ITV

Category: Financials

  • Airtel DTH services y-o-y growth 23%, EBIDTA up 226%, ARPU up 10% in Q4-2014

    Airtel DTH services y-o-y growth 23%, EBIDTA up 226%, ARPU up 10% in Q4-2014

    BENGALURU: Indian and international mobile services giant Bharati Airtel Limited’s DTH (Airtel DTH) services business total revenue has grown 23 per cent to Rs 541.5 crore in Q4-2014 as compared to the Rs 441.9 crore in the year ago quarter (Q4-2013).  During FY-2014, total revenue at Rs 2077.1 crore was 27 per cent more than the Rs 1629.4 crore in FY-2013.

     

    Airtel DTH has reported higher EBIDTA at Rs 96.3 crore in Q4-2014, 226 per cent more than the Rs 29.6 crore in Q4-2013. During the current financial year, EBIDTA was even higher (by 638 per cent) at Rs 333.8 crore as compared to the Rs 45.2 crore in FY-2013.

     

    Airtel DTH’s operating margin (EBIT) loss reduced by 38 per cent to Rs (-111.1) crore in Q4-2014 from Rs (-178.4) crore in Q4-2013. Over the year EBIT reduced by 41 per cent to Rs (-482.1) crore in FY-2014 from Rs (-810.5) crore in FY-2013.

     

    Capex at Rs 177.9 crore went up 34 per cent in Q4-2014 from Rs 132.6 crore y-o-y. However the company’s capex in FY-2014 was (-18) per cent lower at Rs 617 crore as compared to the Rs 754.8 crore in FY-2013.

     

    The company’s DTH business’s cumulative investments in Q4-2014 and FY-2014 went up 15 per cent to Rs 4646.8 crore from Rs 4036.6 crore in Q4-2013 and FY-2013.

     

    Airtel DTH q-o-q customer base went up 2 per cent in Q4-2014 to 90.12 lakhs from 88.07 lakhs, with net additions of 2.05 lakhs new subscribers during Q4-2014. This is (-13) per cent lower than the 235000 net additions the company had declared during Q4-2013. Y-o-y the customer base was 11 per cent more than the 81 lakhs subscribers in Q4-2014, but net new subscriptions during Q4-2014 was less by (-1) per cent than the 207000 net new subscriptions in Q4-2013.

     

    Average Revenue Per User (ARPU) in Q4-2014 has gone down (-2) per cent to Rs 203 in Q4-2014 as compared to the Rs 207 in the immediate trailing quarter, but was 10 per cent more than the Rs 184 in the year ago quarter (Q4-2013).

     

    Airtel DTH’s monthly churn was also higher at 0.9 per cent in Q4-2014 as compared to the 0.8 per cent in Q3-2014, but was lower than the 1.1 per cent in Q4-2013.

     

    It became the first DTH player in the country to showcase a feature film on the same day of its theatrical release with the showcase of Telugu movie ‘Minukumanna Minugurulu’ on its Pay Per View (PPV) platform.

     

    In line with company’s initiatives to associate with events, shows and initiatives that resonate well with the preferences of today’s India, Bharati Airtel co-sponsored the popular TV show ‘Satyamev Jayate’ again this year. The brand integration with the show included innovations like in-show calls on Airtel 3G and use of Airtel money for donations along with access to exclusive show content to customers.

     

    In an effort to provide a world-class experience to the customers, the company launched Airtel ‘Pocket TV’ – a mobile app which will enable customers to watch their favourite TV programs on the move while also being the first player to release a feature film on digital TV platform.

  • HUL ad spends down 10 per cent in Q4-2014, up 12 per cent in FY-2014

    HUL ad spends down 10 per cent in Q4-2014, up 12 per cent in FY-2014

    BENGALURU: Indian FMCG giant Hindustan Unilever Limited (HUL) Advertisement and Promotions spends (Ad & Promo spends) was down 9.59 per cent in Q4-2014 at Rs 840.34 crore as compared to the Rs 929.46 crore in the immediate trailing quarter (Q3-2014), but was 2.34 per cent more than the Rs 821.13 crore in the year ago quarter (Q4-2013). The company spent the lowest amount towards Ad & Promo in Q4-2014 during FY-2014.

    Note : All figures are standalone.

    Overall, across eight quarters starting with Q1-2013 until Q4-2014, HUL’s Ad & Promo spend shows an upward trend, both in rupee value as well as percentage of Operating Income (Op Inc) terms. Please refer to Fig 1 below.

    Also,  the company’s Ad & Promo spends is trending upwards, both in absolute value and as percentage of Op Inc terms between FY-2012 to FY-2014 as is evident from Fig 1A below:

    Across the eight quarters under consideration, HUL’s Op Inc shows an upward trend, though Op Inc in Q4-2014 was (-1.79) per cent lower at Rs 7094.1 crore  as compared to the Rs 7223.35 crore in Q3-2013, though y-o-y Op Inc was higher by 9.72 per cent than the Rs 6465.81 crore in Q4-2013.

    The company’s PAT has shown a declining trend, both in absolute as well as percentage of Op Inc terms during the eight quarters under consideration. PAT for Q4-2014 was (-17.90) per cent lower at Rs 872.13 crore as compared to the Rs 1062.31 crore in Q3-2014 and was 10.79 per cent more than the Rs 787.20 crore in the year ago quarter Q4-2013.

