ITV

Tag: Financials

  • ZeeL to scale down investment in SugarBox significantly

    ZeeL to scale down investment in SugarBox significantly

    KOLKATA: When things aren’t working out, it’s better you step back until they start looking better.  Exactly how Zee Entertainment Enterprises Ltd (Zeel) is doing with its investment in internet connectivity start-up Margo Networks. It was barely a year ago that it had announced that it would invest Rs 522 crore in the latter which offers bandwidth to consumers under the brand name SugarBox.

    The broadcaster aimed to create a tech-content synergy through the investment in order to help subscribers get over connectivity constraints that plague India’s mobile networks. However, Zeel has decided to scale down its investment in SugarBox owing to the changing situation.

    “Given the current pandemic and uncertainties, we will not be investing very aggressively behind SugarBox. From our original plan itself, it will be scaled down significantly for the foreseeable future,” ZeeL MD & CEO Punit Goenka said during an investors’ call.

    Of all the reasons behind the decision, one is that the project has been delayed significantly. ZeeL was expecting it to roll out in February but the pandemic has hindered its execution. As no one knows how long Covid2019 will last, there are fair chances of a further delay.

    “More importantly, even after everything stabilises, we don’t know how the traffic will build. Traffic consumption was very different when we planned the project. For FY22, we do not see that kind of investment that we were planning earlier,” ZeeL investor relations, corporate strategy head Bijal Shah said.

    Reduction in non-core investments in Sugarbox due to the COVID-19 pandemic is a welcome step, brokerage firm Motilal Oswal said in a recent note.

    “The unique technology will enable us to serve content to consumers across the nation, without being restricted by connectivity constraints. We are confident that this synergy will create a strong foundation for us, as we progress towards offering relevant content to consumers across platforms,” Goenka said at the time of the investment.

    However, analysts were sceptical of the timeliness of the investment from the beginning. Brokerage firms found it ill-timed due to a weak ad environment.

    In the year 2017, ZeeL had acquired an 80 per cent equity stake in SugarBox. The latter creates a hyperlocal data distribution ecosystem by installing CDN Edge servers at key places of interest (POIs), which users can connect to over a local Wi-Fi network.

  • Colgate-Palmolive Q4 net profit rises 54% to Rs 314 cr

    Colgate-Palmolive Q4 net profit rises 54% to Rs 314 cr

    New Delhi: Riding on higher sales, FMCG major Colgate-Palmolive India reported a 54.1 per cent jump in its net profit at Rs 314.6 crore for the quarter ended 31 March. The company had posted a net profit of ₹204.15 crore in the January-March quarter a year ago.

    It’s net sales went up by 20.2 per cent to ₹1,275.01 crores during the quarter under review, as against ₹1,062.35 crore in the year-ago period, the FMCG major said in a regulatory filing.

    Colgate-Palmolive (India), managing director Ram Raghavan said the company continues to witness strong momentum across all categories.

    “Our focused approach to executing our strategic initiatives has been instrumental in our continued abilities to sustain our growth momentum versus year ago as well as on a sequential basis. Our strong discipline on driving efficiencies continue to hold us in good stead as we make strong progress across key financial metrics on the P&L,” said Raghavan, adding that the company continues to amplify its innovation focus.

    The oral hygiene product maker’s recent launches include Colgate Toothpaste for Diabetics, Colgate Vedshakti Spray and Oil Pulling. Other initiatives across its portfolio include the launch of Colgate Magik, the first augmented reality toothbrush that makes brushing fun.

  • ViacomCBS adds 6 million global subscribers to reach 36 million mark

    ViacomCBS adds 6 million global subscribers to reach 36 million mark

    New Delhi: ViacomCBS added six million new streaming subscribers in the first quarter of 2021, reaching a total of 36 million global streaming subscribers said the company on Friday, while reporting financial results for the quarter ended 31 March.

    The entertainment giant delivered 69 per cent year-over-year growth in streaming subscription revenue, largely driven by the significant momentum of Paramount+. The year-over-year growth in streaming advertising revenue was 62 per cent, reflecting the continued domestic growth and international expansion of advertising supported streaming service Pluto TV.

    ViacomCBS’ cable networks unit also grew quarterly revenue 14 per cent to $3.26 billion.

