Tag: Financial

Ortel reports respectable maiden numbers for FY-2015 & Q4-2015

BENGALURU: At the time of its IPO earlier in March 2015, Ortel Communications had to withdraw a part of the promoter’s quota to prevent undersubscription. In its maiden financial numbers, Ortel reported fairly respectable numbers for FY-2015 as well as Q4-2015 and hence justified the faith that investors put in it. The company was listed on 19 March, 2015.

For FY-2015, Ortel reported total income from operations (TIO) of Rs 154.79 crore for FY-2015, 20.5 per cent more than the Rs 128.50 crore in the preceding financial year. The company reported a profit after tax (PAT) of Rs 5.65 crore in FY-2015 as compared to a loss of Rs 11.28 crore in FY-2014.

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

The numbers mentioned in this report are standalone.

Cable subscription fees in FY-2015 grew four per cent to Rs 79 crore from Rs 75.7 crore in FY-2014, while internet subscription fees grew five per cent to Rs 27 crore from Rs 25.8 crore in FY-2014.

In Q4-2015, the company’s TIO at Rs 44.91 crore was a healthy 34.4 per cent more than the Rs 33.41 crore in the corresponding quarter of last year and 13.9 per cent more than the Rs 39.44 crore in Q3-2015. The company reported a PAT of Rs 5.65 crore in Q4-2015, as compared to a loss of Rs 1.23 crore in Q4-2014 and more than 20 times (20.64 times) the PAT for Q3-2014 which was reported as Rs 0.27 crore.

Revenue generating units (RGU)

Two main segments add to the company’s numbers – Cable TV and Broadband, with a big chunk of numbers also being added by unallocated segments.

Ortel reported total RGUs of 530,111 in FY-2015 as compared to 515,835 in FY-2014 and 486,255 in FY-2013. Of these, total cable RGUs in FY-2015 were 471,592, in FY-2014 they were 461,408, and in FY-2013 they were 435,628.

Correspondingly, Broadband RGUs were 58,519 in FY-2015, 54,427 in FY-2014 and 50,627 in FY-2013.

Cable TV segment

In FY-2015, Cable TV segment reported 11.5 per cent growth in revenue from Rs 97.35 crores in the previous year to Rs 108.52 crore in FY-2015. Cable TV segment reported 12.1 per cent growth in operating profit to Rs 49.32 crore in FY-2015 from Rs 43.98 crore in FY-2014.

Within this segment, besides subscription fees, cable connection fees grew 161 per cent to Rs 3.1 crore in FY-2015 from Rs 1.2 crore in FY-2014. Channel carriage fees grew 29 per cent in FY-2015 to Rs 26.4 crore from Rs 20.5 crore from FY-2014.

Cable TV reported 9.7 per cent y-o-y growth in revenue to Rs 27.87 crore from Rs 25.41 crore in Q4-2014 and 2.2 per cent growth from Rs 27.27 crore in Q3-2015. The segment reported more than triple the operating profits in Q4-2015 at Rs 11.21 crore as compared to the Rs 3.61 crore in the corresponding quarter of last year and 8.3 per cent more than the Rs 10.36 crore in Q3-2015.

Broadband segment

Broadband segment revenue grew 5.2 per cent during the corresponding period to Rs 28.89 crore in FY-2015 from Rs 27.47 crore in FY-2014. Operating profit from Broadband segment grew a healthy 43.3 per cent to Rs 20.89 crore from Rs 14.57 crore in FY-2014. Within this segment, internet connection fees grew 12 per cent in the current year to Rs 1.9 crore from Rs 1.7 crore in FY-2014.

Broadband segment reported revenue of Rs 7.44 crore in Q4-2015, which was 5.9 per cent more than the Rs 7.02 crore in Q4-2014 and 4.5 per cent more than the Rs 7.12 crore in Q3-2015. The segment reported almost eight times (7.61 times) operating result of Rs 7.95 crore in Q4-2015 as compared to the Rs 1.04 crore in Q4-2014 and 68.9 per cent more than the Rs4.71 crore in the immediate trailing quarter.

Unallocated

Revenue from unallocated segment grew almost four fold (3.73 times) to Rs 17.38 crore in the current year from Rs 3.67 crore in FY-2014. Operating profit credited to unallocated segment grew 3.7 per cent from Rs 3.07 crore in FY-2014 to Rs 3.19 crore in FY-2015.

In Q4-2015, revenue from unallocated revenue grew almost tenfold (9.79 times) to Rs 9.61 crore from Rs 0.98 crore in Q4-2014 and 90.1 per cent more than the Rs 5.06 crore in Q3-2015. Unallocated operating profit grew 4.2 per cent in Q5-2015 to Rs 0.81 crore from Rs 0.78 crore in Q4-2014 and grew 2.8 per cent from Rs 0.79 crore in Q3-2015.

Average revenue per user (ARPU)

The company has reported a slight reduction in average revenue per user (ARPU) in all cases when compared to the previous year, except for digital cable. Analog TV ARPU in FY-2014 was 145 per month as compared to Rs 147 in FY-2014 and Rs 136 in FY-2013.

Digital TV ARPU in FY-2015 was Rs 186 as compared to Rs 177 in FY-2014 and Rs 157 in FY-2013.

Retail broadband ARPU stood at Rs 356 in FY-2015 as compared to Rs 373 in both FY-2014 and FY-2013. Corporate broadband ARPU had the highest fall. In FY-2015, corporate broadband ARPU was Rs 2851 as compared to Rs 3487 in FY-2014 and Rs 3998 in FY-2013. Data usage per month has gone up relatively, hence indicating lowering of charges for data – in FY-2015, it was 3143 MB, in FY-2014 it was 3126 MB and in FY-2013 it was 2666 MB.