    However, on annualised basis, across three financial years from FY-2012 to FY-2014, PAT has increased and is showing an upward trend, albeit slower in FY-2014, during which it grew by 1.87 per cent to Rs 3867.49 crore from Rs 3796.67crore in FY-2013. Correspondingly, PAT grew in FY-2013 more rapidly at 41.07 per cent from Rs 2691.40 crore in FY-2012. Please refer to Fig 2 and Fig 2A below.

    HUL says that the slowdown in the market in growth (volume and value) across categories continues, and though input costs have been firm, there has been a sharp rise in cost of PFAD, while at the same time competitive intensity has remained high. The company says that its Q4-2014 domestic business has increased by 9 per cent with a 4 per cent underlying volume growth that is far ahead of the market. It says that its soaps and detergents business grew by 9 per cent, personal products and beverages grew by 8 per cent each and packaged foods by 13 per cent during the quarter.

    Here is what the company has to say about various categories.

    Soaps and Detergents: Healthy performance

    Skin Cleansing delivered double digit growth, aided by a step up in price growth as judicious pricing actions were taken to manage input cost inflation. Growth was broad based across brands with the liquids portfolio seeing accelerated growth.

    In laundry, growth was led by the premium segment with Surf maintaining its double digit growth momentum and Rin delivering good growth on the bars portfolio. Wheel growth stepped up on the back of its re-launch in the last quarter. Comfort Fabric Conditioners continue to lead market development with sustained high growth. Vim led the performance in Household Care.

    Personal Products: Growth in a challenging environment

    Skin Care grew well in a soft market. The re-launch of Fair & Lovely, with the new ‘Best Ever Formula’ and supported by a focused activation plan, is yielding positive results. Ponds had a good quarter at the premium end while Lakme and Dove sustained their robust performance. The Facial Cleansing portfolio registered broad based growth driven by innovations launched in previous quarters.

    Hair Care sustained volume led double digit growth with Dove delivering another strong performance and Clinic Plus doing well. TRESemmé, which saw the addition of a new Split Remedy variant, continued to make very good progress.

    In Oral Care, significant investments were made to sustain our competitiveness in the category. While Close Up grew in the quarter, Pepsodent was impacted by the high promotional intensity in the market. Actions are underway to step up performance.

    Colour Cosmetics maintained its strong innovation led growth momentum across both Lakme and Elle 18. Lakme continues to strengthen its position in premium make up driven by a range of exciting and contemporary offerings.

    Beverages: Growth led by Tea

    Tea sustained double digit growth on the back of stepped up volumes. Taj Mahal, Red Label and 3 Roses grew in double digits, driven by a strengthened mix and focused in-market activities. The thrust on leading market development for tea bags saw flavoured and green tea bags more than double sales in the quarter. In Coffee, Bru Gold continued to perform well.

    Packaged Foods: Strong performance by Kissan, Kwality Walls and Magnum

    Kissan registered another robust quarter with growth accelerating on both Ketchups and Jams, driven by impactful activation while Knorr growth continued to be led by Instant Soups which more than doubled volumes. Ice creams saw strong growth arising from the selling in of Magnum which was extended to four other cities, and sharper in-market execution on Kwality Walls, ahead of the season.

  • Godrej Consumer Products lowers Q4-2014 ad spends by 36 per cent

    Godrej Consumer Products lowers Q4-2014 ad spends by 36 per cent

    BENGALURU: FMCG player Godrej Consumer Products Limited (GPCL) spent (-35.93) per cent less towards Advertising and Publicity (Ad & Pub spends) in Q4-2014 at Rs 145.78 crore as compared to the Rs 227.53 crore in the immediate trailing Q3-2013 and (-14.75) per cent lower than the Rs 171 crore in the year ago quarter (Q4-2013).

    However, the company spent 24.61 per cent more towards Ad & Pub in FY-2014 at Rs 832.97 crore as compared to the Rs 668.48 crore in the last fiscal (FY-2013). Overall, as per Fig 1 below, in terms of rupees spent, the company’s overall Ad & Pub spends trend (linear) upwards over the last eight quarters starting with Q1-2013 till Q4-2014. However, in terms of Ad and Pub spends in terms of percentage of Operating Revenue (Op Rev), the linear trend is downwards, the company is spending less as a percentage of its Op Rev towards Ad & Pub.

    The company’s Op Rev in Q4-2014 has fallen by (-2.56) per cent to Rs 1931.52 crore from Rs 1982.27 crore in Q3-2014, but is 12.34 per cent higher than the Rs 1719.39 crore in Q4-2013. GCPL’s FY-2014 Op Rev is 18.49 per cent higher at Rs 7602.41 crore as compared to the Rs 6416.30 crore in FY-2013.

    Overall, GCPL’s PAT for FY-2014 at Rs 759.73 crore is (-4.57) per cent lower than the Rs 796.10 crore in FY-2013. Q-o-Q, PAT at Rs 236.28 crore in Q4-2014 is 20.69 per cent higher than the Rs 195.77 crore in Q3-2014, but (-29.29) per cent lower than the Rs 334.14 crore y-o-y.

