ITV

Tag: Ebitda

  • Radio Mirchi confirms maiden dividend; 53.6 per cent PAT growth in Q1-2014

    Radio Mirchi confirms maiden dividend; 53.6 per cent PAT growth in Q1-2014

    BENGALURU: The Bennett, Coleman & Co. Limited promoted Indian private FM player Entertainment Network (India) Limited (ENIL) which operates FM radio broadcasting stations through the brand Radio Mirchi in 32 Indian cities announced that its shareholders had approved a dividend of 10 per cent for FY-2013.

     

    ENIL’s net profit for the year ended 31 March 2013 was Rs 67.7 crore and total revenue for FY-2013 was Rs 338.4 crore. Considering the consistent good performance of the company year-on-year and the strong cash position in FY-2013, the ENIL board of directors had recommended a maiden dividend of 10 per cent i.e. Rs 1 per equity share of Rs 10.

     

    ENIL reported a 53.6 per cent PAT growth in Q1-2014 as compared to the corresponding quarter of 2013. ENIL’s PAT was Rs 19.92 crore for Q1-2014 and Rs 12.97 crore in Q1-2013.

    ENIL’s PAT for Q1-2014 was however lower by 22.5 per cent than the Rs 25.7 crore in Q4-2013.

     

    Note: Tax expense for the quarter/year ended 31 March 2013 was net of Rs 2.866 crore of excess provision in respect of earlier years and written back pursuant to conclusion of assessment.

     

    Let us look at ENIL’s other figures for Q1-2014

     

    ENIL’s revenue for Q1-2014 stood at Rs 85.2 crore on a consolidated basis, up 23.8 per cent over the Rs 68.87 crore in Q1-2013, but 18.9 per cent lower than the Rs 105 crore for Q4-2013.

     

    ENIL’s EBITDA in Q1-2014 stood at Rs 35.1 crore, up 34.1 per cent as compared to Q1-2013. The company’s EBITDA margin improved from 38.1 per cent to 41.2 per cent in Q1-2014.

     

    Expenditure for Q1-2014 at Rs 63.15 crore was 9.8 per cent more than the Rs 57.5 crore for Q1-2013, but 18.8 per cent lower than the Rs 77.85 crore for Q4-2013.

     

    ENIL spent Rs 10.61 crore towards marketing in Q1-2014, 36.7 per cent more than the Rs 7.76 crore in Q1-2013, but just a little more than a third (35.5 per cent) of the Rs 29.91 crore in Q4-2013.

     

    It paid license fees of Rs 4.688 crore in Q1-2014, 27.5 per cent more than the license fees of Rs 3.677 crore in Q1-2013, but lower by 12.8 per cent than the Rs 5.375 crore in Q4-2013. The company had paid license fees of Rs 18.092 crore in FY-13.

     

    ENIL’s production expense of Rs 3.82 crore in Q1-2014 was 19.7 per cent lower than the Rs 4.76 crore in Q1-2013, but was 8.7 per cent more than the Rs 3.51 crore for Q4-2013.

     

    Employee benefits at Rs 18.99 crore in Q1-2014 was 6.6 per cent higher than the Rs 17.82 crore in Q1-2013, but 8.7 per cent lower than the Rs 20.80 crore for Q4-2013.

     

    ENIL ED and CEO Prashant Panday said, “It’s been a surprisingly strong quarter for media, especially radio broadcasters including Mirchi. It appears advertisers are responding to the slowdown by launching new products, and even more promotional offers. This helps radio. We expect this to continue, even though we expect growth rates to taper off eventually. On Phase III, the radio industry is seeking a rationalisation of reserve fees on the same lines as is happening with 2G reserve fees, as well as an extension of Phase II licenses. We expect policy clarity in the next few months. Lastly, I am happy that the shareholders have approved ENIL’s maiden dividend of 10 per cent.”

  • Hathway EBITDA more than triples in Q1-2014 as compared to Q1-2013

    Hathway EBITDA more than triples in Q1-2014 as compared to Q1-2013

    BENGALURU: Indian Multi Systems Operator (MSO) Hathway Cable & Datacom Limited (Hathway) reported EBITDA (including other income) of Rs 77.04 crore for Q1-2014, more than three times (3.23 times) the Rs 23.84 crore for Q1-2013, but 14 per cent lower than the EBITDA of Rs 88.47 crore for Q4-2013.

     

    NOTE: As per Hathway management’s estimates, EBITDA inclusive of Hathway’s economic interest in the EBITDA of its several subsidiaries/JVs/associate companies would aggregate to about Rs 96.0 crore for Q1-2014.

     

    Let us look at Hathway’s other figures for Q1-2014

     

    Hathway reported a total income from operations of Rs 232.65 crore in Q1-2014 which was 70.74 per cent higher than the Rs 132.26 crore in Q1-2013 and almost flat (just 0.64 per cent more) income as compared to the Rs 231.18 crore for Q4-2013.

     

    Hathway’s expense for Q1-2014 at Rs 156.56 crore was 39.14 per cent more than the Rs 112.42 crore for Q1-2013 and 9.7 per cent more than the Rs 142.71 crore for Q4-2013. Hathway’s purchase of stock in trade in Q1-2014 at Rs 0.67 crore was one fifth (5.075 times less) the Rs 3.4 crore in Q1-2013 and only about 41 per cent of the Rs 1.63 crore for Q4-2013.

