ITV

Tag: Q4 2019

  • Lower ad revenue and exceptional items pull down Zeel bottom-line for Q4, FY 2020

    Lower ad revenue and exceptional items pull down Zeel bottom-line for Q4, FY 2020

    BENGALURU: Subhash Chandra’s Zee Entertainment Enterprises Ltd (Zeel) reported 2.5 percent growth in consolidated operating revenue for the year ended 31 March 2020 (FY 2020, year under review) as compared to the previous year (FY 2019). For the quarter ended 31 March 2020 (Q4 2020, quarter under review) Zeel consolidated operating revenue declined 4.8 percent as compared to the corresponding year ago quarter Q4 2019. EBITDA (operating profit) and PAT (Profit after tax) for the year under review declined 66.5 percent and 36.2 percent respectively as compared to FY 2019. Consolidated PAT for FY 2020 was Rs 524.59 crore and for FY 2019 it was Rs 1,567.34 crore. Consolidated operating EBITDA for FY 2020 was Rs 1,634.57 crore ((20.1 percent of operating revenue) and for FY 2019 it was Rs 2,563.94 crore (32.3 percent of operating revenue).

    The company reported operating loss (negative consolidated operating EBITDA) of Rs 283.86 crore and consolidated loss after tax of Rs 765.82 crore for Q4 2020. Poor macroeconomic environment, conversion of two FTA channels into pay in March 2019, and market share loss in certain markets drove the decline in ad revenues said the company in its FY 2020 and Q4 2020 earnings release. The lockdown in March 2020 further impacted revenues, it added.

    Bottomline numbers for the year and quarter under review were also lower on account of 47.7 percent higher operating costs in Q4 2020 and 24.5 percent higher in FY 2020. (Operating costs include programming costs). The company said in the earnings release that underlying cost increase led by higher movie amortisation, new channels and investments in its OTT platform ZEES. The reported operating cost included one-time accelerated amortisation of higher inventory of Rs. 259.80 crore.

    Further, Zeel’s administration costs included Include a one-time provision of Rs. 343.30 crore for balances related to ad, subscription and other assets where recovery has become doubtful on account of COVID-19 led uncertainty. Also for FY 2020, exceptional items included goodwill write off of Rs. 113.70 crore pertaining to digital publishing business and provision of Rs. 170.60 crore relating to Inter Corporate Deposits (ICD). Another factor that impacted Zeel’s bottom-line for FY 2020 was  Rs. 383.50 crore loss in overseas investments in accordance with IND-AS 113 to, reflect the movement in fair value of these investments as on 31 March 2020.  

    However, these factors were partly offset by 41 percent growth in domestic business in Q4 2020, driven by the implementation of Telecom Regulatory Authority of India’s (TRAI) new tariff order (NTO) and growth in ZEE5's subscription revenues revealed Zeel. Domestic subscription revenues grew by 33 percent in FY 2020 as compared to FY 2020 driven by improved monetization of viewership post NTO implementation and ramp-up of ZEE5's subscriber base.

    Zeel’s ad revenue in Q4 2020 declined 14.7 percent to Rs 1,038.94 crore from Rs 1,217.49 crore in Q4 2019. Ad revenue for FY 2020 fell 7.1 percent to Rs 4,681.13 crore from Rs 5,036.66 crore in FY 2019. Subscription revenue in Q4 2020 increased 31.2 percent to Rs 741.36 crore from Rs 564.27 crore in Q4 2019. Subscription revenue in FY 2020 grew 25 percent to Rs 2,887.29 crore from Rs Rs 2,310.54 crore in FY 2019.

    Let us look at the numbers reported by Zeel

    Consolidated operating revenues for FY 2020, FY 2019, Q4 2020 and Q4 2019 were Rs 8,129.86 crore, Rs 7,933.90 crore, 1,951.08 crore and Rs 2,019.27 crore respectively. Consolidated total incomes (Operating revenue plus other income) for the same periods were Rs 8,413.50 crore, 8,185.35 crore, Rs 2,076.06 crore and Rs 1,991.76 crore respectively.