    As per Fig 2 below, GCPL’s Op Rev, PAT and PAT as percentage of Op Rev, all show an upward trend.

    In its India category review, the company has the following to say:

    Household Insecticides

    Sales growth returns back to normalcy at 17 per cent plus, well ahead of the category. GCPL continues to drive market share gains aided by success of Good Knight Fast card and HIT Anti Roach Gel. GCPL believes that the new launch Good Knight Xpress LV will bring further gains to GCPL franchise.

    Soaps

    Sales value grew at 1 per cent, well ahead of the category growth which is facing significant pressure in terms of consumer off take. Category de-grew both in value and volume terms in mid to high single digits respectively. GCPL has recently launched a new variant for Godrej No. 1 ‘Lavender and Milk Cream’and says that it has also started a 360 degree media campaign for Cinthol ‘Cool’ soap ahead of summers.

    Hair Colours

    Strong momentum in hair colours was maintained, delivering sales growth at 16 per cent plus despite anniversarisation of Expert Cr?me launch. Growth rates were significantly ahead of category growth rates. The company has also launched new packaging for Expert Advanced Gel based hair colours and a twin use pack for Expert Cr?me. GCPL has on going initiatives such as salon engagement programs, festival linked promotions, etc. to drive higher  consumption and penetration for the category continued to deliver healthy results.

    Aer

    GCPL says that Aer continues to do well aided by its consumer engagement initiatives. The product was launched in gel format for both click and twist format.

     GCPL chairman Adi Godrej’s quote

    “We have delivered robust performance in our India and in our international businesses this quarter, in a challenging market environment. Our focus on sustaining and extending leadership in our core categories has enabled us to grow significantly ahead of the market. Our innovations have delivered well ahead of expectations. Overall, our operating performance has been strong, with profits growing ahead of sales.”

    “Our India business delivered relatively healthy sales growth, amidst a slowdown in the household and personal care market. We have continued to gain market shares across categories, driven by new innovations and compelling marketing programs.”

    “Our international businesses also had a good quarter with significant improvements in profitability. Our teams have demonstrated great agility and resilience to deliver this market-leading performance.”

    “The overall macro outlook remains turbulent. While the pace of economic recovery remains uncertain, we are hopeful that consumer sentiment will become more positive and we will see better growth in the sector in the quarters ahead. We will continue investing judiciously for the longer term to improve our competitive position and emerge stronger than ever before. I am confident that with our clear strategic focus, our superior execution and our top notch team, we will continue to deliver industry leading results in the future.”

  • Radaan reports lower numbers in Q3-2014

    Radaan reports lower numbers in Q3-2014

    BENGALURU: The R. Radhikaa Sharathkumar led south Indian television production house Radaan Mediaworks Limited (Radaan) reported Q3-2014 standalone revenue of Rs 7.11 crore, (10.4) per cent lower than the Rs 7.93 crore in Q3-2013 and  (3.7) per cent lower than the Rs 7.39 crore q-o-q. In 9M-2013, the company reported a drop in revenue of (5.2) per cent to Rs 23.63 crore from Rs 24.93 crore. For FY 2013, the company reported revenue of Rs 34.19 crore.

     

    The company’s EBIDTA at Rs 0.5479 crore in Q3-2014 was (18.7) per cent lower than the Rs 0.6737 crore in Q3-2013 and was (17.1) per cent lower than the Rs 0.601 crore in Q2-2014. In 9M-2014, its EBIDTA at Rs 1.8031 crore was (16) per cent less than the Rs 2.1478 crore in 9M-2013. For FY 2013, the company’s EBIDTA was Rs 3.0544 crore.

     

    Let us look at the other Q3-2014 figures reported by Radaan

     

    Radaan reported Total expense of Rs 6.72 crore in Q3-2014, which was (9.7) per cent lower than the Rs 7.44 crore in Q3-2013 and was (2.4) per cent lower than the Rs 6.88 crore in Q2-2014. In 9M-2014, the company’s Total expense was down (12.2) per cent to Rs 20.79 crore from Rs 23.67 crore in 9M-2013. In FY 2013, the company’s Total expense was Rs 31.06 crore.

     

    PAT for Q3-2014 was down (34.5) per cent to Rs 0.1255 crore from Rs 0.1943 crore in Q3-2013 and was (37.6) per cent lower than the Rs 0.2010 crore in Q2-2014. Over the nine month period ended 31 December, 2013, Radaan’s PAT was 16.7 per cent more at Rs 0.5094 crore than the Rs 0.4365 crore in 9M-2013. For FY 2013, the company reported PAT of Rs 1.0509 crore.

     

    The company’s expense on Television serials and events (TV cost) at Rs 5.96 crore in Q3-2014 was (1.2) per cent lower than the Rs 6.04 crore in Q3-2013 and 0.7 per cent lower than the Rs 6.01 crore in Q2-2014. In 9M-2014, Radaan’s TV cost at Rs 17.29 crore was 18.2 per cent lower than the Rs 21.14 crore in 9M-2013. For FY 2013, its TV cost was Rs 27.44 crore.

     

    The company’s finance cost in Q3-2014 at Rs 0.27 crore was (8.7) per cent lower than the Rs 0.2958 crore in Q3-2013 and was 12.6 per cent less than the Rs 0.3088 crore in the immediate trailing quarter. In 9M-2014, Radaan’s finance cost was Rs 0.8453 crore, 2.4 per cent more than the Rs 0.8252 crore in 9M-2013. In FY 2013, the company’s finance cost was Rs 1.1284 crore.

