ITV

Category: Financials

  • Q1-2015: HT Media reports flat results and pared profits

    Q1-2015: HT Media reports flat results and pared profits

    BENGALURU: HT Media (HT Media) reported almost flat revenue in Q1 2015 at Rs 540.51 crore, just 1 per cent more y-o-y than the Rs 540.93 crore in Q1 2014 and 0.5 per cent more than revenue of Rs 543.84 crore in Q4 2014.

     

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.

     

    (2) All figures in this report are consolidated figures filed by the company, except for Advertising & Sales Promotion (ASP), which are the standalone figures filed by HT Media.

     

    The company’s Q1 2015 PAT fell 6.2 per cent q-o-q to Rs 32.67 crore as compared to the Rs 34.84 crore in Q4 2014 and was 36.7 per cent less than the Rs 51.58 crore in Q1 2014. Q-o-q PAT was affected by higher employee benefits, higher other expense, higher depreciation and amortisation (depreciation) and higher loss from its digital and unallocated segment and lower operating results from its printing segment.

     

    HT Media’s radio segment, which contributed just 4.4 per cent to the total revenue in Q1 2015, saw a rise of 4.8 per cent in operating revenue to Rs 23.97 crore as compared to the Rs 22.88 crore in Q4 2014 and a rise of 12 per cent as compared to the Rs 21.41 crore in Q1 2014. The radio segment’s operating result dipped 5 per cent in Q1 2015 to Rs 4.57 crore as compared to the Rs 4.81 crore in Q4 2014 and was 24.5 per cent more than the Rs 3.67 crore in Q1 2014. The company operates four radio stations in the country under the brand Fever 104 FM.

     

    HT Media’s printing segment which contributes to more than 90 per cent of its top line and bottom line saw an increase of 1.2 per cent in its revenue to Rs 501.54 crore in Q1 2015 from Rs 495.65 crore in Q4 2014 and was 0.6 per cent less than the Rs 505.58 crore in Q1 2014. The segment reported a 17.3 per cent drop in operating results to Rs 64.55 crore in Q1 2015 from Rs 78.04 crore in Q4 2014 and a 20.8 per cent fall as compared to the Rs 81.46 crore in Q1 2014.

     

    HT Media’s digital segment operating revenue grew 8.7 per cent in Q1 2015 to Rs 23.72 crore from Rs 21.82 crore in Q4 2014 and was 39.1 per cent more than the Rs 17.05 crore in Q1 2014. The segment’s operating loss widened from Rs 7.58 crore in the last quarter to Rs 12.19 crore in Q1 2015.

     

    Loss from the unallocated segment also grew in Q1 2015 to Rs 22.28 crore from Rs 21.49 crore in the immediate trailing quarter.

     

    HT Media’s employee benefit expense in Q1 2015 was Rs 125.16 crore, in Q4-2014 it was Rs 105.76 crore and in Q1 2014, it was Rs 105.52 crore. Depreciation figures were Rs 27.34 crore in Q1 2015; Rs 21.61 crore in Q4 2014 and Rs 21.86 crore in Q1 2014.

     

    The company’s advertisement and sales promotion expense (standalone basis) in Q1 2015 at Rs 25.85 crore was 1.1 per cent more than the Rs 25.26 crore in Q4 2014.

  • We had a good second quarter: Mark Zuckerberg

    We had a good second quarter: Mark Zuckerberg

    MUMBAI: Social networking site, Facebook has had a good second quarter. The company declared its financial results for the quarter ended 30 June 2014 on 23 July. Its founder and CEO Mark Zuckerberg said, “We had a good second quarter. Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”

     

    Operational highlights

     

     

    • Daily active users (DAUs) were 829 million on average for June 2014, an increase of 19 per cent year-over-year

     

    • Mobile DAUs were 654 million on average for June 2014, an increase of 39 per cent year-over-year

     

    • Monthly active users (MAUs) were 1.32 billion as of 30 June 2014, an increase of 14 per cent year-over-year

     

    • Mobile MAUs were 1.07 billion as of 30 June 2014, an increase of 31 per cent year-over-year

     

    Financial Highlights

     

    Revenue: Revenue for the second quarter of 2014 totaled $2.91 billion, an increase of 61 per cent, compared with $1.81 billion in the second quarter of 2013. Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased by 59 per cent. Revenue from advertising was $2.68 billion, a 67 per cent increase from the same quarter last year. Excluding the impact of year-over-year changes in foreign exchange rates, revenue from advertising would have increased by 65 per cent. Mobile advertising revenue represented approximately 62 per cent of advertising revenue for the second quarter of 2014, up from approximately 41 per cent of advertising revenue in the second quarter of 2013. Payments and other fees revenue was $234 million, a 9 per cent increase from the same quarter last year.