     

    Staff cost of Rs 13.77 crore for Q1-2014 was 35.53 per cent higher than the Rs 10.16 crore in Q1-2013 and 31.02 per cent higher than the Rs 10.51 crore for Q4-2013.

     

    Paycost of Rs 58.45 crore for Q1-2014 was 50.22 per cent more than the Rs 38.91 crore for Q1-2013 and 18.08 per cent more than the Rs 49.5 crore for Q4-2013.

     

    Other expense at Rs 83.67 crore for Q1-2014 was 39.57 per cent more than the Rs 59.95 crore for the corresponding quarter of the previous year (Q1-2013) and 3.2 per cent more than the Rs 81.06 crore for the immediate preceding quarter (Q4-2013).

     

    PAT for Q1-2014 at Rs 5.32 crore was however less than one fifth the PAT of Rs 28.27 crore for Q4-2013. In Q4-2013, Hathway had a foreign exchange gain of Rs 5.73 crore, while in Q1-2014; it had incurred a foreign exchange loss of Rs 8.32 crore. Finance cost at Rs 21.61 crore for Q1-2014 was 53.6 per cent more than the Rs 14.07 crore in Q4-2013 and 62 per cent more than the Rs 13.32 crore for Q1-2013.

     

    For Q1-2013, Hathway had reported a loss of Rs (-15.87) crore. The foreign exchange loss incurred by Hathway in Q1-2013 was Rs 4.56 crore.

     

    Hathway’s income from operations mainly consists of subscription income from cable TV and broadband business, carriage and placement income, advertisement income, activation income from STB’s and other operating income.

     

    Hathway says that it continued to deploy STBs in Q1-2014 and as of June, 2013 along with its JV partners had cumulatively deployed over 0.7 crore STBs all over India and approximately 0.18 crore STBs in Q1-2014. The company says that it has deployed approximately 0.25 crore STBs in Phase I and approximately 0.41 crore STBs in Phase II areas till June 2013, which it says, makes it the biggest MSO in Phase I and II areas.

     

    Hathway informs that it has adequate STBs in hand and continues to roll out its services in major Phase III and IV towns.

     

    Hathway further says that as per MIB (Ministry of Information and Broadcasting, Government of India) reports cable television is clearly the preferred choice in Phase II cities also with a near 90 per cent share of digital STBs seeded after 15 February 2013 being seeded by cable MSOs.

     

    In its broadband update Hathway states that the gross additions to its broadband subscriber base was around 27,000 for the Q1-2014. Hathway’s cumulative subscriber base stood at approximately 4,24,000. As on end June 2013, the company says that it has tested its DOCSIS 3 technology for its broadband subscribers in certain cities. With DAS being successfully implemented Hathway expects to increase its broadband customer base with bundled schemes that it plans to offer shortly at competitive rates.

     

    Hathway says that it is in the process of raising funds to the tune of Rs 149.8 crore from its promoters and new shareholders through preferential allotment. The shares of face value Rs10 each are to be issued at a premium of Rs 274 per share (adding up to Rs 284 per share).

  • Zee Learn reports PAT for Q1-2014 after 8 consecutive quarterly losses

    Zee Learn reports PAT for Q1-2014 after 8 consecutive quarterly losses

    BENGALURU: The last time that Zee Learn Limited (Zee Learn) reported a profit was for the Q3-2011, the second quarter since it commenced operations. The education player then reported loss for eight quarters and two financial years until Q1-2014 when it showed a PAT of Rs 3.25 crore as compared to a loss of Rs 3.36 crore in Q1-2013 and a loss of Rs 7.35 crore in Q4-2013. For FY 2013, Zee Learn reported a loss of Rs 21.22 crore. Zee Learn saw an improvement in operational EBITDA by Rs 5.69 crore in corresponding Q-o-Q.

    Let us look at the other financials of Zee Learn for Q1-2014

    Zee Learn reported Rs 33.52 crore as total income from operation for Q1-2014 as compared to Rs 23.34 crore in Q1-2013, registering a growth of 43.6 per cent. However, operating income was lower by eight per cent as compared to Rs 36.43 crore in Q4-2013.

    Zee Learn also had ‘Other Income’ of Rs 2.22 crore in Q1-2014, in Q1-2013, this was 0.3931 crore, while ‘Other Income’ was Rs (-0.5607) crore for Q4-2013. Other income includes Rs 1.8561 crore exchange gain on remittance of GDR issue proceeds.

    Total expense for Q1-2014 at Rs 30.95 crore was higher by 19 per cent as compared to Rs 26.01 crore for Q1-2013, but lower by 23.3 per cent than the Rs 40.37 crore in Q4-2013.

    Expense towards purchase of education goods and television content in Q1-2014 at Rs 12.28 crore was more than double (more by 117.8 per cent) as compared to the Rs 5.37 crore for Q1-2013 and 15.3 per cent lower than the Rs 15.08 crore in Q4-2013.

    Other expense for Q1-2014 at Rs 9.51 crore was lower by 8.4 per cent as compared to the Rs 10.38 crore in Q1-2013 and was 28.6 per cent lower than the Rs 13.32 crore in Q4-2013. Other expenses includes marketing, advertisement and publicity expenses of Rs 3.6028 crore and Rs 3.9683 crore for the quarter ended 30 June, 2013 and 30 June, 2012 respectively.