Ortel President and CEO Bibhu Prasad Rath said, “I am pleased to report that the company delivered healthy performance during the quarter and full year on the back of growth in Revenue Generating Units (RGUs) in Cable and Broadband businesses and robust contribution from Infrastructure Leasing segment. Our EBITDA margins stood strong at 37 per cent in FY-2015 as compared to 31 per cent in FY-2014. We anticipate further improvement in margins going forward as a result of deeper penetration in the Cable business along with our continued focus on the high-margin Broadband segment. Ortel Communications’ Direct-to-Consumer offering with full control over the ‘last mile’ network has enabled us to emerge as a dominant regional player in the cable TV and broadband business. With increasing penetration in our core and emerging markets along with the inorganic LCO (Local Cable Operator) buy out strategy, we believe we are well-positioned to achieve our immediate target of ~1 million RGUs by the end of FY-2017. I am also proud to share that we successfully concluded the Initial Public Offering (IPO) of the company by raising Rs 108.6 crore during the quarter. The capital infusion will also enable us to accelerate growth and deliver much stronger financial and operational performance in the coming years.”

Click here to read the investor presentation

April 20, 2015
Reliance Retail reports growth in FY-2015 and Q4-2015

BENGALURU: Reliance Industries Limited (RIL) retail segment – Reliance Retail is a tiny fraction of the revenue that India’s largest private corporate reports. However, this segment has been growing consistently, quarter on quarter.

For FY-2015, the segment reported a revenue growth of 21.2 per cent to Rs 17,640 crore from Rs 14,556 crore in FY-2014. The segment’s earnings before interest and tax (EBIT) more than trebled (increased by 253.4 per cent) to Rs 417 crore in FY-2015 from Rs 118 crore in the previous year.

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

Revenue in Q4-2015 grew 31.1 per cent to Rs 4,788 crore from Rs 3,653 crore in Q4-2014 and grew 2.2 per cent from Rs 4,686 crore in Q3-2015. PBIT in Q4-2015 more than quadrupled (increased by 333.3 per cent) to Rs 104 crore from Rs 24 crore in the year ago quarter, but declined 21.8 per cent from Rs 133 crore in the previous quarter.

RIL claims that it maintained the distinction of being India’s largest retailer. It says further that it consolidated its leadership position in all focus sectors. The company added 930 stores and nine lakh square feet of operating space in the year across the sectors. As on 31 March, 2015, Reliance Retail operated 2,621 stores across 200 cities, with over 1.25 crore square feet space.

The company says that Reliance Retail grew its presence through its partnerships with the likes of Marks & Spencer, Grand Vision and Payless Shoesource, which continued its pace of robust growth. Reliance Brands continued to make more luxury brands available to the Indian consumers by expanding presence through various partner brands.

Overall, though RIL consolidated revenue (turnover) decreased by 33.3 per cent to Rs 70,863 crore in Q4-2015 from Rs 1,06,208 crore in Q4-2014, its consolidated net profit increased by 8.5 per cent to Rs 6,381 crore from Rs 5881 crore in Q4-2014.

RIL achieved a turnover of Rs 3,88,494 crore for FY-2015, a decrease of 13 per cent, as compared to Rs 446,339 crore in the previous year. The company says the decline in turnover reflects sharp fall in crude oil prices during the second half of the year. However, profit after tax was higher by 4.8 per cent at Rs 23,566 crore as against Rs 22,493 crore in the previous year.

Company speak:

RIL chairman and managing director Mukesh D. Ambani said, “FY 2015 has been a very successful and important year for Reliance. In a time when the collapse of crude oil prices unsettled the hydrocarbons markets, our refining business delivered record earnings. The earnings power demonstrated by our hydrocarbon businesses in this environment validates our philosophy of investing in world-scale, cost competitive assets, cutting-edge technology and the talent of people. This year we also made giant strides in our quest to sustain Reliance’s growth momentum with the highest-ever capital investment into our hydrocarbon business and our next-generation digital services initiative. Our organized retail business maintained its high growth trajectory with a wider pan-India footprint. Particularly gratifying, we achieved this, while maintaining our track-record of adhering to highest standards of safety and operational excellence.”

April 17, 2015
Network18, TV18 report growth in revenue & operating profit for FY-2015; Q4-15

BENGALURU: Reliance’s profit-making magic seems to be working on its newly acquired baby – Network 18 Media and Investments Limited (Network18). The company reported a 16.1 per cent growth in consolidated operating revenue in FY-2015 to Rs 3126.6 crore from Rs 2692.4 crore in FY-2014.

For the fourth quarter (Q4-2015), revenue increased 14 per cent to Rs 841.4 crore from Rs 738.3 crore in the corresponding year ago quarter and was up 1.1 per cent as compared to the Rs 831.9 crore in the immediate trailing quarter.

Consolidated operating profit before depreciation, interest and tax (PBDIT) was up 92.2 per cent in FY-2015 to Rs 153 crore from Rs 79 crore in FY-2014. Operating PBDIT in Q4-2015 at Rs 69.7 crore was up 71.5 per cent as compared to the Rs 40.6 crore in Q4-2014 and was 3.8 per cent more than the Rs 67.1 crore in Q3-2015.

According to Network18, the company has made a one-time exceptional adjustment of Rs 1045.3 crore and hence reported a loss of Rs 1059.91 crore in FY-2015 as compared to a loss of Rs 36.77 crore in FY-2014. For Q4-2015, the company has reported a profit after tax (PAT) of Rs 10.58 crore as compared to a loss of Rs 4.12 crore in Q4-2014 and a loss of Rs 12.15 crore in Q3-2015.