     

    Costs and expenses: GAAP costs and expenses for the second quarter of 2014 were $1.52 billion, an increase of 22 per cent from the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1.2 billion in the second quarter of 2014, up 18 per cent compared to $1.02 billion for the second quarter of 2013.

     

    Income from operations: For the second quarter of 2014, GAAP income from operations was $1.39 billion, up 147 per cent compared to $562 million in the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the second quarter of 2014 was $1.71 billion, up 116 per cent compared to $794 million for the second quarter of 2013.

     

    Operating margin: GAAP operating margin was 48 per cent for the second quarter of 2014, compared to 31 per cent in the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 59 per cent for the second quarter of 2014, compared to 44 per cent for the second quarter of 2013.

     

    Provision for income taxes: GAAP income tax expense for the second quarter of 2014 was $595 million, representing a 43 per cent effective tax rate. Excluding share-based compensation and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 36 per cent.

     

    Net income and EPS: For the second quarter of 2014, GAAP net income was $791 million, up 138 per cent compared to $333 million for the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the second quarter of 2014 was $1.09 billion, up 124 per cent compared to $488 million for the second quarter of 2013.

     

    GAAP diluted EPS was $0.30 in the second quarter of 2014, up 131% compared to $0.13 in the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP diluted EPS for the second quarter of 2014 was $0.42, up 121 per cent compared to $0.19 in the second quarter of 2013.

     

    Capital expenditures: Capital expenditures for the second quarter of 2014 were $469 million.

     

    Cash and marketable securities: Cash and marketable securities were $13.96 billion at the end of the second quarter of 2014.

     

    Free cash flow: Free cash flow for the second quarter of 2014 was $872 million.

     

    Click here to read the financial report

  • Publicis Groupe’s H1 profit drops down 17 per cent, exchange rates impact numbers

    Publicis Groupe’s H1 profit drops down 17 per cent, exchange rates impact numbers

    MUMBAI: With the slowdown of global economic activity since the start of the year and economic uncertainties prevailing in several regions of the world, Publicis Groupe has announced that its second-quarter performance was well below that of the first quarter. The company saw a 16.9 per cent fall in first-half net profit to Euro 260 million as compared to the Euro 313 million in the corresponding half of the previous calendar year-2013.

     

    Due to the substantial impact of the strong Euro (Euro 81 million negative impact in Q2 alone), the Group’s reported consolidated revenue for Q2 2014 was Euro 1,761 million, down 1.5 per cent as compared to the Euro 1788 million in H1 Q2 2013.

     

    The group says that organic growth of just 0.5 per cent was largely due to unfavourable comparable (+5.0 per cent in Q2 2013), but also to the persistent weakness of certain markets and investments on the part of a number of clients who substantially downsized their budgets.

     

    In a statement published on the group’s official website, Publicis Groupe chairman and CEO Maurice Lévy said, “The first half-year was heavily impacted by exchange rates which had an adverse effect on revenue of Euro 148 million. At constant exchange rate, revenue would have increased by close to 5 per cent during the period.

     

    As we predicted last fall, growth stalled in the second quarter. However, it should be underscored that weakness was stronger than expected mostly due to the cancellation or postponement of campaigns and lagging economies in Europe and in emerging countries. Our organic growth was +1.8 per cent for the first half-year. Our margin remained strong, though fractionally down, as a result of accounting treatments and lagging growth.”  

     

    Lévy conceded, “These figures are not satisfactory by our standards. They are not consistent with what our operations can achieve. As can be seen from our digital growth (+8.8 per cent) or the numerous awards from various juries (Gunn Report, Gartner and an impressive haul of awards at the Cannes International Festival), our strategy is spot-on and our networks are at the cutting edge of the industry. For the second part of the year, we can confirm that we are already on track for higher growth, and this should be evident as of the third quarter.”

     

    “Given the situation in Europe and the slow pick-up in the emerging economies, we prefer to be extremely cautious on growth prospects and prioritize cost control in order to achieve a margin closer to our goal for the full year.

     

    Although 2014 will be a difficult year, it does not undermine our mid-term prospects. Our business plan between now and 2018, as announced on 23 April 2013, is currently being revised to factor in market developments and the investments required reaching our transformation goals ahead of schedule. The strong feedback from our entities leaves us very confident about achieving all our goals,” he concluded. 

     

    It was in May 2014 when Publicis Groupe and Omnicom Group have called off their $35 billion merger. Levy then in a statement mentioned, “The decision to discontinue the process was neither pleasant nor an easy one to make, but it was a necessary one.” Experts believe the deal failed majorly because of tax issues.