    Zee Learn CEO Navneet Anhal said, “The improved financial performance is a result of all brands in the Zee Learn bouquet performing well due to improved efficiencies. Our investments in each of the brands are continuing to payoff. This year Kidzee has registered almost 25 per cent growth in the number of operational centers (192 new centers added) significantly expanding our footprint in the country.”

    “Also, we have witnessed growth of 37 per cent in enrolments in our MLZS schools wherein average enrolments has moved up to 292 students in Q1 FY14 vis-?-vis 213 students in Q1FY13 largely on account of better academic content and its delivery model. Zee Learn’s school solution program ‘BrainCafe’ which has undergone business model change last year pre-empting the change in dynamics of school solutions, is also showing signs of acceptance across schools. Our offerings of educational content to ZeeQ are getting amazing responses from parents and industry alike,” added Anhal.

    Zee Learn says that the outlook for the Education business remains positive despite overall challenges in the Indian economy. The Company also sees good momentum in MLZS and Kidzee, overwhelming positive response in ZeeQ, India’s First Edutainment Channel for kids wherein Zee Learn provides content to the channel and huge potential in its newly revamped BrainCafe School Solutions.

    Zee Learn launched its first Global Depository Receipts (GDR) for value of $9.99 million which were subscribed by overseas investors on 21 May, 2013. The GDR issue was fully subscribed and the company allotted 56,17,977 GDRs at a price of $3.56 per GDR. Each GDR represents 10 (ten) underlying equity shares in the company and the GDRs are listed on the Luxembourg Stock Exchange.

  • RBNL’s radio business continues profitable run in Q1-2014

    RBNL’s radio business continues profitable run in Q1-2014

    BENGALURU: Note: The profit/loss figures mentioned collectively or for each segment in this report are profits before tax and interest (PBIT), unless stated otherwise.

     

    Reliance Broadcast Network Limited (RBNL) radio business which first returned a profit in Q3-2013 of Rs 3.36 crore, followed by a profit of Rs 8.06 crore in Q4-2013 continued its profitable run with positive figures of Rs 8.71 crore for Q1-2014.

     

    On a consolidated basis, RBNL reported a loss of Rs 15.76 crore for Q1-2014, about 55 per cent of the loss of Rs 28.705 crore loss during Q1-2013 and about 65.25 per cent of the Rs 24.154 crore loss reported for Q4-2013. RBNL reported a loss of Rs 91.73 crore for FY-2013.

     

    RBNL CFO Asheesh Chatterjee informed www.indiantelevision.com, “RBNL achieved cash break-even at consolidated level and remains PAT positive at standalone basis in Q1-2014.

    Radio business reported 31 per cent y-o-y growth in revenue and EBITDA of Rs 17.4 crore. TV business sustained leadership reporting 37 per cent y-o-y revenue growth.”

     

    Overall

     

    Q1-2014 consolidated total income of Rs 61.1 crore; increase of 26 per cent y-o-y
    Q1-2014 consolidated EBITDA at Rs 0.9 crore – achieves break even.
    Q1-2014 consolidated EBIT was Rs (9.8 crore)
    Q1-2014 standalone total income of Rs 58.5 crore; increase of 18 per cent y-o-y
    Q1-2014 standalone EBITDA at Rs 19 crore; increase of 382 per cent y-o-y.
    Q1-2014 standalone EBIT at Rs 8.8 crore; increase of 264 per cent y-o-y
    Q1-2014 standalone PAT at Rs 2.1 crore; increase of 112 per cent y-o-y.

     

    Let us look at RBNL’s figures from various segments in Q1-2014

     

    Radio

     

    Revenue from radio contributed a major chunk – Rs 47.27 crore or about 73.26 per cent of RBNL’s total revenue of Rs 64.53 crore and 76 per cent of Income from operations at Rs 62.19 crore during Q4-2014.

     

    Revenue from radio in Q1-2014 at Rs 47.27 crore grew 31.3 per cent as compared to the Rs 36.01 crore for Q1-2013 and grew 2.6 per cent as compared to the revenue of Rs 46.09 crore for Q4-2013.

     

    Q1-2014 radio standalone EBITDA at Rs 17.4 crore as against EBITDA of Rs 7.8 crore in Q1-2013; increase of 122 per cent y-o-y

     

    Q1-2014 radio standalone EBIT at Rs 8.7 crore as against EBIT of Rs (-1.0) crore in Q1-2013.

     

    TV Production

     

    TV Production, with a standalone revenue of Rs 5.90 crore, contributed 9.5 per cent to Income from operations during Q4-2014. Revenue from production in Q1-2014 grew by 11.8 per cent as compared to the revenue of Rs 5.28 crore in Q1-2013 and 29.24 per cent as compared to the revenue of Rs 4.57 crore in Q4-2013. Production suffered a loss in Q4-2014 of Rs 0.423 crore as compared to a profit of Rs 0.1059 crore in Q1-2013, but 16.11 per cent lower than the loss of Rs 0.504 crore reported for Q4-2013.

     

    Standalone EBDITA for Q1-2014 from this segment was Rs (-0.3) crore in Q1-2014 as compared to the EBDITA of Rs0.2 crore in Q1-2013 and Rs (-0.3) crore in Q4-2014.

     

    OOH

     

    Revenue from outdoor at Rs 1.995 crore in Q1-2014 was almost one third (34.5 per cent) of the revenue of Rs 5.99 crore in Q1-2013 and just 30.6 per cent of the Rs 6.303 crore in Q4-2013. Loss from this revenue segment in Q1-2014 was significantly lower (by 12.4 times) at Rs 0.1758 crore as compared to the loss of Rs 2.182 crore in Q1-2013. Outdoor returned a profit of Rs 0.1407 crore for Q4-2013.