The improvement in results reported by its subsidiary listed company TV18 Broadcast Limited (TV18) for FY-2015 and Q4-2015 were as good as those reported by Network18.

TV18 reported a 17.8 per cent growth in its income from operations to Rs 2318.4 crore in FY-2015 from Rs 1968.1 crore in FY-2014. Income from operations for TV18 grew 11.8 per cent in Q4-2015 to Rs 629.7 crore as compared to the Rs 563.3 crore in Q4-2014 and was 3.7 per cent higher than the Rs 607.2 crore in Q3-2015.

TV18’s consolidated PBDIT in FY-2015 at Rs 252.5 crore was 19.8 per cent higher than the Rs 210.7 crore reported for the last fiscal. PBDIT for Q4-2015, at Rs 82.6 crore, was 17.7 per cent higher than the Rs 70.2 crore in Q4-2014 and four per cent more than the Rs 79.4 crore in Q3-2015.

Onetime adjustments were also made by TV18 to the extent of Rs 233.29 crore in FY-2015, which resulted in the company reporting a loss of Rs 38.47 crore as compared to a PAT of Rs 85.59 crore in FY-2014. However, after share of associate and minority interest, TV18 reported a PAT of Rs 44.54 crore in FY-2015 as compared to a PAT after share of associate and minority interest of Rs 103.63 crore in FY-2014.

In Q3-2015, TV18 reported PAT after share of associate and minority interest of Rs 95.47 crore in Q4-2015 as compared to the Rs 35.91 crore in Q4-2014 and Rs 60.38 crore.

Network18’s media operations segment reported a 16.8 per cent growth in revenue in FY-2015 to Rs 3061.69 crore as compared to the Rs 2620.69 crore in FY-2014. Revenue from this segment in Q4-2015 at Rs 832.63 crore was 15 per cent more than the Rs 723.81 crore in Q4-2014 and 2.8 per cent more than the Rs 810.01 crore in Q3-2015.

Network18’s media operations segment reported operating profit of Rs 31.63 crore in FY-2015, which was 43.3 per cent lower than the Rs 55.77 crore in FY-2014. For Q4-2015, this segment reported an operating profit of Rs 58.62 crore, which was 243.4 per cent more than the Rs 24.08 crore in the corresponding year ago quarter and 33.9 per cent more than the Rs 43.79 crore in the previous quarter.

Network18’s other segment – film production and distribution reported half the revenue in FY-2015 at Rs 50.96 crore as compared to the Rs 101.77 crore in FY-2015. For Q4-2015, revenue from this segment was Rs 4.08 crore, for Q4-2014, the segment reported negative revenue of Rs 14.61 crore and for Q3-2015, the revenue stood at Rs 11.99 crore.

Film production and distribution segment reported an operating loss of Rs 6.44 crore in FY-2015 as compared to a much higher operating loss of Rs 24.20 crore in FY-2014. Operating loss of Q4-2015 was lower at Rs 2.44 crore as compared to the operating loss of Rs 4.59 crore in Q4-2014 and an operating profit of Rs 1.33 crore in Q3-2015.

The company upped its programming cost in FY-2015 by 44.6 per cent to Rs 768.39 crore from Rs 531.56 crore in FY-2014. Programming costs in Q4-2015 were significantly higher by 55.4 per cent at Rs 208.01 as compared to the Rs 133.82 crore in Q4-2014 and 2.9 per cent more than the Rs 202.09 crore in Q3-2015.

Besides TV18, which contributes to the company’s television operations, Network18 Digital and Network18 Publishing also contribute to Network18 numbers.

Company quote:

Among the major channels that make up Network18’s television operations, the company says that during Q4-2015, CNBC-TV18 and CNBC Awaaz maintained leadership positions in their respective genre, with market shares of 58 per cent and 60 per cent respectively. CNBC Awaaz marked the completion of 10 years of leadership since inception during this quarter. CNBC Bajar launched in FY-15 to strong positive sentiment from the Gujarati business community, also saw attractive gains in viewership.

CNN-IBN led the English general news category in Q4 FY15 with a 33 per cent market share and increased its viewership by 43 per cent over Q3-2015.

In the GEC segment, Colors was the No. 1 channel on weekends prime time across all four quarters of the year and rose to No. 2 spot on weekday prime time in Q4 FY15, up from No. 3 in Q3 FY15. During Q4 FY15, MTV Indies reach grew 13 per cent over Q3-2015 and Vh1 led the English music and lifestyle genre with a 24 per cent market share, while Nick continued to lead the kids’ genre throughout FY-15.

Notes: Equator Trading Enterprises Private Limited (“Equator”) including its subsidiaries Panorama Television Private Limited and Prism TV Private Limited had become wholly owned subsidiary of the Company with effect from January 22, 2014. Hence, the consolidated results of the current period include the results of these subsidiary companies. Eenadu Television Private Limited had also become an associate with effect from January 22, 2014 and its results have been accounted as “Associate” under Accounting Standard 23 on Accounting for Investments in Associates in Consolidated Financial Statements. To this extent, the results of the current year are not comparable with the corresponding previous year.

April 15, 2015
Q3-2015: Tata Global Beverages q-o-q marketing spends up 6.3 per cent

BENGALURU: Tata Global Beverages Limited (TGBL) spent Rs 377.06 crore (17.6 per cent of Total Income from Operations or TIO) towards advertising and sales promotion (ASP) during the quarter ended 31 December, 2014 (Q3-2015), which was 6.3 per cent more than the Rs 354.80 crore (17.5 per cent of TIO) in the immediate trailing quarter, but 5.9 per cent lower than the Rs 400.71 crore (19.3 per cent of TIO) in Q3-2014.

