ITV

Tag: EPS

  • ITC profit rises eight per cent as revenue hits Rs 18,953 crore in Q3 FY25

    ITC profit rises eight per cent as revenue hits Rs 18,953 crore in Q3 FY25

    MUMBAI: ITC has wrapped up the third quarter of FY25 on a strong note, delivering an eight per cent year-on-year (YoY) growth in gross revenue to Rs 18,953 crore, despite facing inflationary headwinds. The company’s diversified portfolio—spanning FMCG, agri-business, cigarettes, and paper—helped offset rising input costs in wheat, edible oil, and tobacco.

    The cigarette segment, ITC’s profit engine, recorded an 8.1 per cent YoY rise in net revenue, with segment profit before interest and tax (PBIT) up 4.1 per cent, aided by strategic portfolio interventions and premium offerings. FMCG (excluding cigarettes) grew four per cent YoY, driven by atta, spices, frozen snacks, and personal care products. The agri-business segment surged 9.7 per cent, powered by leaf tobacco and value-added agri exports, lifting PBIT by a robust 21.6 per cent.

    ITC’s paper and packaging business remained under pressure due to low-priced Chinese and Indonesian imports and rising domestic wood prices, though portfolio expansion and export growth provided some relief. Meanwhile, the recently demerged hotels business delivered its best-ever quarterly performance, with a 14.6 per cent YoY revenue jump to Rs 922 crore and a 43.4 per cent rise in PBT to Rs 302 crore, driven by weddings, retail, and F&B. The Hotels business was officially demerged into ITC Hotels Limited (ITCHL) with effect from 1st January 2025 and is now reported as ‘Discontinued Operations’ in line with Indian Accounting Standards.

    EBITDA for the quarter rose 3 per cent YoY, with a 4.5 per cent increase excluding the paper segment. Profit before tax (PBT) before exceptional items stood at Rs 6,847 crore, while profit after tax (PAT) reached Rs 5,638 crore. Earnings per share (EPS) for the quarter stood at Rs 4.51.

    The board has recommended an interim dividend of Rs 6.50 per share, reinforcing ITC’s strong shareholder returns. Looking ahead, the company remains optimistic, banking on premiumisation, strategic cost management, and sustained investments in emerging growth segments.

  • CBS revenues up 9%, gains from retransmission, skinny bundles & OTT

    MUMBAI: CBS Corporation has reported record second quarter revenues, operating income, and diluted earnings per share (“EPS”) from continuing operations.

    “CBS delivered outstanding second quarter results while continuing to take a number of steps to achieve our long-term financial goals,” said Leslie Moonves, Chairman and Chief Executive Officer, CBS Corporation. “First, we had a terrific upfront with gains in pricing and volume, including more and more deals that better reflect how people are watching our programming on a delayed basis. In addition, we took significant steps during the quarter to grow our affiliate fees from both traditional and ‘skinny’ bundles. Retransmission consent and reverse compensation increased 25% in the second quarter. And we are now seeing the benefit of our recent skinny bundle deals with Google’s YouTube TV, Hulu, fuboTV, and just today we announced that we will be a part of DIRECTV NOW as well. At the same time, our in-house over-the-top subscription services, CBS All Access and Showtime OTT, continue to grow beyond our expectations and are on track to surpass a combined four million subscribers by the end of 2017. We are now gearing up to take the next strategic step with All Access by expanding it into the international marketplace, starting with Canada in the first half of 2018. Showtime also had a terrific quarter, led by the successful return of Twin Peaks, which boosted OTT subscriptions dramatically, and we continue to expand the Showtime brand overseas with new deals to license our entire portfolio in France, India, Taiwan, Hong Kong, and others. So, 2017 is turning out to be a great year for the CBS Corporation even without the Super Bowl and political spending that we had in the prior year. And as we look ahead, we are positioned to have an even better year in 2018.”

