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Tag: RMW

  • Reliance Mediaworks completes sale of multiplex biz to Carnival

    Reliance Mediaworks completes sale of multiplex biz to Carnival

    MUMBAI: Reliance MediaWorks (RMW), a part of Reliance Group, has completed the transaction for sale of its multiplexes business to Carnival Cinemas Ltd.

     

    Reliance MediaWorks’ multiplex chain Big Cinemas had approximately 250 screens across the country.

     

    The entire proceeds for the sale of multiplex business have been duly received by RMW from Carnival Cinemas, and will be used to reduce Reliance Capital’s leverage by approximately Rs 700 crore, through a combination of transfer of debt of RMW and infusion of cash proceeds. 

     

    Reliance Capital executive director Sam Ghosh said, “We are happy to announce closing of this transaction with Carnival Group, which will reduce our overall leverage by approx. Rs 700 crore. This will lower our debt equity ratio to a conservative 1.75:1, amongst the lowest in the financial services sector in India.”

     

    “The transaction is in furtherance of Reliance Capital’s stated objective of focusing purely on its core financial services businesses, significantly reducing exposure to non-core investments in the media and entertainment sector, and reducing overall debt,” he added.

     

    RMW had sold its multiplex business to Carnival Cinemas in December last year, and the transaction has now been closed upon receipt of all approvals. The deal excludes real estate owned by RMW at Imax Wadala and other properties, which are intended to be separately monetized for an approximate value of Rs 200 crore.

  • Reliance Media Works reports lower consolidated loss y-o-y for Sept 2013 quarter

    Reliance Media Works reports lower consolidated loss y-o-y for Sept 2013 quarter

    BENGALURU: Reliance Media Works (RMW), formerly Adlabs Films and a part of the Reliance ADA group, reported lower consolidated net loss in the July-September 2013 (SQ-2013) quarter as compared to the corresponding quarter of last year. RMW’s total consolidated loss before tax for the quarter SQ-2013 at Rs 121.99 crore was almost half (52.74 per cent) of the Rs 231.31 crore the company had reported for the corresponding quarter of last year (Quarter ended 30 September 2012 or SQ-2012), and almost flat as compared to the loss of Rs 120.09 crore for the quarter ended 30 June 2013 (JQ-2013).

     

    Notes:  (1) The board of directors of the company in its meeting on 11 August 2013 has extended the financial year of the company to March 2014 which has been accepted by the Registrar of Companies. Accordingly the financial statements of the company will be drawn for 18 month period ended 31 March 2014. Hence the various quarter have been referred to as SQ (September Quarter) and (JQ) June Quarter of the respective calendar year (not financial year, since this has been changed once again by the company).

     

    (2) Notes of the attached financial statement must be read along with this analysis.

     

    (3) RMW’s net worth has eroded, however, having regard to revenue visibility of new businesses in film and media services, improved operational performance of exhibition business, financial support from its promoters, further restructuring exercise being implemented etc., the financial statements have been prepared on the basis that the company is a going concern and that no adjustments are required to the carrying value of assets and liabilities.

     

    Let us look at RMW’s other results for the quarter ended SQ- 2013.

     

    Consolidated income for SQ-2013 at Rs 192.54 crore was 11.11 per cent lower than the Rs 216.61 crore for the corresponding quarter last year SQ-2012 and 0.8 per cent lower than the Rs 194.17 crore for JQ-2013.

     

    RMW reported total income from operations for SQ-2013 at Rs 186.63 crore which was about 13 per cent lower than the Rs 214.46 crore for SQ-2012 and 3.6 per cent higher than the Rs 180.16 crore for JQ-2013.

     

    Total expense for SQ-2013 at Rs 238.40 crore was 21.54 per cent lower than the Rs 303.83 crore for SQ-2012 and almost flat as compared to the Rs 238.97 crore for JQ-2013.

     

    RMW paid 20.46 per cent lower distributors share for SQ-2013 at Rs 39.66 crore as compared to the Rs 49.86 crore for SQ-2012, but 8.2 per cent higher than the Rs 36.66 crore for JQ-2013.

     

    Depreciation, amortisation and impairment for SQ-2013 at Rs 37.27 crore was 7.2 per cent higher than the Rs 34.78 crore for SQ-2012 and 4.1 per cent higher than the Rs 35.79 crore for JQ-2013.

     

    RMW says that it has undertaken an initiative for rationalisation/improvement of exhibition business, under which it is re-negotiating rentals downwards and in some cases exit the properties. Its rental expense at Rs 43.07 crore for SQ-2013 was 11.6 per cent lower than the Rs 48.72 crore for SQ-2012 and 16 per cent lower than the Rs 51.27 crore for JQ-2013.

     

    Segment results

     

    RMW’s film production segment has been the biggest contributors to the loss. This segment reported income of Rs 35.55 crore for SQ-2013 and a loss of Rs 37.62 crore. The film production loss for SQ-2013 was 38.35 per cent lower than the Rs 61.02 crore for SQ-2012 against flat income of Rs 35.35 crore.  Comparatively, revenue for SQ-2013 was 14.6 per cent higher at Rs 41.62 crore, with a 12.13 per cent lower loss of Rs 33.55 crore.