ASP for the nine month period ended 31 December, 2015 (9M-2015) at Rs 1017.66 crore (18.2 per cent of TIO) was 3.5 per cent lower than the Rs 1054.75 crore (19.7 per cent of TIO) in 9M-2014. TGBL is the unifying entity of the Tata Group’s beverages interests under one umbrella.

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

TGBL’s Q3-2014 ASP was the highest in absolute rupees as well as in terms of percentage of TIO (19.3 per cent) during a 11 quarter period starting Q1-2013 until Q3-2015. During this eleven quarter period, ASP shows an upwards linear trend in absolute rupee spends, while the linear trend in terms of ASP as percentage of TIO is almost flat with a slight upward inclination. (Please refer to Chart A below.)

During this period, the lowest ASP in absolute rupees was in Q1-2013 at Rs 280.56 crore (16.3 per cent of TIO) and lowest ASP in terms of percentage of TIO was in Q1-2015 at 14.9 per cent (Rs 285.80 crore). The simple average ASP percentage of TIO during the period under consideration is 18.7 per cent.

For Q3-2015, TGBL reported Profit after Tax (PAT) of Rs 84.94 crore (four per cent of TIO), which was 35.9 per cent more than the Rs 62.45 crore (3.1 per cent of TIO) in Q2-2015, but 29 per cent less than the Rs 119.55 crore (5.7 per cent of TIO) in Q3-2015. For 9M-2015, PAT at Rs 243.92 crore (four per cent of TIO) was 40.7 per cent lower than the Rs 411.21 crore (7.1 per cent of TIO) in 9M-2014. During the eleven quarter period under consideration, PAT was highest both in terms of percentage of TIO as well as in absolute rupees at 9.3 per cent of TIO and Rs 180.03 crore.

PAT shows a downward linear trend in absolute rupees as well as percentage of TIO during the eleven quarter period in this report. (Please refer to Chart B below.)

Cart C below shows the company’s TIO, total expenditure (TE), PAT and ASP in HY-13, HY-14 and HY-15; in 9M-13, 9M-14 and 9M-15 and in FY-12, FY-13 and FY-14.

During Q3-2015, TGBL’s TIO at Rs 2143.89 crore was six per cent more than the Rs 2021.70 crore in Q2-2015 and three per cent more than the Rs 2080.74 crore in Q3-2014. For 9M-2015, TIO at Rs 6078.70 crore was 4.3 per cent more than the Rs 5827.68 crore in 9M-2014.

TGBL, in its earning release for Q3-2015, says that it continues to strengthen its focus on the green tea category and grow its coffee and water businesses. In India, the company says that it retains market leadership in branded tea and has recorded its highest ever monthly production in December 2014. There is exponential growth in the green tea segment. Tata Global Beverages has a portfolio of green tea brands across consumer segments in India, with Tetley Green Tea and Tata Tea Acti Green.

TGBL claims that in the water segment, Tata Water Plus- India’s first nutrient water, Tata Gluco Plus, available in five flavours and Himalayan natural mineral water, which recently launched a sparkling variant, are seeing good market response and focusing on expanding reach.

Tata Starbucks, a joint venture between Tata Global Beverages and Starbucks, now has 65 stores spread across Mumbai, Delhi NCR, Bangalore, Pune, Chennai and Hyderabad. The stores continue to witness very good customer response. Eight O’ Clock coffee K cups in the USA, are making good progress in the fast growing pods market.

TGBL managing director and CEO Ajoy Misra said, “We will focus on growing segments such as green tea, specialty teas, functional water and pods while continuing to strengthen our core markets & brands, based on key consumer trends. We remain committed to sustainable growth through innovation and strengthening our brands in key markets, in the face of a challenging market environment and economic volatility in some parts of the world.”

March 16, 2015
Q3-2015: Mukta Arts’ PAT Rs 21.21 crore despite drop in y-o-y revenue

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

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

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

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

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

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

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

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

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

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

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

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

March 9, 2015
DreamWorks Animation posts loss of $248 million as ‘Penguins’ flop

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

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

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

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

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

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

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

Fourth Quarter Review:

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

Feature Film Segment

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

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

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

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

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

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

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

Television Series and Specials Segment

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

Consumer Products Segment

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

New Media Segment

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

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

All Other Segments

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

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

February 26, 2015
FY-2014: Broadcasting & digital segments drive 55% EPS growth for Gannett

BENGALURU: Gannett Company Inc., (Gannett) reported a 55 per cent increase in its non-GAAP earnings per share (EPS) and a 57 per cent increase in adjusted EBIDTA for the 13 weeks ended 28 December, 2014 (Q4-2014, current quarter) as compared to the corresponding quarter of the previous year.

Earnings totalled $2.92 per share, and on a non-GAAP basis, EPS for Q4-2014 was $1.02. Gannett’s revenue grew 24.3 per cent driven by strong broadcast and digital segment results, says the company. Gannett reported revenue of $1700.97 million in the current quarter, for Q4-2013, the company had reported revenue of $1368.04 million.

On a pro forma basis (had Gannett owned the Belo and London television stations and Cars.com during the same quarter last year and excluding the impact of the sale of a print business and Apartments.com), total company revenues were 4.2 per cent higher in the quarter due primarily to substantial revenue growth at the expanded television station portfolio and strong growth at Cars.com.

