ITV

Tag: Reliance MediaWorks

  • RMW divests stake in Malaysian exhibition circuit to focus on India

    RMW divests stake in Malaysian exhibition circuit to focus on India

    MUMBAI: As part of the ongoing strategic reorganisation, Reliance MediaWorks has announced the divestment of 100 per cent stake of the Big Cinemas‘ exhibition circuit in Malaysia to MGO NAF VI Cinematic Holdings Limited (Navis), a private equity fund.

    According to RMW, the divestment will help it bring greater focus to its high growth potential exhibition business in India.

    The circuit has been consistently profitable and contributes a market share of eight per cent of the box office in Malaysia, with strong parameters in admits revenue per customer and experience. Navis recently acquired MBO Cinemas in Malaysia, and the Big Cinemas‘ portfolio complements the MBO circuit well in terms of location and coverage.

    Reliance MediaWorks intends to further enhance its focus on the Big Cinemas network in India, to benefit from the buoyant growth opportunity in the domestic market.

  • Reliance MediaWorks wins joint bid for James Cameron’s Digital Domain Media Group

    Reliance MediaWorks wins joint bid for James Cameron’s Digital Domain Media Group

    MUMBAI: Reliance MediaWorks (USA) has won a joint bid with China‘s Galloping Horse America to acquire James Cameron backed Digital Domain Media Group‘s Mothership Media and certain other businesses and assets of Digital Domain Productions, and subsidiaries for $30.2 million.

    Galloping Horse America will hold 70 per cent stake while Reliance MediaWorks will have a 30 per cent stake in the Digital Domain joint venture. The sale is subject to execution of an asset purchase agreement and Bankruptcy Court approval, the hearing for which is scheduled for 24 September.

    Searchlight Capital Partners had submitted a stalking horse bid for the Digital Domain and Mothership assets in the amount of $15 million.

    DDMG filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on 11 September.

    Galloping Horse-Reliance will acquire all assets constituting the businesses of Digital Domain and Mothership feature film and advertising visual effects, commercial production and virtual humans, studios in California and Vancouver, BC, Canada and a co-production stake in the feature film Ender‘s Game.

    Pursuant to section 363 of the Bankruptcy Code, Galloping Horse – Reliance will acquire these assets free and clear of all claims and encumbrances, with the proceeds going to the bankruptcy estate. The businesses will continue to operate in the normal course of business, with the joint venture assuming ownership upon Court approval.

    Beijing Galloping Horse Film Vice Chairman and MD Ivy Zhong said, “Digital Domain is a legend in the industry, known for its world-class quality of work and creative talent. We are thrilled to have found a partner in Reliance MediaWorks that is as committed as we are to ensuring Digital Domain‘s continued excellence and success.”

    Reliance MediaWorks Chief Executive Officer, Film & Media Services Venkatesh Roddam said, “We have had a wonderful working relationship with Digital Domain over the years and we could not be happier to take it further through the joint Galloping Horse – Reliance acquisition. We are looking forward to working with Digital Domain employees and customers to make the operation better and stronger.”

    Beijing Galloping Horse and Reliance MediaWorks have a combined enterprise value of more than $25 billion, complementary offerings and presence in multiple worldwide geographies strategic to the entertainment industry.

    “This is a great day for Digital Domain,” said Digital Domain Chief Executive Officer Ed Ulbrich. “Our new partners have incredible strength and reach in the global entertainment marketplace. They are powerful strategic partners that understand our business and our clients‘ business. Their support enables us to continue creating the highest quality entertainment and advertising and puts us in the strongest financial position that Digital Domain has ever been in. We are grateful to all of the bidders and couldn‘t be more pleased with this outcome.”

  • Reliance MediaWorks fails to get consent of all lenders for restructuring

    Reliance MediaWorks fails to get consent of all lenders for restructuring

    Mumbai: Reliance MediaWorks Ltd, an R-ADAG group company, has failed to obtain consent from all its lenders for restructuring its businesses into separate subsidiary companies.

