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Tag: Taxes

  • Double trouble for broadcasters as Supreme Court green-lights twin tax hit

    Double trouble for broadcasters as Supreme Court green-lights twin tax hit

    MUMBAI: The Supreme Court has delivered a one-two punch to India’s broadcasters, ruling on Thursday that they must cough up both service tax and entertainment tax on their activities. The decision ends years of legal wrangling over whether television companies could dodge the double whammy.

    A bench led by justice B V Nagarathna and justice N K Singh declared that parliament and state legislatures both have the constitutional chops to levy their respective taxes. The 321-page judgment—longer than most television programmes—essentially told broadcasters they cannot have their cake and eat it too.

    “The two taxes target different aspects of the same activity,” the court explained, rather like taxing both the recipe and the meal. Parliament’s service tax under the Finance Act hits the broadcasting service itself, whilst states’ entertainment tax treats television as a luxury under Entry 62 of the Constitution’s List II.

    The judges were having none of the broadcasters’ arguments that they should pay only service tax to the central government. “No entertainment can reach viewers unless broadcasters transmit signals,” justice Nagarathna noted. “There are two aspects: transmitting signals and providing entertainment through set-top boxes that decrypt them.”

    This legal drama began with a clutch of cases from various high courts, with Kerala versus Asianet Satellite Communications taking the starring role. Broadcasters had argued they were merely in the signal-transmission business, not the entertainment game. The Supreme Court was not buying this technicality.

    The ruling overturns a 2012 Kerala high court decision that had favoured cable operators over DTH (direct-to-home) providers, calling such discrimination unconstitutional. The Supreme Court said this earlier judgment got it wrong—both cable and DTH operators are in the entertainment business and should be taxed accordingly.

    For India’s broadcasting industry, already grappling with cord-cutting and streaming competition, this represents yet another headache. The ruling makes clear that technological differences in how entertainment is delivered do not exempt anyone from the taxman’s reach.

    The court’s message is unambiguous: whether you beam signals from satellites or snake cables through neighbourhoods, if you are in the business of keeping Indians glued to their screens, you will pay through the nose for the privilege.

  • Network 18 PAT at Rs 114 million

    Network 18 PAT at Rs 114 million

    MUMBAI: Network18 Media & Investments (Network18) reported a marked improvement in its numbers for the quarter ended 31 December 2017. The consolidated revenue (net of revenue from joint ventures and associates) for the company declined marginally by 1.8 per cent year-on-year (yoy) to Rs 3660 million.

    With lower distribution and business promotion expenses, the company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 77 million as against EBITDA loss of Rs 130 million in Q3FY18. Though other income grew significantly, the decline in EBITDA and higher tax outgo weighed down PAT. The company reported PAT of Rs 114 million against loss of Rs 778 million in the same quarter last year. 

    Network18 posted consolidated revenue of Rs 9690 million (including a proportionate share of JVs) in Q3 FY18, a 7 per cent yoy growth. The revival in growth in the broadcasting business was partially offset by a pullback in the TV shopping business.

    Media operations revenue (including a proportionate share of JVs) grew by 7.6 per cent yoy to Rs 9595 million. Revenue from film production segment declined by 18.0 per cent yoy to Rs 153 million.

    Led by cost control in TV shopping, margins of the broadcasting segment improved, thereby leading to a reduction in EBIT loss for the media operations segment to Rs317 million against EBIT loss of Rs778 million in Q3FY17. 

    Also Read:

    Network18 Digital hires Saregama’s Mudaliar as chief product officer

    GST ad deferrals hit Network 18 revenue in Q1-18

    Network18 emerges as the most viewed news network on youtube in india

  • Q2-17: Radio Mirchi revenue up 11.5 per cent

    Q2-17: Radio Mirchi revenue up 11.5 per cent

    BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL), which runs the Mirchi brand radio network in India,  reported 11.5 per cent increase in total Income from operations (TIO) for the quarter ended 30 September 2016 (Q2-17, current quarter). The company reported consolidated revenue of Rs 129.65 crore for the current quarter as compared to Rs 116.27 crore in the corresponding quarter of the previous fiscal. Quarter-on-quarter (q-o-q), revenue in Q2-17 also increased 17.1 per cent from Rs 110.76 crore in Q1-17.

    The company’s consolidated profit after tax (PAT) in Q2-17 declined by 70.3 per cent year-over-year (y-o-y) to Rs 8.05 crore (16.2 per cent margin) as compared to Rs 27.14 crore (23.3 per cent margin) and declined 51.7 per cent q-o-q from Rs 16.66 crore (15 per cent margin).

    Company Speak

    Commenting on the results, ENIL managing director and chief executive officer, Prashant Panday said, “It’s been a busy quarter for us! We are in the midst of many exciting launches; of core brand Mirchi in cities like Chandigarh, Guwahati and Kochi and our second brand, Mirchi Love in Ahmedabad, Surat, Jaipur and Lucknow. We are offering new innovative content and recruiting existing and new listeners. We have stepped up marketing spends and early research indicates that we have made a strong start and in fact have become leaders in key markets. I am confident this will translate into a stronger business in the years ahead!”

