ITV

Category: Brands

  • FY-2015: Inox ad revenues up 64.5%; F&B improves share of profits

    FY-2015: Inox ad revenues up 64.5%; F&B improves share of profits

    BENGALURU: Inox Leisure Limited reported 64.5 per cent growth in advertising revenue to Rs 81.49 crore (eight per cent of Total Revenue or TR) for the year ended 31 March, 2015 (FY-2015, current year) as compared to the Rs 49.55 crore (5.6 per cent of TR) in the previous year.

     

    Ad revenue for Q4-2015 increased 22.7 per cent to Rs 19.79 crore (9.1 per cent of TR) from Rs 16.13 crore (8.6 per cent of TR) in Q4-2014, but was 31.6 per cent less than the Rs 28.92 crore (9.5 per cent of TR) in Q3-2015. While advertising revenues per operating screen (355 screens excluding management screens) in FY-2015 increased to Rs 0.23 crore as compared to the Rs 0.17 crore in FY-2014, the corresponding figure for both Q4-2015 and Q4-2014 was Rs 0.056 crore.

     

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

    (2) Q4-2015 and FY-2015 Figures include Satyam Cineplexes Limited which became wholly owned subsidiary of the company on 8th Aug 2014.

     

    Inox’s total revenues in FY-2015 increased 15.5 per cent to Rs 1014.11 crore from Rs 877.78 crore in FY-2015. In Q4-2015, TR increased 15.6 per cent to Rs 217.75 crore from Rs 188.31 crore in Q4-2014, but declined 28.6 per cent as compared to the Rs 304.85 crore in Q3-2015.

     

    Gross Box Office

     

    Gross box office (GBO) revenue contribution to total revenue has been falling with time. In FY-2015, GBO increased 12.4 per cent to Rs 670.38 crore (66.1 per cent of TR) as compared to the Rs 596.56 crore (68 per cent of TR) in FY-2014. Q4-2015 GBO revenue at Rs 134.80 crore (61.9 per cent of TR) was 8.3 per cent more than the Rs 124.49 crore (66.1 per cent of TR) in Q4-2014, but declined 33.2 per cent as compared to the Rs 201.75 crore (66.2 per cent of TR) in Q3-2015.

     

    Footfalls with management properties in FY-2015 increased 6.5 per cent to 4.11 crore from 3.86 crore in FY-2014. Footfalls increased by 2.4 per cent to 0.84 crore in Q4-2015 from 0.82 crore in Q4-2014, but declined 15.2 per cent as compared to the 0.99 crore in the previous quarter. Occupancy in FY-2015 declined to 25 per cent from 28 per cent in the previous year and declined from 23 per cent in Q4-2014 to 20 per cent in Q4-2015.

     

    Average Ticket Price (ATP) in FY-2015 increased 5.1 per cent to Rs 164 from Rs 156 in FY-2014. In Q4-2015, ATP increased 3.3 per cent in Q4-2015 to Rs 158 as compared to the Rs 153 in the corresponding year ago quarter, but declined 10.9 per cent as compared to the Rs 175 in Q3-2015.

     

    Food and Beverages

     

    Inox’s Food and Beverages (F&B) revenue stream has been growing over time and its contribution to profitability has been increasing reports the company. In FY-2015, F&B contribution to profitability increased to 77 per cent as compared to 74 per cent in FY-2014, however, the segment’s contribution to profitability declined one per cent in Q4-2015 to 75 per cent from 76 per cent in Q4-2014.

     

    F&B revenue in FY-2015 at Rs 191.03 crore (18.8 per cent of TR) improved 17.7 per cent as compared to the Rs 162.33 crore (18.5 per cent of TR) in FY-2014. In Q4-2015, revenue from F&B segment increased 9.4 per cent to Rs 37.43 crore (17.2 per cent of TR) as compared to the Rs 34.2 crore (18.2 per cent of TR) in Q4-2014, but declined 32.7 per cent from the Rs 55.63 crore (18.2 per cent of TR) in the preceding quarter.

     

    Other operating revenue in FY-2015 increased 2.7 per cent to Rs 71.21 crore (7 per cent of TR) as compared to the Rs 69.34 crore (7.9 per cent of TR) in FY-2014. Other operating revenue in Q4-2015 almost doubled (1.9 times) to Rs 25.73 crore (11.8 per cent of TR) as compared to the Rs 13.49 crore (7.2 per cent of TR) and was 38.7 per cent more than the Rs 18.55 crore (6.1 per cent of TR) in Q3-2015.

     

    Entertainment Tax, Distributors’ share, F&B costs, rents, et al:

     

    Entertainment tax in FY-2015 at Rs 121.45 crore (12 per cent of TR) increased 14.5 per cent from Rs 106.07 crore (12.1 per cent of TR) in FY-2014. In Q4-2015, entertainment tax increased 2.9 per cent to Rs 22.76 crore (10.5 per cent of TR) from Rs 22.12 crore (11.7 per cent of TR) in Q4-2014, but was 40.3 per cent lower than the Rs 38.12 crore (12.5 per cent of TR) in Q3-2015.

     

    Distributors’ share in FY-2015 at Rs 249.32 crore (24.6 per cent of TR; 37.2 per cent of GBO) was 11.6 per cent more than the Rs 223.49 crore (25.5 per cent of TR; 37.5 per cent of GBO) in FY-2014. In Q4-2015, distributors share increased three per cent to Rs 47.75 crore (21.9 per cent of TR; 35.4 per cent of GBO) as compared to the Rs 46.36 crore (24.6 per cent of TR; 37.2 per cent of GBO) in Q4-2014, but was 36.6 per cent lower than the Rs 75.37 crore (24.7 per cent of TR; 37.4 of GBO) in Q3-2015.

