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Tag: revenues

  • TRAI: FM Radio ad revenues move up in Q2-17

    TRAI: FM Radio ad revenues move up in Q2-17

    BENGALURU: After the recent slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been averted, albeit marginally for Q2-17 (quarter ended 30 September 2016, current quarter) according to the data released by The Telecom Regulatory Authority of India.

    According to TRAI data, radio combined ad revenues reported by 259 stations were Rs 502.13 crore or an average of Rs 1.94 lakh per station for Q2-17. This was slightly higher than the Rs 1.92 crore (combined revenue Rs 468.08 crore from 244 stations)for the immediate trailing quarter. Q2-17 ad revenue was however short by about Rs 10 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs 481.56 crore (2.04 crore per station) from 236 stations.

    Please refer to Figure A below for FM Radio Ad Revenue over a five year plus period spanning a 22 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 30 September 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.

    public://r-fig1.jpg

    In absolute terms, combined Radio ad revenue in Q2-17 increased 4.2 percent and 7.3 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 5 percent y-o-y, but increased 1.1 percent q-o-q. The total number of stations in Q2-17 increased 9.7 percent y-o-y and 6.1 percent q-o-q.

    Please refer to Figure B for y-o-y and q-o-q changes

    public://r-fig2.jpg

    Conclusion

    Overall, despite the year-end and first quarter of a new fiscal drops, ad revenues as well as ad revenues per station show a linear increasing trend as more and more advertisers have begun to understand the value proposition this very local medium with a pan-India footprint can offer. Further, the third quarter of the fiscal (Q3, quarter ended 31 December) is also the festival quarter of the year in India – a sweet quarter as far as the radio industry is concerned. However, It remains to be seen how demonetisation has affected ad revenues for the fledgling medium for Q3-17. As mentioned above, during the third quarter of a fiscal radio ad revenues have historically been the highest.

     

  • Doordarshan sees major dip in revenue & business generation in 2015-16

    Doordarshan sees major dip in revenue & business generation in 2015-16

    NEW DELHI: Public broadcaster Doordarshan’s revenues fell sharply during 2015-16, showing a total of Rs 340 crore by way of net revenue and business generation until the end of December as compared to Rs 582.02 crore for the same period in 2014-15.

     

    Doordarshan sources told Indiantelevision.com that in the Rs 340 crore figure for 2015-16, the net revenue was Rs 138 crore, whereas the business generation figure stood at Rs 202 crore. 

     

    The corresponding figures for 2014-15 for the same period were Rs 320.88 crore as revenue and Rs 261.14 crore as business generation, totalling to Rs 582.02 crore.

     

    The revenue from April to November 2015 (nine months) stood at just over Rs 128 crore, whereas in the month of December 2015, the revenue was just under Rs 10 crore.

     

    The revenue generation in December 2015 came from the Ministries of Personnel and Pensions, Home, Consumer Affairs, Health and Family Welfare, Road Transport and Highways, and Social Justice and Empowerment.

     

    This was mainly from the publicity of 15 different programmes or campaigns run by these six ministries of which six were for Health and Family Welfare, and four for Social Justice and Empowerment.

  • US sports market to grow at 4% to touch $73.5 billion in 2019: PwC

    US sports market to grow at 4% to touch $73.5 billion in 2019: PwC

    MUMBAI: Even as India’s sports industry is on a growth path with broadcasters like Star India, Multi Screen Media and others promoting games like kabbadi, football, wrestling et al, the sports industry in North America has been one of the biggest revenue generators as a business. With North America’s sports market revenue crossing $60 billion in 2015, everyone from broadcasters, sports agencies and sponsors want a slice of the pie.

    So, what does the future hold for the sports industry in North America? How much more value will sports create? And will demand meet a sufficient supply? Let’s have a look. 

    According to a PricewaterhouseCooper (PwC) report titled ‘At the Gate and Beyond: An Outlook for sports Market in North America through 2019,’ the sports market in North America will grow at a compound annual rate of four per cent across four segments analysed, from $60.5 billion in 2014 to touch $73.5 billion in 2019. 