     

    Theatrical exhibition had an income of Rs 138.6 crore for Q2-2013, which was 15.1 per cent lower than the Rs 163.26 crore for SQ-2012 and 8.7 per cent higher than the Rs 127.56 crore for JQ-2013. This segment reported less than one sixth the loss for SQ-2013 at Rs 14.79 crore as compared to the Rs 94.87 crore for SQ-2012 and 39 per cent lower than the Rs 24.25 crore for JQ-2013.

     

    The only profitable segment, television, film production and distribution reported income of Rs 15.49 per cent for SQ-2013 which was 16.9 per cent higher than the Rs 13.25 crore for SQ-2012, but 10.93 per cent lower than the immediate preceding quarter (JQ-2013) which reported income of Rs  17.39 crore. This segment reported profit of Rs 4.37 crore for SQ-2013 which was 19.82 per cent lower than the Rs 5.45 crore for SQ-2012 and almost flat as compared to the Rs 4.34 crore for JQ-2013.

  • Turner partners with Reliance MediaWorks for post-production services

    Turner partners with Reliance MediaWorks for post-production services

    MUMBAI: In a move that further consolidates its in-market operations, Turner International India has announced the establishment of creative services in India for its entertainment networks including Cartoon Network, Pogo and WB. Turner has commissioned one of India’s leading film and entertainment services company, Reliance MediaWorks (RMW), to provide the full gamut of post-production services.

    With in-market end to end capabilities that will be a combination of in-house creative and outsourced production resources, this initiative will enable Turner to be even more poised in responding to market requirements.

    The services provided by RMW will include complete post production of on-air promotions including video editing, voice over recording, music/audio mixing, animation based graphics and visual effects, and digital mastering.  

    Turner International India south Asia MD Siddharth Jain said, “Turner has been consistently ahead of the curve with a proven track record of successful localisation of our brands. It was way back in 2001 when Cartoon Network premiered local content and our home-grown network Pogo bears testament to this success by becoming the kids’ favourite and India’s number one. We are confident this new move will give us further competitive advantages in this dynamic and constantly-evolving consumer and business landscape, especially as we seek to build on Turner’s strategic shift to further empower local markets.” He adds, “We are happy to work alongside Reliance MediaWorks and we look forward to continue the delivery of quality content on our leading platforms.”

    Commenting on the occasion Reliance MediaWorks CEO Venkatesh Roddam said, “We are pleased to be able to offer a one-stop production facility by combining the latest in television studio technology with the most experienced personnel to create winning solutions for Turner. This is just the beginning of a long and fruitful relationship with Turner and we look forward to further cooperation in the future.”

  • Reliance Media Works reports lower net loss for April-June 2013 quarter

    Reliance Media Works reports lower net loss for April-June 2013 quarter

    BENGALURU: Reliance Media Works (RMW), formerly Adlabs Films and a part of the Reliance ADA group, reported lower consolidated net loss in the April-June 2013 quarter as compared to the preceding quarter (January-March 2013) and the corresponding quarter (April-June 2012) of 2012.

     

    RMW’s net worth has eroded, however, having regard to revenue visibility of new businesses in film and media services, improved operational performance of exhibition business, financial support from its promoters, further restructuring exercise being implemented etc, the financial statements have been prepared on the basis that the company is a going concern and that no adjustments are required to the carrying value of assets and liabilities.

     

    Important Notes:

     

    (1) Since the previous financial year of the company was extended till 30 September 2012, the result for the April-June 2013 quarter will be referred to as Q3-2013, January-March 2013 quarter as Q2-2013 and April-June 2012 quarter as Q3-2012 in this report/analysis.

     

    (2) Notes of the attached financial statement must be read along with this analysis.

     

    For the current quarter (Q3-2013) RMW reported a consolidated net loss of Rs 123.60 crore which was 5.9 per cent lower than the Rs 131.30 crore (y-o-y) for Q3-2012 and substantially lower by 44.4 per cent as compared to the Rs 222.12 crore for Q2-2013 (q-o-q).

     

    Details of RMW’s standalone financial information are: Turnover Rs 126.40 crore for Q3-2013 as compared to Rs 122.61crore for Q3-2012. RMW’s loss before tax for Q3-2013 was Rs 83.73 crore as compared to the Rs 91 crore loss for Q3-2012. Loss after tax stood at the same figure for Q3-2013 and the previous year’s corresponding quarter (Q3-2012).

     

    Let us look at the other figures reported by RMW for the April-June 2013 (Q3-2013) quarter

     

    RMW reported a total income from operations of Rs 180.16 crore for Q3-2013, 10.91 per cent lower than the Rs 202.15 crore in Q3-2012, but 24.6 per cent higher than the Rs 144.63 crore for Q2-2013.

