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  • Tanla Platforms faces growth hurdles amid mixed Q2 FY25 performance

    Tanla Platforms faces growth hurdles amid mixed Q2 FY25 performance

    Mumbai: Tanla Platforms’ second-quarter results for the fiscal year 2025, disclosed on 17 October 2024, reveal a business grappling with mounting expenses and stagnant revenue. Despite a series of strategic efforts, including the recent ValueFirst acquisition, the cloud communications company encountered a modest revenue decline compared to the previous year, alongside increased operational costs that pressured profitability.

    The company’s revenue from operations dipped to Rs 1,00,072.28 lakh, a slight reduction from Rs 1,00,859.22 lakh in the corresponding quarter last year. Total consolidated income remained nearly flat at Rs 1,01,098.10 lakh, showing only a minimal increase from Rs 1,01,493.34 lakh in Q2 FY24. Meanwhile, expenses surged to Rs 85,025.81 lakh, driven primarily by higher service costs and employee benefits, eroding the gains made from cost-control initiatives earlier in the year.

    “Our continued focus on enhancing operational efficiency has yielded some positive outcomes, but the evolving market dynamics present formidable challenges,” stated Tanla Platforms, chairman and CEO, D. Uday Kumar Reddy. The company’s service costs grew by 0.9 per cent, indicating the struggle to optimise expenses while sustaining the quality of operations.

    Tanla reported a profit before tax of Rs 16,072.29 lakh for the quarter, down from Rs 17,872.33 lakh a year earlier. Net profit attributable to shareholders also declined to Rs 13,021.15 lakh from Rs 14,254.99 lakh in Q2 FY24. The company’s earnings per share fell to Rs 9.70 from Rs 10.60, highlighting the strain on shareholder returns amid rising operational pressures.

    A deeper look at the expenses reveals an escalation in employee benefits, which rose 23 per cent to Rs 5,437.11 lakh, reflecting the cost of retaining talent in a competitive market. Additionally, depreciation and amortisation expenses increased by 3.8 per cent to Rs 2,344.08 lakh, indicating substantial investments in technology and infrastructure.

    The results also underscore Tanla’s ongoing strategic efforts, such as the acquisition of ValueFirst, which are yet to fully realise the anticipated synergies. The financials for the half-year ended 30 September 2024, showed a revenue increase to Rs 2,00,292.77 lakh from Rs 1,91,970.43 lakh in the same period last year, largely attributable to consolidating ValueFirst’s operations. However, profit before tax for the half-year saw a modest decline, signalling potential headwinds ahead.

    Tanla’s current assets increased to Rs 2,24,991.07 lakh, up from Rs 2,03,782.46 lakh as of March 2024, driven by higher trade receivables and cash reserves. This bolstered liquidity provides some buffer, but also raises questions about cash flow management, as trade receivables growth may indicate delayed collections.

    With the CPaaS market becoming increasingly competitive, Tanla faces the challenge of reinvigorating its growth trajectory while managing costs. The company’s reliance on expanding its client base and introducing new product offerings will be pivotal in driving future performance. Investments in digital infrastructure and potential acquisitions may further strain margins in the short term, but could pay off with stronger growth in the long term.

  • B.A.G Films post a consolidated loss of Rs 5.7 cr in Q3 of FY20

    B.A.G Films post a consolidated loss of Rs 5.7 cr in Q3 of FY20

    MUMBAI: As the top and bottom line of B.A.G Films slumped, the television broadcasting revenue of the media company dropped by 37 per cent in the third quarter of the financial year 2019-20.  

    The company reported a consolidated loss of Rs 5.72 crore in the third quarter of the financial year 2019-20 against the profit of Rs 9.33 cr in the same quarter of the last financial year.

    The consolidated revenue from operations of the media company has dropped by 45 per cent to Rs 25.79 crore in the Q3 FY20 against Rs 46.86 crore in the December-ended quarter of FY19.

    In terms of the segment, the television broadcasting revenue of the company fell by 37 per cent to 24.7 crore in Q3 FY20 as compared to Rs 39.48 crore in the December-ended quarter FY19.