     

    Click here for financials

     

  • Q3: Digitisation pushes up MSOs’ subscription revenue

    Q3: Digitisation pushes up MSOs’ subscription revenue

    MUMBAI: Transparency in subscriber numbers with the digitisation of cable TV services in 42 cities is translating into higher subscription revenues for multi-system operators.

     

    The benefit of digitisation is still to fully reflect in revenues of MSOs as billing to cable TV subscribers is still to be completed in the 38 cities that were digitised in Phase II.

     

    Digitisation has had an added impact on the MSOs financials. Their carriage or placement revenue earned from broadcasters is decreasing.

    MSOs expect carriage revenue to rise as new channels get launched.

     

    Carriage Revenue

    Hathway Cable & Datacom’s income from placement of channels fell 14 per cent to Rs 73.6 crore in the third quarter ended 31 December, 2014. The share of placement revenue in Hathway Cable’s total revenues fell to 31 per cent in the third quarter from 41 per cent a year ago.

     

    Den Networks too saw softening of its placement revenues to Rs 117.8 crore, down nearly 2 per cent from Rs 119.90 crore a quarter earlier. Den Network’s placement revenues a year ago are not available.

     

    Subscription Revenues

    Digitisation gains led Den Networks revenues to rise to Rs 105 crore in the third quarter, up 6 per cent from Rs 99.11 crore a quarter earlier.

     

    The quarter-on-quarter increase in subscription revenues for Hathway Cable was sharper. Its subscription revenues rose to 74 per cent to Rs 119.1 crore in the third quarter from Rs 68.5 crore a quarter earlier.

     

    Hathway Cable’s subscription revenues rose as it completed billing for a substantial percentage of its cable TV customers in the cities covered under the Phase II of digitisation. As a result, its average revenue per month per subscriber too has increased substantially, an analyst said.

     

    Hathway Cable says with its focus on collections, the company has witnessed continued traction in the pace of subscription collections into January 2014.

     

    SITI Cable Network saw its total revenues in the third quarter rise 42 per cent to Rs 177.3 crore from Rs 124.7 crore a year ago.

    SITI Cable CEO V D Wadhwa says, “We gained further momentum in the third quarter of fiscal 2014.”

     

    Direct-To-Home TV

    Dish TV’s revenues rose 3% quarter on quarter to Rs 6,128 mn in the third quarter but its EBITDA fell 1.6% quarter on quarter to Rs 135.50 crore. The company’s operating profit was down as its content cost rose and selling, general and administrative expenses increased as it tapped benefits flowing from digitisation.

    Dish TV added net 2,20,000 households in the third quarter taking its subscriber base to 11.2 million.

    Analysts expect Dish TV to reap higher benefits of digitisation in Phase III and IV starting 1 October, 2014.

     

    In the case of Bharti Airtel’s DTH business, the multiplier impact of increased customer additions and higher realisations during the quarter, pushed up revenues by 25.8 per cent to Rs 538.4 crore from Rs 428 crore a quarter earlier.

     

    Leveraging economies of scale, EBITDA for the quarter increased to Rs 97 crore from Rs 14.7 crore a year earlier. Consequently, Airtel Digital TV’s EBIDTA margin improved significantly to 18.0 per cent in the third quarter from 3.4 per cent a year earlier.

     

    During the current quarter, the company incurred a capital expenditure of Rs 110.90 crore in DTH services. The cash burn during the quarter at Rs 13.9 million was significantly lower Rs 120.40 crore a year ago.

     

    Airtel DTH added 2,35,000 net subscribers in the third quarter to take its total subscriber base to 88,07,000. Its average revenue per user in the third quarter was Rs 207. 

  • Pressman PAT down in Q3-2014

    Pressman PAT down in Q3-2014

    BENGALURU:  Pressman Advertising Limited (Pressman) reported a (49.4) per cent lower PAT at Rs 1.01 crore in Q3-2014 from Rs 2 crore in Q2-2014. The company was listed at the bourses just a few months ago and the analysis is limited to figures reported by it for the quarter and the nine month period of this year and for FY 2013. PAT for 9M-2014 was Rs 5.03 crore, while the company has reported a small loss of Rs 0.05 crore in 9M-2013, PAT for FY 2013 was Rs 6.29 crore.

     

    Let us look at the Q3-2014 figures reported by Pressman 

     

    Pressman reported an (8.25) per cent drop in operating revenue in Q3-2014 to Rs 9.31 crore from Rs 10.15 crore in Q2-2014. For 9M-2014, the company reported operating revenue of Rs 28.86 crore and for FY 2013, the figure was Rs 43.96 crore. 

     

    Expenditure for Q3-2014 at Rs 8.7 crore was (2.2) per cent lower than the Rs 8.89 crore in Q2-2014. For 9M-2014, the company reported Expenditure of Rs 26.77 crore and for FY 2013 it reported Expenditure of Rs 39.1 crore. 

     

    The company reported a (3.1) per cent drop in Cost of services to Rs 7.26 crore in Q3-2014 from Rs 7.49 crore. For 9M-2014, this cost head was Rs 22.55 crore and for FY 2013, this cost head was Rs 34.09 crore. 