     

    F&B cost in FY-2015 at Rs 49.55 crore (4.9 per cent of TR) was 6.2 per cent more than the Rs 46.64 crore (5.3 per cent of TR) in FY-2014. F&B cost in Q4-2015 increased 12.1 per cent to Rs 10.35 crore (4.8 per cent of TR) from Rs 9.23 crore (4.9 per cent of TR) in Q4-2014 and was 23.8 per cent lower than the Rs 13.58 crore (4.5 per cent of TR) in Q3-2015.

     

    Property, rent, conducting fees and common facility charges (rent) form a major percentage of the company’s expenses. Rent charges in FY-2015 increased 28.1 per cent to Rs 175.78 crore (17.3 per cent of TR) from Rs 137.22 crore (15.8 per cent of TR) in FY-2014. Rent in Q4-2015 increased 30.8 per cent to Rs 46.63 crore (21.4 per cent of TR) from Rs 35.64 crore (18.9 per cent of TR) in Q4-2015 and was 0.1 per cent lower (almost flat) as compared to the Rs 46.67 crore (15.5 per cent of TR) in Q3-2015.

     

    Profit After Tax (PAT)

     

    Inox reported 45.7 per cent drop in PAT to Rs 20.04 crore (two per cent of TR) from Rs 36.94 crore (4.2 per cent of TR) in FY-2014. The company reported loss of Rs 4.06 crore in Q4-2015 as compared to a PAT of Rs 1.54 crore in Q4-2014 and a PAT of Rs 14.3 crore in Q3-2015.

  • Q3-2015: Gillette India y-o-y marketing spends down 5.8%

    Q3-2015: Gillette India y-o-y marketing spends down 5.8%

    BENGALURU: Gillette India Limited reported a 5.8 per cent drop in advertisement and sales promotion (ASP) spends in Q3-2015 (quarter ended 31 March, 2015, current quarter) to Rs 116.71 crore (23.6 per cent of Total Income from Operations or TIO) as compared to the Rs 123.84 crore (27.2 per cent of TIO) in the corresponding year ago quarter (Q3-2014), but was 1.3 per cent more than the Rs 115.25 crore (23.1 per cent of TIO) in the immediate trailing quarter (Q2-2015).

    During the nine month period ended 31 March, 2015 (9M-2015), Gillette ASP at Rs 323.46 crore (22.6 per cent of TIO) was 4.7 per cent more than the Rs 308.84 crore (24.3 per cent of TIO) in 9M-2014.

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

    (2) Gillette Financial year closes of June 30, hence, the quarter ended June 30 is Q1, while the quarter ended September 30 is Q2; quarter ended December 31 is Q2 and quarter ended March 31 is Q3.

    Three businesses contribute to the company’s TIO – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care includes toothbrushes, toothpaste and oral care products. Gillette India’s products are sold under the brand Gillette with sub-brands like Fusion and Mach 3.

    Gillette TIO in Q3-2015 at Rs 494.14 crore was 8.5 per cent more than the Rs 455.50 crore in Q3-2015, but was 0.9 per cent lower than the Rs 498.47 crore in Q2-2015. Across 13 quarters starting Q3-2012 (quarter ended 31 March, 2014) until Q3-2015 (quarter ended 31 March, 2015), the company’s TIO shows a linear increasing trend as represented by the broken blue line. In 9M-2015, Gillette’s TIO at Rs 1432.59 crore was 12.8 per cent more than the Rs 1270.07 crore in 9M-2014.

    During the 13 quarter period under consideration in this report, Gillette’s ASP shows an upward linear trend both in terms of absolute value as well as percentage of TIO as is indicated by the broken green trend line and the broken maroon trend line respectively. The highest ASP in absolute rupees and in terms of percentage of TIO spent by the company in these 13 quarters was in Q3-2014 (quarter ended June 30, 2014), at Rs 123.84 crore and 27.2 per cent of TIO while the lowest in both parameters was in Q3-2013 at Rs 66.61 crore and 18.7 per cent of TIO respectively.

    Gillette’s ASP is made up of two components – advertisement and trade incentives. Please refer to figure 1A below for the breakup and the ratio across five years starting FY-2010 until FY-2014. As is evident, the company’s ad spend ratio has increased to 1.558 times, 1.424 and 1.412 times as compared to trade incentives in FY-2014, FY-2013 and FY-2014 respectively. In FY-2010 and FY-2011 ratio of advertisement to Trade Incentives was 1.199 and 1.2013 respectively. Based on the past trends, it is likely that the ratio in FY-2015 will be skewed towards ad spends, and consequently during the three completed quarters and the balance single quarter of the current Financial Year as well.

    Gillette PAT had been steadily going down until Q1-2015 both in terms of absolute rupees and in terms of percentage of TIO. Also, in FY-2014, Gillette reported PAT of Rs 51.42 crore (2.9 per cent of TIO) as compared to the Rs 87.16 crore (6.1 per cent of TIO) in FY-2013. However, during the 13 quarter period under consideration, a reversal happened in Q2-2015. Further, the company’s 9M-2015 PAT at Rs 85.30 crore (six per cent of TIO) was more than double (2.47 times) the PAT of Rs 34.56 crore (2.7 per cent of TIO) in 9M-2014. This 9M-2015 PAT is already more than the PAT reported by the company for FY-2012, FY-2013 and FY-2014, and is almost at par with PAT in FY-2011.The company is a profitable company, and should earn profit after taxes in the remaining quarter – Q4-2015. Hence, it should report much better, if not record numbers for FY-2015.