Broadcast Segment

Gannet’s broadcast segment revenue increased 117 per cent (went up 2.17 times) in Q4-2014 to $495.27 million as compared to the $228.21 million in Q4-2013. The increase was fuelled by the expansion of the TV station portfolio, as well as significant increases in politically related advertising and retransmission revenues. On a pro forma basis, Broadcasting segment revenues were up 25.0 per cent compared to the fourth quarter in 2013. Substantially higher retransmission revenue that totalled $94.3 million, a 56.3 per cent increase, as well as $92.4 million of political advertising drove the increase. Pro forma digital revenues in the Broadcasting Segment were 16.5 per cent higher reflecting primarily growth in digital marketing services products.

Digital segment

Digital segment increased 76.6 per cent to $345.35 million in the current quarter as compared to the $195.57 million in Q3-2013. Gannett says that the substantial increase reflects primarily the impact of the Classified Ventures acquisition and strong results at Cars.com. Revenues on a pro forma basis in the Digital Segment were up 9.7 per cent driven in large part by revenue growth of 24.8 per cent at Cars.com and 3.8 per cent at CareerBuilder.

Publishing

Publishing segment revenues on a pro forma basis declined 5.9 per cent reflecting primarily softer display advertising partially offset by an increase in digital marketing solutions revenue and digital advertising.

Publishing advertising segment, publishing circulation segment and all other publishing segment revenues dropped 7.8, 2.2 and 9.9 per cent respectively in Q4-2014 as compared to the year ago quarter.

Publishing Advertisement

Publishing advertising revenues were: $543.80 million in Q4-2014 and 589.56 million in the corresponding year ago quarter. The company says that Pro forma advertising revenues declined 8.3 per cent year-over-year. On the same basis all domestic classified advertising category comparisons in the fourth quarter were better than third quarter comparisons. Employment advertising was up 1.5 per cent in the quarter maintaining its positive trend with growth domestically and at Newsquest in the UK.

Publication Circulation segment

Publishing circulation segment revenues were: $282 million in Q4-2014 and $288.43 million in Q4-2013. An increase in circulation revenue at local domestic publishing sites reflecting the beneficial impact of pricing strategies as well as continued strength of the All Access Content Subscription Model was offset by circulation revenue declines at Newsquest, due to the cycling of cover price increases, and USA Today.

All other publishing

All other publishing segment revenues were: $59.68 million in the current quarter and $66.27 million in the year ago quarter. Pro forma Publishing Segment digital revenues increased 2.9 per cent in the quarter reflecting continued growth in digital marketing solutions and digital advertising. Digital revenues at Newsquest were up 20.4 per cent in local currency while digital revenues at USA Today and its associated businesses increased 8.4 per cent. Pro forma digital advertising revenues at local domestic publishing operations were up 6.6 per cent.

Company Speak

Gannett president and chief executive officer Gracia Martore said, “Our strong fourth quarter results cap a milestone year for Gannett -reflecting our bold strategy and continued focus on reshaping and reinventing the company to accelerate growth in today’s multiplatform media landscape. Based on our strong operating performance and balance sheet strength, we are resuming our share buyback program, well ahead of the timeline we had previously anticipated. Our broader and more diverse footprint drove record revenue in Broadcasting for the fourth consecutive quarter and resulted in our highest political revenues ever in a non-presidential election year. We also posted record-breaking Digital Segment revenues, driven by our full ownership of Cars.com, which had a terrific quarter, as well as continued growth at CareerBuilder. On the Publishing side, we continue to innovate and find ways to deepen our connections with our audiences and advertisers through initiatives like USA Today local content editions, which have delighted customers and substantially exceeded our revenue expectations. Even as we achieved this tremendous revenue growth, we remain committed to operating as efficiently as possible, which has continued to improve profitability, including a 57 per cent increase in Adjusted EBITDA as compared to the fourth quarter last year.”

Martore added, “The terrific progress we’ve made across each of our businesses since the launch of our transformation plan three years ago culminated in our biggest news of 2014 – the announcement of our plan to separate into two highly focused public companies. Each company will be a leader in its respective industry with impressive scale and greater freedom to focus its strategy and resources on the most promising, value-enhancing areas of the business. We are on track with the separation and will share more details of our plans for the Publishing and Broadcasting/Digital companies in the coming months.”

FY-2014 Numbers in Brief

Total operating revenues for the full year were 16.4 per cent higher compared to 2013 and totalled $6.01 billion. The increase reflects substantially higher revenue growth in the Broadcasting and Digital Segments to record levels partially offset by a decline in the Publishing Segment. Broadcasting Segment revenues were 102.6 per cent higher due to the Belo acquisition and significant increases in Olympic and political spending as well as retransmission revenue. Digital Segment revenues in 2014 were up 22.8 per cent reflecting the acquisition of Classified Ventures including strong growth at Cars.com and solid revenue growth at CareerBuilder. Company-wide digital revenues totalled $2.05 billion, an increase of 7.4 per cent on a pro forma basis compared to 2013. Publishing Segment revenues were 4.4 per cent lower as advertising revenues declined 5.8 per cent and circulation revenues were down 0.9 per cent.

February 25, 2015
FY-2014: Charter Communications reports loss of $183 million

BENGALURU: US cable television, high-speed Internet, and telephone services company Charter Communications, Inc (Charter) reported 5.7 per cent lower loss at $183 million for FY-2014 as compared to the $194 million in FY-2013. For the quarter ended December 31, 2015 (Q4-2014, current quarter) the company reported loss of $48 million versus a net income of $39 million in the corresponding year ago quarter.

For the year ended 31 December, 2014, revenues rose to $9.1 billion, 8.2 per cent higher on a pro forma basis than in 2013, driven by continued growth in Internet, video and commercial revenues. On an actual basis, full year 2014 revenues rose 11.7 per cent year-over-year.