    The company, in the nine-month period, posted a consolidated loss of Rs 8.92 crore as against the profit of 14.02 crore in the same period last financial year.

  • Discovery incurs $8 mn loss in Q1 2018 with Scripps acquisition

    Discovery incurs $8 mn loss in Q1 2018 with Scripps acquisition

    MUMBAI: Discovery’s earnings release for Q1 2018, for the quarter ended 31 March 2018, shows that the company suffered a slight loss of $8 million due to the costs linked with the acquisition of Scripps Networks Interactive (Scripps). Q1 revenue of $2307 million was 43 per cent higher year-on-year (yoy) from $1610 million.

    Net income in the previous quarter was $215 million and the $8 million loss was primarily due to lower operating results, higher restructuring charges and other transaction costs associated with the acquisition of Scripps and higher interest expense.

    Excluding the impact of foreign currency transactions and the Scripps, The Enthusiast Network and the Oprah Winfrey Network transactions, revenue increased by 14 per cent as international networks grew by 28 per cent and US networks grew by three per cent.

    US revenue was up by 42 per cent boosted by the three above-mentioned transactions, with a 55 per cent gain in advertising revenue to $627 million and a 26 per cent increase in distribution revenue to $514 million.

    International networks revenue for the first quarter of 2018 increased by 47 per cent to $1098 million. Distribution and advertising revenue was up by 20 per cent to $537 million and 37 per cent to $385 million, respectively.

    Distribution revenue growth was primarily due to increases in digital revenue and higher contractual rates in Europe following further investment in sports content, contributions from content deliveries under licensing agreements in Asia and increases in rates in Latin America, partially offset by decreases in subscribers in Latin America and decreases in contractual rates in Asia. Advertising revenues increased primarily due to increases in pricing and volume across key markets in Europe and increases in ratings from coverage of the Olympics, partially offset by lower pricing and delivery in Latin America and Asia. The significant growth in other revenues is primarily due to sublicensing of Olympics sports rights to broadcast networks throughout Europe.

    First quarter adjusted operating income before depreciation and amortisation (adjusted OIBDA) increased by 16 per cent to $697 million on a reported basis, excluding the impact of the above-mentioned transactions and foreign currency fluctuations, adjusted OIBDA decreased by nine per cent as the three per cent growth at US networks was more than offset by a 37 per cent decline at international networks primarily due to the timing of costs associated with the Olympics.

    Discovery president and CEO David Zaslav said, “The first quarter of 2018 was a historic and pivotal period for Discovery. We closed on our transaction to acquire Scripps Networks Interactive, becoming the global leader in real-life entertainment and home to an enhanced portfolio of quality and trusted enthusiast brands. As our industry continues to evolve, we are uniquely positioned to maximise the value of our traditional pay-TV business while driving new opportunities and growth from our digital and direct to consumer businesses around the world.”

    Speaking in an earnings call, Zaslav said that the company has a good cash flow for the future. He said, “Whether it’s investing in content, IP, platforms, products and services, extending our content onto all bundles and services, whether linear, digital, mobile, or direct-to-consumer, or just buying back our stock, we will have the cash to decide. Our focus on cost efficient, real life entertainment leveraged across all formats, regions and methods of delivery, gives us another distinct advantage over our peers. We’re not caught up in the increasingly competitive and high-cost scripted content game that has captured so much of our industry’s attention and resources over the past several years. We’re also not renters. We own the vast majority of our content across regions, platforms and formats, and have the flexibility to take it wherever we want.”

    He added that the company is truly international with the ability to take content around the world in multiple languages, and the Scripps IP was just the start.

    Also Read :

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    Discovery Jeet gets good spread at launch

    Discovery boss JB Perrette proud of Jeet bet

  • Netflix beats earnings forecasts riding on global user additions

    Netflix beats earnings forecasts riding on global user additions

    MUMBAI: Exceeding user addition forecasts, Netflix’s first quarter (Q1) earnings were in line with expectations while revenue bettered estimates.

    Revenue grew by 43 per cent year over year in Q1 due to a 25 per cent increase in average paid streaming memberships and a 14 per cent rise in the average selling price (ASP). Operating margin of 12 per cent rose 232 bps year over year. This was higher than the company’s quarter guidance, due primarily to the timing of content spend.