    As mentioned above, post Q2-2015, at least in terms of absolute rupees, Gillette PAT shows a linear increasing trend, as is evident from the broken orange trend line. In Q3-2015, the company’s PAT at Rs 30.76 crore more than tripled (3.63 times) the PAT of Rs 8.68 crore in Q3-2014, but was 16.5 per cent lower than the Rs 36.86 crore in Q2-2015. In terms of percentage of TIO, the broken brown trend line indicates a downward linear trend, which may yet change.

    In its earnings release for Q3-2015, Gillette India says that grooming business sales were up nine percent, portable power business sales were up four per cent and oral care business sales were up six per cent as compared to the corresponding year ago quarter.

  • Splash eyes revenues of Rs 150 crore; plans 21 stores by year-end

    Splash eyes revenues of Rs 150 crore; plans 21 stores by year-end

    BENGALURU: The Landmark Group’s international youth oriented hi-street value fashion brand Splash is eyeing revenues of Rs 150 crore this year. The brand, closed last year with 12 stores across India and is planning to increase the count to 21 by the end of 2015.

     

    Additionally, company sources told Indiantelevision.com that Splash was also looking at spending more than five per cent of its revenues towards ATL and BTL activities.

     

    Splash has 200 stores globally, had revenues of Rs 90 crore last year across an average store count of eight in India.

     

    In 2015, the brand has already launched four new stores including one in Mumbai taking the count to 16. Now, Splash has unveiled its 17th store in the country in Bengaluru’s hi-street – Commercial Street, on 23 May. Next on the cards is a store launch in Noida in the near future.

     

    At the Bengaluru store opening, Splash also launched its new collection Love Summer.

     

    “Splash is consistently involved in delivering high fashion season after season. We are delighted to bring out the best of the brand’s personality and sync it with our new collection – #LoveSummer – this season’s key collection, which has an easy tropical vibe to it. Consumers have received the collection very well. It is young, tropical, quirky and conversational – a true reflection of our customer. With Splash’s launch at Commercial Street, we look forward to increase our reach to the fashion enthusiasts of Bangalore,” said Splash COO Kalyan Kumar.

     

    “Our ATL activities include bursts of radio a week either way of a new store opening or the launch of a new product line, with some print and online campaigns. We also do a number of BTL activities, like in the case of the store launch today, where we have the band ‘Peepal Tree’ performing at the store. A number of models wearing Splash attire that will along a part of Commercial Street before entering the store and walking the ramp set up for the fashion show organized by Sheetal Mehra,” Kumar added.

     

    “In the middle east, we are present on television and across many locations. In India, presently we are located in 10 cities. Once we reach a reasonably good store count in the country, we will use television as we do in other geographies,” informed Kumar.

     

    The average Splash store witnesses around 400 customer walk-ins daily, with an average conversion rate of 30 per cent. Some of the stores located in hi-streets and malls have a conversion rate that is as high as 38 per cent, while the laggards report rates of around 24- 26 per cent.

     

    Splash’s online campaigns cover the usual social sites such as Facebook, Twitter, Instagram and Youtube. Mindshift along with the company manages the online creative duties for the Splash, while media buying is done by the parent group Landmark through GroupM.

  • FY-2015: Colgate-Palmolive’s marketing spends up 3.7% at Rs 714 crore

    FY-2015: Colgate-Palmolive’s marketing spends up 3.7% at Rs 714 crore

    BENGALURU: Colgate-Palmolive (India) Limited spent 3.7 per cent more towards advertisement and sales promotion (ASP) in FY-2015 (year ended March 31, 2015) at Rs 714.25 crore (17.9 per cent of Total Income or TI) as compared to the Rs 688.66 crore (19.2 per cent of TI) in FY-2014. In Q4-2015, the company’s ASP spend at Rs 154.49 crore (15 per cent of TI) was 6.9 per cent lower than the Rs 165.86 crore in the corresponding year ago quarter and 13.3 per cent less than the Rs 178.21 crore (17.9 per cent of TI) in the immediate trailing quarter.

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

    Colgate-Palmolive’s brands include Colgate for oral care, Palmolive, Charmis and Halo for personal care, and Axion for household care.

    Please refer to Fig A below. Over a 12 quarter period starting from Q1-2013 until the current quarter (Q4-2015), Colgate-Palmolive’s ASP shows a linear increasing trend both in terms of percentage of TI as well as in absolute rupees. The slope of the broken maroon trend line shows that ASP in absolute rupees should intersect the Q4-2015 ordinate at Rs 190.076 crore as compared to the Rs 154.49 crore actually spent by the company. The corresponding slope of the broken olive green trend line indicates an intersection with Q4-2015 at 18.81 per cent of TI , again far more than the 15 per cent of TI actually spent the company

    In Q2-2015, Colgate-Palmolive (India) Limited (Colgate-Palmolive) spent the highest amount towards advertisement and sales promotion (ASP) in terms of absolute rupees as well as percentage of TI in a quarter at Rs 201 crore and 20.1 per cent of TI during the period under consideration. The lowest ASP by the company during the 12 quarters was in Q4-2013 at Rs 82.1 crore and 9.7 per cent of TI.