     

    Pressman’s Employee Benefits expense in Q3-2014 was up 10.8 per cent to Rs 0.70 crore from Rs 0.63 crore in Q2-2014.For 9M-2014, Employee Benefit expense was Rs 194 crore and for FY 2013, it was Rs 2.28 crore. 

     

    Notes: (1) The name of the company has changed from Nucent Estates Limited to Pressman Advertising Limited with effect from 22 August 2013. 

     

    (2) Current quarter/half-year’s figures are not comparable for those of last year on account of effect of amalgamation 

     

    (3) In Q1-2014, the company had released Rs 1.461 crore that had been earlier written off and this amount helped in inflating the profit for that quarter. This year the company has added Rs 0.6 crore to exceptional items – write back of liability provided for earlier year no longer required. 

     

    Please read the attached financial results.

  • Saregama reports subdued results for Q3-2014

    Saregama reports subdued results for Q3-2014

    BENGALURU: Saregama India Limited, which claims to be the custodian of over half the music ever recorded in India, reported lower numbers for Q3-2014 as compared to the immediate trailing and year ago quarters, despite its film and television serials segment recording a 15.6 per cent y-o-y  and 5.1 per cent q-o-q growth in operating revenue. The company received lower licence fees and paid lesser royalty fees in Q3-2014 as compared to the previous and corresponding last year.  At the same time, its cost of production of films, television serials and portal went up. 

     

    Overall, the company’s net total income from operations (net of excise duty) for Q3-2014 was 16.4 per cent lower at Rs 43.02 crore as compared to the Rs 51.43 crore in Q3-2013, and 5.5 per cent lower than the Rs 45.53 crore in Q2-2014. During 9M-2014, Saregama’s net total income fell 1.9 per cent to Rs 124.36 crore from Rs 126.74 crore in 9M-2013. For FY the, net total income reported was Rs 174.69 crore.

     

    Saregama’s Q3-2014 net profit at Rs 1.02 crore was a little more than one-fifth (20.61 per cent) of Rs 4.95 crore in Q3-2013 and less than half (about 40 per cent) of the Rs 2.49 crore in Q2-2014. For the nine month period ended December 31, 2014, the company’s net profit  was 37.6 per cent lower at Rs 5.34 crore as compared to the Rs 8.56 crore in 9M-2013. For FY 2013, the company reported PAT of Rs 10.88 crore. 

     

    Let us look at the other Q3-2014 figures reported by Saregama 

     

    Saregama received 17.7 per cent lower licensing fees at Rs 24.67 crore in Q3-2014 as compared to the Rs 29.96 crore in Q3-2013 and 15.2 per cent lower than the Rs 29.08 crore in Q2-2014. In 9M-2014, licensing fee income was Rs 76.71 crore, which was 0.58 per cent more than the Rs 76.27 crore in 9M-2013. For FY 2013, Saregama had licensing fee income of Rs 104.98 crore. 

     

    The company reports revenue from two segments – Music and Film and Television Serials (Production). 

     

    Music segment reported 29 per cent fall in revenue for Q3-2014 to Rs 26.13 from Rs 36.82 crore in Q3-2013, but reported an increase of 34.3 per cent from Rs 19.46 crore in Q2-2014. During 9M-2014, the Music segment’s revenue was down 16.6 per cent to Rs 80.68 crore from Rs 96.79 crore in 9M-2013. For FY 2013, the segment reported revenue of Rs 131.70 crore.

     

    Music segment’s operating profit in Q3-2014 at Rs 8.57 crore was down 25 per cent from Rs 11.42 crore in Q3-2013 and was just 2.5 per cent more than the Rs 8.36 crore in Q2-2014. In 9M-2014, operating profit was 17.3 per cent lower at Rs 26.24 crore as compared to the Rs 31.73 crore in 9M-2013. For FY 2013, Music segment reported revenue of Rs 51.33 crore. 

     

    The company’s Production segment reported operating revenue of Rs 16.89 crore, which was 15.6 per cent more than the Rs 14.61 crore in Q3-2013 and 5.1 per cent more than the Rs 16.07 crore in Q2-2014. The segment’s 9M-2014 operating revenue at Rs 43.68 crore was 45.4 per cent more than the Rs 29.95 crore in 9M-2013. For FY 2013, the segment reported operating income of Rs 42.99 crore.

     

    Production segment reported operating profit at Rs 0.69 crore as compared to an operating loss of Rs 1.28 crore y-o-y and was a little more than a fourth (about 27 per cent) of the Rs 2.54 crore operating profit in Q2-2014. For 9M-2014, the segment reported an operating profit of Rs 3.6 crore as compared to an operating loss of Rs 9.70 crore in 9M-2013. Saregama’s Production segment had reported an operating loss of Rs 11.49 crore in FY 2013. 

     

    The company’s Q3-2014 Total expense at Rs 41.70 crore was 12.4 per cent lower than the Rs 47.59 crore in Q3-2014 and was 4.4 per cent lower than the Rs 43.6 crore in Q2-2014. During the nine month period of the current year, Total expense was up by 0.35 per cent to Rs 119.37 crore from Rs 118.95 crore in 9M-2013. For FY 2013, the company’s Total expense was Rs 167.8 crore. 

