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Tag: Q4 2020

  • ZEEL reports higher subscription and OTT rights revenues for first quarter

    ZEEL reports higher subscription and OTT rights revenues for first quarter

    BENGALURU: Subhash Chandra’s Zee Entertainment Enterprises Limited (Zeel) reported a profitable quarter, albeit with steep declines in top-line and bottom-line numbers for the quarter ended 30 June 2020 (Q1 20210, quarter or period under review, COVID2019 quarter) as compared to the corresponding year-ago quarter Q1 2020. A number of Indian media and entertainment companies have reported a loss for COVID2019 quarter. Among other silver linings is growth in subscription revenue and growth in other sales and services which includes the sale of rights of movies to OTT platform. These numbers increased y-o-y by 5 per cent and 30.2 per cent respectively.

    Zeel reported 34.7 per cent lower y-o-y operating revenue at Rs 1,312.03 crore for Q1 2021 as compared to Rs 2,008.12 crore in Q1 2020. Total income (Operating revenue plus other income) fell 32.8 per cent y-o-y to Rs 1,338.41 crore from Rs 2,112.03 crore in Q1 2020.

    Ad revenue fell 59.5 per cent y-o-y in Q1 2021 to Rs 421.06 crore from Rs 1,186.71 crore in Q1 2020. Subscription revenue and other sales and service revenue increased y-o-y during the period under review as mentioned above. The company reported Rs 744.34 crore and Rs 708.77 crore as subscription revenue and Rs 146.63 crore and Rs 112.64 crore towards other sales and services for Q1 2021 and Q1 2020 respectively.  Zeel says in an investor presentation that subscription revenue increase was led primarily by increase in its OTT platform ZEE5 subscription revenue.

    Zeel says that international Ad revenue was Rs 37.1 crore, international subscription revenue was Rs 81.8 crore and other sales and services revenue was Rs 15 crore.

    Zeel reported profit after tax (PAT) of Rs 29.28 crore for COVID2019 quarter, which was just about one-eighteenth (declined 94.5 per cent) of the PAT of Rs 529.76 crore for Q1 2020. Operating profit (EBIDTA) for Q1 2021 was Rs 219.93 crore (16.8 per cent of operating revenue), or about one third (down 66.7 per cent) of Rs 659.75 crore (32.9 per cent of operating revenue) for Q1 2020.

    Let us look at the other numbers reported by Zeel for Q1 2021

    Total expenditure for Q1 2021 was Rs 1,280.80 crore which was 6.5 per cent lower y-o-y than the Rs 1,369.99 crore in Q1 2020. Operational costs in Q1 2021 were 15.7 per cent lower y-o-y at Rs 657.79 crore than the Rs 780.02 crore in Q1 2020. Employee benefits expense in Q1 2021 at Rs 200.12 crore was almost flat (fell 0.1 per cent) y-o-y as compared to Rs 200.33 crore in Q1 2020.

    Financial costs were less than a fourth (declined 78 per cent) y-o-y during the quarter under review at Rs 4.52 crore as compared to Rs 20.51 crore in Q1 2020. The company reported a fair value loss of Rs 112,33 crore in Q1 2021 as compared to a fair value gain of Rs 67.88 crore for Q1 2020 for its investments in overseas mutual funds. Advertisement and publicity expenses during the period under review at Rs 111.09 crore were 43.2 per cent lower y-o-y than the Rs 195.46 crore in Q1 2020. Other expenses in Q1 2021 at Rs 123.10 crore were 28.7 per cent lower than the Rs 172.56 crore in Q1 2020.

  • Sun TV operating margin up despite revenue and bottom-line fall in Covid2019 quarter

    Sun TV operating margin up despite revenue and bottom-line fall in Covid2019 quarter

    BENGALURU: Kalanathi Maran’s regional telecaster and FM radio broadcaster Sun Tv Network (Sun TV) reported 44.3 percent y-o-y decrease in consolidated operating revenue for the quarter ended 30 June 2020 (Q1 2021, period or quarter under review) as compared to the corresponding quarter of the previous year Q1 2020. Total Income (operating revenue plus other income) during the quarter declined 38.2 percent y-o-y as compared to Q1 2020. Profit after tax (PAT) declined 33.5 percent y-o-y in Q1 2021 as compared to the year ago quarter. Even the operating profit (EBITDA) for Q1 2021 fell 41.1 percent y-o-y in Q1 2021 as compared to Q1 2020. However, EBITDA margin of operating revenue for Q1 2021 was 66.9 percent as compared to 62.6 percent in Q1 2020. Sun TV is one of the largest networks in the country that has channels across the four major South Indian languages. All the numbers in this reported are consolidated unless stated otherwise.

    The company reported revenue of Rs 611.51 crore and Rs 1,110.04 crore in Q1 2021 and Q1 2020 respectively, PAT for Q1 2021 was Rs 257.11 crore and for Q1 2020 it was Rs 386.81 crore. EBITDA in Q1 2021 was Rs 409.11 crore as compared to Rs 694.95 crore in the corresponding year ago quarter. The company attributes the fall in revenue to the absence of IPL which normally happens during the first quarter and also absence of movie distribution in particular during the COVID2019 quarter. In the corresponding year ago quarter, Sun TV had reported revenue of Rs 244.39 crores and corresponding costs of Rs 138.40 crores for its IPL franchisee SunRisers Hyderabad.