    Colgate-Palmolive’s TI in FY-2015 at Rs 3981.94 crore was 11.3 per cent more than the Rs 3578.81 crore in FY-2015. In Q4-2015, TI at Rs 1028.51 crore was 10.2 per cent more than the Rs 931.22 crore in Q4-2014 and 3.3 per cent more than the Rs 995.99 crore in Q3-2015. The company’s TI shows a linear increasing trend. The slope of the blue broken trend line indicates that the company’s TI intercept on Q4-2015 should be Rs 1032.648 crore, as opposed to the Rs 1028.51 crore TI achieved by the company.

    Further, across 8 financial years starting FY-2008 until FY-2015, the company’s TI, ASP and ASP as percentage of TI show an upward linear trend, with the company’s marketing spends being the highest both in terms of absolute rupees and percentage of TI in FY-2015 at Rs 714.25 crore (17.9 per cent of TI).

    Fig A1 above indicates the breakup of Colgate-Palmolive’s advertising and sales promotion across three financial years for which data is available. The breakup of ASP into Ad spends and Sales Promotion spends for FY-2015 is not available as yet.

    Colgate-Palmolive profit after tax (PAT) in FY-2015 at Rs 558.98 crore (14 per cent of TI) was 3.5 per cent more than the Rs 539.87 crore (15.1 per cent of TI) in the previous year.

    Please refer to Fig B above. PAT in Q4-2015 at Rs 163.63 crore (16 per cent of TI) increased 23.7 per cent as compared to the Rs 132.3 crore (14.3 per cent of TI) in Q4-2014 and was 25 per cent more than the Rs 130.86 crore (13.2 per cent of TI) in Q3-2015. During the 12 quarter period under consideration, PAT shows a linear increasing trend in absolute rupees. The slope of the orange broken trend line indicates that PAT in absolute rupees intercepts the Q4-2015 ordinate at Rs 140.914 crore, much lower than the actual PAT of Rs 163.63 crore achieved by the company in Q4-2015.

    The slope of the broken blue trend line indicates that the company’s PAT in terms of percentage of TI shows a decline. This is likely to change over the next few quarters, if the company’s PAT continues to buck the trend as it has in Q4-2015. The slope of the broke blue trend line indicates an intercept with the Q4-2015 ordinate at 13.53 per cent, again much lower than the PAT at 16 per cent of TI actually achieved by the company.

    Colgate-Palmolive’s PAT has been the highest at Rs 185.22 crore (21.5 per cent of TI) in Q1-2014 during the twelve quarter period under consideration, while the lowest PAT in absolute rupeesand in terms of percentage of TI was in Q2-2013 at Rs 109.52 crore and 12.2 per cent of TI.

  • FY-2015: Britannia marketing spends up 8%

    FY-2015: Britannia marketing spends up 8%

    BENGALURU: Britannia Industries Limited spent eight per cent more towards Advertisement and Sales Promotion (ASP) in FY-2015 at Rs 651.70 crore (8.3 per cent of Net total Income from Operations or TIO) versus Rs 603.65 crore (8.7 per cent of TIO) in FY-2014.

    The company’s ASP in Q4-2015 (quarter ended 31 March, 2015, current quarter) at Rs 202.89 crore (9.8 per cent of TIO) was 33.8 per cent more than the Rs 146.19 crore (8.1 per cent of TIO) in Q4-2014 and was 21.6 per cent more than the Rs 166.90 crore (8.2 per cent of TIO) in the immediate trailing quarter.

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

    In FY-2015, Britannia’s TIO increased 13.7 per cent to Rs 7858.42 crore as compared to the Rs 6912.71 crore in FY-2014. Please refer to Fig 1 below. Over the 12 quarter period starting Q1-2013 until the current quarter, Britannia TIO was the highest in Q4-2015 at Rs 2063.64 crore. TIO in the current quarter was 13.9 per cent more than the Rs 1812.44 crorein Q4-2014 and 1.5 per cent more than the Rs 2033.28 crore in the trailing quarter.

    The broken grey trend line indicates that the company’s TIO has a linear increasing trend and intercepts Q4-2015 ordinate at Rs 2054.976 crore as compared to the TIO of Rs 2063.64 crore actually achieved by Britannia.

    During the period under consideration in this report, Britannia’s ASP in the current quarter was the highest, both in terms of absolute rupees as well as in terms of percentage of TIO. The lowest ASP in absolute rupees was in Q1-2013 at Rs 112.96 crore (8.3 per cent of TIO), while in terms of percentage of TIO, it was 7.3 per cent (Rs 143.48 crore) in Q2-2015.

    The maroon and the blue broken trend lines indicate a linear increasing trend for ASP in absolute rupees as well as percentage of TIO. The slope of the maroon broken trend line indicates an intercept at the Q4-2015 ordinate at 8.46 per cent as compared to the 9.8 per cent of TIO actually spent by Britannia. The slope of blue broken trend line indicates an intercept at Q4-2015 of Rs 173.4448 crores, the company actually spent Rs 202.89 crore.

    In FY-2015, Britannia reported PAT of Rs 688.64 crore (8.8 per cent of TIO), which was 74.2 per cent more than the Rs 395.35 crore (5.7 per cent of TIO) in FY-2014.

    Please refer to Fig 2 below. Britannia’s PAT in Q4-2015 at Rs 167.25 crore (8.1 per cent of TIO) increased 55.4 per cent as compared to the Rs 100.32 crore (5.6 per cent of TIO) in Q4-2014 and was 21.9 per cent more than the Rs 137.22 crore in the immediate trailing quarter. During the period under consideration in this report, the company’s PAT shows a linear increasing trend both in absolute rupees as was well as in terms of percentage of TIO.