     

    Four regions contribute to Publicis Groupe’s revenue- Europe excluding Russia and Turkey, North America, BRIC + MISSAT (Mexico, Indonesia, Singapore, South Africa and Turkey), and the rest of the world.

     

    The group says that Europe (excl. Russia and Turkey) remained negative overall (-0.3per cent), while all the other regions reported growth in the first half-year. North America recorded growth of +2.8 per cent, and continues to show resilience.

     

    The BRIC and MISSAT countries achieved growth of +0.4 per cent though the good performances of Russia (+5.9 per cent), Mexico (+10.3 per cent), Turkey (+2.5 per cent) and Singapore (+7.2 per cent) were overshadowed by the Greater China region’s slower-than-expected return to high growth (+1.4 per cent) and by negative growth in Brazil (-0.6 per cent). India’s -14.7 per cent adversely affected the BRIC group. The economic slowdown observed since mid-2013 in emerging countries has had a significant impact on advertising investments. The rest of the world, which includes Australia and Japan, reported growth of +5.6 per cent.

     

    On 30 January 2014, Publicis Groupe acquired a major stake in Indian based advertising agency Law & Kenneth. In an unprecedented move, Law & Kenneth took over the Indian operations of Saatchi & Saatchi and now is called L& K Saatchi & Saatchi. During the first half of the year, the holding company’s BBH India won the creative mandate of Viber (India) and Piaggio Vehicles’ Vespa (India), while Leo Burnett India added MAA TV to its kitty.

     

    Click here to read the financial report

  • Hindustan Media Ventures Q1-2015 q-o-q income up 21 per cent; PAT up 25 per cent

    Hindustan Media Ventures Q1-2015 q-o-q income up 21 per cent; PAT up 25 per cent

    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 21.1 per cent growth in Total Income from operations (TIO) in Q1-2015 to Rs 222.6 crore as compared to the Rs 183.88 crore in Q4-2014 and 18 per cent more than the Rs 177.3 crore in Q1-2014.

     

    HMVL Q1-2015 PAT at Rs 33.9 crore (15.3 per cent of TIO) was 24.6 per cent more than the Rs 27.21 crore (14.8 per cent of TOI) reported in the immediate trailing quarter and 11.9 per cent more than the Rs 30.30 crore (16.1 per cent of TOI) in the year ago quarter Q1-2014.

     

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

     

    HMVL’s total expenditure (TE) in Q1-2015 at Rs 167.2 crore (75.1 per cent of TIO) was 7.5 per cent more than Rs 155.58 crore (84.6 per cent of TIO) in Q4-2014 and 18.8 per cent more than the Rs 140.7 crore (74.6 per cent of TIO) in Q1-2014.

     

    A major component of the total expenditure is raw materials (RM) consumed. HMVL’s RM in Q1-2015 at Rs 86.80 crore (51.9 per cent of TE) was 7.5 per cent more than the Rs 80.76 crore (51.9 per cent of TE) in Q4-2014 and 26.7 per cent more than the Rs 68.5 crore (48.7 per cent of TE) in Q1-2014.

     

     Y-o-Y the company attributes its growth to 17 per cent increase in advertising revenues to Rs 155.50 crore from Rs 132.60 crore primarily due to increase in advertising yields and a 17 per cent increase in circulation revenues to Rs  49.3 crore from Rs 42.1 crore primarily due to higher circulation and realisation per copy. 

     

    HMVL chairperson Shobna Bhartia said, “We have started the new financial year well and the first quarter saw a healthy growth in both revenue and profit. This was the result of growth in advertising, driven by our strong performance in Uttar Pradesh and Uttarakhand, and supported by our 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.”

  • Reliance Industries reports 14 per cent higher YoY PAT for Q1-2015

    Reliance Industries reports 14 per cent higher YoY PAT for Q1-2015

    BENGALURU: Reliance Industries Limited (RIL) reported 7.2 per cent growth in consolidated operating revenue in Q1-2015 to reach Rs 107905 crore on a y-o-y basis. The company’s y-o-y PAT jumped 13.7 per cent in Q1-2015 to Rs 5957 crore.

     

    Two of the smallest contributors to RIL revenue – organised retail and others – which include its mobile, 4G services, internet, tower and television segments are covered in this report. The company’s other segment has reported 1.8 per cent lower revenue in Q1-2015 at Rs 1772 crore as compared to the Rs 1804 crore in Q4-2014 and slightly lower than the Rs 1775 crore in Q1-2014. The performance details of this segment have not been indicated by the company.