    Second Quarter 2017 Results

    Revenues for the second quarter of 2017 increased 9% to $3.26 billion from $2.98 billion for the same prior-year period, with growth across all of the Company’s significant revenue streams. Affiliate and subscription fee revenues were up 16%, driven by a 25% increase in retransmission revenues and fees from CBS Television Network affiliated stations, as well as growth from new initiatives, including the Company’s digital subscription services. Advertising revenues were up 4%, led by the broadcast of the semifinals and finals of the NCAA Division I Men’s Basketball Championship (“NCAA Tournament”) on the CBS Television Network. Content licensing and distribution revenues benefited from a higher volume of television licensing sales and grew 12%, despite a difficult comparison to the second quarter of 2016, which included the international sales of five Star Trek series.

    Operating income for the second quarter of 2017 increased 3% to $669 million from $651 million for the same prior-year period, despite higher-margin licensing sales in the second quarter of 2016. Net earnings from continuing operations increased 6% to $397 million for the second quarter of 2017 from $373 million for the same quarter last year, mainly a result of the higher operating income. Adjusted net earnings for the second quarter of 2017 were $427 million compared with net earnings of $423 million for the same prior-year period.

    Net earnings for the second quarter of 2017 were $58 million, which included a noncash charge of $365 million in discontinued operations to reduce the carrying value of CBS Radio to the value indicated by the stock valuation of Entercom Communications Corp. CBS Radio is classified as held for sale and therefore, in accordance with accounting guidance, the carrying value will continue to be adjusted based on the trading price of Entercom’s stock, which could result in future gains or losses.

    Diluted EPS from continuing operations for the second quarter of 2017 increased 18% to $.97 from $.82 for the same quarter in 2016, driven by higher earnings and lower shares outstanding in the second quarter of 2017 from the Company’s ongoing share repurchase program. Diluted EPS for the second quarter of 2017 was $.14 as a result of the above-mentioned noncash charge at CBS Radio, compared with $.93 for the prior-year period. Adjusted diluted EPS increased 12% to $1.04. During the quarter, the Company repurchased 4.7 million of its shares for $300 million.

    Details of the discrete items excluded from financial results, along with reconciliations of adjusted results to their most directly comparable GAAP financial measures, are included at the end of this earnings release.

    Free Cash Flow, Balance Sheet and Liquidity

    For the second quarter of 2017, operating cash flow from continuing operations was $231 million, compared with $216 million for the second quarter of 2016, and for the first six months of 2017, operating cash flow from continuing operations was $909 million, which included discretionary contributions of $100 million to prefund the Company’s qualified pension plans, compared with $1.14 billion for the first six months of 2016, which included CBS’s broadcast of Super Bowl 50. Operating cash flow from continuing operations for 2017 benefited from higher affiliate and subscription fee revenues. Free cash flow was $190 million for the second quarter of 2017 compared with $181 million for the same prior-year period, and for the first six months of the year, free cash flow was $841 million in 2017, which included the aforementioned pension contributions, compared with $1.07 billion in 2016.

    In July 2017, the Company issued $400 million of 2.50% senior notes due 2023 and $500 million of 3.375% senior notes due 2028. The Company used the net proceeds from these issuances to repay its $400 million outstanding 1.95% senior notes which matured on July 1, 2017, and to redeem all of its $300 million outstanding 4.625% senior notes due May 2018. The remaining net proceeds were used for general corporate purposes, including the repayment of short-term borrowings, such as commercial paper.

    Consolidated and Segment Results (dollars in millions)

    The tables below present the Company’s revenues by segment and type; operating income (loss) excluding other operating items, net, by segment (“Segment Operating Income”); and depreciation and amortization by segment for the three and six months ended June 30, 2017, and 2016.

    Entertainment (CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Interactive, and CBS Films)

    Entertainment revenues of $2.18 billion for the second quarter of 2017 were up 12% from $1.95 billion for the same prior-year period. This increase was led by 38% growth in affiliate and subscription fees, driven by higher station affiliation fees and subscriber growth at CBS All Access. Advertising revenues increased 6%, as a result of the broadcast of the semifinals and finals of the NCAA Tournament on the CBS Television Network. Content licensing and distribution revenues benefited from more television licensing activity in the second quarter of 2017 and grew 12%, despite the difficult comparison with the prior-year period, which included the international licensing sales of five Star Trek series.