    Standalone EBITDA from this segment was a positive Rs 1.2 crore during Q1-2014 as compared to a loss of Rs 1.8 crore in Q1-2013 and Rs 0.7 crore during Q4-2013
    Televison.

     

    Consolidated revenue of Rs 8.44 crore from television contributed 13.6 per cent of total revenue for Q1-2014. Revenue from this segment grew at 36.9 per ecent as compared to the Rs 6.16 crore reported for Q1-2013 and just half a per cent as compared to the Rs 8.39 crore for Q4-2013. Consolidated loss from television in Q1-2014 at Rs 18.06 crore was 54.4 per cent higher than the loss of 11.69 crore for Q1-2013, but was significantly lower by 32 per cent as compared to the Rs 26.54 crore loss for Q4-2013.

     

    RBNL CEO Tarun Katial said, “Reliance Broadcast Network has delivered a robust performance, breaking even at the operating level. Radio has delivered the highest ever Q1 performance, fortifying its position as the leading national network and both key businesses of radio and television are primed to benefit from government reforms.”

     

    RBNL says that its flagship general entertainment channel Big Magic which emerged a leader in the Hindi heartland, has steadily expanded distribution across the Hindi speaking markets of India, benefiting from phase II of television digitisation. Its ays that TRAI’s mandate to regulate advertisement inventory to 10 minutes per clock hour will translate into more equitable distribution of advertisement inventory across channels, resulting in increased advertisement flow to both radio and emerging channels like Big Magic, Big CBS and Big RTL Thrill.

  • PVR announces blockbuster results for Q1-2014

    PVR announces blockbuster results for Q1-2014

    BENGALURU: Indian motion picture exhibition, production and distribution house PVR Limited (PVR) today declared stellar results for Q1-2014.

     

    Let us take a look at the performance for Q1-2014

     

    PVR’s consolidated revenues for Q1-2014 were Rs 337.3 crore as compared to Rs 180.7 crore during the corresponding period of last year (Q1-2013), up by 87 per cent. Consolidated EBITDA for Q1-2014 was Rs 61.4 crore as against Rs 34.6 crore in the same period last year, up by 78 per cent. Consolidated PAT for the quarter was Rs 13.9 crore in Q1-2014 as against of Rs 7.8 crore in the same period last year, up by 79 per cent.

     

    Correspondingly, PVR’s profit before tax for Q1-2014 grew by 64.5 per cent to Rs 19.7 crore from Rs 11.98 crore in Q1-2013. PVR had reported a loss of Rs 17.94 crore for Q4-2013.

     

    Net total income from operations for Q1-2014 was Rs 208.54 crore, up 29 per cent from the Rs 161.29 crore reported for Q1-2013 and 43 per cent higher than the Rs 146.2 crore reported for the preceding quarter (Q4-2013).

     

    Total expenses at Rs 183.16 crore were up 25.7 per cent from the Rs 145.68 crore during Q1-2013 and up 23.5 per cent as compared to the Rs 148.34 crore for Q4-2013.

     

    PVR says that its exhibition business in Q1-2014 grew on back of strong same store growth, addition of new multiplex properties and Cinemax multiplex circuit (post acquisition in January 2013). The revenue growth was driven by strong box office, food and beverage revenues and advertising revenues.

     

    Revenues from PVR’s movie exhibition more than doubled (grew by 111.5 per cent) at Rs 313.08 crore in Q1-2014 as compared to the Rs 148.05 crore reported for Q1-2013. Revenues for Q1-2014 were higher by 47.1 per cent as compared to the Rs 212.85 crore revenues that the company reported for Q4-2013.

     

    The other contributing segment to profits was ‘Others (includes bowling, gaming and restaurant services)’, revenues from which almost doubled (grew by 98.2 per cent) for Q1-2014 to Rs 18.91 crore from the Rs 9.54 crore reported for Q1-2013 and grew by 17.6 per cent as compared to the Rs 16.98 core revenues reported for Q4-2013. Segment results from the Movie production and distribution recorded a loss of Rs 0.96 crore for Q1-2014.

     

    During Q1-2014, PVR says that it had Rs 1.52 crore footfalls in its cinemas, up by 17 per cent as compared to corresponding quarter of previous year (Q1-2013). The average ticket price across the cinema circuit also grew by 10 per cent on the back of strong content and flexible pricing launched by company in various markets. Food and beverage revenues grew by 37 per cent over corresponding quarter of previous year. Sponsorship revenues also showed a stellar growth of 60 per cent over corresponding quarter of previous year.

     

    PVR chairman cum managing director Ajay Bijli said, “The revenues and profitability in the quarter has shown a robust growth over the same period last year. The integration of PVR & Cinemax at operating level is progressing well and the management is focusing on driving synergies from the combined scale of operations which is reflecting in the market share and the reported results. The string of big budget Bollywood Films like Chennai Express, Once upon a Time in Mumbai Again, Satyagraha, Krrish 3, Dhoom 3, Boss, Beshram, Singh Sahab the Great, Bullet Raja etc., will further augment the strong box office performance for the remainder of FY 2013-14.