     

    The Reliance organised retail juggernaut continues to roll on, going from strength to strength. A few years ago the Indian behemoth had announced its foray into the then estimated Rs 3 lakh crore size Indian retail market with planned investments of Rs 25,000 crore.

     

    This quarter Q1-2015, RIL reported revenue from its organised retail segment at Rs 3999 crore which was 14.5 per cent higher than the Rs 3492 crore in the year ago quarter and 9.5 per cent higher than the Rs 3653 crore in the immediate trailing quarter Q4-2014. And the segment has reported operating profit (EBIDTA) in Q1-2015 at Rs 81 crore which is more than three times (3.38 times) the Rs 24 crore in the last quarter, as opposed to a loss of Rs 0.4 crore in Q1-2014.

     

    Here is what a part of the company’s press release has to say:

     

    In May 2014, the board of Reliance Industries Limited approved funding of up to Rs 4,000 crore to Independent Media Trust (“IMT”), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments Limited (“NW18”) including its subsidiary TV18 Broadcast Limited (“TV18”). In July 2014, RIL has completed the acquisition of control of Network 18 Media and Investments Limited (“NVV18”) including its subsidiary TV18 Broadcast Limited (“TV18”).

     

    In June 2014, Reliance Jio Infocomm Ltd. (“RJIL”) has signed a telecom tower sharing agreement with Ascend Telecom Infrastructure. Under the agreement, RJIL will utilise the pan-India tower infrastructure of Ascend to launch its 4G services, ensuring a faster and more efficient rollout to its customers.

     

    In May 2014, RJIL and Tower Vision India, an independent tower company in India, have entered into a Master Service Agreement for tower sharing. Under the agreement, Reliance Jio would utilise the telecom tower infrastructure of Tower Vision to launch its services across the country.

     

    In April 2014, RJlL and Reliance Communications Ltd.(“ RCOM”) have announced the signing of a Master Services Agreement for sharing of RCOlVl’s extensive intra-city optic fiber infrastructure. Under the terms of the agreement, RJIL will utilise RCOM’s nationwide intra-city fiber network for accelerated roll-out of its state-of­ the-art 4G services across the country. In addition, in April 2014, RJIL and ATC India, one of the leading independent tower companies in India, signed a tower sharing agreement. Under the agreement, Reliance Jio would utilise the telecom tower infrastructure of ATC India to launch its services across the country.

  • Zeel Q1-2015 y-o-y advt revenue up 17 per cent

    Zeel Q1-2015 y-o-y advt revenue up 17 per cent

    BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises (Zeel) reported a 17.4. per cent increase in advertising revenue in Q1-2015 to Rs 622.10 crore (57.3 per cent of total operating revenue or TOR) as compared to the year ago revenue of Rs 530.07 crore (54.5 per cent of TOR) and 6.8 per cent higher than the Rs 582.36 crore (50.3 per cent of TOR) reported for the immediate trailing quarter.

     

    However, the company’s Q1-2015 PAT at Rs 210.57 crore (19.4 per cent of TOR) was 6.3 per cent lower than the Rs 224.64 crore (23.1 per cent of TOR) in Q1-2014 and 3.2 per cent lower than the Rs 217.58 crore (18.8 per cent of TOR) in Q4-2014. Despite lower operating cost in Q1-2015, the company has reported higher employee benefit expense, other expenses, depreciation, amortisation expense, higher tax payment and lower subscription and other income for the  period as compared to Q4-2014.

     

    Notes: (1) The results mentioned in this report are consolidated results of Zeel and its subsidiaries.

    (2) 100,00,000=100 Lakhs = 1 crore = 10 million

     

    Let us look at the other figures for Q1-2015 reported by Zeel

     

    Lower subscription and other revenue in Q1-2015 has resulted in a drop of 6.3 per cent q-o-q TOR from operations to Rs 1085.70 crore from Rs 1158.81 crore in Q4-2014. TOR in Q1-2015 was however 10.4 per cent more than the Rs 973.35 crore reported in Q1-2014.

     

    Zeel reported 4.5 per cent lower subscription revenue for Q1-2015 at Rs 422.77 crore (40.8 per cent of TOR) as compared to the Rs 463.54 crore (40 per cent of TOR) in Q4-2014 and 9.3 per cent more than the Rs 424.07 crore (43.6 per cent of TOR) in Q1-2014.

     

    Other Income in Q1-2015 was less than a fifth (down by 81.6 per cent) at Rs 20.83 crore as compared to the Rs 112.91 crore in Q4-2014 and 9 per cent more than the Rs 19.11 crore in Q1-2014.

     

    The company’s Total Expenditure (TE) for Q1-2015 at Rs 796.1 crore (73.3 per cent of TOR) was 8.1 per cent less than the Rs 866.15 crore (74.7 per cent of TOR) in Q4-2014 and 15.3 per cent more than the Rs 690.42 crore (70.9 per cent of TOR) in Q1-2014.

