Category: Production House

Q3-2015: Mukta Arts’ PAT Rs 21.21 crore despite drop in y-o-y revenue

BENGALURU: Mukta Arts Limited (MAL) reported a Profit after Tax (PAT) of Rs 21.21 crore for the quarter ended 31 December, 2014 (Q3-2015, current quarter) as compared to the Rs 0.92 crore in Q3-2014 and a loss of Rs 0.03 crore in the immediate trailing quarter Q2-2015. However for the nine month period ended 31 December, 2014 (9M-2015, YTD), MAL reported a loss of Rs 3.45 crore as compared to PAT of Rs 1.83 crore in 9M-2014. The higher profit for the current quarter could be attributed to the lower distributors and producer’s share paid by the company, which in most quarters equals or exceeds 90 per cent of the company’s operating income (TIO)

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

The company’s TIO for Q3-2015 at Rs 44.40 crore was 42.1 per cent lower than the Rs 76.67 crore in the corresponding year ago quarter, but 85.4 per cent more than the Rs 23.95 crore in the preceding quarter. MAL’s 9M-2015 TIO was a massive 60 per cent lower at Rs 93.33 crore versus the Rs 233.27 crore in the corresponding period of last year. TIO for Q3-2015 includes sale of certain rights by the company for Rs 3.5 crore.

The company’s total expenditure (TE) in the current quarter was 70 per cent lower at Rs 23.05 crore (51.9 per cent of TIO) as compared to the Rs 76.16 crore (99.9 per cent of TIO) in Q3-2014 and 2.9 per cent lower than the Rs 23.74 crore (99.1 per cent of TIO) in the trailing quarter. In 9M-2015, TE at Rs 96.54 crore (103.2 per cent of TIO) was 58.4 per cent lower than the Rs 231.55 crore (99.3 per cent of TIO) in 9M-2014.

A major component of MAL’s TE is distributors and producer’s share (distributors share). For Q3-2015, MAL spent Rs 13.23 crore (29.8 per cent of TIO), less than a fifth (19.2 per cent) of the Rs 69.98 crore (90 per cent of TIO) spent in Q3-2014, but more than double (2.3 times) the Rs 5.74 crore (24 per cent of TIO). For 9M-2015, distributors share at Rs 43.02 crore (45 per cent of TIO) was again a fraction less than a fifth of the Rs 212.13 crore (90.9 per cent of TIO) in 9M-2014.

Other expense in Q3-2015 at Rs 4.92 crore (11.1 per cent of TIO) was 26.4 per cent higher than the Rs 3.89 crore (5.1 per cent of TIO) in Q3-2014, but 5.1 per cent lower than the Rs 5.19 crore (21.7 per cent of TIO) in Q2-2015. During 9M-2015, the company’s other expense at Rs 13.72 crore (14.7 per cent of TIO) was 45.7 per cent higher than the Rs 9.42 crore (4 per cent of TIO) in 9M-2014.

MAL paid 61.9 per cent more towards finance costs in Q3-2015 at Rs 2.43 crore (5.5 per cent of TIO) as compared to the Rs 1.50 crore (2 per cent of TIO) in Q3-2014 and 15.2 per cent more than the Rs 2.11 crore (8.8 per cent of TIO) in Q2-2015. For 9M-2015, finance cost at Rs 6.51 crore (7 per cent of TIO) was 54.4 per cent more than the Rs 4.22 crore (1.8 per cent of TIO) in 9M-2014.

Four divisions contribute to MAL’s numbers – Software division; Equipment Division; Theatrical Exhibition Division; others (Rent). Software and ‘Others’ divisions contributed positive results – operating profits, while the other two reported operating loss. Software division is a major contributor to revenue and results. In Q3-2015, MAL’s Software division reported revenue of Rs 33.56 crore, which was 44.3 per cent lower than the Rs 60.24 crore in Q3-2014, but almost 2.5 times (2.42) the Rs 13.89 crore in Q2-2015. For 9M-2015, Software Division revenue at Rs 64.21 crore was less than a third (1/3.35) the Rs 214.83 crore in 9M-2014.