    In August 2014, Indiantelevision.com had indicated that Britannia Industries PAT in Q2-2015 would probably be a new record. During the 12 quarter period under consideration, the company’s PAT in Q2-2015 was indeed the highest recorded by the company, both in terms of absolute rupees as well as in terms of PAT as percentage of TIO at Rs 270.46 crore and 13.7 per cent of TIO.

    The lowest PAT reported by the company in absolute rupees as well as in terms of percentage of TIO was in Q1-2013 at Rs 46.48 crore and 3.4 per cent of TIO.

    However, based on the trends during the period under consideration in this report, the slope of the red broken trend line indicates its intercept on the Q4-2015 ordinate as 9.11 per cent of TIO as opposed to the 8.1 per cent actually achieved by the company. In absolute rupees, the slope of the purple broken trend line indicates its interception of the Q4-2015 ordinate as Rs 182.261 crore as compared to the PAT of Rs 167.25 crore achieved by the company.

    The board of directors of the company have recommended a dividend of 800 per cent (Rs 16 per equity share having face value of Rs 2 each) for FY-2015. 

  • Dubai’s events & ad agency Plan B Group sets sight on India

    Dubai’s events & ad agency Plan B Group sets sight on India

    MUMBAI: UAE based The Plan B Group of Companies, which handles events, advertising and designing solutions, is all set to launch operations in India.

     

    Plan B Group aims to initially kick-start operations in Mumbai and Delhi with a gala UAE Week In India and is in talks with the Government for the same.

     

    The Plan B Group has been involved in the management of some of the UAE’s biggest public events, and creative campaigns including Summer in Abu Dhabi, Dubai Rugby 7s, the Standard Chartered Dubai Marathon, Fifa U17 Draw Ceremony in addition to launching brands including the Bentley – New Flying Spur.

     

    This month, Plan B also launched a music property in Dubai called the Oye Punjabi Sangeet Mela, which featured the Punjabi legend Gurdas Maan and the Gen next musician Rani Taj, who is the leading Dhol player from UK. The event was held at the Emirates Golf Club. The Oye Punjabi Sangeet Mela blended the perfect mix of taste and trend with YouTube sensation Taj, who not only opened for Maan but also played the never before seen ‘Fusion Set’ on some of Maan’s greatest hits. The Music Festival is scheduled to hold its second edition in the latter half of the year with leading Punjabi artistes from India and Pakistan.

     

    Keeping the Indian operations in mind, the Plan B Group has introduced a new Artiste Management division and has signed on a few upcoming artistes with a view to launch them in the Indian film industry, one of them being Taj.

     

    Plan B Group in UAE owner and CEO Harmeek Singh said, “India is a dream market for all of us. UAE has been a success story and we would like to achieve the same on the home ground. Our expertise in creative conceptualisation be it ad films, events, musical properties or restaurants carries our unique distinction living up our motto. If we are not turning heads with our work, then we aren’t doing our job.”

     

    The company recently also made an ad film with Shah Rukh Khan for one of its clients.

     

    Plan B has also launched Oye Punjabi – a delectably styled eating outlet located at the Lamcy Plaza introducing Indian and UK-inspired authentic Punjabi flavor.

  • FY-2015: Forex, PS4, image sensors boost Sony revenue 5.8%

    FY-2015: Forex, PS4, image sensors boost Sony revenue 5.8%

    BENGALURU: Sony Corporation reported a 5.8 per cent growth in sales and operating revenue in FY-2015 (year ended 31 March, 2015, current year) at ?8215.9 billion as compared to the ?7767.5 billion in FY-2014. The company says that the increase was primarily due to the impact of foreign exchange rates, a significant increase in Game & Network Services (G&NS) segment sales reflecting the strong performance of PlayStation 4 (PS4) and a significant increase in Devices segment sales due to the strong performance of image sensors. This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business. On a constant currency basis, sales were essentially flat year-on-year says the company.

     

    The company’s operating income more than doubled (up 2.6 times) to ?68.5 billion in the current year from ?26.5 billion in the previous year. Sony says that the increase was primarily due to a significant improvement in the operating results of the Devices, G&NS and Home Entertainment & Sound (HE&S) segments. This improvement was partially offset by a significant deterioration in operating results in the Mobile Communications (MC) segment, primarily due to a ?176.0 billion ($1,467 million) impairment of goodwill.

     

    The net loss attributable to Sony’s stockholders in the year at ?126 billion in FY-2015 was slightly lower than the loss of ?128.4 billion in FY-2014.

     

    Business Segments

     

    Mobile Communications (MC)

     

    Sony’s MC segment reported 11 per cent improvement in sales and operating revenues in FY-2015 to ?1323.3 billion as compared to the ?1191.8 billion in FY-2014. The segment reported an operating loss of ?220.4 billion in the current year as compared to an operating profit of ?12.6 billion last year. As mentioned above, the major contributor to loss was the impairment of goodwill of ?176.0 billion.

     

    Game & Network Services (G&NS)

     

    G&NS segment reported 33 per cent growth in sales and operating income to ?1388 billion in FY-2015 as compared to the ?1043.9 billion in FY-2014. Sales and operating income increase was primarily due to an increase in PS4 hardware unit sales, an increase in network services revenue, the impact of foreign exchange rates and an increase in PS4 software sales, partially offset by a decrease in PlayStation3 (PS3) hardware and PS3 software sales.