    This year’s edition of report revitalises five-year revenue forecasts through 2019 with four key segment of the North American sports market namely gate revenues, media rights, sponsorship, and merchandising.   

    Gate revenues are primary market ticket sales for live sports events. The adoption of dynamic pricing for single game tickets has changed. With an increase on media rights revenue over gate revenue, it will make selling broadcast rights more important than selling tickets for the live events and making media rights the biggest contributor to gross sports revenue. 

    Local TV rights in Major League Baseball (MLB), National Basketball Federation (NBA) and National Hockey League (NHL) will likely contribute to the overall sector growth with more than 35 per cent of current deals set to expire over the next five years, albeit on a smaller scale than the national rights deals entered by the major pro leagues, athletic conferences and other sanctioning bodies that are predominately driving industry-wide growth. 

    As far as gate revenues are concerned, leagues will have to find ways to bring in the crowds to stadiums. To maintain gate revenues, leagues are coming up with different innovations like rewards, fan (loyalty) rewards program and point systems. And in areas where past generations of rewards programs failed, new innovations will allow clubs to more efficiently track fan activities, understand fan preferences, and disseminate benefits to fans. 

    There will be many hurdles for sports leagues in terms of media ratings, as the popularity of live sports is in demand. There would be an increase in budgets of various sports cable networks for live programming for the viewers, battle over subscriber fees and bidding wars over desirable content. The rise in the compound rate is derived from subscriber base and as long as it stays strong, there might be an increase in the compound annual rate and vice versa. While media rights are projected to become the industry’s largest segment by 2018, its pace of growth is expected to slow towards the end of the five-year period. 

    As per the report, even with strong segment fundamentals, such as long term deals, higher renewal rates, and enhanced inventory yields, sponsorship is expected to be surpassed in size by media rights in 2015. The net effect of new inventory will depend on future economic conditions and the industry’s ability to expand sponsor rosters, while maintaining value proposition to existing partners. Approximately 40 per cent of major pro league teams are currently either without a deal or with existing deals set to expire in the next five years. 

    The report also suggests notable measures, which pro leagues should consider such as to expand retail shops and improve sale results of their representative merchandise, which are in-house operations of the retail business. Another measure would include positioning of official team store locations outside the stadium, arena or ballpark. 

    PwC also advised, “As consumer and advertisers continue to migrate toward internet-connected devices and second-screen activity, it is more likely the traditional pay-TV model will have transformed (e.g. smaller channel packages, reduced rates) by the next deal cycle of major sports property rights. As a result, the next deal cycle, currently outside the outlook period, is unlikely to realize the same rights-fee premiums as were applied during the current cycle as cable providers sought to secure ports content in support of the overall pay-TV package model.” 

    The cyclic nature of sports is a reflection of more stadiums being built, more television contracts being signed and advertising taking a major role in globalization of sports. It shows significance growth prospects for the future.

    With Indian broadcasters, sports enthusiasts and aspiring entrepreneurs now waking up to the potential of the sports telecast and marketing business, a few lessons could be learnt from the west in order to extract the maximum from the various sports that are played in India.

  • Videocon d2h reports higher EBITDA, revenues, adds 0.2 mn net subs in Q2 FY 2016

    Videocon d2h reports higher EBITDA, revenues, adds 0.2 mn net subs in Q2 FY 2016

    MUMBAI: Indian pay TV platform and DTH operator Videocon d2h is slowly but surely getting its act together. At least if one goes by the financials for the quarter ended 30 September 2015 it has filed with Securities Exchange Commission in the US. The company is listed on the US Nasdaq.

     

    It has announced lower net losses, higher subscription and activation revenues, higher  EBITDA,  and an increase in both gross and net subscribers in the latest quarter as compared to the previous fiscal quarter and Q1 FY 2016.

     

    Net loss for the second quarter of the 2016 fiscal year at Rs 24.6 crore is a 59.9 per cent improvement over the net loss in the second quarter of the 2015 fiscal year which stood at Rs 61.4 core. It is, however,  marginally higher than the Rs 24.6 crore loss it suffered in Q1 FY 2016.