Software division reported operating profit of Rs 21.35 crore in Q3-2015 as compared to an operating loss of Rs 0.73 crore in Q3-2014 and an operating profit of Rs 0.33 crore in Q2-2015. For 9M-2015, operating loss from this division was Rs 3.35 crore as compared to an operating profit of Rs 0.31 crore in 9M-2014.

Equipment division contributed a very small amount to revenue and operating results of MAL. Theatrical division reported revenue of Rs 8.91 crore, which was 9.8 per cent more than the Rs 8.11 crore in Q3-2014 and 72.6 per cent more than the Rs 5.16 crore in Q2-2015. 9M-201 revenue from this segment at Rs 23.35 crore was 88.8 per cent more than the Rs 12.36 crore in 9M-2014.

Theatrical division reported operating loss of Rs 0.16 crore in Q3-2015 as compared to operating profit of Rs 0.37 crore in Q3-2014 and an operating profit of Rs 0.07 crore in Q2-2015. For 9M-2015, this division reported operating loss of Rs 0.23 crore as compared to an operating profit of Rs 0.21 crore in 9M-2014.

Revenue and operating results from ‘Others’ division was Rs 1.84 crore and an operating profit of Rs 1.49 crore in Q3-2015; revenue of Rs 2.18 crore and operating profit of Rs 1.7 crore in Q3-2014; Revenue of Rs 1.85 crore and operating profit of Rs 1.68 crore in Q2-2015; Revenue of Rs 5.55 crore and operating profit of Rs 4.74 crore in 9M-2015; revenue of Rs 5.67 crore and operating profit of Rs 4.64 crore in 9M-2014.

March 9, 2015
‘India’s Daughter’ goes international; Freida Pinto to attend US screening

NEW DELHI: Despite the uproar in India and the government’s call for a ban, India’s Daughter by Leslee Udwin was re-telecast on BBC4 to mark International Women’s Day.

Although BBC News is available in the country, the British pubcaster aired the documentary – for the second time in five days – on BBC4, which is not available to Indian viewers.

The documentary was also screened in countries across the globe — including Switzerland, Norway and Canada — to mark International Women’s Day and is being screened in the United States today. The film also continues to be available to Indian viewers on the internet.

The documentary is based on 26 interviews including those with the rapists of the Delhi paramedical student, who was gang-raped brutally on 16 December, 2012 and died two weeks later in a Singapore hospital.

The premiere will be attended by Oscar winning actress Meryl Streep and Frieda Pinto in a show of support for the film banned in India at the Baruch College of the City University of New York and will be presented by NGO Vital Voices Global Partnership and children’s development organisation – Plan International.

Streep and Pinto, who is Plan’s ‘Because I am a Girl’ global ambassador, will be joined by the documentary’s director Leslee Udwin at the screening.

Meanwhile, parents of the girl whose real name has been revealed in the documentary but who came to be known as Nirbhaya have now said that the filmmaker did not show them the final version of the documentary and they had then refused to sign release papers. The parents had earlier also objected to the documentary being aired as it not only makes the victim’s name public but also includes offensive remarks made by one of the rape convicts.

Udwin, a Plan ambassador, had said the December 2012 rape and the protests that followed was an “Arab spring for gender equality.”

“What impelled me to leave my husband and two children for two years while I made the film in India was not so much the horror of the rape as the inspiring and extraordinary eruption on the streets. A cry of ‘enough is enough’,” Udwin said.

“Unprecedented numbers of ordinary men and women, day after day, faced a ferocious government crackdown that included tear gas, baton charges and water cannon. They were protesting for my rights and the rights of all women. That gives me optimism. I can’t recall another country having done that in my lifetime,” Udwin had added.

Earlier according to a Reuter report, Udwin said India committed “international suicide” by banning the documentary.

“My whole purpose was to give a gift of gratitude to India, to actually praise India, to single India out as a country that was exemplary in its response to this rape, as a country where one could actually see change beginning,” said Udwin, during a panel discussion. “The supreme irony is that they are now accusing me of having wanted to point fingers at India, defame India, and it is they who have committed international suicide by banning this film,” she added.