    “In Q1, we accelerated our expansion in streaming with the launch of Paramount+ further enhancing ViacomCBS’ ecosystem of premium, pay and free services. The strong consumer response we have seen is evident in today’s numbers. In addition, we now have almost 50 million global Pluto TV MAUs,” said president and CEO Bob Bakish.

    On Paramount+, the biggest drivers of sign-ups were live sports and specials, including the Super Bowl, NCAA Tournament, UEFA Champions League, Oprah with Meghan and Harry and The Grammy Awards, as well as kids’ content, and original programming, including The Stand and Star Trek: Discovery. Globally, Nickelodeon programming was a significant driver of sign-ups and engagement on Paramount+.

    Showtime OTT delivered its best quarter ever in signups, streams and hours watched, driven by originals, including Your Honor and Shameless, as well as theatricals, said the company.

    “Our early momentum in streaming is a testament to the breadth and relevance of our differentiated offerings, as well as our opportunities for growth through Paramount+, as we continue to ramp the availability of live sports, original series and blockbuster movies over the course of the year. ViacomCBS also achieved another strong quarter of results in our advertising and affiliate businesses, which continue to demonstrate the extraordinary power of our company to reach audiences and deliver for our partners globally,” added Bakish.

    Paramount+ will be available in 45 markets by the end of 2022, said the company, which expects to have up to 75 million streaming subscribers globally by 2024. Management has ambitious plans to compete with the likes of Netflix and Disney+ in the streaming arena, and to direct billions of dollars into content investment for its services in the coming years.

  • Facebook now has 2.85 billion MAUs, income skyrockets 94%

    Facebook now has 2.85 billion MAUs, income skyrockets 94%

    New Delhi: Facebook on Thursday reported stronger than expected financial results for the first quarter with soaring ad revenue during the pandemic. The social media giant said it earned $9.5 billion in the January-March quarter, a pole vault of 94 per cent from $4.9 billion last year. The total revenue grew 48 per cent from $17.44 billion to $26.17 billion in the previous fiscal, backed by a surge in digital ad spending during the pandemic when consumers mostly shopped online.

    The main driver of this growth was Facebook’s advertising business.

    “We are pleased with the strength of our advertising revenue growth in the first quarter of 2021, which was driven by a 30 per cent year-over-year increase in the average price per ad and a 12 per cent increase in the number of ads delivered. We expect that advertising revenue growth will continue to be primarily driven by price during the rest of 2021,” said Facebook CFO David Wehner as the company reported first quarter results.

    Wehner added that the company expects its year-over-year revenue growth rate for the period “to remain stable or modestly accelerate relative to the growth rate in the first quarter of 2021 as we lap slower growth related to the pandemic during the second quarter of 2020.”

    Facebook now has 2.85 billion monthly active users (MAUs), an increase of 10 per cent year-on-year. Concurrently, its daily active user base has reached 1.88 billion on average, an increase of eight per cent. The company currently employs 60,654 people, bolstering its workforce by 26 per cent year-over-year.

    Looking ahead, the world’s largest social network will focus on expanding its e-commerce offerings to strengthen its ad business. “We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy,” said Facebook CEO Mark Zuckerberg in a statement.

  • Maruti Suzuki Q4: Sales pick up but net profit declines 10.7%

    Maruti Suzuki Q4: Sales pick up but net profit declines 10.7%

    MUMBAI: Automobile manufacturer Maruti Suzuki India’s net profit tumbled 10.7 per cent to Rs 1,166 crore for the quarter ended 31 March 2021. This, despite sales soaring 33.6 per cent year-on-year to Rs 22,958.6 crore.

    The unexpected fall in the net profit of the company was the result of a steep decline in other income to Rs 89.8 crore from Rs 880 crore a year ago.

    According to an exchange filing, Maruti Suzuki’s revenue for the fourth quarter rose 26 per cent to Rs 24,113 crore, compared with the Rs 23,918-crore estimate. That’s the third straight quarter of an increase in top line for the company. EBITDA margin contracted to 13.1 per cent from 14 per cent. Earnings before interest, tax, depreciation and amortisation increased 15 per cent to Rs 3,161 crore.

    The company sold 4.92 lakh units in the reported quarter, up 28 per cent from the year earlier.