     

     It has reported a sales growth in both subscription and activation revenue and revenue from operations to Rs 629 crore (Rs 505 crore previous fiscal quarter – a growth of 24.6 per cent) and Rs 690 crore (Rs 507.30 crore  in Q2 FY 2016 – a growth of 20.3 per cent growth) respectively.  The comparitive Q1 FY 2016 figures for subscription and activation revenue  and overall revenues for Q1 FY 2016 were Rs 599.61 crore and 662.83 crore.

     

    The company notched up higher net subscribers (10.84 million in Q2 FY 2016 vs 9.46 million in Q2 FY 2015).  Average revenue per user (ARPU) growth  was higher at Rs 205 in Q2 2016 vs Rs 190 in Q2 FY 2015 but stagnated when compared to Rs 205.30 in Q1 FY 2016.

     

    It added 0.20 million net subscribers in this quarter, while adding 0.57 million gross subscribers to end Q2 FY 2016 with 14.27 million gross subscribers.

     

    As a comparitive, the  DTH service provider addded 0.61 million gross subscribers and 0.46 lakh net subscribers in Q1-FY 2016.

     

    Churn was higher in Q2 FY 2016 at 1.19 per cent as against 0.85 per cent in the previous corresponding fiscal quarter. 

     

    The company’s adjusted EBITDA has also improved 32.3 per cent to Rs 191 crore in the quarter ended 30 September 2015 as against Rs 145 crore for Q2 30 September 2014. This is a 2.50 per cent rise in adjusted EBITDA margin to 27.7 per cent in the latest quarter, despite significant increases in content costs as a percentage of revenue. Videocon d2h has clarified that the adjusted EBITDA is calculated after accounting for impact of its ESOP Plan 2014 which amounted to Rs 2.94 crore. The company’s EBIDTA in Q1-2016 was  Rs 187.43 crore (28.3 per cent margin).

     

    Videocon d2h says it began operating under new long term content agreements in the second half of the 2015 fiscal year. Content costs as a percentage of revenue in Q2 FY 2016 stood at 38.1 per as against 34.8 per cent in Q2 FY 2015.  Comparitively, content cost as a percentage of revenue in Q1 FY 2016 was  37 per cent. 

     

    Subscriber acquisition costs in the form of hardware subsidies were Rs 1,775 per subscriber during the second quarter of the 2016 fiscal year as against Rs 1,793 in Q1 FY 2016.

     

    Commenting on the results, Videocon d2h executive chairman Saurabh Dhoot said,  “I am happy to share that we have achieved EBITDA growth of 30.3 per cent in the first half of the current fiscal as against our guidance of 25-30 per cent growth. We are on track to deliver even stronger growth in the second half of this year, in line with the guidance shared earlier. During the quarter, we focused on enhancing our channel offering and added 14 Standard Definition and 4 High Definition channels. We have recently launched two proprietary services, namely d2h Hollywood HD and Darshan. With more than 50 million eye balls we also continue to gain traction on advertising revenue with marque advertisers coming on our platform.”

     

    Speaking on the near term subscriber growth outlook Videocon d2h CEO Anil Khera said,  “We estimate around 50 million television homes come under Phase III digitization, of which 24-25 million television homes are already on the digital platform. Thus, the target market under Phase III digitization is the remaining 25-26 million television homes that are currently on analog cable.”

     

    The company has also stated that its estimated market share stands at 21 per cent and it is among India’s fastest growing pay TV platforms.

     

    The Videocon d2h stock was trading at around $9.49  on Nasdaq at the time of writing as against $12.05 at the beginning of 2015.

     

  • Global pay TV revenues hit $184 billion in 2012, Pay TV shows growth in last five years

    Global pay TV revenues hit $184 billion in 2012, Pay TV shows growth in last five years

    NEW DELHI: The number of pay TV households (analog and digital) reached 772 million by 2012, according to a new report from Digital TV Research. The figure had been 585 million in 2008, according to Digital TV Research.

    Asia Pacific increased by 126 million – or two-thirds of the global additions – during this period to bring its total to 433 million. North America (112 million) was the second largest region, although it only added four million.