     

    The company is bullish on its expansion plans and says that it intends to add 85-90 screens in FY 2013-14. During the Q1-2014, PVR added five properties with 35 screens across Kochi, Mumbai, Bangalore, Chandigarh and Delhi. On a combined basis, PVR and Cinemax have a network of 383 screens spread over 89 properties in 35 cities across the country.

  • Dish TV records 11.2% revenue growth for Q1-2014; higher Arpu’s, lower losses

    Dish TV records 11.2% revenue growth for Q1-2014; higher Arpu’s, lower losses

    BENGALURU: India’s largest DTH services provider Dish TV India Limited (Dish TV) reported first quarter fiscal 2014 standalone operating revenues of Rs 578.4 crore, recording 11.2 per cent growth over the Rs 519.95 crore operating revenues it clocked during Q1-2013. Also, its Q1-2014 standalone revenues were higher by 4.1 per cent than the Rs 555.4 crore the company reported for Q4-2013.

     

    Let’s take a look at the other figures for Q1-2014

     

    EBITDA of Rs 121.7 crore was lower by around 22 per cent for Q1-2014 as against EBITDA of Rs 156.6 crore the DTH provider reported for Q1-2013. EBITDA margin for Q1-2014 stood at 21 per cent. It had reported a 29.9 per cent margin for Q1-2013. However, Dish TV’s net loss was down to Rs 30.4 crore as compared to Rs 32.3 crore in the corresponding quarter last fiscal (Q1-2013) and Rs 43.6 crore in the previous quarter (Q4-2013).

     

    Dish TV’s primary expenses include cost of goods and services, personnel cost, administrative cost, advertisement expenses and selling expenses. Expenditure at Rs 456.7 crore was significantly higher by around 25 per cent than the Rs 364.4 crore the company reported for Q1-2013 and 4.9 per cent more than the Rs 435.4 crore it had reported for the previous quarter (Q4-2013).

     

    Dish TV’s advertising expenses for Q1-2014 at Rs 30.7 crore (which were 5.7 per cent of revenues of Q1-2104) were more than double (127.4 per cent higher) the Rs 13.5 crore during Q1-2013, and 84.9 per cent higher than Rs 16.6 crore during Q4-2013. It’s selling and distribution expenses during Q1-2014 at Rs 59.3 crore were also higher by 14.9 per cent than the Rs 51.6 crore during Q1-2013 and 2.9 per cent more than the Rs 57.6 crore in Q4-2103.

     

    Dish TV saw a gain of around two lakh in net number of subscriptions during Q1-2014. It had added 5.04 lakh subscriptions during Q1-2013. Subscription revenues for Q1-2014 were up 15.9 per cent at Rs 528 crore as compared to Rs 455.6 crore during Q1-2013 and higher by 5.6 per cent than the subscription revenues in Q4-2013.

     

    ARPU for the quarter increased 5.1 per cent to Rs 165 resulting in a 15.9 per cent y-o-y increase in subscription revenues. Dish TV reported a free cash flow of Rs 48.4 crore for Q1-2014 as compared with Rs 22 crore in Q4-2014 and Rs 65 crore for FY-2013.

     

    Dish TV chairman Subhash Chandra said, “In an ever changing world, the Indian media industry is keeping pace. Digitisation, which happens to be the most talked about, has still a lot to achieve even in the digitized towns and cities. Though it is comforting to see the evolution towards a transparent distribution environment, the distribution industry needs to act fast to leverage the opportunity to weed out the long standing inefficiencies in the system.”

     

    “Too much focus on box seeding has diluted the addressability part of the digitisation mandate. In such a scenario, Dish TV’s focus on quality additions is a counter-intuitive move which has started delivering encouraging results. The first quarter saw the company deliver strong free cash flows while maintaining healthy customer retention and investing in brand equity,” added Chandra.

     

    Dish TV managing director Jawahar Goel said, “In line with our expectations, pack price hikes and improved subscriber quality in the recent months resulted in a strengthened ARPU. On the expenses front, higher investment in marketing, brand building and seasonal sports driven content along with the impact of a weak rupee on dollar denominated costs, resulted in a sequentially flat EBITDA margin.”

     

    “We remain committed to add quality subscribers who would be value accretive to the business. Our successful initiation of a series of entry level price hikes, even in a not so perfect macro environment, demonstrate our pricing power and resolve to eliminate subsidies in the medium term. At the same time, we continue to expand our distribution network and consider ourselves amongst the best placed to reach out to customers who fit the bill. We are also making strong progress towards lining up additional transponder capacity to beef up our existing, industry leading bandwidth. We intend to leverage the additional capacity for distributing localised content as well as strengthen carriage revenues,” said Goel.

     

    Commenting on the persistent weakness in the rupee and its impact on the financials, Goel said, “A flagging rupee has been an industry wide concern since some time now. To contain further widening of gap between the cost of the consumer premises equipment (CPE) and amount realized from the customer due to rupee depreciation, Dish TV initiated an acquisition price hike of Rs 250 on 4th July. Sensing the need, other players in the DTH industry followed suit within the next few days.”

     

    “We are evaluating possibilities for improvement in hardware economics of CPE sourced from India, given a depreciating rupee. We have also been considering options with our overseas suppliers to commence production at a base in India,” he added.

     

    Talking about Dish TV’s overseas ventures, Goel confirmed, “Work on Dish TV Lanka (Pvt.) Limited, the company’s subsidiary, is progressing as per plan. Since it is going to be a zero subsidy model, it makes us all the more excited about the expansion.”