    Entertainment operating income of $346 million for the second quarter of 2017 decreased 1% from $351 million for the same prior-year period, primarily reflecting higher-margin revenues in the second quarter of 2016.

    Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks)

    Cable Networks revenues of $571 million for the second quarter of 2017 increased 7% from $536 million for the same prior-year period. The increase was driven by higher affiliate and subscription fees, led by growth of the Showtime digital streaming subscription offering and higher international television licensing sales of Showtime original series.

    Cable Networks operating income of $253 million for the second quarter of 2017 increased 11% from $227 million for the same prior-year period, primarily reflecting the revenue growth.

    Publishing (Simon & Schuster)

    Publishing revenues of $206 million for the second quarter of 2017 grew 10% from $187 million for the same prior-year period. The increase was led by growth in print book sales and digital audio sales. Bestselling titles for the second quarter of 2017 included Lord of Shadows by Cassandra Clare and I Can’t Make This Up by Kevin Hart.

    Publishing operating income of $28 million for the second quarter of 2017 increased 8% from $26 million for the same prior-year period, mainly reflecting the revenue growth.

    Local Media (CBS Television Stations and CBS Local Digital Media)

    Local Media revenues of $412 million for the second quarter of 2017 increased 4% from $396 million for the same prior-year period, driven by higher retransmission revenues. Advertising revenues for the second quarter of 2017 decreased 2%, driven by lower political advertising sales, which were offset by CBS’s broadcast of the semifinals and finals of the NCAA Tournament.

    Local Media operating income of $127 million for the second quarter of 2017 decreased 2% from $130 million for the same prior-year period due to the mix of revenues. Retransmission revenues have associated network affiliation costs paid to the CBS Television Network, whereas political advertising sales carry a high operating income margin.

    Corporate

    Corporate expenses for the second quarter of 2017 were $85 million compared with $83 million for the same prior-year period.

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  • Q1-17: Shemaroo reports 23 percent growth in revenue, PAT up 20 percent

    Q1-17: Shemaroo reports 23 percent growth in revenue, PAT up 20 percent

    BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported  23.5 percent higher  y-o-y consolidated Total Income from Operations (TIO) for the quarter ended 30 June 2016 (Q1-17, current quarter) at Rs 95.87 crore as compared to the Rs 77.63 crore in Q2-16. However, TIO in the current quarter was 6.8 percent lower quarter-over-over (q-o-q) than the Rs 93.53 crore in Q4-16.

    Shemaroo’s consolidated PAT for the current quarter improved 20.3 percent y-o-y to Rs 14.04 crore (14.6 percent margin) as compared to the Rs 11.67 crore (15 percent margin) but was 14.7 percent lower as compared to the Rs 16.46 crore (16 percent margin) in Q4-16.

    Shemaroo’s EBIDTA including other income in the current quarter at Rs 30.14 crore (31.4 percent margin) increased 23 percent y-o-y from Rs 24.48 crore (31.5 percent margin), but declined 11.2 percent q-o-q from Rs 33.91 crore (33 percent margin).

    Shemaroo’s wholetime director and CFO Hiren Gada, said, “It has been yet another quarter of consistent growth for us with the topline growing y-o-y and with healthy margins. Improving technology and infrastructure continues to contribute in scaling up our revenue from digital platforms. To maintain the momentum of upward trajectory in the business, we will look to further explore and monetize our content on various upcoming platforms.”

    Let us look at the other numbers reported by Shemaroo

    The company has two business divisions – New Media and Traditional media. Revenue from New Media business increased 50.3 percent y-o-y to Rs 20.14 crore from Rs 13.40 crore. Traditional Media revenue increased 16.7 percent y-o-y to Rs 74.96 crore from Rs 64.34 crore.

    The company’s Total Expenditure (TE) in Q1-17 at Rs 67.13 crore (70 percent of TIO) was 23.2 percent more y-o-y than the Rs 54.50 crore (70.2 percent of TIO) but was 4.1 percent lower q-o-q than Rs 69.97 crore (68 percent of TIO).