    A look at the other numbers reported by Radio Mirchi

    ENIL’s consolidated Earnings before Interest, Depreciation, Taxes and Amortisation (EBIDTA, operating profit) for Q2-17 declined 39 per cent y-o-y to Rs 23.13 crore (17.8 per cent margin)  from Rs 37.94 crore (32.6 per cent margin) and declined 21.4 per cent q-o-q from Q1-17 at Rs 29.44 crore (26.6 per cent margin).

    ENIL total expense (TE) in Q2-17 increased 36.1 per cent y-o-y to Rs 120.50 crore (92.9 per cent of TIO) from Rs 88.57 crore (76.2 per cent of TIO), and increased 34.2 per cent q-o-q from Rs 89.79 crore (81.1 per cent of TIO).

    Programming and royalty expenses in the current quarter increased 42.9 per cent y-o-y to Rs 6.03 crore (4.6 per cent of TIO) from Rs 34.22 crore (3.6 per cent of TIO and increased 14.6 perc ent q-o-q from Rs 5.26 crore (4.7 per cent of TIO).

    License fee in Q2-17 increased 6.1 per cent y-o-y to Rs 8.31 crore (6.4 per cent of TIO) from Rs 7.83 crore (6.7 per cent of TIO) and increased 20.9 per cent q-o-q from Rs 6.87 crore (6.2 per cent of TIO).

    Employee Benefit Expense (EBE) in Q2-17 at Rs 26.86 crore (20.7 per cent of TIO) increased 21.7 per cent y-o-y from Rs 22.08 crore (19.0 per cent of TIO) and increased 6.6 per cent q-o-q from Rs 25.20 crore (22.8 per cent of TIO).

    Marketing expense in Q2-17 at Rs 32.58 crore (25.1 per cent of TIO) more than doubled (2.1 times) y-o-y and q-o-q from Rs 15.47 crore (13.3 per cent of TIO) and from Rs 11.29 crore (11.1  per cent of TIO) respectively.

    Other expenses in Q2-17 at Rs 32.73 crore (25.3 per cent of TIO) increased 13.9 per cent y-o-y from Rs 28.73 crore (24.7 per cent of TIO), and increased 14 per cent q-o-q from Rs 28.71 crore (25.9 per cent of TIO).

    ENIL won 17 stations in Phase 3 auctions and has launched four new stations in the current quarter – at Chandigarh, Ahmedabad, Surat and Jaipur. Earlier the company had launched Bengaluru, Guwahati, Hyderabad and Kochi stations. Bengaluru was Radio Mirchi’s first launch in the second frequencies network.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • Q2-17: Radio Mirchi revenue up 11.5 per cent

    Q2-17: Radio Mirchi revenue up 11.5 per cent

    BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL), which runs the Mirchi brand radio network in India,  reported 11.5 per cent increase in total Income from operations (TIO) for the quarter ended 30 September 2016 (Q2-17, current quarter). The company reported consolidated revenue of Rs 129.65 crore for the current quarter as compared to Rs 116.27 crore in the corresponding quarter of the previous fiscal. Quarter-on-quarter (q-o-q), revenue in Q2-17 also increased 17.1 per cent from Rs 110.76 crore in Q1-17.

    The company’s consolidated profit after tax (PAT) in Q2-17 declined by 70.3 per cent year-over-year (y-o-y) to Rs 8.05 crore (16.2 per cent margin) as compared to Rs 27.14 crore (23.3 per cent margin) and declined 51.7 per cent q-o-q from Rs 16.66 crore (15 per cent margin).

    Company Speak

    Commenting on the results, ENIL managing director and chief executive officer, Prashant Panday said, “It’s been a busy quarter for us! We are in the midst of many exciting launches; of core brand Mirchi in cities like Chandigarh, Guwahati and Kochi and our second brand, Mirchi Love in Ahmedabad, Surat, Jaipur and Lucknow. We are offering new innovative content and recruiting existing and new listeners. We have stepped up marketing spends and early research indicates that we have made a strong start and in fact have become leaders in key markets. I am confident this will translate into a stronger business in the years ahead!”

    A look at the other numbers reported by Radio Mirchi

    ENIL’s consolidated Earnings before Interest, Depreciation, Taxes and Amortisation (EBIDTA, operating profit) for Q2-17 declined 39 per cent y-o-y to Rs 23.13 crore (17.8 per cent margin)  from Rs 37.94 crore (32.6 per cent margin) and declined 21.4 per cent q-o-q from Q1-17 at Rs 29.44 crore (26.6 per cent margin).

    ENIL total expense (TE) in Q2-17 increased 36.1 per cent y-o-y to Rs 120.50 crore (92.9 per cent of TIO) from Rs 88.57 crore (76.2 per cent of TIO), and increased 34.2 per cent q-o-q from Rs 89.79 crore (81.1 per cent of TIO).

    Programming and royalty expenses in the current quarter increased 42.9 per cent y-o-y to Rs 6.03 crore (4.6 per cent of TIO) from Rs 34.22 crore (3.6 per cent of TIO and increased 14.6 perc ent q-o-q from Rs 5.26 crore (4.7 per cent of TIO).