     

    With a sustained focus on strengthening the balance sheet, Dish TV says that it looks forward to retiring a significant portion of its outstanding debt. The company claims that it is well positioned, through its internal accruals, to repay approximately Rs 750 crore outstanding debt through the current fiscal.

  • BSkyB posts record financial results

    BSkyB posts record financial results

    MUMBAI: Full-year operating profit at BSkyB reached a record ?1.3 billion ($2 billion), up nine per cent from a then-record of ?1.2 billion ($1.86 billion) in the prior fiscal year.

     

    Revenue for the year ended 30 June, 2013 rose seven per cent to ?7.2 billion ($11.08 billion). EBITDA was up eight per cent, at ?1.7 billion ($2.6 billion).

     

    The British pay-TV giant added 34,000 TV subscribers in the latest quarter, compared with 20,000 TV sub additions in the year-ago period. Existing customers upgraded to new services at a rapid rate. There was 170-per cent growth in internet-connected Sky+HD boxes, to 2.7 million; a 19-per cent increase in Sky Go users, to 3.3 million; a fivefold increase in On Demand downloads; and 200-per cent growth in Sky Store video rentals. BSkyB’s new NOW TV sports day pass had more than 50,000 individual users purchase a pass in the first three months.

     

    Looking ahead, BSkyB said it wants to extend leadership in core areas such as original British drama and sky sports, but also to accelerate the take-up and usage of new services, which this year saw a strong response from customers.

     

    BSkyB chief executive Jeremy Darroch commented, “We have had another very good year of growth, with revenues up seven per cent, operating profit up nine per cent and earnings per share up 18 per cent. The strength of our financial performance is a result of our successful transition to more broadly-based growth and sustained investment to create a better service and wider range of products for customers.”

     

    “On the back of this performance, we are increasing returns to shareholders with the ninth consecutive rise in the ordinary dividend and we intend to seek approval for a further ?500 million of share repurchases.”

     

    “Over the course of the year, we added more than three million new paid-for subscription products. We finished the year strongly with 11 per cent organic growth in product sales for the fourth quarter, reflecting good demand in all areas. It was a particularly significant quarter for home communications as good organic growth, combined with the consolidation of the consumer broadband and fixed-line telephony business acquired from O2, delivered well over a million product additions.”

     

    “In our television business, there has been an excellent response from customers to our new services. We’ve seen an explosion in on-demand and mobile viewing as more people connect their Sky boxes to broadband and watch TV on laptops and mobile devices with Sky Go. Sky Go Extra, our new subscription service, has already attracted more than 150,000 customers in just five months. Customers tell us they get huge value from these services. The benefits to our business are equally strong through take-up of higher-tier packages, expanded revenue opportunities and improved customer satisfaction. We see an exciting opportunity for future growth in this area and we intend to increase investment over the next year to accelerate growth and returns from these new services.”

     

    “We expect the consumer environment to remain challenging over the coming twelve months. Against that backdrop, we have a strong set of plans that will extend our leadership in core areas – on screen, in home communications and in front-line service delivery; accelerate growth in new services; and improve efficiency to build a bigger, more profitable business for shareholders.”

     

  • Dish TV slashes losses in FY 2013; outlook improves

    Dish TV slashes losses in FY 2013; outlook improves

    MUMBAI: The Zee TV group DTH service provider Dish TV India Ltd (Dish TV) is slowly but gradually emerging from a sea of red ink; especially if one looks at the company‘s financials for the year ended 31 March 2013. Losses have been more than halved to Rs 66 crore from Rs 133.14 crore in the previous fiscal. Even its quarter losses have been reduced. Additionally, it added new subscribers in Q4 2013 at 200,000, taking up its net subscribers to 10.7 million.

    And things look likely to get even better for it if one goes by the massive 27 per cent it commands of the DTH market, and the fact that it is looking at raising average revenues per user (ARPUs), reducing customer subsidies in the medium term and in the process increasing profitability.

    Let us look at the standalone Q4-2013 results as against the corresponding Q4-2012

    Revenues for Q4 FY 2013 stand at Rs 555.40 crore, a rise of 7.5 per cent from the corresponding last year quarter Rs 516.44 crore. Subscription revenues at Rs 500 crore recorded a growth of 15.3 per cent. Total expenses too went up 7.4 per cent, standing at Rs 580.36 crore in Q4 FY 2013 (Rs 540 crore in Q4 FY 2012). Programming and content cost accounted for a large chunk of this increase rising 34 per cent during this period to Rs 196.72 crore as against Rs 146.76 crore.

    Although Dish TV reported a loss of Rs 43.62 crore, it is a 11 per cent improvement over the Q4-2012‘s loss of Rs 49 crore.

    Let us take a look at the Q4-2013 financials in comparison with Q3-2013

    Revenues in Q4-2013 have marginally decreased by Rs 2.42 crore as against Rs 557.82 crore reported in Q3-2013. While programming and content costs have risen by over 20 per cent to Rs 196.72 crore (Rs 162.69 crore in the immediate preceding quarter), it has got more efficient while reducing its selling and distribution expenses to Rs 74.2 crore (Rs 90 crore.). Additionally, it scaled down its advertising expenses by 30 per cent to Rs 16.6 crore (Rs 23.7 crore). EBITDA in Q4 2013 fell 12.8 per cent to Rs 120 crore against Rs 137.77 crore in Q3-2013. And losses fell to Rs 43.62 crore as opposed to Rs 44.48 crore.