    The company’s cost of Raw Materials consumed decreased 37 percent y-o-y in Q1-17 to Rs 58.38 crore (60.9 percent of TIO) as compared to Rs 92.65 crore (119.3 percent of TIO) and decreased 3.9 percent q-o-q as compared to Rs 60.77 crore (59.1 percent of TIO).

    Employee Benefit Expense (EBE) in Q1-17 increased 67.7 percent y-o-y to Rs 7.68 crore (8 percent of TIO) as compared to Rs 4.58 crore (5.9 percent of TIO) and increased 4.9 percent q-o-q as compared to Rs 7.32 crore (7.1 percent of TIO)

    Basic and undiluted EPS (not annualised) for Q1-17 was Rs 5.17, for Q1-16 it was Rs 4.29; in Q4-2016 EPS was Rs 6.05.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • Q1-17: Shemaroo reports 23 percent growth in revenue, PAT up 20 percent

    Q1-17: Shemaroo reports 23 percent growth in revenue, PAT up 20 percent

    BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported  23.5 percent higher  y-o-y consolidated Total Income from Operations (TIO) for the quarter ended 30 June 2016 (Q1-17, current quarter) at Rs 95.87 crore as compared to the Rs 77.63 crore in Q2-16. However, TIO in the current quarter was 6.8 percent lower quarter-over-over (q-o-q) than the Rs 93.53 crore in Q4-16.

    Shemaroo’s consolidated PAT for the current quarter improved 20.3 percent y-o-y to Rs 14.04 crore (14.6 percent margin) as compared to the Rs 11.67 crore (15 percent margin) but was 14.7 percent lower as compared to the Rs 16.46 crore (16 percent margin) in Q4-16.

    Shemaroo’s EBIDTA including other income in the current quarter at Rs 30.14 crore (31.4 percent margin) increased 23 percent y-o-y from Rs 24.48 crore (31.5 percent margin), but declined 11.2 percent q-o-q from Rs 33.91 crore (33 percent margin).

    Shemaroo’s wholetime director and CFO Hiren Gada, said, “It has been yet another quarter of consistent growth for us with the topline growing y-o-y and with healthy margins. Improving technology and infrastructure continues to contribute in scaling up our revenue from digital platforms. To maintain the momentum of upward trajectory in the business, we will look to further explore and monetize our content on various upcoming platforms.”

    Let us look at the other numbers reported by Shemaroo

    The company has two business divisions – New Media and Traditional media. Revenue from New Media business increased 50.3 percent y-o-y to Rs 20.14 crore from Rs 13.40 crore. Traditional Media revenue increased 16.7 percent y-o-y to Rs 74.96 crore from Rs 64.34 crore.

    The company’s Total Expenditure (TE) in Q1-17 at Rs 67.13 crore (70 percent of TIO) was 23.2 percent more y-o-y than the Rs 54.50 crore (70.2 percent of TIO) but was 4.1 percent lower q-o-q than Rs 69.97 crore (68 percent of TIO).

    The company’s cost of Raw Materials consumed decreased 37 percent y-o-y in Q1-17 to Rs 58.38 crore (60.9 percent of TIO) as compared to Rs 92.65 crore (119.3 percent of TIO) and decreased 3.9 percent q-o-q as compared to Rs 60.77 crore (59.1 percent of TIO).

    Employee Benefit Expense (EBE) in Q1-17 increased 67.7 percent y-o-y to Rs 7.68 crore (8 percent of TIO) as compared to Rs 4.58 crore (5.9 percent of TIO) and increased 4.9 percent q-o-q as compared to Rs 7.32 crore (7.1 percent of TIO)

    Basic and undiluted EPS (not annualised) for Q1-17 was Rs 5.17, for Q1-16 it was Rs 4.29; in Q4-2016 EPS was Rs 6.05.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • Q2-2016: Shemaroo revenue up 10% at Rs 93.62 crore

    Q2-2016: Shemaroo revenue up 10% at Rs 93.62 crore

    BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 10.2 per cent higher  consolidated Total Income from Operations (TIO) for the quarter ended 30 September, 2015 (Q2-2016, current quarter) at Rs 93.62 crore as compared to Rs 84.96 crore in Q2-2015 and 20.4 per cent more than the Rs 77.63 crore in Q1-2016. 