The British filmmaker said she was inspired to make the film after watching thousands of people take to the streets across India to protest the December 2012 rape and murder of a young physiotherapy student on a bus.

March 9, 2015
Ultra to provide offline & online solutions to Marathi film industry

MUMBAI: Ultra Media & Entertainment has ventured into offering end to end turnkey solutions for the Marathi film industry. To cater to the Rs 400 crore industry, growing at the rate of 25 per cent per annum, Ultra has setup a separate SBU to cater to the varied needs of the Marathi filmmakers. This unit will be driven by a core team in Mumbai, which is well versed with the Marathi film industry and will be serviced throughout Maharashtra.

Additionally, the company, which has earlier produced and distributed Marathi films like Gondya Martay Tangada, Lonavala Bypass; Houn Jau De and Saalina Kela Ghotala, is looking at re-entering the space. Ultra Media & Entertainment MD Sushil Kumar Agrawal said, “Ultra has plans to produce Marathi films in the near future.”

Under this vertical, Ultra will provide various offline and online, state of the art services for the Marathi film makers who have the script, finance, star cast and locations ready for their film. The array of offerings provided for the completion of their films will be as follows:

– Cameras on rental

– Post Production

– Media Buying & Planning: Print, Electronic, Digital, Radio, Online etc

– Marketing: BTL activities & ground events with star cast across various target centres in association with brands

– Promotions: Publicity Design, Branding, In Theatre promotions, Theatrical trailers

– Marketing: Branding, Media Tie-ups, Marketing Alliances, Hospitality Partnerships, Public Relation Campaigns

– Outdoor Campaign: Billboards, Bus Shelters & Panels, OOH Media

– Revenue Generation: In-Film and Co-branding associations

– Content Syndication: Music, Satellite, Home Video, Digital & Emerging media rights

– Digital & Social Media: Website Designing, Facebook, Pinterest, Twitter & Instagram campaigns, Blog Updates, SEO maintenance

– Distribution: Domestic & overseas in theatrical and other allied formats

In its endeavour to provide a one stop shop service for the Marathi film industry from shooting the first scene to the end DPX/ DCP format, Ultra Media & Entertainment will also provide them with its in-house post production facilities. The studio based in Mumbai offers a range of services through its indigenous softwares and latest technologies including dubbing, sound recording, mixing, editing, VFX and other related facilities; digital intermediate (DI) and Colour Grading (CG); 2D to 3D Stereoscopic Conversion; Digitisation in various formats; Content scale up from SD to 4K and 6K formats; Frame by frame restoration in various formats; Colorisation from B/W to colour; Editing, Audio and Sound Engineering and technology and manpower to shoot films in the original 3D format.

In the recent past, Ultra has released music rights in audio CDs, mp3 formats and executed social media marketing campaigns for Marathi films like IPL, Samarthya, Ekta Ek Power, Pehli Bhet, Ghungarachya Nadat and Friendship B Alert.

Agrawal added, “Since 1986, we have been in the forefront in producing and distributing various interesting content worldwide. Foraying into offering various turnkey services under one roof for the Marathi film industry makes a logical extension for our business portfolio. This industry is going through a very interesting phase currently and we would like to do our bit for the talented film makers, who are churning some very interesting content for the global audience. Along with the government, which has taken various measures to boost this industry, we also would like to support them in offering our expertise and services in a very cost effective form. Ultra also has plans to produce Marathi films in the near future.”

March 9, 2015
DMG Entertainment invests in Valiant; to make new superhero movies

MUMBAI: Watch out Spiderman, Superman and Batman. The superhero universe just got bigger. Valiant Entertainment has secured an undisclosed nine-figure investment from Chinese entertainment company DMG, the co-producers and co-financiers of Iron Man 3. The investment will be for feature-film financing as well as publishing, television and licensing opportunities.

DMG chief executive officer Dan Mintz said, “Comic superheroes are profitable and highly sought intellectual properties for film franchises so taking a stake in the last indecent massive comic universe is a strategic investment for DMG that will produce movies and TV that are both appealing and relevant to a global audience.”