    India stood at the second place with 116.7 million households, after China with 232.8 million households, and followed by the United States with 100.2 million households.

    The other countries in top 10 pay TV countries at end-2012 were Japan (25.1 million), Russia (23.6 million), Germany (21.8 million), Brazil (16.2 million), South Korea (16.1 million), the United Kingdom (14.4 million) and Mexico (13 million).

    Pay TV revenues reached $184 billion in 2012, up by 28.5 per cent from $143 billion in 2008. Cable (analogue and digital combined) generated the highest revenues by platform, with $87 billion in 2012. However, cable revenues are flattening and DTH will overtake cable soon. IPTV revenues reached $12.0 billion in 2012, up from $2.8 billion in 2008.

    North America generates about half the world‘s total pay TV revenues.

    About 404 million digital homes were added around the world between 2008 and 2012. This took the digital TV household total for the 97 countries covered in the Digital TV World Databook to 786 million. Digital TV penetration of TV households climbed from 28.6 per cent at end-2008 to 54.7 per cent by end-2012.

    However, there were still 652 million analogue TV households by end-2012, although this was down from 956 million at end-2008. There were still 411 million analogue terrestrial homes (down by 56 million year-on-year) and 242 million analogue cable ones (down by 33 million) at end-2012.Digital cable was in 273 million homes (up by 43 million on end-2011), followed by 178 million pay digital DTH (up by 20 million) and 118 million free-to-air digital DTH by end-2012. Pay IPTV brought in another 69 million households (up by 18 million).

    Meanwhile, primary free-to-air DTT homes reached 138 million (up by 26 million), with pay DTT accounting for a further 9 million. From the digital homes added between 2008 and 2012, 83 million came from primary DTT [homes taking DTT but not subscribing to cable, DTH or IPTV]. Digital cable contributed a further 151 million additions; pay DTH 75 million, with pay IPTV providing an additional 56 million.

    The universe is not static as 100 million TV households were added between 2008 and 2012 to bring the total to 1,439 million. Of these additions, 69 million came from the Asia Pacific region.

    From the 404 million digital TV households added between 2008 and 2012, 229 million were in the Asia Pacific region, bringing its total to 342 million. China became the largest digital TV household nation in 2010; rising to 187 million digital TV homes (24 per cent of the world‘s total) by end-2012.

  • Airtel Digital TV services Q1-2014 losses halve as compared to Q1-2013

    Airtel Digital TV services Q1-2014 losses halve as compared to Q1-2013

    BENGALURU: Airtel’s Digital TV services business contributed Rs 490 crore or just 2.4 per cent to Bharati Airtel’s (Airtel) Q1-2014 total net revenues of Rs 20,2263 crore, but its loss for the quarter at Rs115.6 crore eroded the communications services major’s PAT of Rs1837.7 crore by 6.3 per cent.

     

    The loss for Q1-2014 of Rs115.6 crore by the Digital TV services business, was however almost half (51 per cent) of the loss of Rs 226.5 crore for Q1-2013 and about 65 per cent of the Rs 178.4 crore loss reported for Q4-2013. During FY-2013, Airtel’s Digital TV services business’s reported loss was Rs 810.5 crore.

     

    Consequently, its capital employed (segment’s assets minus segment’s losses) has eroded 34.5 per cent to Rs (-2.946.8) crore in Q1-2014 from Rs (-2,190.4) crore in Q1-2013 and by 4.7 per cent from Rs (-2,813.8) crore for Q4-2103.

     

    Revenues from Airtel’s Digital TV services business for Q1-2014 grew 34 per cent from Rs 365.8 crore in Q1-2013 to Rs 490 crore mentioned above and by 10.9 per cent as compared to Rs 441.9 crore reported for Q4-2013. During FY-2013, Airtel’s Digital TV services business had revenues of Rs1,629.5 crore.

     

    Airtel has reported a 14.2 per cent growth in its customer base for its Digital TV services from 7.4 million in Q1-2013 to 8.452 million in Q1-2014 and a 4.35 per cent growth from the 8.1 million reported for Q4-2013.