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

    (2) All numbers are consolidated unless stated otherwise.

    Shemaroo’s consolidated PAT for the current quarter improved 30.7 per cent to Rs 11.20 crore (12 per cent margin) as compared to the Rs 8.57 crore (10.1 per cent margin) but declined four per cent as compared to the Rs 11.67 crore (15 per cent margin) in Q1-2016.

    Shemaroo’s EBIDTA including other income at Rs 24.34 crore (26 per cent margin) increased 14.8 per cent YoY as compared to Rs 21.20 crore (25 per cent margin) and declined by 0.6 per cent QoQ from Rs 24.48 crore (31.5 per cent margin).

    The company’s Total Expenditure (TE) in Q2-2016 at Rs 70.86 crore (75.7 per cent of TIO) increased 9.2 per cent YoY as compared to Rs 64.91 crore (76.4 per cent of TIO) and was 30 per cent more than Rs 54.50 crore (70.2 per cent of TIO) in Q1-2016.

    The company’s cost of Raw Materials consumed increased 89.4 per cent in Q2-2016 to Rs 113.58 crore (121.3 per cent of TIO) as compared to Rs 59.98 crore (70.6 per cent of TIO) in Q2-2015 and was 22.6 per cent more than the Rs 92.65 crore (119.3 per cent of TIO) in Q1-2015.

    Employee Benefit Expense (EBE) in Q2-2015 increased 30.9 per cent to Rs 6.01 crore (6.4 per cent of TIO) as compared to the Rs 4.59 crore (5.4 per cent of TIO) and was 31.2 per cent more than the Rs 4.58 crore (5.9 per cent of TIO) in Q1-2016.

    Basic and undiluted EPS in Q2-2016 was Rs 4.12; in Q2-2015 EPS was Rs 4.30 and in Q1-2016 was Rs 4.29.

  • Cisco sells set-top-box biz to Technicolor for $600 million

    Cisco sells set-top-box biz to Technicolor for $600 million

    MUMBAI: Cisco has sold its set-top-box (STB) business to Technicolor for $600 million in a cash and stock transaction.

     

    The board of directors of the two companies will review the deal, which will be on a cash free, debt free basis.

     

    Under the terms of the agreement, upon the closing of the transaction, Cisco will receive approximately $450 million in cash and approximately $150 million in newly issued Technicolor shares, subject to certain adjustments provided for in the agreement.

     

    The acquisition should result in Technicolor’s connected home segment reaching adjusted EBITDA in excess of $219 million by year end 2016 and best-in-class profitability by 2017. The transaction will also translate into double-digit EPS accretion at Group level starting in the first full year after closing.

     

    Simultaneously to the acquisition, Technicolor and Cisco will enter into a strategic partnership that will allow both companies to develop and deliver next generation video and broadband technologies, with cooperation on Internet of Things (IoT) solutions and services. The strategic agreement will provide ongoing commitment to all existing customers and expand offerings.

     

    By combining their strengths and leading video expertise, from content creation to in-home delivery, the two companies will accelerate innovation and forge a leading entity that network service providers can rely on for their next generation connected home experiences.

     

    Technicolor and Cisco also have signed a long-term patent cross-licensing agreement that covers specific intellectual property and patents from both companies. As part of the deal and after the transaction has closed of Cisco senior vice president and chief strategy officer Hilton Romanski, will join Technicolor’s Board of Directors.

     

    Technicolor CEO Frederic Rose said, “We know that video expertise is essential to the future of creating outstanding network and home infrastructure products and services. Through this acquisition and strategic agreement, Technicolor can immediately bring its unrivalled experience and innovation in video creation, delivery, and display to more customers in more geographies, while strengthening our position as a technology leader.”