Current projects under development at Valiant include Shadowman, Bloodshot and Archer & Armstrong. Bloodshot is in development with Sony Pictures and Neal Moritz’s Original Film (producers of the Fast and the Furious and Jump Street franchises). Shadowman, with a script by J. Michael Straczynski, and Archer & Armstrong, being written by Bendavid Grabinski, are also in development.

In addition to developing films for release in the United States and China, Valiant and DMG will develop the former’s characters for new audiences in China and the Asia-Pacific region. DMG and Valiant will also be pursuing Chinese licensing for Valiant properties beyond film in publishing, animation and theme parks, as well as toys and apparel.

March 9, 2015
Walt Disney commits $1 million to United Negro College Fund

MUMBAI: UNCF (United Negro College Fund), one of America’s leading minority scholarship organizations, announced a $1 million commitment from The Walt Disney Company to provide scholarships to outstanding African American students and give them the tools to realize their professional goals.

The Walt Disney Company UNCF Corporate Scholars Program, administered by UNCF, will offer financial assistance to high-achieving African American students in underserved communities across the country, while expanding educational and career resources for them.

“UNCF works to ensure our future leaders have the opportunity to obtain the college degrees they need, and our nation needs them to have. The Walt Disney Company UNCF Corporate Scholars Program expands their academic training into practical experiences, to create a diverse pipeline of college educated professionals poised to assume fulfilling careers in the entertainment industry. The investment we are making in better futures for them now will pay dividends in years to come when they become our next generation of leaders,” said UNCF president and CEO Michael L. Lomax.

“Higher education is the key to a successful future, especially in an increasingly knowledge-driven economy. Our program with UNCF will provide tools and resources to make college more accessible for promising students in historically underserved communities, so they are prepared and empowered to achieve their career dreams,” added The Walt Disney Company chairman and CEO Robert A. Iger.

Paying for college is often the greatest hurdle to achieving a bachelor’s degree, especially for the students UNCF traditionally serves – low-income youth and the first in their families to go to college, with more than 50 per cent coming from families whose incomes are less than $30,000 per year. The Walt Disney Company UNCF Corporate Scholars will be selected based on a competitive application process administered by UNCF. Recommended eligibility criteria include: Underrepresented African American freshmen, enrolled full-time at a four-year college or university; Preference will be given to students attending a Historically Black College or University (HBCU) to ensure 50 per cent of each group are derived from these schools; Students must have a demonstrated financial need as verified by their college or university; Students must have a minimum cumulative 2.5 GPA on a 4.0 scale; and Students must have an interest in pursuing a career in the entertainment industry (e.g. film, television, hospitality management, journalism, media production, digital media, etc.) as demonstrated by submission of an initial essay and participation in program components.

The Corporate Scholars program also includes the creation of a Career Navigator web-based platform that will provide both career information and tools to a broad network of African American students, as well as targeted support services to scholarship recipients. The platform, to be launched this fall, will help students develop requisite skills, and navigate the transition from college to early-stage careers. Web-based and facilitated learning modules will introduce students to the variety of careers at Disney, and Scholars will also have the opportunity to apply for Disney internships.

Students can find additional information at www.uncf.org/disneyscholars. The application process opens 16 March, 2015 and closes 15 May, 2015.

March 9, 2015
Reliance Entertainment inks 50:50 JV with Phantom Films

MUMBAI: Anil Ambani-owned Reliance Entertainment has inked a 50:50 joint venture with Phantom Films, a company which is formed by filmmakers Anurag Kashyap, Vikas Bahl, Vikramaditya Motwane and Madhu Mantena.

The JV company will leverage the proven creative and production capabilities of the Phantom team, while enjoying access to the established domestic and international sales and distribution infrastructure of Reliance Entertainment.

The Reliance Entertainment and Phantom Films joint venture plans to develop and produce at least five – six films every year, apart from distribution of films in India and overseas, and syndication of rights from the over 175 films strong library.