Fourth quarter 2014 revenues rose to $2.4 billion, 9.9 per cent higher than the year-ago quarter, driven primarily by growth in Internet, video and commercial revenues says the company.

Video revenues totalled $1.1 billion in the fourth quarter, an increase of 8.1 per cent compared to the prior year period. Video revenue growth was driven by higher expanded basic and digital penetration, annual and promotional rate adjustments, higher advanced services penetration, and revenue allocation from higher bundling, partially offset by a decrease in residential limited basic video customers.

Internet revenues grew 13.5 per cent compared to the year-ago quarter to $670 million, driven by an increase of 383,000 Internet customers during the last year and by promotional rolloff, legacy price adjustments and revenue allocation from higher bundling.

Voice revenues totalled $139 million, a decline of 9.7 per cent versus the fourth quarter of 2013, due to value-based pricing and revenue allocation from higher bundling, partially offset by the addition of 166,000 voice customers in the last twelve months.

Commercial revenues rose to $262 million, an increase of 16.1 per cent over the prior-year period, and was driven by higher sales to small and medium business customers and to carrier customers.

Fourth quarter advertising sales revenues of $107 million increased 28.9 per cent compared to the year ago quarter, primarily driven by an increase in political advertising revenue. Excluding the benefit of political advertising revenue generated in the fourth quarter of 2014, and during the corresponding prior-year period, total fourth quarter advertising sales revenues grew by approximately 8.9 per cent year-over-year.

Customer numbers

During the fourth quarter of 2014, Charter’s residential customer relationships grew by 73,000, with triple play sell-in improving year-over-year, to 62 per cent of total residential video sales. Commercial customer relationships grew by 6,000 in the fourth quarter of 2014. Residential PSUs increased by 157,000, while commercial PSUs increased 14,000 during Q4-2014.

During Q4-2014, Charter says that it continued to introduce its new product suite, Charter Spectrum, in markets that were recently converted to all-digital. Charter customers in these markets now have access to an industry-leading suite of video, data, and voice services that includes over 200 HD channels, in addition to minimum offered Internet speeds of 60 Mbps, and a fully featured voice service, delivered at a highly competitive price. Charter Spectrum is available to new Charter customers, and to existing customers within the Company’s new pricing and packaging structure launched in 2012. As of the end of Q4-2014, the company claims that 86 per cent of residential customers were in Charter’s new pricing and packaging, excluding customers in the former Bresnan properties.

Residential video customers increased by 3,000 in Q4-2014, versus a loss of 2,000 in the year-ago period. For the past two years Charter says that it has significantly increased the competitiveness of its video product, by including more HD channels and video on demand offerings, attractive packaging of advanced services, improved selling methods, and enhanced service quality.

Charter added 104,000 residential Internet customers in Q4-2014, compared to 93,000 a year ago. As of December 31, 2014, 80 percent of Charter’s residential Internet customers subscribed to tiers that provided speeds of 60 Mbps or more informs Charter.

During the Q4-2014, the company added 50,000 residential voice customers, versus a gain of 56,000 during Q4-2013. Fourth quarter residential revenue per customer relationship totalled $111.52, and grew by 3.1 per cent as compared to the prior-year period, driven by rate adjustments, higher product sell-in and promotional rate step-ups, partially offset by continued single play Internet sell-in and bulk digital upgrades. In September 2014, Charter increased its broadcast TV surcharge. Excluding this rate adjustment, residential revenue per customer relationship grew by 2.2 per cent year-over-year.

February 25, 2015
FY-2014: Comcast Corporation’s consolidated revenue up 6.4%

BENGALURU: Comcast Corporation’s consolidated revenue increased 6.4 per cent, operating cash flow increased 6.9 per cent, Operating Income increased 9.9 per cent and Free Cash Flow exceeded $ 8 billion in FY2014.

Earnings per share increased 25.0 per cent to $ 3.20; Excluding Adjustments, EPS increased 18.6 per cent to $ 2.93.

Cable communications revenue increased 5.5 per cent and operating cash flow increased 5.3 per cent.

Customer relationships increased by 358,000, a 67 per cent improvement compared to 2013.

NBCUniversal revenue increased 7.5 per cent and operating cash flow increased 18.1 per cent.

4th Quarter 2014 Highlights:

Consolidated revenue increased 4.8 per cent, operating cash flow increased 4.1 per cent and operating income increased 3.8 per cent.

Earnings per share increased 2.8 per cent to US$ 0.74; excluding adjustments, EPS increased 16.7 per cent to US$ 0.77.

Cable communications revenue increased 6.1 per cent and operating cash flow increased 6.3 per cent.

Customer relationships increased by 178,000, a 47 per cent increase from the fourth quarter of 2013.

NBCUniversal revenue increased 2.3 per cent and operating cash flow increased 6.6 per cent.

Comcast chairman and CEO Brian L. Roberts said, “2014 was a great year financially, operationally, and strategically for Comcast NBC Universal. We continued to execute incredibly well as we accelerated our innovation, launched new products, and brought amazing films, shows and theme park attractions to consumers. Cable’s results, driven by High-Speed Internet and Business Services, demonstrate our focus on driving profitable growth and technology innovations, including our transformative X1 platform. This is bearing fruit in our operating performance, as we added 358,000 customer relationships, while video subscriber trends were the best in 7 years and in broadband we added over 1 million subscribers for the ninth year in a row. NBCUniversal also had a standout performance in 2014, with 18 percent growth in operating cash flow, driven by a successful Sochi Olympics, continued momentum at NBC Broadcast, the successful opening of The Wizarding World of Harry Potter – Diagon Alley in Orlando, and strong box office performance from Universal Pictures. We enter 2015 with great momentum and significant opportunities ahead, and we look forward to receiving regulatory approval for the Time Warner Cable merger. Underscoring our confidence in the continued success of our company, we are increasing our dividend to US$ 1.00 per share on an annualized basis, marking the seventh consecutive annual increase, and plan to repurchase at least US$ 4.25 billion of our stock this year.”