    Consent from all the lenders is critical for the company to be able to receive Rs 6.05 billion in private equity investment to wriggle out of a financial mess caused by crippling losses and high indebtedness.

    The company has not disclosed the name of the private equity firm with whom it has signed an indicative non-binding term-sheet. A newspaper had last month reported that the firm which has agreed to invest in Reliance MediaWorks is L Capital, the world‘s biggest luxury company LVMH‘s private equity arm.

    “We have not received consents for transferring our film and media services and theatrical exhibition business to our subsidiaries from some of our lenders,” Reliance MediaWorks said in the draft prospectus it has filed for a rights issue to raise another Rs 600 crore.

    The shareholders of the company had approved transferring of its film and media services and theatrical exhibition business to wholly-owned subsidiaries on February 21, 2012.

    The company‘s net worth has been fully eroded. It had a negative net worth of Rs 2.39 billion as on March 31, 2012, after the company reported a loss of Rs 5.72 billion in the year ended March 31, 2012.

    Reliance MediaWorks had total borrowings of Rs 16.63 billion against total shareholder funds of Rs 378.11 million.

    The lenders of Reliance MediaWorks include Magma Fin Corp Ltd, Barclays Bank PLC, Allahabad Bank, Export Import Bank, Jammu & Kashmir Bank, Syndicate Bank, Union Bank of India, Vijaya Bank and Union Bank of India.

    The biggest lender to Reliance MediaWorks is its promoter Reliance Capital with loans of Rs 8.69 billion outstanding as on June 30, 2012.

    Reliance has not disclosed which of the lenders have not given their consent to the company for transferring its film and media services to a subsidiary.

    As part of the process of restructuring, Reliance MediaWorks has already separated its businesses into two divisions – film and media services, and film exhibition. It has appointed Venkatesh Roddam as the CEO of the Film and Media Services division and Ashok Ganapathy as the CEO of the Exhibition division.

    In terms of the financing agreements with the lenders, Reliance Mediaworks is required to obtain their prior consent for, amongst other things, transferring its business.

    The consents received from some lenders are also subject to strict conditions. The key condition is that Reliance MediaWorks obtains necessary approval from all the lenders. The other conditions include: there should be no material change to the security offered to the lenders and the assets transferred should continue to secure the exposure; the relevant subsidiaries should ensure sufficient cash flows to meet the repayment obligations; and the company should continue to comply with the terms and conditions of the financing documents.

  • Reliance MediaWorks net worth fully erodes

    Reliance MediaWorks net worth fully erodes

    Mumbai: The net worth of Reliance MediaWorks Ltd, Reliance ADAG‘s film and entertainment services company, has completely eroded as the company struggles to cope up with indebtedness and with losses over consecutive quarters.

    “Considering the continuing substantial losses incurred by the company, its net worth has eroded,” the company said in notes to the accounts while releasing the financial results for the quarter ended June 30, 2012.

    Reliance MediaWorks‘ net worth had eroded to Rs 378.11 million as on March 31, 2012 from Rs 6.66 billion as on March 31, 2008. The company‘s net worth further eroded as it reported a loss of Rs 910.08 million in the quarter ended June 30, 2012.

    The company had on May 15, 2012 extended its financial ended March 31, 2012 by six months up to September 30, 2012.

    For the fifteen months ended June 30, 2012, the company‘s loss amounted to Rs 5.25 billion. The company also suffered a loss of Rs 243.52 million on cancellation of a derivatives contract pertaining to interest rate swaps, due to adverse foreign exchange fluctuations and interest rates. The loss was accounted for in the quarter ended June 30, 2012.

    In the quarter ended June 30, 2012, the interest cost for the company on a consolidated basis was Rs 768.32 million and on a standalone basis Rs 757.43 million. The company has nearly Rs 12 billion of long-term and short-term loans.