     

    Zeel’s Q1-2015 employee benefit expense at Rs 111.71 crore (10.3 per cent of TOR) was 11.9 per cent more than the Rs 99.84 crore (8.6 per cent of TOR) in Q4-2014 and 16.8 per cent more than the Rs 95.63 crore (9.8 per cent of TOR) in Q1-2014.

     

     Zeel reported Q1-2015 depreciation and amortisation expense of Rs 19.57 crore (1.8 per cent of TOR) which was 3.4 per cent more than the Rs 18.92 crore (1.6 per cent of TOR) in Q4-2014 and more than double (2.26 times) the Rs 8.66 crore (0.9 per cent of total income) in Q1-2014.

      

    The company’s other expense in Q1-2015 at Rs 230.80 crores (21.3 per cent of TOR) was 13.7 per cent more than the Rs 202.97 crore (17.5 per cent of TOR) in Q4-2014 and 31.6 per cent more than the Rs 175.37 per cent (18 per cent of TOR) in Q1-2014.

     

    Zeel’s tax expense in Q1-2015 at Rs 116.35 crore (10 per cent of TOR) was 36.5 per cent more than the Rs 85.26 crore (7.4 per cent of TOR) in Q4-2014 and 9.8 per cent lower than the Rs 128.94 crore (13.2 per cent of TOR) in Q1-2014.

     

    Zeel chairman Subhash Chandra said, “Our performance during the quarter reflects the investments that Zeel is making to grow its business and market share. In a highly competitive space, Zeel continues to build its media assets and in the process create value for shareholders.”

     

    Zeel managing director and CEO Punit Goenka said, “The network share is up as compared to the corresponding quarter last fiscal which has translated into a strong performance on the advertising front, outpacing the industry growth once again. On the subscription front, pursuant to the change in content aggregator regulation, we have discontinued the distribution of our channels through the joint venture MediaPro and the channels are now distributed by Taj Television Private Limited, a wholly owned subsidiary of Zeel.”

     

    Added Goenka, “Digitisation will lead to fragmentation of audiences as consumers will have more options. At Zeel, we believe that this provides a huge opportunity to create new products for specific segments. Advertising spends on television are expected to grow in healthy double digits over the next many years.  Rollout of BARC and change in advertising currency from CPRP to CPT is expected to give it a positive fillup. Creation and acquisition of excellent quality content remains core to our business and we continue to channelize investments to strengthen this core.”

  • Digitisation has enhanced industry’s transparency levels: Zeel annual report

    Digitisation has enhanced industry’s transparency levels: Zeel annual report

    MUMBAI: In June 2013, Zee Entertainment Enterprises (Zeel) unveiled its new corporate identity ‘Vasudhaiva Kutumbakam’.

     

    It was inspired by ‘The World is my Family’ philosophy with an all-new positioning which creatively integrated and crafted with the brand logo. The annual report of the media and entertainment conglomerate for 2013-14 incorporates its ‘One Zee, One Anthem’ philosophy.

     

    The vibrant and stakeholder-friendly annual report gives an insight into the media house highlighting how its reach and viewership share has grown from strength to strength.

     

    Zee’s evolution as a global media brand is vindicated by its 730+ million viewers across 169 countries. This apart, it also added one more channel, Zindagi, to its list taking the toll to 33 for its domestic channels. Zindagi, launched on 23 June, showcases content from Pakistan and has the tagline ‘Jodey Dilon Ko’. It also launched another brand ‘&’.

     

    With the strategy to offer specific content to relevant markets, the powerhouse also added two more international channels to its kitty – Zee Bioskop in Indonesia and Zee Nung in Thailand. It is pushing boundaries forward to realise its vision of being a leading global media powerhouse by the year 2020.

     

    Apart from this, the company also launched Zee Music Company entering into the country’s Rs 960 crore music market.

     

    The three key value drivers for brand Zee are pioneering, prudent and predictability. And these have helped it contribute 26 per cent of the corporate brand to the enterprise value as of 31 March 2014.

     

    In the last five years, Zee’s revenues grew at 15.30 per cent CAGR. The consolidated revenue during FY 2014 grew by 20 per cent y-o-y to Rs 46,024 million.

     

    In a message to shareholders, Zeel chairman Dr Subhash Chandra highlights that even though there is a question mark on India’s domestic growth and there persists a general climate of pessimism, the company’s experience and expertise has helped it grow and overcome roadblocks to unleash their creativity.