    Consolidated total expenses in Q4 2020 increased 66.5 percent to Rs 2,677.77 crore from Rs 1,612.60 crore in Q4 2019. Consolidated total expenses in FY 2020 increased 25.1 percent to Rs 7,109.70 crore from Rs 5,731.48 crore in FY 2019. Operating cost in Q4 2020 at Rs 1,304.62 crore was 53.9 percent more that the Rs 883.32 crore in the corresponding year ago quarter. Employee benefits expense (EBE) in Q4 2020 declined 22.7 percent to Rs 160.39 crore from Rs 201.46 crore in Q4 2019. EBE in FY 2020 increased 7.7 percent to Rs 780.51 crore from Rs 724.94 crore.

    Advertisement and publicity expenses (ad expenses) in Q4 2020 were 4.6 percent lower at Rs 184.12 crore as compared to Rs 193.01 crore in Q4 2019. Ad expenses in FY 2020 at Rs 695.60 crore were almost flat (declined 0.5 percent) as compared to Rs 699.27 crore in FY 2019. Other expenses in Q4 2020 more than tripled (up 238.3 percent) to Rs 585.81 crore as compared to Rs 173.17 crore in Q4 2019. Other expenses in FY 2020 increased 36.9 percent to Rs 1,190.49 crore from Rs 869.96 crore in FY 2020.

  • Siti Networks reports improved numbers for FY 2020

    Siti Networks reports improved numbers for FY 2020

    BENGALURU: The Essel group’s MSO major Siti Networks Limited reported 5.3 percent higher consolidated simple EBIDTA for the year ended 31 March 2020 (FY 2020, year or period under review) as compared to the previous year FY 2019. The company reported a 12.2 percent increase in operating revenue for the period under review as compared to the previous year. All numbers mentioned in this report are consolidated unless stated otherwise.

    The company has managed to reduce its major expenses, but for Pay Channel, Carriage Sharing & Related Costs (pay channel costs) in FY 2020 which increased 29 percent as compared to the previous year. Overall expenses increased 7.7 percent on account of these pay channel costs. In a note to the financial statements, Siti has explained that its operating revenue includes broadcaster share of subscription revenue, hence it has shown the broadcasters share in its pay channel costs as an expense.

    In its earnings release, Siti says that Subscription Revenue for Q4 2020 grew 25.3 percent y-o-y to Rs. 2,842 million. For FY 2020, Subscription Revenue surged 21.3 percent to Rs.11,567 million.

    The consolidated operating revenue figures reported by Siti are Rs 1,618.59 crore and Rs 1,442.13 crore for FY 2020 and FY 2019 respectively, hence a growth of 12.2 percent as mentioned above. Simple EBIDTA as calculated by the author for FY 2020 was Rs 340.64 crore (21 percent of operating revenue) and for FY 2019 it was Rs 323.61 crore (22.4 percent of operating revenue). Loss for the year under review reduced to Rs 188 crore from Rs 264 crore in the previous year.

    For Q4 2020, Siti’s consolidated operating revenue was Rs 27.8 percent higher y-o-y at Rs 408.29 crore as compared to Rs 415.06 crore in Q4 2019. Simple EBIDTA for Q4 2020 as calculated by the author increased 22.1 percent to Rs 81.58 crore (20 percent of operating revenue) from Rs 66.78 crore (20.9 percent of operating revenue). Loss for the quarter was lower at Rs 70.30 crore as compared to a loss of Rs 123.93 for Q4 2019.

    CEO of Siti CEO Anil Malhotra mentioned: “SITI Networks continued its consistent growth focus while maintaining a strict control on operational efficiencies during FY 2020. Our subscription revenue for Q4 2020 grew by 25.3 percent y-o-y, while our total revenue grew by approximately 23 percent y-o-y. Even for FY 2020, our total revenue jumped by 15.3 percent to Rs. 16,354 million. Our constant mantra of improving operational efficiencies while improving monetization helped us to deliver strong operating EBITDA at INR 3,538 million, in FY 2020, a surge of 1.2 times. Our response to COVID-19 pandemic has been widely appreciated. Our teams and partners have left no stone unturned to ensure that our customers get the best services."