     

    The segment’s operating profit improved to ?48.1 billion in the current year as compared to a loss of ?18.8 billion in the previous year.

     

    Imaging Products & Solutions (IP&S)

     

    IP&S reported 2.9 per cent drop in sales and operating revenue to ?720 billion in the current year from ?741.2 billion in the previous year primarily due to a significant decrease in unit sales of digital cameras and video cameras reflecting a contraction of these markets, partially offset by the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models.

     

    Operating income more than doubled (2.08 times) in FY-2015 to ?54.7 billion as compared to the ?26.2 billion in FY-2014. This increase was mainly due to a reduction in selling, general and administrative expenses, the favourable impact of foreign exchange rates and the above-mentioned improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in sales of digital cameras and video says Sony.

     

    Home Entertainment & Sound (HE&S)

     

    HE&S revenue in FY-2015 improved 3.3 per cent to ?1207.3 billion from ?1168.6 billion in the previous year due to the impact of foreign exchange rates and an increase in sales of televisions, partially offset by a decrease in audio and video sales. Unit sales of LCD televisions increased mainly due to increases in North America, Japan and Europe, partially offset by decreases in Latin America and China. In Television, sales increased 10.7 per cent year-on-year to ?835.1 billion in FY-2015.

     

    The segment reported operating profit of ?20.1 billion as compared to a loss of ?25.5 in the previous year due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the unfavourable impact of the appreciation of the U.S. dollar, reflecting the high ratio of US dollar-denominated costs.

     

    Devices

     

    Revenue improved 23.9 per cent in FY-2015 to ?957.8billion from ?773 billion in FY-2014 due to increase in sales of image sensors reflecting higher demand for mobile products, the impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 29.8 per cent year-on-year.

     

    The segment reported operating profit of ?93.1 billion in the current year as compared to a loss of ?12.4 billion in FY-2014 due to the impact of the above-mentioned increase in sales of image sensors, the recording of a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the previous fiscal year and the favourable impact of foreign exchange rates.

     

    Pictures

     

    Sony’s Pictures segment report 5.9 per cent rise in FY-2015 in revenue to ?878.7 billion from ?829.6 billion in FY-2014. However in dollar terms, sales from the segment reduced 4 per cent to $7322 million due to a decrease in sales for Motion Pictures and Television Productions. The decrease in Motion Pictures sales was primarily due to lower theatrical revenues reflecting fewer theatrical releases as compared to the previous fiscal year. The decrease in Television Productions sales was due to the previous fiscal year benefitting from the extension and expansion in scope of a licensing agreement for game shows produced by SPE, including Wheel of Fortune. Sales for Media Networks increased year-on-year due to higher digital game revenues and advertising revenues primarily due to acquisitions made in the previous and current fiscal year.

     

    Pictures segment operating income improved 13.4 per cent to ?58.5 billion in FY-2015 from ?51.6 billion in the previous year due to the favourable impact of the depreciation of the yen against the U.S. dollar. On a US dollar basis, operating income was essentially flat year-on-year. The current fiscal year benefitted from the stronger performance of the current fiscal year’s film slate as the previous fiscal year reflected the underperformance of White House Down and After Earth. The current fiscal year also benefitted from lower restructuring charges. Partially offsetting this increase was a gain recognized on the sale of SPE’s music publishing catalogue in the previous fiscal year, the above mentioned decrease in Television Productions sales and higher programming and marketing costs for SPE’s television networks in India.

     

    Music

     

    Sony’s Music segment reported an improvement of 8.2 per cent in revenue in FY-2105 to ?544.6 billion from ?503.3 in the previous year due to depreciation of the yen against the US dollar.

     

    Operating Income in FY-2015 improved 17.4 per cent to ?59 billion form ?50.2 billion in FY-2014.

     

    Financial Services

     

    Financial Services revenue in FY-2015 increased nine per cent to ?1083.6 billion from ?993.8 billion in FY-2014. Operating income from the segment improved 13.5 per cent in the current year to ?193.3 billion from ?170.3 billion in the previous year.

     

    Cyber attack impact on Sony’s FY-2015 figures

     

    Sony’s FY-2015 numbers also included approximately $41 million (?4.9 billion) in costs primarily related to investigation and remediation expenses relating to a cyber attack on SPE’s network and IT infrastructure, which was identified in November 2014 (the cyber attack).

     

  • Dolby Laboratories completes 50 years; charts growth plan

    Dolby Laboratories completes 50 years; charts growth plan

    MUMBAI: Dolby Laboratories, which sparked a revolution in sight and sound based on American engineer Ray Dolby’s vision for spectacular entertainment, has completed 50 years.

     

    To support growth, Dolby will be moving to new headquarters at 1275 Market Street in San Francisco where it will continue to shape the sight and sound of entertainment and communications with new technologies like Dolby Cinema, Dolby Vision, Dolby Voice and Dolby Atmos.

     

    The company’s story began in 1965 with the invention of Dolby noise reduction, a breakthrough system, which eliminated the hiss that plagued tape recordings. The company went on to transform cinema, introducing more powerful and immersive sound to forever change the way movies were made and enjoyed. Dolby sound helped bring Star Wars to life in 1977 and created an entire industry devoted to the audio experience.

     

    The company’s latest initiative Dolby Cinema transforms the way people watch movies comprising a premium cinema offering that combines the best in sight and sound with a bold new theatre design, creating an amazing experience for moviegoers.