    Sun TV has mentioned in its earnings release for Q1 2021 that subscription revenue during the quarter under review increased 17.6 percent y-o-y to Rs 442.25 crore from Rs 375.95 crore in Q1 2020.

    Let us look at the other consolidated numbers reported by the company for Q1 2021

    Consolidated total expenditure in Q1 2021 was 38.8 percent lower y-o-y at Rs 356.82 crore as compared to Rs 582.09 crore in the corresponding quarter of the previous year.

    Consolidated operating expense in Q1 2021 reduced 52.1 percent y-o-y to Rs 70.85 crore from Rs 148.01 crore in Q1 2020. Consolidated employee benefits expense in Q1 2021 declined 1.2 percent y-o-y to Rs 80.03 crore as compared to Rs 81.02 crore in Q1 2020. Consolidated other expenses (OE) in the Q1 2021 fell 63.1 percent to Rs 51.52 crore as compared to Rs 139.75 crore in Q1 2020.

  • NDTV bottom-line black despite revenue decline in Covid2019 quarter

    NDTV bottom-line black despite revenue decline in Covid2019 quarter

    BENGALURU: The Prannoy and Radhika Roy-led Indian media house New Delhi Television Ltd (NDTV) reported 33.7 percent lower year-on-year (y-o-y) consolidated revenue from operations for the quarter ended 30 June 2020 (Q1 2021, quarter or period under review) as compared to the corresponding quarter of the previous year Q1 2020 and 21.5 percent lower than that reported for the immediate trailing quarter Q4 2020. Despite the sharp drop in consolidated operating revenue, the company reported consolidated profit after tax (PAT) of Rs 7.55 crore for the quarter under review, albeit 54.7 percent lower than the Rs 16.66 crore in Q1 2020 and 17.9 percent lower q-o-q than the Rs 9.20 crore reported for Q4 2020.  Reported consolidated operating revenues for Q1 2021, Q1 2020 and Q4 2020 were Rs 72.73 crore, Rs 109.67 crore and Rs 92.60 crore respectively.  All figures mentioned in this paper are consolidated unless stated otherwise.

    Total income including other revenue for Q1 2021 declined 35 percent y-o-y to Rs 74.02 crore from Rs 113.87 crore in Q1 2020 and declined 27.4 percent from Rs 102 crore in Q4 2020. Calculated consolidated operating profit or simple operating EBITDA for the period under consideration was 36.8 percent lower y-o-y at Rs 15.98 crore (22 percent of operating revenue) as compared to Rs 25.29 crore (23.1 percent of operating revenue) for Q1 2020, but 40.4 percent higher q-o-q than the Rs 11.38 crore (12.3 percent of operating revenue) for Q4 2020.

    Even before the lockdown, the company has been cutting expenses. Consolidated total expenses for Q1 2021 declined 31.2 percent y-o-y to Rs 64.64 crore from Rs 93.96 crore in Q1 2020 and were 27.8 percent lower q-o-q than the Rs 89.49 crore in Q4 2020.  Production expenses and cost of services in Q1 2021 declined 52.5 percent y-o-y to Rs 11.47 crore from Rs 24.16 crore in Q1 2020 and fell 43.6 percent q-o-q from Rs 20.32 crore in Q4 2020. Employee benefits expenses in Q1 2021 were 28.8 percent lower y-o-y at Rs 22.39 crore as compared to Rs 31.46 crore in Q1 2020 and declined 24.2 percent q-o-q from Rs 29.54 crore in Q4 2020.

    Finance costs declined 11.4 percent y-o-y during the period under review to Rs 2.57 crore from Rs 2.90 crore in Q1 2020, but increased 1.6 percent q-o-q from Rs 2.53 crore in Q4 2020. Operating and administrative expenses for Q1 2021 fell 13.5 percent y-o-y to Rs 14.28 crore from Rs 16.51 crore and reduced 32.2 percent q-o-q from Rs 21.07 crore in Q4 2020. Marketing, distribution and promotional expenses for Q1 2021 were 29.7 percent lower y-o-y at Rs 8.61 crore as compared to Rs 12.25 crore in the corresponding quarter of the previous year and 16.3 percent lower q-o-q that the Rs 10.29 crore in the immediate trailing quarter.

    NDTV has two segments – television, media and related operations; and retail/e-commerce. NDTV has reported nil revenue and nil result for the latter for Q2 2021.

    Television segment operating revenue declined 33.3 percent y-o-y in Q1 2021 to Rs 72.73 crore from Rs 108.98 crore in Q1 2020 and was 20.8 percent lower q-o-q than Rs 91.80 crore in Q4 2020. NDTV reported 46.8 percent y-o-y decline in operating profit before exceptional items, share in profit/ (loss) of associate/ joint ventures, interest and tax to Rs 14.70 crore in Q1 2021 from Rs 27.64 crore in Q1 2020 and 20.7 percent lower than Rs 18.54 crore in Q4 2020.