    License fee in Q2-17 increased 6.1 per cent y-o-y to Rs 8.31 crore (6.4 per cent of TIO) from Rs 7.83 crore (6.7 per cent of TIO) and increased 20.9 per cent q-o-q from Rs 6.87 crore (6.2 per cent of TIO).

    Employee Benefit Expense (EBE) in Q2-17 at Rs 26.86 crore (20.7 per cent of TIO) increased 21.7 per cent y-o-y from Rs 22.08 crore (19.0 per cent of TIO) and increased 6.6 per cent q-o-q from Rs 25.20 crore (22.8 per cent of TIO).

    Marketing expense in Q2-17 at Rs 32.58 crore (25.1 per cent of TIO) more than doubled (2.1 times) y-o-y and q-o-q from Rs 15.47 crore (13.3 per cent of TIO) and from Rs 11.29 crore (11.1  per cent of TIO) respectively.

    Other expenses in Q2-17 at Rs 32.73 crore (25.3 per cent of TIO) increased 13.9 per cent y-o-y from Rs 28.73 crore (24.7 per cent of TIO), and increased 14 per cent q-o-q from Rs 28.71 crore (25.9 per cent of TIO).

    ENIL won 17 stations in Phase 3 auctions and has launched four new stations in the current quarter – at Chandigarh, Ahmedabad, Surat and Jaipur. Earlier the company had launched Bengaluru, Guwahati, Hyderabad and Kochi stations. Bengaluru was Radio Mirchi’s first launch in the second frequencies network.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • News Corp net profit down 52%; revenue down 1%

    News Corp net profit down 52%; revenue down 1%

    MUMBAI: News Corp’s quarterly profit was down 52 per cent due to foreign-exchange fluctuations and lower advertising sales offset revenue gains in book publishing and the digital real-estate business.

     

    The company’s net income for the three months ended 31 March, 2015 fell to $23 million, or four cents a share, from $48 million, or eight cents, in the same period a year earlier.

     

    For the fiscal 2015 third quarter, total revenues slipped one per cent to $2.06 billion as compared to $2.08 billion in the prior year. The majority of the revenue decline reflects negative foreign currency fluctuations and lower advertising revenues at the News and Information Services segment, offset in large part by growth in the Book Publishing and Digital Real Estate Services segments as a result of the acquisition of Harlequin Enterprises Limited and Move, Inc., respectively.

     

    News Corp CEO Robert Thomson said, “The new News Corp continues to build a firm foundation for digital growth. We see that most clearly in the successful integration of realtor.com®, which grew audience and revenue at record levels in the third quarter. News Corp is now a global leader in digital real estate, which we believe will underpin long-term expansion and complement our expertise in news and financial analysis, both of which have been important ingredients in realtor.com’s accelerated growth. While the quarter faced some revenue challenges, particularly at News and Information Services, including currency headwinds, our adjusted EBITDA was relatively stable, underscoring the strength of our assets and the diversification of our revenue base. We believe the company is firmly on track and the signs are positive for year-over-year EBITDA growth in the fourth quarter.”

     

    As compared to $175 million in the prior year, News Corp’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell seven per cent to $163 million on legal costs, currency fluctuations and increased stock-based compensation expenses from the acquisition of Move Inc.

     

    These results include $15 million and $20 million in fees and costs – net of indemnification – related to the U.K. Newspaper Matters in the three months ended 31 March, 2015 and 2014, respectively. Declines at the News and Information Services segment, including higher legal costs at News America Marketing, negative foreign currency fluctuations and increased stock-based compensation expense resulting from the acquisition of Move were partially offset by lower expenses at Amplify and increased revenues in the Book Publishing segment due to the inclusion of Harlequin results.

     

    Free cash flow available to News Corporation decreased by $105 million in the nine months ended March 31, 2015 to $391 million, primarily as a result of certain one-time items.

  • Rediff.com Q2 net profit up at $1.5 mn

    Rediff.com Q2 net profit up at $1.5 mn

    MUMBAI: Rediff.com has posted a net a income of $ 1.5 million, or 5.14 cents per ADS, for the second quarter ended 30 September 2006, up from $ 310,000, or 1.19 cents per ADS, a year ago.

    Revenues rose by $6.66 million, an increase of 53 per cent over revenues from the quarter ended 30 September 2005. While India contributed to online revenues that grew by 71 per cent to $4.71 million, as compared to the corresponding period of the previous year.

    US Publishing revenues for the second quarter increased by 23 per cent to $1.95 million compared to the revenues for the quarter ended 30 September 2005, states an official release.

    Operating EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased to US $1.14 million for the quarter ended 30 September 2006 as compared to US $0.50 million in the corresponding period of the previous year.

    With revenues from the India Online advertising business growing by 94 per cent for the quarter ended 30 September, compared to the same quarter in the prior fiscal year, online advertising remains the primary growth driver for the company.

    There has also been a spike in the number of registered users on the site which has grown by 21 per cent to 47.7 million, over the number of registered users a year ago.