Reliance will own 50 per cent shareholding of the combined business, while the balance 50 per cent will be equally held among the four promoters of Phantom Films. The day-to-day operations of the JV will be managed by Phantom Films.

Reliance group managing director Amitabh Jhunjhunwala said, ““We are delighted to partner with such creative and talented individuals as Anurag, Madhu, Vikas and Vikramaditya, who have an enviable track record of creating great cinema. This partnership is in line with our evolving strategy in the media and entertainment business, of aligning with like-minded people who are trailblazers in their own field, and playing the role of supportive investors on our part.”

Kashyap added, “This deal opens our windows to international opportunities and talent. We hope to optimise on this opportunity, take Indian cinema international and also attract excellent talent into the country.”

Phantom Films will also be in a position to leverage the world-class capabilities of the recently announced Reliance MediaWorks–Prime Focus combination in digital, visual and special effects, pre and post-production, physical studio, etc., with facilities in Mumbai, London, Los Angeles, Vancouver, etc., and including Double Negative, the UK-based digital and visual effects company.

Reliance’s network includes the wide reach of IM Global, a Reliance Entertainment company based in Los Angeles, with operations in North America, UK and Europe, Asia Pacific, China and Latin America.

Reliance Entertainment has produced, distributed and released films in multiple Indian languages, including Hindi, Tamil, Telugu, Malayalam, Kannada and Bengali.

March 9, 2015
‘India’s Digital Superstars’ kicks off with 1400+ videos

MUMBAI: FremantleMedia has launched the first episode of India’s Digital Superstars. The digital talent hunt has already received a million views in less than a month.

This is first of its kind digital talent hunt where the audience will be judging the next ‘Big Digital Star’ across a span of 14 weeks. The talent hunt has mentors like Sunny Leone, Anu Malik, Vishal Dadlani, Salim Merchant, Jazzy B, Andy, Raftaar and Anubhav Sinha on board.

The show has already received 1400+ entries within the month and continues to invite entries across all demographics and talent genres. The winner will be given a contract worth Rs 20 lakhs from FremantleMedia and One Digital.

The show is presented by Amazon.in, powered by Gionee in association with radio partner RedFM. The auditions were open to all Indians across the world over 13 weeks.

Moreover, the Indiasdigitalsuperstar.com platform encourages participants to upload multiple videos of their talent and will be judged by the audience through the number of views and likes across YouTube, ZengaTV and Facebook.

March 2, 2015
Trilogic Digital Media to infuse fresh capital; to expand channel bouquet

BENGALURU: Trilogic Digital Media Limited (TDM) informed the stock exchanges that its board had passed various resolutions to raise more money. The company has an authorised share capital of Rs 20 crore. Trilogic Digital Media Ltd has informed the BSE that its board of directors had fixed 12 February, 2015 as the record date for reckoning the shareholders entitled to receive the bonus shares of the company in the ratio of 1:1 (i.e., one fully paid up bonus equity shares for every one fully paid equity shares held) as approved by the members in the Annual General Meeting held on 20 September, 2014. The company also plans to up borrowings.

“The new capital that we plan to infuse in will be used for new expansions in our broadcast content management business. We should expand the kitty to between eight – ten channels from the current three that we manage in next couple of months,” revealed TDM CEO and CFO Vishal Gurnani. While refusing to share the channels that TDM plans to manage, Gurnani said that NDAs with the channels prevented him from revealing details at this stage.

Industry sources told Indiantelevision.com that the company plans to add channels from the regional space – South India and Bengal to be more precise.

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

The resolutions that the TDM board passed are as follows:

To make preferential allotment of up to:

(a) Six lakh equity shares for consideration other than cash to non-promoters

(b) 100 lakh convertible warrants to promoters

(c) 40.5 lakh convertible warrants to non-promoters

At a price a price to be calculated as per SEBI (ICDR) Guidelines, 2009

(d) The board has approved the resolution for increase in the authorised share capital to Rs 40 crores

(e) The board has approved to increase the borrowings limits under Section 181 (1) (c) of the Companies Act, 2013.