     

    “Digitisation has been instrumental in enhancing the industry’s transparency levels. The phase I and II roll out restructured the industry’s standards. With consumers ready to pay for quality content, complete digitisation will entail multiple benefits, such as industry growth, transparency and increased ARPUs for industry players,” he said in the annual report.

     

    54 per cent of revenue is generated through advertisements while 63 per cent of the total distribution expense comes from operational cost.

     

    Zeel MD and CEO Punit Goenka spoke about the future of India’s M&E industry. “Currently valued at Rs 417 billion, it poised to reach Rs 885 billion by 2018 as per the latest KPMG report. Zee will continue to raise the bar in terms of content innovation, operational excellence and global footprint to sustain its industry leadership.”

     

    With the total strength of more than 2200 people at the company, the annual report shares views of other management teams as well as outsiders like Shahrukh Khan, Sam Balsara, Rishi Jaitly among many others.

     

    The 32nd annual general meeting of the company will be held on 18 July at 11 am in Nehru Auditorium in Mumbai.

     

    Annual reports are not just numbers; they are a piece of handiwork through which a company can promote itself, its prospects to its various stakeholders.  AICL Communications is in-charge of making Zeel’s report more interactive rather than just plain vanilla.

  • Q1-2015: DB Corp reports higher income, PAT

    Q1-2015: DB Corp reports higher income, PAT

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported improved results in Q1-2015, both in terms of total income from operations (Tot Inc) and PAT. The company reported Tot Inc of Rs 489.2 crore which was 7.7 per cent more than the Rs 454.17 crore in the immediate trailing quarter Q4-2014 and 8.9 per cent more than the year ago Op Inc of Rs 449.41 crore in Q1-2014.

     

    The company’s PAT in Q1-2015 at Rs 79.12 crore (16.2 per cent of Tot Inc) was 4.3 per cent more than the Rs 79.92 crore (16.7 per cent of Tot Rev) in Q4-2014 and 4 per cent more than the Rs 76.1 crore (16.9 per cent of Tot Inc) in Q1-2014.

     

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million. (2) The figures mentioned in this report or on a consolidated basis.

     

    DB Corp’s Radio Business segment, with 17 stations across seven states of India under the Brand Name – MYFM reported 3 per cent lower operating revenue (Op Rev) of Rs 20.73 crore (4.2 per cent of Tot Inc) as compared to the Rs 21.37 crore (5 per cent of Tot Inc) in Q4-2014 and 20.8 per cent more than the Rs 17.16 crore (3.8 per cent of Tot Inc) in Q1-2014. The segment reported 26.8 per cent lower positive result at Rs 5.27 crore in Q1-2015 as compared to the Rs 7.19 crore in Q4-2014, but was more than double (2.17 times) the Rs 2.32 crore in Q1-2014.

     

    Let us look at the other results reported by DB Corp for Q1-2015:

     

    DB Corp’s total expenditure in Q1-2015 at Rs 374.99 crore was 2.4 per cent more than the Rs 366.02 crore in Q4-2014 and 12.8 per cent more than the Rs 332.34 crore in Q1-2014. The company’s raw material consumption in Q1-2015 at Rs 165.88 crore was 3.8 per cent less than the Rs 166.59 crore in Q4-2014 and 15.5 per cent more than the Rs 143.59 crore in Q1-2014.

     

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

     

    The company’s Printing and Publishing of Newspaper and Periodicals segment reported revenue of Rs 461.07crore (94.3 per cent of Tot Inc) in Q1-2015, which was 7.7 per cent more than the Rs 428.21 crore (94.3 per cent of Tot Inc) in Q4-2014 and 7.4 per cent more than the Rs 429.15 crore (95.5 per cent of Tot Inc) in Q1-2014.

     

    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. The event segment has shown a 24.8 per cent q-o-q growth to Rs 1.4 crore in Q1-2015 in terms of operating revenue, while its internet business in Q1-2015 has grown by 36.7 per cent to Rs 5.89 crore as compared to Q4-2014. All the three segments reported negative operating results that slightly eroded profits generated by the other two segments.

     

    DB Corp Managing Director Sudhir Agarwal said, “We are happy to report a sound performance to start our fiscal year that reflects that we have sustained our growth momentum. We have maintained our strengths and leadership position in all our legacy markets as we also continue to demonstrate good growth in our emerging editions. Having already demonstrated operational excellence in the print business, we have also maintained a similar focus and emphasis on DBCL’s non-print segments spanning our digital and radio initiatives. Both these segments hold tremendous potential to capitalise on over the next few years, given India’s still nascent exposure to internet penetration and yet one of the largest and fastest growing digital markets.