    Reliance MediaWorks said it has reported the results as a going concern, despite erosion of its net worth, based on the improved operational performance on account of stabilization of new businesses in films and media services and financial support from its promoters.

    The company has filed with the Securities and Exchange Board of India (SEBI) for a rights issue to raise Rs 6 billion.

    It has also signed an indicative non-binding term sheet with a private equity fund to acquire a substantial minority stake in Reliance MediaWorks‘ film and media services division for an investment of Rs 6.05 crore. The proposed investment is subject to completion of customary detailed due-diligence, definitive documentation and forming a separate subsidiary for the film and media services business.

    The company‘s total income from operations and net loss in the quarter ended June 30, 2012 is at the same levels as that of a year earlier. However, its total income from operations at Rs 1.22 billion in the quarter ended June 30, 2012 was 27 per cent higher compared to the previous quarter ended March 31, 2012.

    Similarly, its revenues from exhibition business at Rs 987.66 million were up 38 per cent compared to the previous quarter.

    According to the draft prospectus filed by the Reliance Mediaworks, the company‘s auditors have qualified their audit report in respect of our standalone and consolidated financial statements for the 12 months ended March 31, 2012.

    In the audit report on standalone financial results for the 12 months ended March 31, 2012, the auditors have noted that the company has not accounted for loss on cancellation of the derivative contract, post period end, aggregating Rs 243.52 million. The auditors noted that the company did not account for this loss as required by the principles of prudence as enunciated in accounting standard-1 (AS-1).

    Further, the auditors have drawn attention to the recognition of deferred revenue expenditure aggregating Rs 138.72 million pertaining to start up and stabilisation costs of the business of Reliance MediaWorks Entertainment Services Limited, one of our subsidiaries.

    If the company had recognised these losses in the 12 months ended March 31, 2012, the loss for the period would have been higher by Rs 382.24 million.

    The auditors have, in their report on restated standalone financial information, have drawn attention to the fact that the net worth of our Company has eroded on account of loss of Rs 4.58 billion (as restated) for the 12 months ended March 31, 2012. In addition, the auditors have in the report on restated consolidated financial information drawn attention to the fact that the net worth of the company has fully eroded on account of loss of Rs 5.72 billion (as restated) for the 12 months ended March 31, 2012.

    Reliance MediaWorks, in the draft prospectus, has stated that it cannot assure investors that the company‘s net worth will not decrease further. The auditors have warned that the erosion of net worth indicates an uncertainty that may cast a doubt about the company‘s ability to continue as a going concern.

  • Reliance MediaWorks splits biz into 2, film exhibition to form one arm Children’s fest

    Reliance MediaWorks splits biz into 2, film exhibition to form one arm Children’s fest

    MUMBAI: Reliance MediaWorks, Reliance Anil Dhirubhai Ambani Group‘s film and entertainment services company, has separated its businesses into two divisions – film and media services, and film exhibition.

    The company has appointed Venkatesh Roddam as the CEO of the Film and Media Services division and Ashok Ganapathy as the CEO of the Exhibition division, to enhance the independent focus on each operating division.

    Reliance MediaWorks CEO Anil Arjun will henceforth be associated with the company as a strategic advisor.

    The creation of two independent divisions follows signing of an indicative non-binding term-sheet by Reliance MediaWorks with an unidentified private equity fund for selling a substantial minority stake for Rs 6.05 billion. The term sheet envisages separate subsidiary for the film and media services business, after the completion of customary detailed duediligence, definitive documentation, and approvals as may be necessary.

    Reliance MediaWorks‘ businesses are spread across India, the US, the UK and Malaysia.

    Reliance MediaWorks has also filed a draft prospectus with the Securities and Exchange Board of India (Sebi) for a rights issue to raise Rs 6 billion.