    Dish TV has increased its new subscriber prices and pack prices in the past few months and has managed to bring down its subscriber acquisition cost (SAC) to Rs 1,996 as against Rs 2,201 in the immediate preceding quarter.

    The company added 200,000 net subscribers in Q4-2013- its lowest net new adds for a quarter since 2007 – taking its net subs base to 10.7 million. This low net add figure has alarmed some observers; but this has happened at a time when India is going through a gut wrenching change of digitisation of its cable TV infrastructure. Phase II of digitisation has been moving rather slowly with cable TV operaors in many cities which were supposed to come under the digitisation hammer fighting the government‘s mandate in courts and getting stay orders. So, many subscribers there are continuing to receiving analogue signals and hence have not moved to digital as yet. Hopefully, in the coming days as digitisation moves forward DTH providers will have some spillover benefits of subs moving to digital services.

    Dish TV‘s ARPUs were also lower for Q4-2013 at Rs 157 as against Rs 160 for the immediate preceding quarter.

    Let us look at the consolidated FY-2013 results as against FY-2012

    FY-2013‘s consolidated revenues stood at Rs 2,166.80 crore, a rise of 10.7 per cent as against last fiscal‘s Rs 1957.9 crore. It reported an EBITDA of Rs 575.9 crore as against Rs 496 crore last fiscal (a 16.1 per cent increase) with its EBITDA margin standing at 26.7 per cent.

    It has reported a 5.1 per cent YoY increase in content costs as against an overall increase of 11.5 per cent in total expenses to Rs 2,215 crore (Rs 1,983.8 crore).

    What is noteworthy is the way it has managed to bring down the net loss for FY-2013 to Rs 66 crore compared to Rs 133.14 crore in FY-2012. The earnings per share (EPS) too has shown a massive improvement from a negative Rs 1.25 to a negative Rs 0.62.

    Dish TV has a bouquet of 400 plus channels and it added another five HD channels in April 2013 taking its offering to 42 HD channels and services on its platform. Most analysts are bullish on the stock, currently trading at Rs 64.30.

    Says Dish TV chairman Subash Chandra, “In the media sector, digitisation, though not fully up to speed, holds big potential for the industry. DTH platforms, in particular, look forward to a level playing field contributing to meaningfully higher ARPUs and stickier subscriber bases over time. Dish TV‘s industry leading initiative, to hike acquisition and pack price is likely to be a catalyst to achieve that.”

    Dish TV recently launched India‘s first standard definition recorder, Dish+ with an unlimited recording facility. This was initially launched in the 42 cities covered under Phase 1 and Phase 2 of digitisation and is now available across India as a value for money differentiator over its competitors‘ offerings.

    Dish TV managing director Jawahar Goel points out that fiscal 2013 saw most players in the Indian DTH industry evolve to the next level and Dish TV led the industry and helped it pull off a significant increase in the new subscriber acquistion price over the last several months thereby reducing the effective cash burn per subscriber.

    “While the resultant decline in industry gross additions is marginal, it is expected to be well compensated by the quality of subscribers,” he highlights. “There was no respite though from the multiple taxation which the DTH industry is reeling under. Uncertainty on the rollout of goods & services tax (GST) continues to be an overhang on the earnings potential of the industry,”

    He is quite confident that DTH will score over cable TV thanks to the strong service back up the sector has built and its increasing focus on value growth rather than chasing subscriber numbers.

    “On the digitisation front, the MSO‘s readiness on encryption, packaging, dunning and effective business processes is taking undue time. With increasing expectations, customers however will gradually align to a technologically progressive and service oriented mass-scale platform, albeit at a premium. Dish TV has experienced strong though early signals of churned subscribers getting back to its platform in select markets in the current quarter,” says Goel says in a parting statement.

    Other points for FY 2013 to be noted are:

    * The company set up a 70:30 joint venture company Dish T V Lanka (Pvt) Ltd on 25 April 2012 under the laws of Sri Lanka with Satnet (Pvt Ltd). Satnet has a DTH licence and the joint venture will work on providing DTH related service in the island country.

    * The company has extended the life of the consumer premises equipment (CPE) for depreciation purposes of to five years for equipment activated on or after 1 April 2012. Upto 31 March 2012, in certain cases, the one-time advance contribution towards the CPEs in the form of rental was being recognized over a period of three years from the activation date. There is no significant impact on financial results of the quarter and year-ended 31 March 2013 on account of change in estimate for revenue recognition.

    * Dish TV’s net-worth as at 31 March 2013 is eroded by its accumulated losses. However, the management has prepared the financial results assuming that the Company will continue as a going concern considering that it has adequate resources in the form of operating cash flows, sanctioned credit facilities from lenders and bank deposits to adequately meet its obligations.

    * The name of the Company’s wholly owned subsidiary in Singapore, namely, Dish TV Singapore Pte Limited was changed to Digital Network Distribution Pte Limited on 12 March 2013. The Company entered into a share purchase Agreement dated 19 March 2013 with a party for transfer of its investment at an agreed price of Sing$12,000. On 1 April 2013, the share holding in Digital Network Distribution Pte Limited was transferred and, accordingly, as at 31 March 2013, the investments has been shown under current maturities of long term investment.

    * During the current year, Direct Media Distribution Ventures Pvt. Ltd (formerly known as Dhaka Warriors Sports Pvt Ltd) disinvested its holding in the Company from 59.86% to 45.24% and consequently, it ceases to be the holding company of Dish TV India Limited.