     

    AMC Theatres and Dolby Laboratories, which recently launched Dolby Cinema at AMC Prime, will be launched in up to 100 sites by 2024, including major cities like San Francisco, Las Vegas, Philadelphia, Miami, Boston, Denver and Seattle.

     

    Moreover, revolutionizing displays from movie theaters to TVs, Dolby Vision will see Disney’s Tomorrowland and Disney Pixar’s Inside Out as the first Dolby Vision titles. The first TVs with Dolby Vision are arriving this year from Vizio.

     

    On the other hand, Dolby Voice revolutionizes the conference call and the way people communicate at work by making calls exceptionally clear, natural and productive, like in-person meetings.

     

    Dolby Atmos, which is becoming the sound format of choice for leading filmmakers and device makers is a technology that places and moves specific sounds anywhere in the room, including overhead, to bring entertainment alive all around the audience.

     

    Since its introduction in the cinema in 2012, Dolby Atmos has been embraced by all the major Hollywood studios, 14 Academy Award winning directors, and 27 Academy Award winning sound mixers. Over 1,000 screens worldwide have installed or committed to be equipped with Dolby Atmos and 275+ Dolby Atmos titles have been announced globally.

     

    Additionally, entertainment enthusiasts can now also enjoy Dolby Atmos in their home theaters, on their mobile devices and in virtual reality experiences from Jaunt. 

  • FY-2015: HT Media radio segment reports 37% operating profit growth

    FY-2015: HT Media radio segment reports 37% operating profit growth

    BENGALURU: HT Media’s radio segment reported 37.1 per cent growth in operating profit at Rs 29.21 crore in FY-2015 as compared to the Rs 21.31 crore in FY-2014.The segment reported 78.8 per cent growth in operating result in Q4-2015 (quarter ended 31 March, 2015, current quarter) at Rs 8.56 crore as compared to the Rs 4.81 crore in the corresponding quarter of the previous year (Q4-2014) but was 9.3 per cent lower than the Rs 9.44 crore in the immediate trailing quarter Q3-2015.

     

    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 has four FM radio stations – Fever 104 in Delhi, Mumbai, Bengaluru and Kolkata. HT Media’s radio segment’s revenue in FY-2015 at Rs 99.38 crore was 6.8 per cent more than the Rs 93.12 crore in FY-2014. The company says that growth was driven by advertising revenues growth of approximately 12 per cent being partially off-set by reduced focus on events and activations.

     

    In Q4-2014, the segment reported 12.8 per cent growth in operating revenue to Rs 25.82 crore as compared to the Rs 22.88 crore in Q4-2014 and was almost flat (up 0.04 per cent) as compared to the Rs 25.81 crore in Q3-2015.

     

    The company reported four per cent growth in Total Income from Operations (TIO) FY-2014 at Rs 2289.71 crore as compared to the Rs 2200.70 crore in FY-2014. TIO in Q4-2015 at Rs 576.92 crore was 6.1 per cent more than the Rs 543.84 crore in Q4-2015 but was 4.7 per cent lower than the Rs 605.50 crore in the previous quarter.

     

    The company reported 13.4 per cent decline in profit after tax (PAT) in FY -2015 at Rs 179.81 crore as compared to the Rs 207.53 crore in FY-2014. PAT in Q4-2015 at Rs 39.28 crore was 12.7 per cent higher than the Rs 34.84 crore in the corresponding quarter of the previous year, but declined 38.6 per cent as compared to the Rs 63.97 crore in Q3-2015.

     

    Advertising, circulation and other revenues

     

    Advertising revenue in FY-2015 at Rs 1851.7 crore improved 5.3 per cent from the Rs 1758.3 crore in FY-2014. Ad revenue in Q4-2015 grew 5.7 per cent to Rs 465.3 crore from Rs 440.1 crore in the year ago quarter, but declined 6.3 per cent from the Rs 496.1 crore in the trailing quarter.

     

    Circulation revenue in FY-2015 improved 10.8 per cent to Rs 284.8 crore from Rs 257 crore in FY-2014. In Q4-2015, circulation revenue improved 8.6 per cent to Rs 71.1 crore from Rs 65.5 crore in Q4-2014, but declined 3.1 per cent from Rs 73.4 crore in Q3-2015.

     

    Other revenues in the current year declined 7.8 per cent to Rs 320.7 crore from Rs 347.7 crore in FY-2014. Other revenues improved 12.5 per cent in the current quarter to Rs 90.3 crore in Q4-2015 from Rs 80.3 crore in Q4-2014 and improved 13.2 per cent from Rs 79.8 crore in Q3-2014

     

    Segment Revenue

     

    Three segments contribute to HT Media’s numbers – (1) Printing and publishing of newspapers and periodicals (Publishing) (2) Radio and (3) Digital.

     

    Radio segment’s results have been mentioned above.

     

    Printing & Publishing of Newspapers & Periodicals (Printing)

     

    The segment reported 2.9 per cent growth in revenue FY-2015 at Rs 2088.34 crore in FY-2015 as compared to the Rs 2029.61 crore in FY-2014. Revenue in Q4-2015 at Rs 522.85 crore was 5.5 per cent more than the Rs 495.65 crore in the corresponding year ago quarter, but declined 5.5 per cent as compared to the Rs 553.20 crore in Q3-2015.

     

    Printing segment reported 9.4 per cent decline in operating profit to Rs 280.20 crore in Fy-2015 from Rs 309.41 crore in FY-2014. The segment’s operating profit in Q4-2015 declined 10.1 per cent to Rs 70.12 crore from Rs 78.04 crore in Q4-2014 and declined 10.7 per cent from Rs 78.49 crore in Q3-2015.