    Global net user adds totalled a new Q1 record of 7.41 million, up 50 per cent year on year and higher than the forecast of 6.35 million.

    “The variance relative to our guidance was driven by continued strong acquisition trends across the globe which we attribute to the growing breadth of our content and the worldwide adoption of internet entertainment,” Netflix said in its statement.

    In the US, it added 1.96 million memberships (compared with forecast of 1.45 million). Outside of the US, membership grew by 5.46 million (forecast of 4.90 million). Our international segment now accounts for 50 per cent of revenue and 55 per cent of memberships

    Netflix has relied on international growth and heavy investments in original content to drive subscriptions — and Monday’s results provided an update on their effectiveness.

    Netflix’s addition of 7.41 million international subscribers set a new record, marking growth of 50 percent from a year ago.

    Chief content officer Ted Sarandos said Netflix has shot original content in 17 countries as it focuses more on local programming, and that many of Netflix’s foreign-language shows would be considered “big hits” on American cable channels, thanks to artful subtitling. CEO Reed Hastings added that Netflix has also seen success on its international mobile app offerings. But Hastings also said that the company hadn’t changed its view on expanding in China, and will continue to license content.

    The company also said it expects to have $7.5 billion to $8 billion of content expenses this year, in line with previous estimates. Netflix had said it expects to grow to 60 million to 90 million members in the U.S. over time and that it would spend $8 billion on content and $2 billion on marketing this year.

    The company highlighted Spanish-language hit La Casa de Papel, unscripted series Queer Eye and franchises such as Marvel’s Jessica Jones, Grace and Frankie, Santa Clarita Diet and A Series of Unfortunate Events. Netflix also credited new talent, such as Shonda Rhimes and Jenji Kohan, for their “proven track record of success” and for allowing Netflix to cut back “reliance on third-party studios.”

    “We’re investing in more marketing of new original titles to create more density of viewing and conversation around each title,” the company said.

    The marketing spending comes after Netflix was barred from competing at the Cannes film festival due to a rule change — a setback the company called unfortunate.

    One thing that’s not on the spending slate, Sarandos said, is news programming.

    “Our move into news has been misreported over and over again. We’re not looking to expand into news beyond the work that we’re doing in long-form and short-form documentary,” Sarandos said. “Topical interview shows, absolutely, but keep in mind, those are entertainment.”

    Netflix faces increasing competition from Amazon and Disney, which have their own offerings, as well as traditional media companies and technology companies such as Apple. Hastings said the company still has a long way to go to compete with the likes of YouTube and noted that Netflix’s ability to raise prices depends on providing more value than competitors.

    At the same time, Netflix is expanding into cable bundles and recently announced a new offering with Comcast, in addition to bundles with Sky, T-Mobile and Altice.

    Netflix said on Monday the bundles allow the company to upsell existing subscribers. Executives said on a conference call that the “new wave” of operator partnerships was a consistent shift across all geographic markets.

    “We remain primarily a direct-to-consumer business, but we see our bundling initiative as an attractive supplemental channel,” the company said.

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    In February this year, Hastings, at a business summit in India, said that  Netflix saw a potential of adding 100 million customers in India. “It definitely helps to have confidence on the growth of the internet. Even we couldn’t predict the last two years of Indian internet growth,” he had said.

    Also Read :

    Localised content the way forward for Netflix in India

    Netflix announces unscripted series on Mumbai Indians

  • Increased revenue from traditional media boosts Shemaroo numbers

    Increased revenue from traditional media boosts Shemaroo numbers

    BENGALURU: Integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 18.3 percent higher year-on-year (y-o-y) consolidated total revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18, the quarter under review) stood at Rs 1,345.7 million as compared with Rs 1,138.6 million in Q2 FY 2016-17. The company’s consolidated profit after tax for the quarter under review improved to 29.9 percent y-o-y to Rs 188.2 million (14 percent margin) as against Rs 144.90 million (12.8 percent margin) in the corresponding quarter a year ago.