(f) The board has approved to increase the limit of loan and investment by the company under Section 186 of the Companies Act, 2013.

After weak performances since its inception, TDM had reported fair results during the previous financial year (FY-2014), but, over the past few quarters, there has been a noticeable dip in its numbers. For Q3-2015, TDM reported revenue of Rs 21.48 crore, 8.4 per cent lower than the Rs 23.45 crore in the trailing quarter and 35.2 per cent lower than the Rs 33.12 crore in the corresponding year ago quarter.

Despite lower revenue, the company’s profit after tax (PAT) for Q3-2015 at Rs 2.17 crore (10.1 per cent of revenue) was more than double (about 2.5 times) the Rs 0.88 crore (3.8 per cent of revenue) in Q2-2015, but below par as compared to the Rs 2.49 crore (7.5 per cent of TIO) in Q4-2014.

During 9M-2015, TDM reported revenue of Rs 71.39 crore and a PAT of Rs. 3.47 crore (4.9 per cent of revenue) as compared to the revenue of Rs 57.88 crore and a PAT of Rs 6.1 crore (10.5 per cent of revenue) in 9M-2014. For FY-2014, the company had reported revenue of Rs 74.74 crore and a PAT of Rs 8.49 crore (11.4 per cent of revenue).

February 28, 2015
Q3-2015: Cinevista q-o-q income down 28 per cent

BENGALURU: The makers of the 200 plus episodes drama Ek Hasina Thi (formerly Daag) for Star Plus, Cinevista Limited (Cinevista, formerly known as Cinevista Communications Limited) reported profit of Rs 0.89 lakh (0.06 per cent of Total Income from Operations or TIO) for the quarter ended 31 December, 2014 (Q3-2015, current quarter). This was 30.5 per cent lower than the PAT of Rs 1.28 lakh (0.14 per cent of TIO) in the corresponding quarter of last fiscal and 38.2 per cent lower than the PAT of Rs 1.44 lakh (0.07 per cent of TIO) in Q2-2015. For 9M-2015, Cinevista’s PAT at Rs 138.37 lakh (0.17 per cent of TIO) was 9.2 per cent lower than the RS 152.31 lakh (0.18 per cent of TIO) in 9M-2014.

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

The company’s TIO for Q3-2015 at Rs 1577.73 lakh was 75.1 per cent more than Rs 901.27 lakh in Q3-2014 but 28.1 per cent less than Rs 2193.19 lakh in the immediate trailing quarter.

Let us look at the other Q3-2015 and FY-2015 numbers reported by Cinevista:

Simple EBIDTA for Q3-2015 at Rs 127.73 lakh (8.1 per cent of TIO) was 4.5 per cent less than Rs 133.70 lakh (14.8 per cent of TIO) in the corresponding year ago quarter, but 20.1 per cent less than Rs 159.94 lakh (7.3 per cent of TIO) in Q2-2015. For 9M-2015, EBIDTA at Rs 433.73 lakh (8.9 per cent of TIO) was 7 per cent more than the Rs 405.18 lakh (10.4 per cent of TIO) in 9M-2014.

EBIDTA including other income for Q3-2015 at Rs 150.92 lakh (7.4 per cent of TIO plus other income) was 8.3 per cent more than Rs 139.35 lakh (15.4 per cent of TIO) in Q3-2014, but 6.5 per cent lower than Rs 161.44 lakh (7.4 per cent of TIO) in the immediate trailing quarter. For 9M-2015, EBIDTA including other income at Rs 461.58 lakh (9.4 per cent of TIO) was 10.6 per cent more than Rs 417.51 lakh (10.7 per cent of TIO) in 9M-2014.

Cinevista’s total expenditure (TE) for Q3-2015 at Rs 1496.91 lakh (94.9 per cent of TIO) was 82.8 per cent more than Rs 819.07 lakh (90.9 per cent of TIO) in Q3-2014, but 28.2 per cent less than Rs 2079.28 lakh (94.8 per cent of TIO) in Q2-2015. For 9M-2015, TE at Rs 4572.21 lakh (93.9 per cent of TIO) was 26.1 per cent more than Rs 3627.08 lakh(93.5 per cent of TIO) in 9M-2014.