     

    Digital segment

     

    HT Media’s digital segment reported 36.3 per cent growth in FY-2015 to Rs 103.90 crore from Rs 76.22 crore in FY-2014.The segment reported 31.1 per cent growth in operating revenue to Rs 28.60 crore from Rs 21,82 crore in Q4-2014 and was 7.3 per cent more than the Rs 26.65 crore in Q3-2015. The segment has been reporting operating loss on a regular basis.

     

    Company speak

     

    HT Media chairperson and editorial director Shobana Bhartia said, “We ended the year on a high note on the back of a growth in ad revenue and higher circulation in Mumbai and the Hindi belt. Hindustan Times’ Mumbai edition and Hindustan’s Uttar Pradesh editions, strengthened their presence in their respective geographies, and were both profitable. Our digital businesses grew handsomely and are at an inflection point. Radio continues to do well and we will invest in its growth. With a strong base, our continuing focus on digital initiatives and stronger tailwinds in the economy, we are confident of delivering value to our shareholders in the year ahead.”

     

    The Board of Directors at its meeting on 15 May, 2015 recommended a dividend of Rs0.40 perequity share of Rs2 each; translating to 20 per cent of face value. Dividend for the year amounted to Rs 9.31 crore (excluding Dividend Distribution Tax).

     

    Click here to read the full financial report

     

    Click here for the Earnings Presentation  

  • Sansui launches futuristic TVs; to spend Rs 80 crore on marketing

    Sansui launches futuristic TVs; to spend Rs 80 crore on marketing

    MUMBAI: Sansui, a leading Japanese consumer electronics brand in India, launched its advanced Curve 4K Ultra HD LED TV today. The new range which is part of Sansui’s robust plans of expanding its premium TVs product portfolio, was unveiled by Sansui’s partners and defending champions, Kolkata Knight Riders team players Gautam Gambhir, Yusuf Pathan, and Shakib Al Hasan.

    Launched ahead of IPL finals, Sansui Curve 4K UHD LED is targeted at millions of cricket fans in the country to bring to them the games in perfect picture and true-to-life colors, and multiply their entertainment quotient. On the occasion, the brand also introduced and showcased its other premium TV series such as 4K Ultra HD, Smart TV and Connect TV.

    Building on the premium product category, Mr. Amitabh Tiwari, COO, Sansui said, “Sansui is unleashing a new era of TV viewing by providing the ultimate immersive experience. Sansui understands the pulse of Indian customers and the new series is dedicated to their specific requirements that we aim to fulfill. From a fully loaded Curve TV to futuristic 4K and Smart TV, the new series has something for everyone. With these new product offerings, we aim to double our market share this year.”

    The new series launched by the brand, sets remarkable standards of picture and sound quality. The 4 series range of Sansui Curve 4K Ultra HD, Sansui 4K Ultra HD TV, Sansui Smart TV and Sansui Connect TV have globally passed significant quality norms of technology, performance and durability. With mesmerizing details and a cinematic experience that surrounds the viewer, one can dive into a whole new world of entertainment.

    Mr Venky Mysore, CEO & MD of KKR said, “KKR is a massively followed team and it has fans all around the world. For all those fans who are following KKR on TV, Sansui’s new innovation in Curve 4K television will give all them an opportunity to feel closer to the players. We hope that this partnership will continue to prosper.”

    Sansui’s Curve 4K Ultra HD TV provides wider viewing angles owing to its concave shape, and thus ensures that the viewer experiences brilliance from every angle. The images become deeper with the 3D effect and with the integration of 4K resolution, pictures are more realistic. Sansui 4K Ultra HD TV displays a resolution of 3840 x 2160 pixels, giving each image the maximum details one has ever seen. With its revolutionary IPS Display that sharpens pixels, one is not just watching TV, but is a part of every moment. Sansui’s Smart TV series helps to bring home the next generation of entertainment, as it enables Internet browsing, online interactive media, Internet downloading and on-demand streaming media at fingertips. Sansui Connect series is enriched with an in-built D2H system with HD transmission which offers TV viewing without external set top box and messy wire cables, giving zero signal loss and maximum audio and video clarity. All the 4 new series come with an MHL (Mobile High Definition) interface that allows seamless video streaming from Smartphones, tablets and other portable consumer electronic devices, while simultaneously allowing users to charge the device. Another unique feature available only in Sansui LED TVs is WHAM (Wireless Headset Audio Mode) which transmits audio signals over FM frequencies and allows one to use a mobile phone or music player as wireless headphones, so that one can enjoy the TV audio without disturbing others. Sansui will make available these 4 new ranges in the market by third week of May 2015.

    Mr. Tiwari further added, “I would also like to thank team KKR for unveiling the new range to our patrons. Our partnership with KKR provides us an ideal platform to not only engage with our customers but also bring the best to our viewers with our premium product ranges. Sansui aims to strengthen the partnership with KKR and wishes them all the best for the rest of the tournament.”

    Sansui will soon launch a 3600 advertising campaign spreading across all major mediums to build top of mind recall. The brand is planning to invest around Rs. 80 crores in promoting the new models to effectively reach out to the target audience and establishing the brand.

    Key Business Facts include:

    Sansui aims to double its market share this year
    Price range (MRP): Sansui offers a vast range of televisions which starts from Rs.11,990 and Sansui’s newly launched Curve Ultra HD LED TV range starts from Rs. 1,99,990 (MRP).