    Revenue from operations increased by 18.3 percent y-o-y to Rs 1,343.7 from Rs 1135.5 million. In its earnings release, revenue from traditional media rose by 11.8 percent y-o-y during the quarter under review to Rs 1002 million as compared with Rs 896 million in the corresponding year ago quarter. Revenue from new media increased by 42.5 percent y-o-y in Q2 FY 2017-18 to Rs 342 million from Rs 240 million.

    Shemaroo’s EBIDTA, including other income, during the quarter was Rs 363.2 million (27 percent margin on total income of operating revenue) increased by 13.7 percent y-o-y from Rs 319.4 million (28.1 percent margin on total income of operating revenue).

    A look at the other numbers

    Total expenditure (TE) in Q2 FY 2017-18 at Rs 1,079.6 million (80 percent of operating revenue) grew by 19.5 percent y-o-y from Rs 903.5 million (79.6 percent of operating revenue). The company’s cost of raw materials consumed declined by 19.9 percent y-o-y to Rs 692.5 million (51.5 percent of operating revenue) as compared with Rs 864.3 million (76.1 percent of operating revenue).

    Employee benefits expense during the quarter under review grew by 35.7 percent y-o-y to Rs 98.5 million (7.3 percent of operating revenue) from Rs 72.6 million (6.4 percent of operating revenue). Other expenses declined by 7.7 percent y-o-y in Q2 FY 2017-18 to Rs 50 million (3.7 percent of operating revenue) from Rs 54.2 million (4.8 percent of operating revenue).

    Also read:

    Shemaroo makes key hires to boost business

    Backed by new media, Shemaroo reports improved numbers for first quarter

    Rahul Mishra Shemaroo’s new general manager marketing

  • Higher expenses, loss from F&B and gaming curb PVR Q2-2015 PAT

    Higher expenses, loss from F&B and gaming curb PVR Q2-2015 PAT

    BENGALURU: Last fiscal (FY-2014), Indian motion picture exhibition, production and distribution house PVR Limited (PVR) entered the Rs 1000 crore club by posting operating income (TIO) of Rs 1351.23 crore for the year. In Q2-2015, the company recorded a jump in TIO of 10.5 per cent to Rs 400.20 crore from Rs 362.26 crore in the immediate trailing quarter and recorded a 9.4 per cent increase from the Q2-2014 TIO of Rs 365.77 crore. In HY-2015, PVR reported TIO of Rs 762.46 crore, up 8.8 per cent from the Rs 700.96 crore in HY-2014.

     

    The company’s PAT in Q2-2015, however did not quite keep up with the PT reported in the corresponding quarter of last year. Q2-2015 PAT at Rs 9.2 crore, though 20.1 per cent more than the Rs 7.66 crore in Q1-2015, was just a third of the PAT of Rs 27.55 crore reported in Q2-2014. For HY-2015, PVR’s PAT at Rs 16.86 crore was 59 per cent lower than the Rs 41.15 crore in HY-2014.

     

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

     

    Its movie exhibition segment’s HY-2015 numbers were poor as compared to HY-2014. Further, higher total expenditure, higher loss from its ‘Others segment’ that comprises of bowling, gaming and restaurant services were partly responsible for erosion of the lower HY-2015 operating profits generated by PVR’s Movie exhibition segment.

     

    PVR’s Others’ segments loss widened to more than double in Q2-2015 to Rs 5.04 crore from Rs 2.46 crore in Q1-2015 and Rs 2.42 crore in Q2-2014. Loss in HY-2015 also widened to Rs 1.21 crore from Rs 0.02 crore in HY-2014.

     

    Let us look at the other Q2-2015 and HY-2015 numbers reported by PVR

     

    PVR reported Total Expenditure of Rs 372.66 crore for Q2-2015, which was 10.7 per cent more q-o-q than the Rs 336.68 crore and 19.5 per cent more y-o-y than the Rs 311.88 crore. For HY-2015, TE was 7.1 per cent higher at Rs 709.34 crore against Rs 605.92 crore in HY-2014.

