly competative FMCG market, that is constantly adding newer and newer product categories and products. Some of the brands and sub-brands under the ITC umbrella across vertials include Sunfeast, Fiama Di Wills, Kitchens of India, ITC Hotels,  John Players, Bingo, Vivels, candyman, Mangaldeep, Aashirvaad, Classmate, Paperkraft, Wills, Aim, Engage and Mint-o.

    ITC’s ASP in terms of percentage of TR in FY-2014 was the lowest at 2.28 per cent over the 11 year period beginning FY-2004 till FY-2014. However, in absolute value terms, FY-2014 ASP at Rs 825.81 crore was the second largest during this period, the largest being in FY-2013 at Rs 834.23 crore. The company’s highest ASP spend in terms of percentage of TR was in 2004 at 3.97 per cent (Rs. 265.72 crore).

    The linear trend in Fig A below indicates that while in absolute rupee terms, the company’s  ASP will be higher in FY-2015 and beyond, ASP in terms of percentage of TR, ASP is likely to be lower or flat.

    ITC’s annual reports indicate some interesting facts. Please refer to Fig B below. The company’s TR has increased by 5.42 times from the Rs 6695.32 crores in FY-2004 to Rs 36288.03 crore in FY-2014, correspondingly, its total expenditure has gone up 5.31 times from Rs 4376.26 crore (65.4 per cent of TR)  to Rs 23236.48 crore (64 per cent of TR); it corresponding PAT too has jumped 5.58 times from Rs 1592.85 crore (23.8 per cent of TR) to Rs 8891.38 crore (24.5 per cent of TR), while its ASP has gone up by only 3.11 times from Rs 265.72 crore (3.97 per cent of TR) to Rs 825.81 crore (2.28 per cent of TR). Even in FY-2013, ASP was just fractionally more at 3.14 times the ASP in 2004. This indicates that the improvement in expenditure has been at the cost of lowering of ASP in terms of percentage of TR.

    Big players like HUL, Britannia and Parle in the foods and FMCG space are vying for the viewers attention and stomach space in the case of food, as ITC Foods division past CEO Ravi Navare once said. Over time, its ASP and specifically its ad spends should grow in absolute rupee terms, and maybe remain flat in terms of ASP as percentage of TR?

  • Spice Mobility historical branding expenses indicate upward trend for FY-2015

    Spice Mobility historical branding expenses indicate upward trend for FY-2015

    BENGALURU: Indian mobile devices company Spice Mobility Limited (Spice -formerly S Mobility Limited) spent 89.9 per cent more towards branding expenses in the year ended 30 June 2014 (FY-2014) at Rs Rs 78.35 crore (3.7 per cent of total income from operations or TIO) as compared to Rs 41.26 crore (2.2 per cent of TIO) in FY-2013.

     

    For the 15 month period ended 30 June 2013 (15M-2012), the company spent only Rs 9.61 crore (3.5 per cent of TIO), while in the 12 month period ended 31 March 2011 (FY-2011M), the company had also spent Rs 6.51 crore (3.2 per cent of TIO) towards branding.

     

    Spice has reported a loss of Rs 28.15 crore in FY-2014 as compared to a PAT of Rs 5.48 crore in FY-2013, a loss of Rs 0.97 crore in 15M-2012 and a profit of Rs 10.4 crore in FY-2011M.

     

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

     

    Let us look at the branding expenses by the company over an eight quarter period starting Q1-2013 (quarter ended 30 September 2013) until Q4-2014 (quarter ended 30 June 2014). Please refer to the figure below:

     

    Over this eight quarter period, the lowest branding spend has been in Q3-2013 at Rs 9.21 crore (2.3 per cent of TIO) in Q3-2013 (quarter ended 31 March 2013) in absolute rupee value, while in terms of percentage of TIO, the company’s lowest branding spend at 1.8 per cent (Rs 9.76 crore) in Q1-2013. It may be noted that both these lowest quarterly spends are at par with Spice’s branding spend during 15M-2012 and significantly higher than the branding spend in FY-2011.

     

    Spice’s highest branding spend during the eight quarter period under consideration in absolute rupee terms has been in Q4-2014 at Rs 24.47 crore (4.5 per cent of TIO), while in terms of percentage of TIO it was in Q3-2014 at 4.6 per cent of TIO or Rs 21.71 crore.

    The figure above shows that on a quarterly basis, with time the linear trend lines depict branding spends in absolute rupees and percentage of TIO diverge. This indicates that the company’s branding spends in absolute rupees can increase further, but the increase in terms of percentage of TIO may be at a lower comparative rate or even flat on an annual basis,  but, brand spends could depend upon the company’s overall performance during the coming quarters and the financial year/s.