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Tag: operating profits

  • India drives Star operating profits to $ 128 million for FY05: MPA

    MUMBAI: India continues to be the engine that drives the Rupert Murdoch-controlled Star Group, News Corp’s pan-Asian venture. Star raked in operating profits (EBIDTA) of $ 128 million for FY 2005 (ended 30 June 2005), a surge of 113 per cent year on year, research and publishing firm Media Partners Asia (MPA) has reported.
     
     

    According to MPA, operating income stood at $109 million on consolidated turnover of $444 million Profit margins grew to 29 per cent (EBITDA level) and 24 per cent (EBIT) during FY 2005. MPA estimates indicate that Star’s FYE June 2006 EBITDA could reach $205 million (40 per cent margin) while EBIT could grow to up to $190 million Depreciation and capEx costs continue to average at about $15-20 million per annum.
     
     

    Turnover grew 24 per cent year-on-year during Q4 FY 2005 and 14 per cent for FY 2005, reaching $444 million, boosted by advertising growth of Star Plus and Star Gold channels along with contributions from new channels in India, which now contributes about 67 per cent to group turnover. During FY 2005, advertising contributed 57 per cent to group turnover with subscription at 35 per cent and other business at 8 per cent.

    Star is edging close to breakeven in China, though on a relatively low revenue base. The company continues to face regulatory barriers on the Mainland with government authorities closely monitoring its activities. News Corp chairman and CEO Rupert Murdoch recently expressed his frustration on the issue complaining that his company had hit a “brick wall in China”. Murdoch was speaking at a panel on global media at the Clinton Global Initiative.

    Meanwhile as far as the trajectory of Murdoch’s jewel in his Asian crown is concerned, it remains up, up and away. Going forward, the company plans to maintain and extend its leadership in India with Star Plus as well as increasing Star One’s audience share; strengthening Star Gold; and launching international feeds. T Sky, Star’s 20 per cent owned $350 million DTH satellite JV with the Tatas, is expected to launch in March 2006.

  • B4U earns $3m in operating profits

    MUMBAI: B4U Worldwide, the holding company of B4U Movies and B4U Music, has managed an operating profit of $ three million this fiscal.
    B4U CEO Ravi Gupta told indiantelevision.com that the operating profit the company had achieved this year was significant when compared to the $ 600,000 it closed with last year. The company showed a revenue growth of 14 to 15 per cent, Gupta said, which is much lower than last year’s 35 per cent. 
    Gupta also admitted that his target of declaring net profits by the end of the fiscal had had not realised. “We have fallen short of breakeven,” he said. 
    B4U continues to garner a major part of its revenues from international operations. It was 65 per cent from overseas and 35 per cent out of India last year. However, after having making B4U Movies pay in the second half of 2002, this ratio is expected to have come down further to 60:40. 
    Among its international markets, B4U garners its highest revenues from the UK, Gupta said. Asked about any recent initiatives the network had done, Gupta, said there had been nothing major since joining hands with iDream to be co-producer in all its films last year. 
    iDream, by far the largest film fund that has emerged in India in recent times, is promoted by SSKI and has already produced / funded / distributed some well received independent movies of directors such as Mira Nair (Monsoon Wedding) and Gurinder Chadha (Bend it Like Beckham).
    iDream has backed off beat cinema with films such as Mitr (which has won 3 National Awards), as well as big star cast films like Agnivarsha with Raveena Tandon, Jackie Shroff, Sonali Kulkarni, Milind Soman playing lead roles in it. iDream also funded the recent moderate hit 16 December, as well as India’s biggest special effects film, the soon to be released Janantram Manantram and has in the pipeline, several other productions.
    Gupta said that films like Agnivarsha and 16 December, which were telecast recently on Zee TV as part of its Thursday Premiere slot were first shown on B4U Movies.

    Also Read:
    B4U ties up with iDream; to be co-producer in all its films