     

    Its total expense for Q3-2013 was Rs 238.97 crore, 6.5 per cent lower than the Rs 255.56 crore for Q3-2012 and 2.2 per cent lower than the Rs 244.38 crore for Q2-2013.

     

    RMW’s net loss from operations at Rs 58.80 crore was 10.1 per cent higher than the Rs 53.41 crore of Q3-2012, but substantially lower than the Rs 99.75 crore in Q2-2013.

     

    Let us look at RMW’s segment results

     

    Film Production Services, Theatrical Exhibition, and Television, Film Production & Distribution are the three segments. Pursuant to the business restructuring exercise of Film Production Services, with effect from 1 October 2011, animation business is no longer considered to be a part of this segment.

     

    Film Production Services reported income of Rs 41.62 crore for Q3-2013, 2.4 per cent lower than the Rs 47.88 crore for Q3-2012, but 14.33 per cent more than the Rs 36.40 crore for Q2-2013.

     

    Loss before interest and tax by this segment was Rs 33.55 crore, almost double (more by 93.9 per cent) the Rs17.31 crore in Q3-2012, but 10.14 per cent lower than the Rs 37.53 crore loss incurred in Q2-2013.

     

    RMW’s Theatrical Exhibition segment reported income of Rs 127.56 crore for Q3-2013 (Includes exceptional items of Rs 60 crore) which was 39.56 per cent lower than Rs 204.29 crore for Q3-2012 and 11.86 per cent lower than the Rs 144.71 crore in Q2-2013.

     

    Loss before interest and tax by RMW’s Theatrical Exhibition was Rs 24.25 crore for Q3-2013 was however 10.46 per cent lower than the Rs 29.09 crore for Q3-2012 and less than a quarter (4.42 times less or 21.74 per cent) of the Rs 111.56 crore loss incurred in Q2-2013.

     

    RMW’s Television/Film Production and Distribution income of Rs 13.25 crore which contributed to just 7.4 per cent to its consolidated revenues in Q3-2013 was the only one that reported a profit before interest and tax of Rs 4.34 crore in Q3-2013 which was 60 per cent higher than the profit before interest and tax of Rs 2.73 crore in Q3-2012. This segment had reported a loss of Rs 3.50 crore for Q2-2013. Revenue from this segment in Q3-2013 was higher by 13.3 per cent as compared to the Rs 11.7 crore for Q2-2012 and 25.7 per cent higher than the Rs10.54 crore for Q2-2013.

  • Reliance MediaWorks yet to conclude PE deal; in talks to extend exclusivity period

    Reliance MediaWorks yet to conclude PE deal; in talks to extend exclusivity period

    MUMBAI: For cash-strapped Reliance MediaWorks (RMW), a big relief was the promise of private equity financing. But the Anil Ambani-controlled film and entertainment services company said Monday it is yet to conclude the Rs 6.05 billion equity investment deal it had signed with a private equity firm last year.

    The company clarified that “no definitive agreement has been executed in respect of the proposed transaction.” RMW has not yet named the private equity firm.

    RMW said it is in talks with the private equity firm to extend the exclusivity term-sheet period for Rs 6.05 billion investment for a minority stake in the company. The window expired on 15 October 2012.

    The company and the fund are in the process of extending the exclusivity period, RMW clarified.

    The company had last year announced that it had signed a term-sheet with an unnamed PE fund to get an investment of Rs 6.05 billion for the debt-ridden company, whose entire net worth got eroded due to consecutive losses.

    The investment was to be made in a subsidiary company of RMW under which the media services division would be housed.

    While Reliance has declined to divulge the name of the PE firm, a report in a business daily had speculated that the company was in talks with L Capital, the private equity arm of the world‘s biggest luxury company LVMH.

    Meanwhile, the company which had extended its financial year till 30 September 2012, has narrowed its net loss to Rs 1.16 billion in the quarter ended 31 December, from Rs 1.5 billion a year earlier.

    RMW’s income from operations for the third quarter remained flat at Rs 2.02 billion against Rs 2.07 billion a year ago. The company also contained its expenses in the third quarter at Rs 2.6 billion against Rs 2.89 billion a year earlier.

    RMW operates three businesses — film distribution under BIG Cinemas, TV production unit under Big Synergy, and a film and media services segment.

    The company‘s loss from film services division before tax and interest widened to Rs 386.3 million in the third quarter from Rs 85.23 million a year earlier, while the revenue from this segment declined to Rs 322.1 million from Rs 534.3 million a year earlier.

    Its loss from theatrical exhibition declined to Rs 220.9 million from Rs 510.3 million a year earlier. However, its revenue remained flat at Rs 1.42 billion against Rs 1.47 billion a year earlier.

    The television/film production and distribution business, the only profitable segment for the company, posted a profit of Rs 98.88 million in the third quarter, up from Rs 17.39 million a year ago. The division’s revenue grew to Rs 334.4 million in the third quarter from Rs 128.8 million in the earlier year.

  • 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 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.