    Reliance MediaWorks‘ market capitalisation is Rs 2.54 billion based on Friday‘s closing price of the company‘s shares. Its shares closed at Rs 55.25, down 1.43 per cent.

  • Reliance MediaWorks in deal with PE for Rs 6 bn

    MUMBAI: Debt-laden Reliance MediaWorks (RMWL), controlled by Reliance ADAG, has agreed to capital infusion of Rs 6.05 billion from an undisclosed international private equity firm.

    The company said Wednesday it has signed a term-sheet agreement for a ‘substantial‘ minority stake in its film and media services division.

    RMWL runs a cinema exhibition business under Big Cinemas, a TV production unit under Big Synergy, and a film and media services segment.

    The company plans to use the funds to cut debt and for expansion. Last year, RMWL had announced plans to raise Rs 5 billion via rights issue to reduce its debt. RMWL‘s debt is over Rs 10 billion and has been a matter of concern for the Anil Ambani-controlled company.

    RMWL MD Anil Arjun declined to disclose the name of the private equity fund as the two parties have agreed to exclusivity for the next 90 days.

    The proposed investment is subject to completion of customary detailed due diligence, definitive documentation, and completion of subsidiarisation of the film and media services business, and approvals.

    Early this year, RMWL board had given the nod to hive off its exhibition and film and media services businesses into subsidiaries.

    RMWL has a presence in Film and Media Services; Motion Picture Processing and DI; Film, Audio Restoration and Image Enhancement; 3D; Digital Mastering: Studios and Equipment rentals; Visual Effects; Animation; Broadcast and TVC Post Production with presence across India, USA and the UK.

    RMWL had earlier said that it will deepen its presence in the Tamil and Telugu markets to expand its domestic entertainment services portfolio across films, broadcast and television commercials.

    The company had reported net loss of Rs 5.18 billion on net sales of Rs 7.98 billion for the fiscal 2011-12.

  • Reliance MediaWorks net loss narrows to Rs 1.26 bn

    Reliance MediaWorks net loss narrows to Rs 1.26 bn

    MUMBAI: Reliance MediaWorks has narrowed its net loss to Rs 1.26 billion for the fourth quarter ending 31 March as against Rs 1.73 billion in the same quarter last year.

    As per the consolidated results, the company’s net sales for the quarter climbed to Rs 1.71 billion, an increase of Rs 357.35 million over the year-ago period.

    RMW’s total income from operations rose to Rs 1.76 billion, up from Rs 1.39 billion. The company’s expenses went up marginally from Rs 2.39 billion to Rs 2.53 billion.

    Revenue from film production services was Rs 517.54 million for the quarter, up from Rs 438.63 million in the same quarter last year.

    Income from theatrical exhibition for the quarter jumped to Rs 1.126 billion from Rs 869.89 million while television, film production and distribution income increased to Rs 116.44 million as opposed to Rs 82.50 million in the same quarter of the previous fiscal.

    For the year ended 31 March 2012, the company’s net loss widened to Rs 5.18 billion as opposed to Rs 3.29 billion in the previous fiscal.

    Total income from operations for the fiscal stood at Rs 8.14 billion compared to Rs 8.36 billion a year ago. The company’s expenses for the fiscal were Rs 10.95 billion, up from Rs 9.82 billion.

  • Sharad Pal moves to Reliance MediaWorks from Sahara One Media

    Sharad Pal moves to Reliance MediaWorks from Sahara One Media

    MUMBAI: Sahara One Media & Entertainment’s head film distribution and syndication Sharad Pal has quit.

    Pal, who had joined the company in March 2008, will be joining Reliance MediaWorks as divisional head studios – business development.

    “Yes I will be joining Reliance MediaWorks in March. 15 February was my last day at Sahara,” Pal confirmed to Indiantelevision.com.

    In his new role, Pal will be reporting into RMWL COO – Production Services Ashish Chakravorty.

    In his new profile, Pal will be handling the business front for the sound stages of the company.