A major expense head for the company is cost of production (PC). This cost has been going up in terms of percentage of TIO. In Q3-2015, Cinevista spent Rs 1318.93 lakh (83.6 per cent of TIO) towards PC, which was more than double (2.12 times) the Rs 622.78 lakh (69.1 per cent of TIO) in the year ago quarter, but 29.6 per cent lower than Rs 1874.08 lakh (85.4 per cent of TIO) in Q2-2015. For 9M-2015, the company’s PC was 31.6 per cent more at Rs 3994.30 lakh (82.1 per cent of TIO) as compared to Rs 3035.25 lakh (78.2 per cent of TIO) in 9M-2014.

Finance cost in Q3-2014 was Rs 102.85 lakh (6.5 per cent of TIO), which was 18.8 per cent more than Rs 86.57 lakh (9.6 per cent of TIO) in Q3-2014 but 10 per cent less than Rs 114.28 lakh (5.2 per cent of TIO) in the previous quarter. YTD, in 9M-2015, Cinevista’s finance cost at Rs 315.05 lakh (6.5 per cent of TI) was 22.1 per cent more than Rs 258.07 lakh (6.7 per cent of TI) in 9M-2014.

At present Cinevista has another production on air on the Star Network’s Channel V India – D3 or Dil, Dosti, Dance, a dance-based fiction show that has crossed 500 episodes to date. The show premiered on 11 April 2011. The first season of Crime Patrol on Sony Entertainment Television India was created by Cinevista.

February 26, 2015
DreamWorks Animation posts loss of $248 million as ‘Penguins’ flop

MUMBAI: DreamWorks Animation posted a massive loss of $247.7 million in the fourth quarter due to the company’s recent restructuring plans, the closure of its Northern California studio and changes in its film release strategy.

The company posted sales of $234.2 million for the quarter ended 31 December, 2014, which was up 14.7 per cent over the same period in 2013. The company’s adjusted operating loss came in at $37.6 million, while its net loss was $64.1 million.

The company’s adjusted financial results exclude a $210.1 million pre-tax charge associated with its restructuring plan announced on 22 January, 2015. The company’s results for the quarter ended 31 December, 2014 include impairment charges of $57.1 million, or a loss of approximately $0.63 per share, primarily related to the performance of The Penguins of Madagascar and Mr. Peabody and Sherman, as well as certain other titles and investments.

As part of the reorganisation, which resulted in over 500 layoffs, DreamWorks Animation also said that it is selling its Glendale, Calif., campus for $185 million and will lease back the space.

Including the impact of the restructuring plan, DreamWorks Animation reported net loss of $263.2 million for the quarter ended 31 December, 2014. Of the restructuring-related charges totaling $210.1 million, $54.6 million was related to employee termination costs and other contractual obligations and $155.5 million was primarily related to write-offs of capitalized production costs of unreleased projects, including B.O.O. and Monkeys of Mumbai, as well as other charges associated with changes in the film slate.

“Although 2014 was a challenging year for our company, I am confident that our recent announcement to restructure our feature film business will enable us to deliver great films and better box office results, while improving the overall financial performance of our business. And while 2015 will be a transitional year for us, I couldn’t be more confident for the future. We have a set of strategic imperatives in place designed to ensure sustainable and profitable growth over the long term,” said DreamWorks Animation CEO Jeffrey Katzenberg

For the full year, DreamWorks Animation’s 2014 revenues decreased 3.2 per cent to $684.6 million, while it posted an operating loss of $300 million. When adjusted, the loss was $90 million.

Fourth Quarter Review:

DreamWorks Animation’s fourth quarter revenues of $234.2 million increased 14.7 per cent due to increases in revenues across each of the company’s primary segments.