     

    The company’s Film Exhibition Cost (FEC) in Q2-2015 went up 6.6 per cent in Q2-2015 to Rs 93.25 crore from Rs 87.48 crore in Q1-2015 and was 0.9 per cent more than the Rs 92.39 crore in Q2-2014. HY-2015 FEC at Rs.180.73 crore was 1.8 per cent more than the Rs 177.55 crore in HY-2014.

     

    Movie production expense (MPE) in Q2-2015 was Rs 12.68 crore versus Rs 3.32 crore in Q1-2015 and Rs 0.21 crore in Q2-2014. For HY-2015, MPE at Rs 16 crore was 4.4 times the Rs 3.66 crore in HY-2014.

     

    The cost of Food and Beverages consumed (food) in Q2-2015 at Rs 28.65 crore was 3.7 per cent more than the Rs 27.63 crore in Q1-2015 and 14.3 per cent more than the Rs 25.07 crore in Q2-2014. For HY-2015 food costs fell 15.3 per cent to Rs 47.65 crore from Rs 56.28 crore in HY-2014.

     

    PVR’s other expense (OE) in Q2-2015 at Rs 32.78 crore was 16.2 per cent more than the Rs 28.2 crore in Q1-2015 and 5.2 per cent more than the Rs 31.15 crore in Q2-2014. OE in HY-2015 was almost flat (up by 0.5 per cent) at Rs 60.98 crore as compared to the Rs 60.70 crore in HY-2014. 

     

    Segment Revenue

     

    Three segments add to PVR’s numbers-Movies Exhibition, Movie production and distribution and Others that comprises of bowling, gaming and restaurant services.

     

    Movie Exhibition

     

    The largest contributor is Movies Exhibition. Revenue from this segment increased 8.9 per cent to Rs 368.18 crore in Q2-2015 from Rs 338.23 crore in Q1-2015 and by 7.2 per cent from Rs 343.36 crore in Q2-2014. For HY-2015, revenues from the Movies Exhibition segment increase 7.6 per cent to Rs 706.41 crore from Rs 656.44 crore in HY-2014.

     

    Though this segment reported a 2.9 per cent growth in operating profits to Rs 27.14 crore in Q-2015 from Rs 26.37 crore in Q1-2015, its operating profit was just half of the Rs 54.22 crore reported in Q2-2014. For HY-2015, operating profit fell 44.3 per cent to Rs 53.51 crore from Rs 96.13 crore in HY-2014.

     

    Movie production and distribution

     

    Revenue from PVR’s MPD segment in Q2-2015 was 2.7 times at Rs 18.87 crore as compared to the Rs 6.99 crore in Q1-2015 and 3.1 times the Rs 6.12 crore in Q2-2014. In Hy-2015, revenue from the MPD segment went up 2.1 times to Rs 25.86 crore from Rs 12.44 crore in HY-2014.

     

    This segment returned an operating profit of Rs 1.34 crore in Q2-2015 versus a loss of Rs 0.56 crore in Q1-2015 and a small profit of Rs 01 crore in Q2-2014. For HY-2015, this segment reported an operating profit of Rs 0.78 crore versus a loss of Rs 0.95 crore in HY-2014.

     

    Others

     

    PVR’s Others segment reported a 6.7 per cent drop in revenue to Rs 18.19 crore in Q2-2015 from Rs 19.5 crore in Q1-2015 and a drop of 2.8 per cent from Rs 18.72 crore in Q2-2104. For HY-2015, this segment’s revenue was almost flat at Rs 37.69 crore versus Rs 37.62 crore in HY-2014.

     

    Other numbers for this segment has been mentions avove.

  • Dish TV reports improved results for Q2-2015

    Dish TV reports improved results for Q2-2015

    MUMBAI: Reporting earnings for the current quarter (Q2-2015), Dish TV India Limited (Dish TV) announced addition of 3,78,000 subscribers in the quarter taking net subscriber base to 1.21 crore at the end of the quarter. The company added 3,32,000 subscribers last quarter and 164,000 subscribers in the corresponding quarter last year.

     

    The subscription revenue for the quarter rose 12.2 per cent to Rs 616.8 crore y-o-y while the total operating income (Total Income from Operations – TIO) at Rs 672.3 crore was 11.9 per cent more than Rs 600.8 crore in Q2-2014 and 4.9 per cent more than Rs 640.6 crore in Q1-2015.