     

    “The strategic relevance of video to every consumer, business, city and country around the world is only growing, and the market is moving rapidly. This is the right time and we have the right company in Technicolor to drive the future of the CPE business to deliver what our customers and partners need, today and into the future. At Cisco, we are prioritizing our investments to deliver on our strategy of video in the cloud, and will partner with Technicolor to position the CPE business and employees for future success,” added Cisco CEO and chairman John Chambers.

     

    The $452 million cash portion of the consideration will be financed through cash-on-hand and fully-underwritten new debt with an anticipated limited impact on Technicolor’s leverage position.

  • Radio losses drag down TV Today net

    Radio losses drag down TV Today net

    MUMBAI: TV Today Network has seen an 8.69 per cent dip in its net profit for FY10. The company posted a net profit of Rs 308.67 million, lower than last fiscal’s Rs 335.5 million.

    The income from operations at Rs 2.85 billion is up 13.83 per cent from FY09 when it stood at Rs 2.5 billion.

    As far as the expenses for the firm go, its overall expenditure of Rs 2.54 billion is higher than last year’s Rs 2.25 billion, which is in tune for a growing firm. However, while almost all segments of expenditure saw an increase, the advertising, marketing and distribution expenses dropped to Rs 602.9 million this fiscal, as compared to Rs 675.32 million in the previous year. This is in sync with what analysts had predicted would happen post the merger of Radio Today Broadcasting (which runs Meow FM).

    The company’s operating profit went up by 25.37 per cent which is a significant jump. The operating profit of Rs 309.24 million in FY10, compared to Rs 246.67 million in FY09, indicates that the normal business activities of the firm are growing.

    The other income earned by the firm is marginally down this fiscal at Rs 231.04 million from last year’s Rs 242.08 million. However, one of the key factors that led to a lower net profit this year is the hit that it has taken in its balance sheet on account of higher interest and finance charges courtesy Radio Today’s merger with it. The latter had been making losses and had taken huge loans. At Rs 70.49 million, the interest and finance charges in the TV Today financials were significantly higher than last year’s Rs 1.37 million.

    However thanks to the company’s overall growth its EPS on a Rs 5 face value share is only marginally lower. At Rs 5.31 in FY10 on a diluted basis, it compares well to Rs 5.79 in FY09. The company’s management has announced a dividend of 15 per cent for the fiscal.

    The income generated by the radio segment was Rs 43.61 million, while TV Broadcast was Rs 2.80 billion. However, while the TV segment made a profit of Rs 578.49 million this year, the radio segment made a loss of Rs 221.26 million and this was a major factor in the overall net profit of the firm being down.

    The firm has made an advance of payment of Rs 185 million to Mail Today Newspapers to subscribe to its equity and enter the daily newspaper space. The venture is currently notching up huge losses but the management believes it will end up being a profitable decision.

  • Disney reports Q4 profit of $782 million

    Disney reports Q4 profit of $782 million

    MUMBAI: US media conglomerate Disney has reported a fourth-quarter net profit of $782 million, or 36 cents per share, compared with $379 million, or 19 cents per share, a year before.

    Disney’s revenue rose 14 per cent to $8.78 billion from last year’s $7.73 billion. Analysts expected a top line of $8.69 billion. Diluted earnings per share (EPS) for the fourth quarter increased 89% to $0.36, compared to $0.19 in the prior-year period, reflecting growth at studio entertainment, parks and tesorts, and media networks. For the year, EPS increased 34 per cent to $1.64, compared to $1.22 in the prior year, reflecting growth at each operating segment.

    Disney president and CEO Robert Iger says, “Disney had a spectacular year, posting record revenues, record net income, and record cash flow. It is a result of the incredible creativity at our company.” Media networks revenues for the year increased 11 per cent to $14.6 billion and segment operating income increased 12 per cent to $3.6 billion. For the quarter, revenues increased 10 per cent to $3.7 billion and segment operating income increased 18 per cent to $883 million.