Feature Film Segment

Revenues for the quarter ended 31 December, 2014 from the Feature Film Segment increased to $131.3 million, while segment gross profit declined to $152.2 million, primarily due to the impact of film and other inventory write-offs of $153.8 million stemming from the company’s restructuring initiatives, as well as impairment charges of $39.7 million related to The Penguins of Madagascar and Mr. Peabody and Sherman:

The Penguins of Madagascar, which was released theatrically on 26 November, 2014, has reached $358 million at the worldwide box office to date. The film contributed feature film revenue of $6.9 million in the quarter, primarily from distribution outside of Fox territories. Fox did not report any revenue to DreamWorks Animation in the quarter for the film as they had not yet recouped their marketing and distribution costs.

How to Train Your Dragon 2 contributed feature film revenue of $66 million in the quarter, primarily from home entertainment. The film was released into the domestic home entertainment market on 11 November, 2014 and through the end of the fourth quarter reached an estimated 7.5 million home entertainment units sold worldwide, net of actual and estimated future returns.

Mr. Peabody & Sherman was released into the domestic home entertainment market on 14 October, 2014 and through the end of the fourth quarter, reached an estimated 3.4 million home entertainment units sold worldwide, net of actual and estimated future returns. Fox did not report any revenue to DreamWorks Animation in the quarter for Mr. Peabody and Sherman as they had not yet recouped their marketing and distribution costs.

Turbo contributed feature film revenue of $5.8 million in the quarter, primarily from home entertainment. The film was released into the domestic home entertainment market on 12 November, 2013 and through the end of the fourth quarter, reached an estimated 6.3 million home entertainment units sold worldwide, net of actual and estimated future returns.

The Croods contributed feature film revenue of $6.5 million in the quarter, primarily from home entertainment. The film was released into the domestic home entertainment market on 1 October, 2013 and through the end of the fourth quarter, reached an estimated nine million home entertainment units sold worldwide, net of actual and estimated future returns.

Library titles contributed feature film revenue of $46.1 million to the quarter.

Television Series and Specials Segment

Revenues for the quarter ended 31 December, 2014 from the Television Series and Specials Segment increased 7.7 per cent to $50.7 million. Segment gross profit declined from $7.3 million to $2.6 million, as the higher revenues were more than offset by write-downs of capitalized film costs totaling $13.3 million in the quarter, primarily due to revisions in estimated future revenues for certain television specials, as well as up front marketing costs related to the various television series that were delivered in the quarter.

Consumer Products Segment

Revenues from the Consumer Products Segment increased 77.5 per cent to $22.1 million, while segment gross profit increased to $6.1 million mostly due to increased sales in the company’s merchandise, location-based entertainment and retail development businesses.

New Media Segment

The company is now presenting a New Media Segment within its financials, which consists of revenues and expenses attributable to Awesomeness TV (ATV) and related businesses. Revenues and segment gross profit for the quarter ended 31 December, 2014 from the company’s New Media Segment increased to $24.9 million and $13.2 million, respectively. The New Media Segment benefitted from the production and delivery of original programming, sponsorships arrangements and content licensing fees.

Also during the quarter, DreamWorks Animation entered into a joint venture agreement with Hearst Corporation under which Hearst purchased a 25 per cent ownership interest in ATV for $81.25 million. The company also entered into an agreement with the former stockholders of ATV under which the Company paid $80 million in lieu of any amounts of earn-out consideration. As a result, DreamWorks Animation recorded a gain in the quarter of $6.8 million to reflect the change in fair value of the contingent consideration liability.

All Other Segments

Revenues for the quarter ended 31 December, 2014 from the All Other Segment declined to $5.2 million, primarily because the company is no longer self-producing any live performance productions. In the prior year period, the company earned revenues of $11 million attributable to the subscription video-on-demand (SVOD) release of the filmed version of Shrek the Musical. Segment gross profit decreased to $4 million, largely due to lower revenues and the write-off of capitalized costs in the amount of $5.4 million.

For the quarter ended 31 December, 2014, DreamWorks Animation posted an adjusted operating loss of $37.6 million. This was primarily driven by impairment write-downs on certain film assets and investments, as well as the impact of increased investment in support of brand and new business initiatives.

February 26, 2015