     

    Also reporting the half yearly result, the HY1-2015 TIO for the company at Rs 1290.8 crore was 7.2 per cent more than Rs 1203.9 crore in HY1-2014.

     

    The company announced a decline in loss for the current quarter at Rs 15.1 crore as compared to the Rs 16.05 crore in the trailing quarter but higher than the Rs 8.53 crore in the corresponding quarter last year.

     

    The total expenditure of the company for the current quarter also rose to Rs 661.9 crore, 11.1 per cent up from Rs 595.5 crore in Q2-2014 and 5.2 per cent more than Rs 628.8 in the trailing quarter.

     

    The company reported the total expenditure for HY1-2015 at Rs 1290.8 crore which was 7.2 per cent more than Rs 1203.9 crore in HY1-2014.

     

    The increase in total expenditure can be attributed to rise in Employee benefit expense (EBE), advertising expense (AE) and selling and distribution expenses (S&DE).

     

    The EBE for Q2-2015 was reported at Rs 25.16 crore, up 12.6 per cent from Rs 22.34 crore in the corresponding quarter last year and 1.6 per cent lower than the trailing quarter.

     

    AE in Q2-2015 at Rs 17.7 crore, was 39.4 per cent more than Rs 12.7 crore in Q1-2015 while the selling and distribution expenditure rose 22.1 per cent Q-o-Q.

     

    The S&DE comprises of commission and other selling and distribution expenses.

     

    The commissions for the company in Q2-2015 was reported at Rs 60.74, 12.2 per cent more than Rs 54.12 crore announced in the immediate trailing quarter and  41.3 per cent more than Rs 42.96 crore in Q2-2014.

     

    While the other selling and distribution expenses at Rs 53.8 crore jumped 42.1 per cent from Rs 37.86 in Q1-2015 and 74.9 per cent from Rs 30.76 crore in the corresponding quarter last year.

     

    ARPU for the second quarter increased to Rs 172 from Rs 170 in the previous quarter. Despite significantly higher activations, churn continued to be at a healthy 0.7 per cent per month. Festival driven, higher selling and distribution expenses resulted in the EBITDA margin being marginally lower at 24.1 per cent compared to 24.5 per cent in the previous quarter, said the press release.

     

    EBITDA for the quarter was Rs 162.3 crore, up 4.4 per cent as compared to Rs 155.4 crore in the corresponding quarter last fiscal.

    Talking about the overall industry growth, Dish TV chairman Subhash Chandra said, “The industry, led by Dish TV, recorded a healthy 38 per cent Y-o-Y growth in gross additions during the second quarter of fiscal 2015.”

     

    “Our performance during the second quarter is a reflection of our belief that a financially stable business is best placed to capitalize on any growth opportunity. While we have been growing in the right direction, growth without healthy returns to our shareholders falls below our aspirations. However, we are committed to generate them and by focusing on revenues, expenses and balance sheet quality we are building near term benefits for all our stakeholders,” he added commenting on the company’s earnings report.

     

    Adding to the same, Dish TV MD Jawahar Goel said, “Dish TV maintained its leadership position during the second quarter. Buoyed by a healthy growth in HD sales and good traction coming in from sale of the ‘Zing’ brand.”

     

    He further added, “In view of the Prime Minister’s ‘Make in India’ campaign Dish TV is re-evaluating possibilities for domestic manufacturing of set top boxes.” High Definition (HD) box sales gained Traction. It comprises of 15 per cent of the incremental additions.

     

    Despite the push back of digitization, ‘Zing’ helped propel the sales of the flagship ‘Dishtv’ brand through a wider reach and top of the mind recall. The newly introduced Sports driven packaging also found instant favor with subscribers, thus enabling Dish TV outgrow the industry growth rate, the press release added.