     

    We have successfully leveraged our strengths in the print medium to deliver robust growth in the digital and radio businesses also and are in the process of achieving greater scale as well as being well placed to take advantage of future growth opportunities. On an overall basis, we have continued to capitalise on organisational efficiencies, expense management and maintained a strong momentum across print and non-print segments, supported by innovative brand development endeavours and a reader-centric approach that continues to drive growth.

     

    The macro-economic environment centered on a stable government reflects positive sentiments that are expected to translate into better GDP numbers. The current environment demands an agile operating model that can capture diverse growth opportunities. We are confident of our operating strengths and continue to execute to plan and invest for growth, while maintaining stability in our profitability outlook.”

     

    Click here to read the Consolidated financial report

    Click here to read the Standalone financial report

  • Tata Global Beverages ad and sales charges in FY-2014 up 13.2 per cent; PAT up 29 per cent

    Tata Global Beverages ad and sales charges in FY-2014 up 13.2 per cent; PAT up 29 per cent

    BENGALURU: Tata Global Beverages (TGBL) advertisement and sales charges (ASP) in FY-2014 was up 13.2 per cent to Rs 1402.26 crore (18.1 per cent of Total Operating Income or Tot Inc) from Rs 1238.96 crore (16.9 per cent of Tot Inc) in FY-2013.

    However, the company’s Q4-2014 ASP at Rs 347.51 crore (18.2 per cent of Tot Inc) was 13.3 per cent lower than the Rs 400.71 crore (19.3 per cent of Tot Inc) in the immediate trailing quarter and 13.6 per cent more than the Rs 305.99 crore (16.5 per cent of Tot Inc) in the year ago quarter Q4-2013.

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

    TGBL PAT in FY-2014 at Rs 480.51 crore (6.2 per cent of Tot Inc) was 28.9 per cent more than the Rs 372.75 crore (5.1 per cent of Tot Inc) in FY-2013. In Q4-2014, the company’s PAT at Rs 69.30 crore (3.6 per cent of Tot Inc) was 42 per cent less than the Rs 119.55 crore (5.7 per cent of Tot Inc) in Q3-2014 and 27.6 per cent less than the Rs 95.76 crore (5.2 per cent of Tot Inc) in Q4-2013.

    Over the nine quarter period starting Q4-2012 until Q4-2014, TGBL’s ASP shows an upward linear trend, both in terms of rupee value as well as in terms of percentage of Tot Inc. A similar linear trend is observed in the five year period starting FY-2010 until FY-2014. Please refer to Fig. 1 below.

    The company’s Tot Inc in FY-2014 was 5.3 per cent more at Rs 7737.61 crore as compared to the Rs 7350.98 crore in FY-2013. In Q4-2014 TGBL’s Tot Inc at Rs 1909.93 crore was 8.2 per cent lower than the Rs 2080.74 crore in Q3-2014 and 3.3 per cent more than the Rs 1849.50 crore in Q4-2013. Figure 2 below indicates a linear upward trend acorss the above mentioned nine quarter period as well as the five year period.

    While the linear trend across the five years from FY-2010 till FY-2014 in Fig 3 below seems to indicate that PAT seems to have flattened at about 6.2 per cent of Tot Inc, the linear trend across the nine quarters indicates an upward trend.

    So of the points of note in an investors’ presentation for performance in FY-2014 and a TGBL press release are:

    (1)    The company claims a 15 per cent top line growth across the portfolio with volume and value increases.

    (2)     It says that TGBL has maintained market volume and value leadership at 20.1 per cent and 22.3 per cent respectively. Tata Tea Gold restaged with primary TV campaign – Tata Tea Gold Power of 49 campaign and IIFA integration.

    (3)    Iconic Power of 49 ‘Jaago Re’ campaign integrating brand messaging with social cause.

    (4)    Chakra Gold and Kanan Devan restage in Q4-2014.

    (5)     Tetley Green tea re-launched in January with an impactful campaign with Kareena Kapoor.

    (6)     Various consumer promotions were undertaken to drive sales growth. Competition has launched aggressive promotions.

    The company’s press release says:

    The ‘Power of 49’ campaign for Tata Tea Gold in India, which encouraged women to exercise the power of their franchise, saw strong momentum and consumer participation last quarter with a mix of elements spanning advertising, on ground activation and digital marketing. TGBL says the campaign touched over 10 crore women across India and sparked over 50 lakh interactions through its communication channels.

    Tata Starbucks – a joint venture between Tata Global Beverages and Starbucks- now has 46 Starbucks stores across the cities of Mumbai, Delhi, Bangalore and Pune.  The stores continue to see excellent consumer response.  Tata Water Plus- India’s first nutrient water, now has a presence in the states of Tamil Nadu, Andhra Pradesh and Gujarat in PET bottle as well as pouch formats. Tata Gluco Plus launched a new flavor variant- Apple Cinnamon last quarter, which was been very well received in the market. With this launch, the brand now has five delicious flavours available.