Cable Communications

Revenue for Cable Communications increased 6.1 per cent to US$ 11.3 billion in the fourth quarter of 2014 compared to US$ 10.7 billion in the fourth quarter of 2013, driven by increases of 9.9 per cent in high-speed internet and 20.8 per cent in business services. Advertising revenue increased 18.9 per cent, reflecting higher political advertising in the fourth quarter of 2014. The increase in cable revenue reflects increased customer relationships (see below), customers receiving higher levels of service, customers taking additional services, as well as rate adjustments.

For the year ended 31 December, 2014, cable revenue increased 5.5 per cent to US$ 44.1 billion compared to US$ 41.8 billion in 2013, driven by growth in high-speed internet, business services and advertising.

Customer relationships increased by 178,000 to 27.0 million during the fourth quarter of 2014, a 47 per cent improvement compared to an increase of 121,000 in the fourth quarter of 2013. At the end of the fourth quarter, the triple product customers increased to 37 per cent of the company’s total customer relationships compared to 35 per cent in the fourth quarter of 2013. In addition, video, high-speed internet and voice customers increased in the fourth quarter of 2014.

For the year ended 31 December, 2014, customer relationships increased by 358,000, a 67 per cent improvement compared to net additions of 215,000 in 2013. Video customer net losses improved year-over-year and were the best result in seven years.

High-speed internet customer net additions of 1.3 million marked the ninth consecutive year of more than one million net additions. Voice net additions slowed, reflecting X1 availability that was more focused on triple play customers last year, making for a difficult comparison.

NBC Universal

Revenue for NBC Universal increased 2.3 per cent to US$ 6.6 billion in the fourth quarter of 2014 compared to US$ 6.5 billion in the fourth quarter of 2013, as revenue growth in Theme Parks and Broadcast Television was partially offset by lower Filmed Entertainment revenue driven by a year-over-year decline in home entertainment revenue. Operating Cash Flow increased 6.6 per cent to US$ 1.4 billion compared to US$ 1.3 billion in the fourth quarter of 2013, driven by strong results at Theme Parks and Broadcast Television.

For the year ended 31 December, 2014, NBC Universal revenue increased 7.5 per cent to US$ 25.4 billion compared to US$ 23.7 billion in 2013. Excluding US$ 1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2014, revenue increased 2.9 per cent.

Operating cash flow increased 18.1 per cent to US$ 5.6 billion compared to US$ 4.7 billion in 2013. Excluding US$ 130 million of operating cash flow generated by the Olympics, operating cash flow increased 15.3 per cent, reflecting solid results at each business segment.

Cable Networks

For the fourth quarter of 2014, revenue from the Cable Networks segment was stable at US$ 2.3 billion and operating cash flow decreased 1.8 percent to US$ 912 million compared to the fourth quarter of 2013. These results reflect a 5.6 percent decline in advertising revenue along with a slight increase in operating costs driven by investment in programming, which more than offset a 4.6 percent increase in distribution revenue.

For the year ended December 31, 2014, revenue from the Cable Networks segment increased 3.9 percent to US$ 9.6 billion compared to US$ 9.2 billion in 2013. Excluding US$ 257 million of revenue generated by the 2014 Sochi Olympics, revenue increased 1.1 percent, reflecting a 4.6 percent increase in distribution revenue, partially offset by a 3.5 percent decrease in advertising revenue. Operating cash flow increased 2.5 percent to US$ 3.6 billion compared to US$ 3.5 billion in 2013. Excluding the Olympics, operating cash flow increased

2.2 percent, reflecting higher revenue and flat operating costs, even as we continue to invest in programming.

Broadcast Television

For the fourth quarter of 2014, revenue from the Broadcast Television segment increased 4.8 percent to US$ 2.3 billion compared to US$ 2.2 billion in the fourth quarter of 2013, driven by a 3.1 percent increase in advertising revenue, as well as higher retransmission consent fees. Operating cash flow increased 64.0 percent to US$ 230 million compared to US$ 140 million in the fourth quarter of 2013, reflecting higher revenue, which more than offset a slight increase in operating costs and expenses.

For the year ended December 31, 2014, revenue from the Broadcast Television segment increased 20.0 percent to US$ 8.5 billion compared to US$ 7.1 billion in 2013. Excluding US$ 846 million of revenue generated by the 2014 Sochi Olympics, revenue increased 8.1 percent, reflecting higher advertising revenue and retransmission consent fees. Operating cash flow increased US$ 389 million to US$ 734 million compared to US$ 345 million in 2013. Excluding the Olympics, operating cash flow increased US$ 272 million, or 78.6 percent, reflecting higher revenue and a modest increase in operating costs and expenses.

Filmed Entertainment

For the fourth quarter of 2014, revenue from the Filmed Entertainment segment decreased 10.6 percent to US$ 1.3 billion compared to US$ 1.4 billion in the fourth quarter of 2013, reflecting a decline in home entertainment revenue primarily due to the strong performance of Despicable Me 2 in the fourth quarter of 2013. Operating cash flow decreased US$ 115 million to US$ 77 million compared to US$ 192 million in the fourth quarter of 2013, reflecting lower revenue, partially offset by a decrease in the amortization of film costs.