    In note 1 of NDTV’s financial statement it is explained that parent company, which runs television business, has earned a standalone net profit of Rs 4.42 crore (Rs 442 lakh) during the quarter ended 30 June 2020 and, as of that date, the parent company’s current liabilities exceed its current assets by Rs 79.35 crores (Rs 7935 lakh). These conditions, along with other matters described in the note, indicate that a material uncertainty exists that may cast significant doubt on the ability of the parent company to continue as a going concern. The management has stated that the parent company has initiated certain strategic and operational measures included in note one to mitigate the uncertainty. Accordingly, they have prepared the statement on a going concern basis.

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  • Jio topline almost triples as op rev climbs in Q1-20

    Jio topline almost triples as op rev climbs in Q1-20

    BENGALURU: Mukesh Dhirubhai Ambani’s largest start-up in the world Reliance Jio Infocomm Ltd (Jio Infocomm) saw standalone operating revenue climb 33.7 percent to Rs 16,557 crore for the quarter ended 30 June 2020 (Q1 2020, period or quarter under review) as compared to the Rs 12,383 crore for the corresponding year ago quarter Q1 2020. Standalone profit after tax (PAT) increased 182.83 percent (almost tripled) in the quarter under review to Rs 2,520 crore from Rs 891 crore in Q1 2020.

    The company says in an earnings media release that customer addition in Q1 2021 was 0.99 crore despite the COVID2019 related impact. It closed the quarter with 39.83 crore subscribers and ARPU of Rs 140.30 per subscriber per month, higher than the Rs 130.6 in the immediate trailing quarter Q4 2020.

    Jio Infocomm standalone EBITDA for Q1 2021 was Rs 7,005 crore, which was 50 percent higher y-o-y than the Rs 4,670 crore for Q1 2020. Standalone total income (net operating revenue plus other income. without GST) for Q1 2021 increased 35.8 percent y-o-y to Rs 16,833 crore from Rs 12,399 crore in Q1 2020. Jio Infocomm’s network standalone operating expenses during the period under review increased 36.6 percent to Rs 5,225 crore from Rs 3,284 crore.  Standalone access charges in Q1 2021 fell 10.4 percent to Rs 1,393 crore from Rs 1,555 crore. Standalone license fees/spectrum charges for Q1 2021 increased 41.3 percent y-o-y to Rs 1,818 crore from Rs 1,287 crore in Q1 2020. Standalone employee benefit expense in Q1 2021 fell 18.9 percent to Rs 318 crore from Rs 392 crore in Q1 2020. Standalone net finance cost in Q1 2021 declined 29.6 percent to Rs 1,168 crore from Rs 1,660 crore in Q1 2020. Standalone other expenses in Q1 2021 fell 3.7 percent y-o-y to Rs 523 crore from Rs 310 crore in Q1 2020.

    Jio Platforms Ltd

    Jio Platforms Ltd (Jio Platforms) is an Indian digital services company and a subsidiary of Reliance Industries Ltd. The company owns India's largest mobile network operator Jio Infocom and other digital businesses of Reliance Industries Ltd (RIL). Jio Platforms has raised Rs 152,056 crores to bolster Jio’s initiatives towards delivering breakthrough technologies and building the world’s leading digital services platform. Jio Platforms has raised the money across thirteen investors which includes Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, Public Investment Fund of Saudi Arabia, Intel Capital and Qualcomm Ventures. Reliance Industries, post completion of these investments, would hold 66.48 percent equity stake in Jio Platforms on a fully diluted basis. Of the total investment, Jio Platforms Limited has already received Rs 1,15,694 crore as subscription amount.

    Jio Platforms consolidated revenue for Q1 2021 increased 12.2 percent from Rs 15,373 crore reported for the immediate trailing quarter. Jio Platforms consolidated PAT for Q1 2021 increased 6 percent to Rs 2,519 crore from Rs 2,377 crore in Q4 2020. Jio Platforms consolidated EBITDA for Q1 2021 increased 12.8 percent q-o-q to Rs 7,047 crore from Rs 6,250 crore in Q4 2020.

    Company Speak

    RIL chairman and managing director Ambani said: “Jio started with a vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. Thirteen investors, which include the largest technology companies and investors globally, now share a common vision with us. Jio Platforms Limited with partnerships across promising Indian start-ups and globally renowned technology companies is set to drive the next leg of hyper-growth for digital businesses. Our growth strategy is aimed at meeting the needs of all the 1.3 billion (130 crore) Indians. We remain focused on playing a leading role India’s transformation into a digital society.”

    Reliance Industries

    RIL consolidated revenue for the quarter was Rs 100,929 crore. Consolidated EBITDA for the quarter was Rs 21,585 crore. RIL says that despite lockdown due to COVID2019, net profit including exceptional items for the quarter was higher by 30.6 percent y-o-y at `Rs13,248 crore. Cash Profit was also higher by 16.7 percent y-o-y at Rs 18,893 crore. EPS including exceptional items for the quarter was Rs 20.7 per share, increased 22.1 percent y-o-y.

  • 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.