    Operating income at cable networks increased $259 million to $3.0 billion for the year primarily due to growth at ESPN from higher affiliate and advertising revenues. Higher affiliate revenues were due to contractual rate increases and, to a lesser extent, subscriber growth while advertising revenue growth was driven by higher ratings and rates. The revenue increases at ESPN were partially offset by higher programming expenses primarily due to the new Major League Baseball (MLB) and National Football League (NFL) rights agreements and an additional NFL game.

    Increased costs for the ESPN branded mobile phone service, which the Company recently announced would be transitioned into its existing wireless licensing business, and higher general and administrative costs also impacted results for the year.

    For the quarter, operating income at cable networks increased $156 million to $854 million due to growth at ESPN. The increase at ESPN was driven by higher affiliate and advertising revenues and lower marketing expenses. Higher affiliate revenues were due to the recognition of increased deferred revenues and higher contractual rates. During the quarter, ESPN recognized $171 million of previously deferred programming commitment revenues compared to $84 million in the prior-year quarter.

    These increases in ESPN operating income were partially offset by the higher programming expenses from the new MLB and NFL rights agreements and the additional NFL game.

    Operating income at the broadcasting sector increased by $142 million to $606 million for the year driven by improved primetime performance at ABC and increased sales of Touchstone Television series, partially offset by higher costs at the Internet Group and radio, and the increased number and costs of pilot productions.

    The improved primetime performance at ABC was driven by higher ad rates, strong upfront sales, and continued strength in ratings, partially offset by higher programming expenses. The increase in sales at Touchstone were driven by higher international syndication revenues and DVD unit volumes of dramas Lost, Grey’s Anatomy and Desperate Housewives as well as higher license fees for Scrubs, which completed its fifth season on network television.

    Ad revenues for the year at broadcasting also benefited from the Super Bowl, however this revenue increase was essentially offset by related programming expenses.

    The cost increase at the Internet Group was primarily due to the launch of Disney branded mobile phone services as well as the costs of other new initiatives. Higher costs at Radio included an impairment charge related to FCC licenses, primarily at ESPN Radio, reflecting an overall market decline in certain radio markets in which we operate.

    However for the quarter, operating income at broadcasting decreased by $19 million to $29 million as improved performance at ABC and higher DVD unit sales of Touchstone Television series were more than offset by the increased costs associated with the roll-out of Disney branded mobile phone services and the FCC license impairment charge. The improved performance at ABC Television Network was driven by higher advertising rates, increased advertising spots from programming changes, and benefits from replacement programming for Monday Night Football, partially offset by the impact of lower ratings.

    On the film front revenues for the year decreased by one per cent to $7.5 billion and segment operating income increased from $207 million to $729 million. Operating income growth was primarily due to improvements in worldwide theatrical motion picture distribution and worldwide home entertainment.

    For the quarter, revenues increased by 33 per cent to $2 billion and segment operating income increased $527 million to $214 million. The increase in operating income was primarily due to improvements in worldwide theatrical motion picture distribution and worldwide home entertainment.

    The improvement in worldwide theatrical motion picture distribution for the year was primarily due to lower distribution costs resulting from fewer domestic Miramax releases and the performance of Pirates of the Caribbean: Dead Man’s Chest. Other successful current year titles included The Chronicles ofNarnia: The Lion, The Witch and The Wardrobe and Disney/Pixar’s Cars.

    Worldwide home entertainment growth for the year was primarily due to reduced marketing and trade programs, lower distribution costs driven in part by fewer returns, and improved margins from increased sales of television series DVD box sets, partially offset by a decline in unit sales resulting from a higher number of strong performing titles in the prior year. Significant current year titles included The Chronicles of Narnia: The Lion, The Witch and The Wardrobe, Cinderella Platinum Release, and Chicken Little, while prior-year titles included Disney/Pixar’s The Incredibles, National Treasure, Aladdin Platinum Release, and Bambi Platinum Release.

  • Sun TV FY06 net profit up by 70%, declares 20% dividend

    Sun TV FY06 net profit up by 70%, declares 20% dividend

    MUMBAI: Sun TV Limited has announced the financial result for the fiscal ended 31 March 2006. For the 2005-2006 fiscal, the company has reported 69.65 per cent increase in profit after tax at Rs 1302.3 million and revenues for the year are up at Rs 3219.1 million.