For the year ended December 31, 2014, revenue from the Filmed Entertainment segment decreased 8.2 percent to US$ 5.0 billion compared to US$ 5.5 billion in 2013, reflecting lower theatrical and home entertainment revenue, primarily due to the strong performances of Despicable Me 2 and Fast and Furious 6 in 2013. Operating cash flow increased US$ 228 million to US$ 711 million compared to US$ 483 million in 2013, as lower revenues were more than offset by a decrease in the amortization of film costs and reduced advertising, marketing and promotion expense due to a reduced film slate.

Theme Parks

For the fourth quarter of 2014, revenue from the Theme Parks segment increased 29.9 percent to US$ 735 million compared to US$ 566 million in the fourth quarter of 2013, reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter™ – D iagon Alley™, as well aHsa lloween Horror Nights at the Orlando and Hollywood parks. Fourth quarter operating cash flow increased 37.6 percent to US$ 352 million compared to US$ 257 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support the new attractions.

For the year ended December 31, 2014, revenue from the Theme Parks segment increased 17.3 percent to US$ 2.6 billion compared to US$ 2.2 billion in 2013. Operating cash flow increased 16.4 percent to US$ 1.2 billion compared to US$ 1.0 billion in 2013, driven by The Wizarding World of Harry Potter – Diagon Alley and Despicable Me attractions.

February 24, 2015
FY-2014: Technicolor reduces financial debt despite lower group revenues

BENGALURU: Global technology player in the media and entertainment sector Technicolor reported profit from continuing operations at €137 million as compared to a loss of €111 million last year. The company reported net income after tax, excluding costs due to debt repayments, at €149 million in the year ended 31 December, 2014 (FY-2014) as compared to €69 million in FY-2013. The company reported net financial debt at nominal value (non IFRS) of €645 million in the current year as compared to the €784 million in FY-2013.

Group revenue in FY-2014 was however lower by 3.4 per cent at €3332 million as compared to the €3449 million in the previous year. Group revenue excluding legacy activities in FY-2014 was 1.4 per cent lower at €3315 million as compared to the €3362 million in the preceding year.

Adjusted EBITDA from continuing operations amounted to €550 million in FY-2014 compared to €537 million in 2013, recording year-over-year growth of 3.1 per cent at constant currency. Adjusted EBITDA margin stood at 16.5 per cent, up by 1.0 point year-on-year, reflecting strong Connected Home performance, driven by continued operating efficiency and better product mix, sustained revenue growth in Production Services, particularly in higher-margin VFX activities, and lower corporate costs, mostly related to transversal functions, which helped to offset the exit from legacy activities and weaker DVD Services contribution, as well as continuing investments in new Technology business initiatives says the company.

The Group’s financial result was loss of €117 million in FY-2014 compared to loss of €288 million in FY- 2013, reflecting the following informs Technicolor: Net interest costs amounted to €65 million in FY-2014, a significant reduction compared to €112 million in FY-2013, due to lower borrowing costs stemming from the refinancing and re-pricing transactions and from the material decrease in gross debt achieved during the period. Other financial charges amounted to €FY-52 million in 2014, of which costs related to the refinancing and re-pricing transactions for €26 million, including an IFRS reversal recognised as a non-cash charge for €20 million due to the debt prepayments done in FY-2014.

Segment results (Company Speak Excerpts)

Technology

Technology revenues amounted to €490 million in FY-2014, up 1.2 per cent at current currency compared to 2013. Licensing revenues totalled €479 million in FY-2014, broadly unchanged from FY-2013, as a double-digit decline in revenues from the MPEG LA pool (which represented 45 per cent of Licensing revenues in FY-2014 compared to 53 per cent in FY-2013) was offset by robust double-digit revenue growth across other patent license programs. The Group benefited principally from a strong level of new contracts in the fourth quarter of FYT-2014 in its Digital TV program, and from additional revenues related to the LG smartphone patent license agreement signed in February 2014.

Entertainment Services

Entertainment Services revenues (excluding legacy activities) amounted to €1,442 million in FY-2014, down 5.7 per cent at current currency compared to FY-2013, as weaker performance for DVD Services was partially offset by strong revenue growth across Production Services, particularly in Visual Effects (VFX) activities.

Legacy activities generated revenues of €17 million in FY 2014, down by about 81 per cent at current currency compared to 2013.

Connected Home

Connected Home revenues were €1,382 million in FY-2014, up 2.6 per cent at current currency compared to FY-2013, highlighting a good level of activity across most regions, as reflected by record product shipments of more than 34 million units for the year (+5.6 per cent). The Connected Home segment continued to expand faster than the market, achieving year-on-year revenue growth of 4.4 per cent at constant currency, and also succeeded to post revenue increases in each of the quarters of the year. This performance resulted from further market share gains across all regions, in particular in North America and Europe, Middle-East & Africa, as well as ongoing improvement in overall product mix, especially in Latin America. In FY-2014, HD products accounted for 79 per cent of total set top box shipments (FY-2013: 55 per cent), while Ultra Broadband devices (DOCSIS 3.0, VDSL, Fiber) represented 62 per cent of total Broadband CPE volumes (FY-2013: 52 per cent), both product categories recording significant year-on-year mix improvement, in line with the segment’s roadmap.

Technicolor CEO Fredrick Rose said, : “I am extremely proud of the work done by everyone in Technicolor to deliver a fantastic performance in 2014 resulting in a positive net income and the initiation of a dividend. As we now embark on our Drive 2020 strategic plan, we will remain fully focused on creating shareholder value as a leader in media and entertainment services, developing and monetizing video and audio technologies.”

February 19, 2015