     

    As mentioned above, Saregama’s cost of production of Films, Television Serials and portal in Q3-2014 was higher by 10.5 per cent at Rs 14.23 crore as compared to the Rs 12.88 crore in Q3-2013 and was 2.9 per cent more than the Rs 13.83 crore in Q2-2014. For 9M-2014, this expense head at Rs 37.03 crore was 32.6 per cent more than the Rs 27.92 crore in 9M-2013. For FY 2013, Saregama’s cost of production of Films, Television Serials and portal was Rs 39.55 crore. 

     

    The company’s Royalty expense in Q3-2014 was lower by 29.6 per cent at Rs 3.49 crore as compared to the Rs 4.96 crore in Q3-2013 and was less than half 42 per cent of the Rs 8.31 crore in Q-2014. In 9M-2014, Saregama’s royalty expense at Rs 15.24 crore was 29 per cent more than the Rs 11.81 crore in 9M-2013. For FY 2013, the royalty expense was Rs 15.64 crore. 

     

    Saregama’s advertising and sales promotion expense at Rs 2.17 crore in Q3-2014 was less than half (44 per cent) of the Rs 4.92 crore in Q3-2013 and 45.6 per cent more than the Rs 1.49 crore in Q2-2014. In 9M-2014, the company spent Rs 5.87 crore towards Ad expense, which was  (44.6) per cent lower than the Rs 10.59 crore in 9M-2013. In FY 2013, the company spent Rs 14.42 crore towards this expense head.

     

    Click here for full financials

  • Q3: Digitisation boosts broadcasters’ revenues

    Q3: Digitisation boosts broadcasters’ revenues

    MUMBAI: Digitisation of cable TV services in major cities has helped broadcasters improve their income from subscriptions in the third quarter ended 31 December, 2013, but the cap on advertising has hit some of them badly as the regulation got implemented at the beginning of the quarter.

     

    The advertising revenues of the industry rose by about 10 per cent in the third quarter, largely on account of robust growth at general entertainment channels (GECs), according to analysts.

     

    ADVERTISING REVENUE

     

    Sun TV saw its advertising revenue fall 7.2 per cent on year to Rs 272 crore in the third quarter, as the cap on advertising hurt the leading television network from south India. The fall in Sun TV’s advertising revenue was despite an increase in advertising rates, analysts said.

     

    GroupM’s Senior Director, Analytics, Central Trading Group, Harsh Deep Chhabra, says news channels are expected to take a bigger hit than the GECs because of the ad cap. While the impact of the advertising cap on news channel could be as high as up to 35 per cent, it could be 10-15 per cent on GECs.

     

    Zee Entertainment Enterprises’ ex-sports advertisement revenue growth was more than 20 per cent year on year, due to gains in market shares and launch of new channels.

     

    Barring the short-term impact of reduction in advertising inventory, advertising spends on television are expected to grow in healthy double digits over the next many years, according to Zee Entertainment Managing Director and Chief Executive Officer, Punit Goenka.

     

    The advertising revenue growth at Zee Media, which has a group of general and business news channels, was 3.1 per cent at Rs 61.39 crore in the third quarter, against its subscription revenue growth of 21.6% at Rs 270 crore.

     

    The third quarter had seen relaunch of Zee News channel with refreshed programming and look.

     

    TV18 Broadcast’s consolidated advertising revenues grew 3 per cent year on year, as entertainment channels led by Colors and MTV delivered strong double digit advertising revenue growth. Advertising environment for news and infotainment continued to be sluggish.

     

    In the first half of 2013-14 too, advertising revenues at TV18 Broadcast had grown by 3 per cent year on year, with the advertising revenues at Colors growing by more than 15 per cent.

     

    SUBSCRIPTION REVENUE

     

    Sun TV’s subscription revenues rose 27% year on year to Rs 167 crore in the third quarter, basically driven by a 45.9% increase in analogue subscription revenue and a 19.6% rise in direct-to-home subscription revenue. The company expects robust growth in subscription revenue to continue as the full benefits of phase I and Phase II digitisation of cable TV are yet to be reflected as Chennai and Coimbatore are yet to be fully digitised.

     

    The Chennai-based broadcaster’s operating profit margin came under pressure because of higher cost of content, in addition to a decline in advertising revenue.  Multiple non-fiction shows telecast during the quarter led to a 428 basis points year-on-year contraction in operating margin to 73.6%, according to a results update by Angel Broking.

     

    It said Sun TV management expects content cost to go down in the next quarter as no non-fiction shows are planned to be telecast in the fourth quarter of 2013-14.

     

    TV18’s net distribution income (subscription revenues minus carriage/placement fees) continued to grow steadily. In the third quarter, the net distribution income was  Rs 43.6 crore, a growth of 145 per cent year on year.

     

    Zee Entertainment’s subscription revenues were up 11.4 per cent year on year to Rs 456.50 crore in the third quarter. The company’s domestic subscription revenues grew by 12.2 per cent year on year to Rs 332.20 crore in the third quarter.

     

    ZEE Media’s subscription revenue was up 21.6 per cent year on year at Rs 270 crore in the third quarter.