    Aided by higher sales and cost reduction efforts, the carmaker’s operating profit in the quarter surged 72.8 per cent year-on-year to Rs 1,250.1 crore during Q4. Its operating margin in the quarter rose 120 basis points on year to 5.4 per cent.

    The company’s year-on-year performance on the topline has been aided by the low base of the year ago quarter which was hit by the national lockdown to stem the pandemic. Lower promotion costs, cost reduction efforts and improved capacity utilisation aided the margin performance during the quarter, the auto company said.

    For the financial year, Maruti Suzuki’s net sales fell 7.2 per cent to Rs 66,562.1 crore, while net profit slumped 25 per cent to Rs 4,229.7 crore.

  • Nestle India posts strong Q1 performance, net profit surges 14.6%

    Nestle India posts strong Q1 performance, net profit surges 14.6%

    NEW DELHI: FMCG major Nestle India posted a strong performance in the opening quarter of 2021, reporting a 14.6 per cent year-on-year growth in its net profit. Beating estimates, its PAT stood at Rs 602 crore, up from Rs 525 crore in the year-ago period.

    Total sales increased by 8.9 per cent during the quarter, while domestic sales rose by 10.2 per cent, mainly driven by volume and mix.

    The consumer goods giant’s revenue from operations during the quarter came in at Rs 3,610.8 crore, a surge of 8.6 per cent from Rs 3,325 crore in the same period last year.

    Its e-commerce operations have continued to pay dividends and grew by 66 per cent to maintain its robust contribution to the domestic sales.

    Export sales were lower by 12.9 per cent due to lower exports to affiliates. Demand in out of home channel has improved in the quarter but still remains impacted by Covid2019, the company said in a BSE filing.

    Key brands like Maggi noodles, Kitkat, Nescafé Classic, Maggi sauces, Milkmaid, Maggi Masala-e-Magic have also performed strongly and achieved double digit growth in Q1.

    “As the pandemic rages on, the quarter gone by has been another test of resilience of my team and our partners,” said Nestle India chairman & MD Suresh Narayanan. “I feel incredibly privileged to lead a team who faced with serious challenges, persevered regardless, to deliver double digit growth over a strong comparable in 2020. It is tribute to the commitment of the team to serve consumers as best as we could during the pandemic.”

    At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) in Q1 grew by 17.1 per cent to Rs 929.8 crore and margin expanded 190 bps to 25.8 percent compared to the year-ago period.

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

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

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

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

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

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

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

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

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

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

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

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

    Also Read :

    Discovery promotes Scripps programming execs

    Discovery Jeet gets good spread at launch

    Discovery boss JB Perrette proud of Jeet bet

  • Increased revenue from traditional media boosts Shemaroo numbers

    Increased revenue from traditional media boosts Shemaroo numbers

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

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

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

    A look at the other numbers

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

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

    Also read:

    Shemaroo makes key hires to boost business

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

    Rahul Mishra Shemaroo’s new general manager marketing

  • Q2-2016: Prime Focus revenue up 47% ;EBIDTA doubles

    Q2-2016: Prime Focus revenue up 47% ;EBIDTA doubles

    BENGALURU: Prime Focus Limited (PFL) reported 47 per cent YoY revenue growth for the quarter ending 31 December, 2015 (Q2-2016, current quarter) at Rs 468.52 crore from Rs 318.67 crore in Q2-2015 and 4.4 per cent higher QoQ as compared to Rs 448.57 crore in the immediate trailing quarter. The company reported more than double (2.02 times) YoY EBITA at Rs 75.56 crore (15.3 per cent margin) as compared to Rs 35.48 crore (11.1 per cent margin) and 37.4 per cent higher QoQ as compared to Rs 52.07 crore (11.6 per cent margin).

    Notes: (1) 100,00,000 = 100 lakh = 10 million =1 crore
    (2) The company had filed results for a fifteen month period ended June 30, 2014, hence YoY comparison is being done between Q2-2016 and Q2-2015 and QoQ comparison is between Q2-2016 and Q1-2016 (quarter ended September, 2015).

    The company reported a lower net loss of Rs 11.40 crore in Q2-2016, a loss of Rs 36.17 crore in Q2-2015 and a loss of Rs 22.51 crore in Q1-2016. 