    Let us look at the other numbers reported by Siti

    Total expense in FY 2020 increased 7.7 percent to Rs 1,781,33 crore from Rs 1,654,21 crore in the previous year. Amongst the major expense heads, Pay Channel, Carriage Share & Related Costs increased 29 percent in FY 2020 to Rs 843.96 crore from Rs 654.14 crore in FY 2019. Finance costs in FY 2020 declined 7.6 percent to Rs 157.68 crore from Rs 170.72 crore in FY 2019. Employee benefits expense in FY 2020 declined 8 percent to Rs 74.78 crore from Rs 81.32 crore in the previous year. Other expenses in FY 2020 declined 5.6 percent to Rs 357.70 crore from Rs 378.79 crore in FY 2019.

    Total expense in Q4 2020 increased 16.7 percent to Rs 451.03 crore from Rs 386.39 crore in Q4 2019. Amongst the major expense heads, Pay Channel, Carriage Share & Related Costs increased 47.9 percent in Q4 2020 to Rs 212.82 crore from Rs 143.94 crore. Finance costs in Q4 2020 declined 20.5 percent to Rs 35.52 crore from Rs 44,66 crore in the corresponding year ago quarter. Employee benefits expense in Q4 2020 declined 9.4 percent to Rs 16.95 crore from Rs 18.71 crore in the corresponding quarter of the previous year. Other expenses in Q4 2020 increased 9.1 percent to Rs 96.53 crore from Rs 88.44 crore in Q4 2019.

  • Sun Tv ex-IPL numbers up in Q1 2019

    Sun Tv ex-IPL numbers up in Q1 2019

    BENGALURU: The Kalanithi Maran-headed Sun TV Network Ltd (Sun TV) reported almost flat y-o-y standalone operating revenue (down 0.1 percent) for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the corresponding year ago quarter Q1 2019. Without the income generated from Sun TV’s IPL franchise ‘Deccan Chargers’, the company’s operating revenue increased 16 percent y-o-y in Q1 2020. Sun TV reported standalone operating revenue of Rs 1,101.36 crore for Q1 2020 as compared to Rs 1,120.39 crore for Q1 2019. Ex-IPL, the company reported standalone operating revenue of Rs 856.97 crore for the quarter under review as compared to Rs 738.59 crore for Q1 2019. Sun TV reported subscription revenue of Rs 396.94 crore for Q1 2020, which was 27.5 percent higher than the Rs 311.27 crore for Q1 2019.

    The board of directors of Sun TV has recommended an interim dividend of Rs 2.50 per equity (50 percent) share of face value of Rs 5 each.

    Calculated simple standalone EBITDA for Q1 2020 at Rs 682.91 crore (62 percent of operating revenue) was 7.1 percent lower y-o-y than the Rs  734.71 crore (65.6 percent of operating revenue). Standalone profit after tax for Q1 2020 declined 6.7 percent y-o-y to Rs 381.87 crore as compared to Rs 409.14 crore in Q1 2019.

    The company reported income from its IPL franchise of Rs 244.39 crore for Q1 2020 as compared to Rs 385.92 crore in Q1 2019. IPL franchise costs for the quarter under review were Rs 138.40 crore as compared to Rs 186.66 crore in Q1 2019. Sun TV paid IPL franchisee fees of Rs 46.31 crore in Q1 2020 as compared to Rs 71.33 crore in the corresponding year ago quarter.

    Let us look at the other standalone numbers reported by the company:

    Standalone Total Expenditure (TE) in Q1 2020 increased 8.7 percent to Rs 578.99 crore as compared to Rs 532.71 crore in the corresponding quarter of the previous year.

    Standalone Operating expense in Q1 2020 more than doubled (increased 100.7 percent) y-o-y to Rs 162.38 crore from Rs  80.90 crore in the corresponding quarter of the previous year. Employee Benefits Expense in Q1 2020 reduced 13.7 percent y-o-y to Rs 73.49 crore as compared to Rs 85.16 crore in Q1 2019. Other expenses (OE) in the Q1 2020 reduced 8.1 y-o-y percent to Rs 136.27 crore as compared to Rs 148.29 crore  in the corresponding quarter of the previous year.