     

    New Delhi Television did not provide a break-up of its revenues from its broadcast operations. The news broadcaster said its Hindi news business remains buoyant with NDTV India reporting robust revenue growth. NDTV only said its revenues from broadcast operations in the third quarter were up 22 per cent year on year at Rs 131.02 crore.

     

    B.A.G. Films & Media reported improved a 29.1 per cent year on year rise in operating revenue to Rs 23.60 crore in the third quarter. The break-up of the revenue was not available.

     

    OPERATING PERFORMANCE:

     

    TV18 Broadcast reported its highest ever quarterly operating profit at Rs 77.5 crore, up 61 per cent year on year. Its net distribution income continued to grow steadily. In the third quarter, the net distribution income was  Rs 43.6 crore, a growth of 145 per cent year on year.

     

    On a proforma basis, including the results of ETV Entertainment, TV18 Broadcast’s operating profit was Rs 108.1 crore. ETV Entertainment reported a sharp reduction in losses compared to the previous two quarters as programming and marketing investments made in the first half led to an upswing in ratings and revenues.

     

    NDTV’s reported Rs 3.29 crore of operating profit in the third quarter against an operating loss of Rs 1.98 crore a year ago.

     

    B.A.G. Films too had an operating profit (of Rs 8.56 crore) in the third quarter against operating loss of Rs 1.51 crore a year earlier.

     

    Zee Entertainment’s operating profit in the third quarter was Rs 290.70 crore, up 11.3 per cent despite operating profit margin contracting to 24.5 per cent from 27.8 per cent a year ago.

     

    Sun TV’s operating profit fell 1.1 per cent year on year to Rs 372 crore in the third quarter, as its revenues were impacted by fall in advertising revenue and increase in content cost due to reality shows.

  • Q3: Sri Adhikari Brothers PAT up 40%

    Q3: Sri Adhikari Brothers PAT up 40%

    BENGALURU:  Sri Adhikari Brothers Television Network reported a net profit of Rs 3.10 crore for Q3-2013, 40 per cent higher than Rs 2.21 crore a year ago and 36.1 per cent more than Rs 2.28 crore a quarter ago. The company’s 9M-2014 net profit rose 10.6 per cent to Rs 7.21 crore from Rs 6.52 crore a year ago. For FY-2013, the company had reported net profit of Rs 3.50 crore.

     

    The company’s income from operations for Q3-2014 rose 10.4 per cent to Rs 19.13 crore from Rs 17.33 crore in Q3-2013, and was 5.5 per cent more than the Rs 18.13 crore in Q2-2014. For 9M-2014, Sri Adhikari Brothers reported Rs 54.78 crore as income, which was 24.6 per cent more than the Rs 43.96 crore in 9M-2013. For FY 2013, Sri Adhikari Brothers reported Net Sales/Income from Operations at Rs 60.19 crore.

     

    Let us look at the other Q3-2014 numbers reported by Sri Adhikari Brothers:

     

    The company reported Total expense of Rs 15.47 crore in Q3-2014, which was 8 per cent more than the Rs 14.33 crore in Q2-2013 and 0.3 per cent more than the Rs 15.42 crore in Q2-2013. YTD, total expense was Rs 46.17 crore, 30.7 per cent more than Rs 35.32 crore in 9M-2014. For FY 2013, Sri Adhikari Brothers reported Total expense of Rs 53.60 crore.

     

    Sri Adhikari Brothers Production expense was up 16.3 per cent to Rs 11.59 crore in Q3-2014 from Rs 9.97 crore in Q3-2013 and was up 4.8 per cent from Rs 11.07 crore in Q2-2014. During 9M-2014, Sri Adhikari Brothers Production expense was up 49.7 per cent to Rs 33.35 crore from Rs 22.28 crore in 9M-2013. For FY 2013, Production expense was Rs 37.17 crore.

     

    The company paid (19.2) per cent lower finance cost in Q3-2014 at Rs 0.74 crore as compared to the Rs 0.91 crore in Q3-2013, but 66 per cent more than the Rs 0.44 crore in Q2-2014. During the nine month period of the current financial year, Sri Adhikari Brothers paid (46.5) per cent lower finance cost at Rs 1.6 crore as compared to the Rs 3 crore in 9M-2013. For FY 2013, finance cost was Rs 3.39 crore.

     

    Sri Adhikari Brothers Employee cost at Rs 0.37 crore in Q3-2014 was 18.4 per cent less than the Rs 0.45 crore in Q3-2013, but 2.5 per cent more than the Rs 0.36 crore in Q2-2014. YTD, Employee cost at Rs 1.10 crore was 13.2 per cent lower than the Rs 1.26 crore in 9M-2013. For FY 2013, employee cost reported by the company was Rs 1.45 crore.

     

    Click here for full financials

  • Q3: Bag Films’ TV broadcast business reports operating profit vs loss year ago

    Q3: Bag Films’ TV broadcast business reports operating profit vs loss year ago

    BENGALURU: B.A.G. Films & Media Limited (Bag Films) reported improved y-o-y and q-o-q results generally for all the segments that contribute to its numbers .

     

    The company’s television broadcasting segment reported 29.1 per cent rise in operating revenue to Rs 23.60 crore in Q3-2014 from Rs 18.28 crore a year ago and a 26.3 per cent rise from Rs 18.70 crore a quarter ago. In 9M-2014, the TV segment’s operating revenue grew 8.5 per cent to Rs 62.97 crore from Rs 58.03 crore a year ago. For FY 2013, the segment reported revenue of Rs 83.93 crore.