    *Hitherto, the exchange differences arising from foreign currency borrowing to the extent that they are regarded as an adjustment to interest cost, were treated as borrowing cost in terms of AS – 16, “Borrowing Costs.”

    During the year ended 31 March 2013, pursuant to a clarification dated 9 August 2012 from the MCA, the Company has changed the accounting policy w.e.f. from 1 April 2011, to treat the same as “foreign exchange fluctuation”, to be accounted as per AS – 11 “Effects of Changes in Foreign Exchange Rates,” instead of AS – 16 “Borrowing Costs”.

    This change has resulted in a reversal of finance cost of Rs. 70.68 crore and increase in depreciation by Rs. 11.24 crore during the year ended 31 March 2013. The aforesaid change, resulting in a net gain of Rs 59.44 crore, has been shown as ‘exceptional items’ in the financial results for the year ended 31 March 2013. In this regard, if the company had followed the same accounting policy as in the previous year, finance costs for the year would have been higher by Rs 58.41 crore; depreciation expense would have been lower by Rs 14.15 crore and the loss for the year would have been higher by Rs 44.26 crore.

  • Airtel DTH: Q4 2013 revenues & subs up, losses down

    Airtel DTH: Q4 2013 revenues & subs up, losses down

    MUMBAI: That the DTH market in India is doing well, is something that the Telecom Regulatory Authority of India (Trai) latest quarter report turned up. This is reflected in Bharti Airtel’s digital TV services financials for Q4 and financial year ended 31 March 2013 which were announced earlier this week.

    The division’s revenues are up even as average revenue per user (ARPU) has moved northwards (albeit marginally) and losses southwards. But the business is obviously burning cash – though lower than earlier – as competition is forcing DTH players to expand their reach nationally and offer newer services. All this – without being able to pass on costs to subscribers.

    Q4 2013 revenues are up 24 per cent to Rs 441.90 crore as against Rs 356.5 crore in the previous corresponding quarter of 2012. The company continues to be EBITDA positive with the number rising to Rs 29.6 crore (Rs 20.9 crore in Q4 2012). Its operating losses are down to Rs 178.4 crore (Rs 194.4 crore). It incurred a capex of Rs 132.6 crore (Rs 98 crore) during the quarter. Its cumulative investments in the DTH business up to end March 2013 stand at Rs 4036.6 crore (Rs 3298 crore).

    The good news is that ARPU is also up to Rs 184 in Q4 2013 (Rs 166 in Q4 2012). The company says this was “achieved through product innovations, pricing corrections and up-selling.” Its subscriber base grew 12 per cent from 7.2 million in Q4 2012 to 8.1 million (Q4 2013). The company attributes this increase to the digitisation drive across the four metro cities of the country and it expects this to accelerate further with phase II digitization.

    The DTH business’ revenues for the whole year rose 26 per cent to Rs 1629.4 crore (Rs 1296 crore up to March 2012). Its EBITDA numbers were down three per cent to Rs 45.2 crore (Rs 46.5 crore). Its operating loss rose from Rs 719.8 crore to Rs 815 crore. And its operating free cash flow requirement improved seven per cent from a negative Rs 763.4 crore to Rs 709.6 crore.
    The company says it is doing pretty well on its HD set top box rollout (HD), digital TV recorders with 3D capabilities, and in providing a superior customer experience. It currently offers 373 channels and services including 15 HD channels and six interactive services. It says it is the first Indian DTH player to “provide real-time integration of all the three screens viz. television, mobile and computer enabling our customers to record their favourite TV programs through mobile and web.”

  • PVR Q3 consolidated net remains flat at Rs 88.9 mn

    PVR Q3 consolidated net remains flat at Rs 88.9 mn

    MUMBAI: Film exhibitor and production company PVR consolidated net profit remained flat at Rs 88.9 million for fiscal third quarter ending 31 December compared to Rs 89.2 million in the corresponding fiscal.

    The consolidated revenues for the quarter went up by 43 per cent to Rs 2.02 billion as compared to Rs. 1.41 billion during the corresponding period of last year. Consolidated Ebitda for the quarter was up by 34 per cent to Rs 354.3 million as against Rs 263.8 million.

    On a standalone basis, PVR‘s exhibition business posted a net profit of Rs 142.2 million including a one time profit of Rs 33.3 million.. Ebitda increased by 43 per cent to Rs. 345.2 million as compared to Rs 241 million in corresponding period of last year.

    The exhibition business revenue increased to Rs 1.88 billion from Rs 1.28 billion in the same period last year, up 46 per cent.

    PVR MD Ajay Bijli said, “We are extremely pleased that 2012 is shaping up as a great year at the box office. The revenues and profitability in the quarter and nine months has shown a robust growth over the same period last year. The good results is also a function of Company’s long term location strategy to partner in best mall developments in the country, its unique design philosophy, strong customer focus and a unique brand positioning. “

    On 8 January, PVR had completed the acquisition of 69.27 per cent stake in Cinemax India from its erstwhile promoters.

    In compliance with Sebi Takeover Code, the company has announced an open offer to shareholders of Cinemax India Limited for an additional 26 per cent stake, and the tendering period shall commence on 4 February.

    Consequent to the said acquisition, Cinemax India has now become a subsidiary of PVR. On a combined basis, PVR and Cinemax will have a network of 351 screens spread over 85 properties in 36 cities across the country.