    According to an official release, the program licence income has registered a growth of 101 per cent. The Earnings per share (EPS) is up 70 per cent at Rs 21 from Rs. 12.38 for the same period last year. The Board of Directors have recommended a dividend of 20 per cent for the year.

    Inspired by the good FY06 performance, the Sun TV scrip closed at 1,083.60, recording a jump of Rs 38.10 at the Bombay Stock Exchange (BSE) today. At the National Stock EXchange (NSE), it ended the day’s trade at 1,085.50 with a gain of Rs 35.30.

    Sun TV had entered the capital market on 3 April 2006 with an IPO. Sun TV Ltd. offers four Tamil language channels, including the flagship channel, Sun TV and two Malayalam channels, including Surya TV. It also operates leading Tamil radio stations under the name Suryan FM.

  • Playboy reports first quarter profit

    Playboy reports first quarter profit

    MUMBAI: Adult entertainment brand Playboy has reported net income for the first quarter ended 31 March, 2006, of $0.8 million.

    This compares to a net loss in the prior year quarter of $13.1 million. First quarter 2006 operating income totalled $3.5 million.

    Playboy posted an $800,000 profit on revenues of $82.1 million, two per cent down on this time last year.

    Playboy chairman and CEO Christie Hefner said, “The continued strong performance of the Licensing Group and growth of the newer digital media businesses of international TV, online and mobile validate not only the appeal of the brand but of our multi-platform business model. However, these promising and fast-growing businesses cannot yet offset the negative trends in our larger domestic TV business.”

    “Given the changing dynamics of the domestic TV business combined with the challenges in the publishing industry, it is clear that we need to realign our cost structure to perform satisfactorily in this new environment. We are confident that we can make the changes necessary to improve our performance and position ourselves not just for the second half but for 2007 and beyond,” Hefner added.

    “We expect the weakness in publishing and domestic TV results to continue. These trends, together with the expense of reducing our cost structure, will likely result in a substantial second quarter loss, making it clear that we will not meet our initial earnings projection of $0.67 to $0.70 per share for the year. However, we expect a number of positive developments in the second half including VOD product launches, the opening of Playboy at the Palms and improved advertising sales,” Hefner said.

    “With these initiatives and a realigned cost structure, we believe that we can deliver a 50 per cent improvement in second half 2006 earnings per share compared to the $0.24 EPS we reported in the second half of last year.”

    The Entertainment Group reported first quarter 2006 segment income of $7.9 million compared to $11.9 million last year, primarily reflecting weaker performance in domestic TV. Increases in online, international and other business revenues were nearly offset by lower domestic TV revenues, resulting in a one per cent increase in the Group’s first quarter 2006 revenue to $51.2 million.

    Lower cable pay-per-view revenues for both Playboy TV and the movie networks reflected the continued migration of programming from linear networks to VOD platforms where the company is not yet fully represented and its programming faces more competition. The company said that it also expects future domestic TV revenues to be unfavorably affected by the reduction of channel space on the DirecTV platform. In the international businesses, expansion of the company’s UK package of TV networks was primarily responsible for the revenue growth. Online benefited from the acquisition made last fall, which was responsible for the increase in first quarter subscription revenues.

    For the first quarter, the Publishing Group reported a segment loss of $2.3 million in 2006, versus a loss of $0.4 million in the prior year. Lower advertising and news stand revenues for Playboy magazine were primarily responsible for the 13 per cent decline in first quarter 2006 revenues to $23.5 million from $27 million last year. The company said that it expects to report a 16 per cent decline in advertising revenues for the second quarter as compared to the year earlier period.

    First quarter 2006 segment income for the Licensing Group rose 18 per cent to $4.3 million from $3.6 million in 2005 on a 25 per cent increase in revenues from $6.0 million to $7.4 million. Increased royalty income from European licensees was the primary contributor to the revenue and profit growth.