     

    Segment Result:

     

    TV segment reported an operating profit of Rs 8.56 crore in Q3-2014 against operating loss of Rs 1.51 crore a year ago and 18 per cent more than Rs 7.02 crore in Q2-2014. In the first nine months of 2013-14, the segment reported operating profit of Rs 21.67 crore, 33 times the operating profit of Rs 0.65 crore a year ago. For FY 2013, the segment had reported an operating profit of Rs 9.80 crore.

     

    The operating loss of Rs 0.88 crore in Q3-2014 reported by the company’s FM Radio segment was narrower than Rs 1.15 crore a year ago and almost half  the Rs 1.71 crore a quarter ago. YTD, for 9M-2014, the segment’s operating loss of Rs (2.08) crore was more than 16 times the loss of Rs 0.13 crore in 9M-2013. For FY 2013, operating loss by the FM Radio segment was Rs (1.30) crore.

     

    Its, audio visual production segment reported an operating profit of Rs 3.28 crore in Q3-2014 as compared to an operating loss of Rs 0.55 crore in Q3-2013 and more than double the Rs 1.56 crore in Q2-2014. During 9M-2014, the production segment reported an operating profit of Rs 4.4 crore as compared to an operating loss of Rs 0.39 crore in 9M-2013. During FY 2013, the segment reported an operating loss of Rs 2.78 crore.

     

    Bag Films Movies segment reported Nil figures for all the periods, including FY 2013.

     

    Bag Films’ leasing segment, which has so far contributed just a small fraction to revenues, reported loss of Rs 1.14 crore in Q3-2014, almost flat compared with Q3-2013 and against Rs 1.16 crore in Q2-2014. YTD, operating loss by the segment at Rs 3.05 crore was 16.4 per cent lower than the Rs 3.65 crore in 9M-2013. For FY-2013, the segment reported an operating loss of Rs 5.46 crore.

     

    Let us look at the other Q3-2014 results reported by Bag Films:

     

    Consolidated operating income for Q3-2014 was up 51.3 per cent to Rs 39.26 crore from Rs 25.95 crore in Q3-2103 and was 20.3 per cent more from Rs 32.65 crore for Q2-2014. Over 9M-2014, consolidated operating income at Rs 104.58 crore was up 23.3 per cent as compared to the Rs 84.79 crore in 9M-2013. For FY 2013, Bag Films reported Operating Income of Rs 117.55 crore.

     

    Its consolidated total expense, excluding finance cost, for the period at Rs 45.80 crore was 34.8 per cent more than the Rs 33.99 crore in Q3-2013 and 26.7 per cent more than the Rs 36.16 crore in Q2-2014. Over 9M-2014, Total expense at Rs 103.6 crore was (5.4) per cent lower than the Rs 109.55 crore in 9M-2013. For FY 2013, the company reported Total expense of Rs 146.19 crore.

     

    Finance Cost for Q3-2014 at Rs 4.53 crore was 80.6 per cent more than the Rs 2.51 crore in Q3-2013 and 25.5 per cent more than the Rs 3.61 crore in Q2-2014. In 9M-2014, Bag Films Finance Cost at Rs 18.18 crore was 2.41 times the Rs 7.54 crore in 9M-2013. For FY 2013, Finance cost was Rs 11.23 crore.

     

    The company reported a consolidated loss in Q3-2014 at Rs 1.22 crore, much lower that Rs 7.79 crore in Q3-2013 and Rs 4.35 crore in Q2-2014. For the nine month period ended December 31, 2013, the company’s consolidated loss was Rs 7.50 crore against loss of Rs 19.87 crore in 9M-2013. For FY 2013, Bag Films reported consolidated loss of Rs 82.17 crore.

     

    Segment Revenue:

     

    TV revenue and results have been indicated above

     

    FM Radio segment reported 22 per cent lower operating revenue in Q3-2014 at Rs 0.89 crore in Q3-2014 as compared to the Rs 1.13 crore in Q3-2013 and 14 per cent lower than the Rs 1.01 crore in Q2-2014. YTD, revenue of Rs 3.46 crore was 11.3 per cent lower than the Rs 3.9 crore in 9M-2013. The segment reported revenue of Rs 5.15 crore in FY 2013.

     

    Production segment reported operating revenue of Rs 14.64 crore in Q3-2014, which was 2.31 times the Rs 6.33 crore in Q3-2013 and 14.3 per cent more than the Rs 12.81 crore in Q2-2014. During 9M-2014, Bag Films Production segment reported operating revenue of Rs 37.42 crore, which was 67.4 per cent more than the Rs 25.36 crore in 9M-2013. For FY 2013, the segment reported operating revenue of Rs 27.53 crore.

     

    Leasing segment reported the following operating revenue numbers: Q3-2014 – Rs 0.1342 crore; Q3-2013 – Rs 0.1357 crore; Q2-2014 – Rs 0.2050 crore; 9M-2014 – Rs 0.7333 crore; 9M-2013 – Rs 0.5098 crore; FY 2013 – Rs 0.9475 crore.

     

    Click here for full financials