    Prior to Sahara, Pal has worked with Adlabs for three years in international sales, looking after overseas distribution.

  • Reliance MediaWorks Q3 net loss widens to Rs 1.5 bn

    Reliance MediaWorks Q3 net loss widens to Rs 1.5 bn

    MUMBAI: Reliance MediaWorks (RMWL) has posted a consolidated net loss of Rs 1.51 billion for the third quarter of the fiscal, compared to a net loss of Rs 570.44 million the company had posted in the earlier year.

    The company’s total income skid 12.88 per cent to Rs 2.11 billion compared to Rs 2.42 billion a year ago even as expenditure rose 11.13 per cent to Rs 2.89 billion from Rs 2.60 billion.

    Revenue from company’s theatrical exhibition segment, Big Cinemas, declined to Rs 1.48 billion from to Rs 1.72 billion, representing a decline of Rs 240 million from the trailing quarter.

    The company posted a revenue of Rs 534.38 million from the Film Production Services segment, as compared to Rs 598.3 million it had posted in the year-ago period.

    RMWL clarified that the animation business is no longer part of the film production services, pursuant to restructuring that came into effect October last year.

    Loss from film production services further increased to Rs 85.23 million compared to Rs 21.94 million in the prior year. The company deployed Rs 7.08 billion in the production services segment.

    The theatrical exhibition business revenue stood at Rs 1.48 billion in the quarter under review (from Rs 1.72 bn in the year ago period). The loss from the segment was at Rs 510.38 million, as against a loss of Rs 56.96 million in the corresponding period of the previous fiscal.

    The company deployed Rs 8.05 billion on the segment as of 31 December. Meanwhile, the television/film production and distribution vertical saw a huge dip in revenue from Rs 235.2 million in Q3 FY’11 to Rs 128.84 million in the current quarter.

    Operating profit from the segment stood at Rs 17.94 million, down from Rs 43.63 million in the year-ago period.

    The company has informed that its exhibition business achieved cash break-even during the quarter. It is also in the process of in the process of transferring its cinema exhibition and film and media services into separate wholly owned subsidiaries.

    “With commencement of large commissioned orders, creative restoration and media services showed a sharp upswing at Rs 260 million and cash break-even in third quarter as compared to cash operating loss of Rs 100 million in trailing quarter,” it said.

  • Reliance MediaWorks to strengthen presence in South India

    Reliance MediaWorks to strengthen presence in South India

    MUMBAI: Reliance ADA Group company Reliance MediaWorks plans to deepen its presence in the Tamil and Telugu markets as it looks to expand its domestic entertainment services portfolio across films, broadcast and television commercials through strategic alliances, capacity expansion and leveraging of existing relationships.

    To strengthen the services offerings in South India market, Reliance MediaWorks has recently partnered with VenSat to expand its VFX, CG and Animation capabilities and create a studio in Chennai. It has also tied up with Annapurna Studios to manage and operate their studio facility and operate and expand the Digital Post Production facility at the Hyderabad studios.

    Reliance MediaWorks CEO Anil Arjun said, “In 2012, we plan to deepen our presence in the Tamil and Telugu market through our strategic alliances and additionally further strengthen our service offerings and leverage of existing relationships with capacity expansion and new strategic partnerships. With production values constantly going up we see a significant potential and growth opportunity.”

    Reliance MediaWorks had offered varied services such as Motion Picture Processing, Digital Intermediate (DI), Digital Cinema mastering, Promos and trailer services and visual effects for 110 out of 114 Bollywood films that released in 2011. The company also handled DI and VFX for over 65 films besides starting to offer 3D Conversion services to Bollywood Studios, Don 2 being its first domestic project.

    The company, which also operates digital restoration and content processing services facilities in India, has restored over 250 legacy films in 2011 which includes titles like Sholay, Laawaris, Devdas and Do Bhigha Zameen.