    Let us look at the other numbers reported by PFL

    Figures A and B below show PFL’s major expense heads. As is obvious, a major expense head for the company is employee benefit expense or EBE.

    PFL’s EBE in Q2-2016 at Rs 284.10 crore (62.4 per cent of TIO) was 43.8 per cent higher YoY as compared to Rs 197.54 crore and (62 per cent of TIO) and was almost flat (went up by 0.5 per cent) QoQ as compared to Rs 282.57 crore (61.6 per cent of TIO).

    Technician’s Fees in the current quarter increased 19.6 per cent YoY to Rs 7.88 crore (1.7 per cent of TIO) as compared to Rs 6.35 crore (2.1 per cent of TIO), but declined 19.3 per cent QoQ from Rs 9.77 crore (2.2 per cent of TIO).

    Fig B indicates that EBE also shows a linear upward trend in terms of percentage of TIO over the twelve quarters starting Q4-2013 until the current quarter Q2-2016. EBE has been the highest in Q2-2016 (62.4 per cent) in terms of absolute rupees, but in terms of percentage of TIO, it was highest in Q3-2015 at 64 per cent.

    Finance and Interest cost in Q12-2016 at Rs 25.11 crore (5.4 per cent of TIO) increased 45.3 per cent YoY from Rs 17.28 crore (5.4 per cent of TIO) and increased 41.4 per cent QoQ from Rs 17.75 crore (four per cent of TIO).

  • Q2-2016: Prime Focus revenue up 47% ;EBIDTA doubles

    Q2-2016: Prime Focus revenue up 47% ;EBIDTA doubles

    BENGALURU: Prime Focus Limited (PFL) reported 47 per cent YoY revenue growth for the quarter ending 31 December, 2015 (Q2-2016, current quarter) at Rs 468.52 crore from Rs 318.67 crore in Q2-2015 and 4.4 per cent higher QoQ as compared to Rs 448.57 crore in the immediate trailing quarter. The company reported more than double (2.02 times) YoY EBITA at Rs 75.56 crore (15.3 per cent margin) as compared to Rs 35.48 crore (11.1 per cent margin) and 37.4 per cent higher QoQ as compared to Rs 52.07 crore (11.6 per cent margin).

    Notes: (1) 100,00,000 = 100 lakh = 10 million =1 crore
    (2) The company had filed results for a fifteen month period ended June 30, 2014, hence YoY comparison is being done between Q2-2016 and Q2-2015 and QoQ comparison is between Q2-2016 and Q1-2016 (quarter ended September, 2015).

    The company reported a lower net loss of Rs 11.40 crore in Q2-2016, a loss of Rs 36.17 crore in Q2-2015 and a loss of Rs 22.51 crore in Q1-2016. 

    Let us look at the other numbers reported by PFL

    Figures A and B below show PFL’s major expense heads. As is obvious, a major expense head for the company is employee benefit expense or EBE.

    PFL’s EBE in Q2-2016 at Rs 284.10 crore (62.4 per cent of TIO) was 43.8 per cent higher YoY as compared to Rs 197.54 crore and (62 per cent of TIO) and was almost flat (went up by 0.5 per cent) QoQ as compared to Rs 282.57 crore (61.6 per cent of TIO).

    Technician’s Fees in the current quarter increased 19.6 per cent YoY to Rs 7.88 crore (1.7 per cent of TIO) as compared to Rs 6.35 crore (2.1 per cent of TIO), but declined 19.3 per cent QoQ from Rs 9.77 crore (2.2 per cent of TIO).

    Fig B indicates that EBE also shows a linear upward trend in terms of percentage of TIO over the twelve quarters starting Q4-2013 until the current quarter Q2-2016. EBE has been the highest in Q2-2016 (62.4 per cent) in terms of absolute rupees, but in terms of percentage of TIO, it was highest in Q3-2015 at 64 per cent.

    Finance and Interest cost in Q12-2016 at Rs 25.11 crore (5.4 per cent of TIO) increased 45.3 per cent YoY from Rs 17.28 crore (5.4 per cent of TIO) and increased 41.4 per cent QoQ from Rs 17.75 crore (four per cent of TIO).