     

    Click here to read the unaudited financial result

     

    Click here to read the press release

  • Higher Operation costs pull down Raj TV Q2-2015 PAT to one fourth of Q1-2015

    Higher Operation costs pull down Raj TV Q2-2015 PAT to one fourth of Q1-2015

    BENGALURU: South Indian television network Raj TV Limited (Raj TV) reported PAT of Rs 0.755 crore (3.8 per cent of Total income from operations or TIO) in Q2-2015, which was a little more than one fourth (1/3.9 times) the Rs 2.922 crore (15.3 per cent of TIO) in Q1-2015 and a little more than one fifth (1/4.6 times) the Rs 3.46 crore (18.9 per cent of TIO) in Q2-2014.

     

    For HY-2015, PAT was less than half (0.42 times) at Rs 3.43 crore (8.7 per cent of TIO) versus Rs 8.13 crore (22.2 per cent of TIO) in HY-2014.

     

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

     

    The company’s operations cost (cost of revenue or COR) in Q2-2015 at Rs 8.65 crore (43.1 per cent of TIO) was 39 per cent more than the Rs 6.22 crore (32.6 per cent of TIO) in Q1-2015 and 66.9 per cent more than the Rs 5.18 crore (28.2 per cent of TIO) in the corresponding quarter of last year.  COR for HY-2015 was reported at Rs 14.87 crore (38 per cent of TIO), 24.6 per cent more than the Rs 11.93 crore (32.6 per cent of TIO) in HY-2014.

     

    An 83 per cent hike in the company’s Employee Benefit Expense (EBE) also contributed to the lower HY-2015 results. Increase in COR and EBE were the major contributors to the higher Total Expenditure in Q2-2015 and HY-2015.

     

    Let us look at the other Q2-2015 results by Raj TV

     

    TIO for the company in Q2-2014 was up 5 per cent at Rs 20.08 crore as compared to the Rs 19.11 crore in Q1-2015 and 9.4 per cent more than the Rs 18.35 crore in Q2-2014. For HY-2015, Raj TV reported 7 per cent higher TIO of Rs 39.19 crore versus Rs 33.64 crore in HY-2014.

     

    Raj TV’s Total Expenditure (TE) in Q2-2015 at Rs 17.61 crore (87.7 per cent of TIO) was 19 per cent more than the Rs 14.8 crore (77.4 per cent of TIO) in Q1-2015 and 34.6 per cent more than the Rs 13.09 crore (71.3 per cent of TIO) in Q2-2014. For HY-2015, the company’s TE was reported at Rs 32.41 crore (82.7 per cent of TIO) was 25 per cent more than the Rs 25.94 crore (70.8 per cent of TIO) in HY-2014.

     

    Raj TV’s administrative and other expense (A&OE) in Q2-2015 at Rs 2.83 crore (14.1 per cent if TIO) was 11.3 per cent more than the Rs 2.54 crore (13.3 per cent of TIO) but 7.6 per cent lower than the Rs 3.06 crore (16.7 per cent of TIO) in Q2-2014. A&OE for HY-2015 at Rs 5.37 crore (13.7 per cent of TIO) was 6.7 per cent lower than the Rs 5.75 crore (15.7 per cent of TIO) in HY-2014.

     

    EBE in Q2-2015 at Rs 5.52 crore (27.5 per cent of TIO) was 1.7 per cent more than the Rs 5.43 crore (28.4 per cent of TIO) in the immediate trailing quarter and 53.4 per cent more than the Rs 3.6 crore (19.6 per cent of TIO) in the corresponding quarter of 2014. As mentioned above, EBE for HY-2015 at Rs 10.95 crore (27.9 per cent of TIO) was almost double (up 83 per cent) the Rs 5.98 crore (16.3 per cent) in HY-2014.

     

    The company’s finance costs have gone up y-o-y. For Q2-2015, finance cost at Rs 1.4406 crore (7.2 per cent of TIO) was almost flat (down 0.4 per cent) as compared to the Rs 1.4471 crore (7.6 per cent of TIO) in Q1-2015, but 48.3 per cent more than the Rs 0.9715 crore (5.3 per cent of TIO) in Q2-2014. In HY-2015, finance cost at Rs 2.89 crore (7.4 per cent of TIO) was 60 per cent more than the Rs 1.8 crore (4.9 per cent of TIO) in HY-2014.

     

    Click here for unaudited financial results

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     

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