    TGBL managing director and CEO Ajoy Misra said, “In a challenging market environment, we continue to invest strongly behind our brands. We have made good progress on category expansion into coffee and the single serve business in Australia with the acquisition of the MAP brand. By leveraging key consumer trends like wellness, convenience and indulgence, Tata Global Beverages continues to create many magical beverage moments for consumers across the globe. Our strategic alliances with PepsiCo and Starbucks are making good progress and seeing steady growth.”

  • Britannia FY-2014 ad and sales promo spends up 13 per cent; PAT up 52 per cent

    Britannia FY-2014 ad and sales promo spends up 13 per cent; PAT up 52 per cent

    BENGALURU: Indian food industry major Britannia Industries Limited (Britannia) advertisement and sales promotion expense (ASP) in FY-2014 at Rs 603.65 crore (8.7 per cent of Net Total Income from Operations or Op Inc) was 13 per cent more than the Rs 534.28 crore (8.6 per cent of Op Inc) that the company spent in the previous fiscal towards this head. However, in Q4-2014, the company’s ASP was 5.9 per cent lower at Rs 146.19 crore (8.1 per cent of Op Inc) than the Rs 155.28 crore (8.7 per cent of Op Inc) in Q3-2014 and 0.4 per cent less than the Rs 146.76 crore (8.9 per cent of Op Inc) in Q4-2013.

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

    In FY-2014, the company reported a 11.8 per cent jump in Op Inc to Rs 6912.71 crore from Rs 6185.41 crore in FY-2013. For Q4-2014, Britannia’s Op Inc at Rs 1812.44 crore was 1.1 per cent more than the Rs 1793.01 crore in the immediate trailing quarter and was 9.7 per cent more than the Rs 1651.66 crore in the year ago quarter Q4-2013.

    Though in rupee value terms, Britannia’s ASP over eight quarters starting with Q1-2013 till Q4-2014 shows an upward linear trend, in terms of percentage of Op Inc., ASP expense seems to have flattened out linearly to about 8.7 per cent of Op Inc over this period (which is also the average ASP in terms if percentage of Op Inc over the 8 quarters).  Over a five year period starting FY-2010 till FY-2014, the company’s ASP spent has been trending upward linearly, both in terms of rupees spent and in terms of percentage of Op Inc. Please refer to Fig. 1A and 1B below.

    Fig. 1B below is quite interesting. During the eight quarters under consideration, the two curves representing percentage changes of Op Inc and ASP between two corresponding quarters (Q-o-q) run side by side, except between Q1-2014 and Q2-2014 where they intersect. This suggests that a change in ASP spends definitely effects the Op Inc, a dip in ASP results in a dip in Op Inc growth, and an increase in ASP results in an increase Op Inc growth.

    Britannia reported PAT of Rs 395.35 crore (5.7 per cent of Op Inc) in FY-2014, which was a phenomenal 52.4 per cent more that the Rs 259.5 crore (4.2 per cent of Op Inc) in FY-2013. For Q4-2014, the company’s PAT at Rs 108.12 crore (6 per cent of Op Inc) which was 7.8 per cent more than the Rs 100.32 crore (5.6 per cent of Op Inc) in Q3-2014 and 17.2 per cent more than the Rs 92.26 crore (5.6 per cent of Op Inc) in Q4-2013. Across the eight quarters and the five years under consideration, PAT curves and ASP curves in terms of percentage of Op Inc run side by side and are almost parallel. The company’s PAT has been climbing upwards from 3.4 per cent of Op Inc in FY-2010 to 5.7 per cent of Op Inc in FY-2014. Across the eight quarters under consideration, PAT has climbed from 3.4 per cent of Op Inc in Q1-2013 to 6 per cent of Op Inc in Q4-2014. As mentioned above, ASP in terms of percentage of Op Inc seems to have flattened out. Please refer to Fig 2 below:

    Commenting on the performance, Britannia managing director Varun Berry said, “Overall, It’s been a good year with double digit revenue growth and a solid profit growth. This is the result of disciplined effort that focused on the primary building blocks of business viz. supporting our brands, an empowered and passionate front-line organisation delivering increased distribution depth in urban and width in rural India, consistently high product quality and improved operational efficiency. Toughening economic environment called for a focus on fundamentals and we did that. We have established a great platform to take our organization to greater heights.”

    The board of directors has recommended a dividend of 600 per cent or Rs 12 per equity share of Rs 2 each.

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