30 Apr 2010 09:04
| For immediate release | 30 April 2010 |
DQ Entertainment (International) Limited
("DQE India")
Fourth quarter financial results for the period ended March 31, 2010 and
un-audited consolidated financial results for the year ended March 31, 2010
DQE India, the Bombay Stock Exchange listed, animation, gaming, live action entertainment production and distribution company, which is 75 per cent owned by DQ Entertainment plc ("DQE") is pleased to announce un-audited fourth quarter results for the period ended March 31, 2010 and un-audited consolidated results for the year ended March 31, 2010 prepared under Indian GAAP.
Financial Highlights Year ended March 31, 2010:
·; Revenue US$36.76 Mn (2009: US$ 31.38 Mn)*
·; Profit after tax US$5.57Mn (2009: US$ 3.38 Mn)*
·; EBITDA US$12.26Mn (2009: US$ 11.25 Mn)*
·; Adjusted EBIDTA US$ 14.26 Mn (2009: US$11.25Mn) after excluding the Indian IPO expenses of Us $2 Mn.*
·; Order book currently at US$ 95.95m
* 1 US$ : INR 47.74. The reporting currency of DQE India is Indian Rupee (INR)
Co-production and development highlights include:
·; Co-production agreement for The New Adventures of Peter Pan, a high-end 3D television series with Method Animation, France and Story Board Animation, France at a global budget of Euro 9.91 million (INR 60 Crore)
·; The BBC acquired the UK broadcasting rights to 52x11, 3D-HD TV series "The Jungle Book" for broadcasting in the United Kingdom
·; TVO Kids, the Canadian educational broadcaster has acquired Canadian broadcasting rights to The Jungle Book TV series and the 60 minute special of The Jungle Book.
Operational summary:
DQE India successfully listed on the Bombay Stock Exchange in March 2010 receiving tremendous support from both large institutional investors and retail investors. The listing generated gross proceeds of Rs. 1,283 million (GBP 18.87 million) and was over 86.33 times oversubscribed.
Both DQE and DQE India are focused on extending the meteoric rise of our business and expanding our global reach. We continue to strive to establish our business as one of the best entertainment companies in our field and continue to develop multiple revenue streams and enhancing profitability.
DQE India achieved excellent financial results during 2009-10 despite the global economic slowdown and a strong rupee. DQE's revenue grew 17% percent and the PAT has grown 65% percent. DQE India has started well in 2010 backed by a solid client-partner base, pure-service and co-production service orders, as well as inflow of licensing and merchandising monies adding to a healthy bottom line.
The financials of DQE India for the year ended 31 March 2010 prepared under Indian GAAP are summarised below:
Unaudited Consolidated financial results for the quarter and year ended 31 March 2010
| (Rs in millions) | ||||
| Sl. No | Particulars | For quarter ended 31 March 2010 | For year ended 31 March 2010 | For year ended 31 March 2009 |
|
|
| (Unaudited) | (Unaudited) | (Unaudited) |
| 1 | Net Sales from Operations | 753.00 | 1,754.74 | 1,498.17 |
| 2 | Expenditure | - |
|
|
| a. | Production Expenses | 136.83 | 239.88 | 52.67 |
| b. | Employees Cost | 206.69 | 635.13 | 696.67 |
| c. | Other Expenditure | 173.87 | 325.36 | 293.62 |
| d. | Depreciation and Amortisation | 89.34 | 274.99 | 282.19 |
| e | Less: Expenditure transferred to Capital and Other Account | (20.46) | (34.37) | (70.76) |
|
| Total Expenditure (2a to 2e) | 586.27 | 1,440.99 | 1,254.39 |
| 3 | Profit from Operations before Other Income, Net Interest and Finance cost & Tax [ 1 -2 ] | 166.73 | 313.75 | 243.78 |
| 4 | Other Income | 1.83 | 13.15 | 10.91 |
| 5 | Profit from Operations before Net Interest and Finance cost, Exceptional items & Tax [ 3+ 4 ] | 168.56 | 326.90 | 254.69 |
| 6 | Interest and Finance cost (net) | 20.08 | 58.89 | 55.60 |
| 7 | Profit after Net Interest and Finance cost but before Exceptional items & Tax | 148.48 | 268.01 | 199.09 |
| 8 | Exceptional items | - | - | - |
| 9 | Profit after Exceptional items & before Tax | 148.48 | 268.01 | 199.09 |
| 10 | Tax expense | (17.59) | (1.83) | (37.86) |
| 11 | Net Profit after tax [ 9 - 10 ] | 130.89 | 266.18 | 161.23 |
| 12 | Paid-up equity share capital [Face value Rs.10 per share] | 792.83 | 792.83 | 16.27 |
| 13 | Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year | - | - | 1,445.97 |
| 14 | Earnings Per Share (EPS) (not annualized) (In Rs.) |
|
|
|
| a) | Basic* | 2.01 | 4.41 | 2.76 |
| b) | Diluted * | 2.01 | 4.40 | 2.75 |
|
| * Par value of Rs 10/- per share |
|
|
|
| 15 | Public Shareholding |
|
|
|
|
| a) Number of Shares | 19,820,782 | 19,820,782 | - |
|
| b) Percentage of shareholding | 25% | 25% | - |
|
|
|
|
|
|
| 16 | Promoters and Promoter group Shareholding |
|
|
|
|
| a) Pledged / Encumbered - No. of Shares | - | - | - |
|
| Percentage of shares (as a % of the total share holding of promoter and promoter group) | - | - | - |
|
| Percentage of shareholding (as a % of the total share capital of the company) | - | - | - |
|
| b) Non encumbered - No. of Shares | 59,462,218 | 59,462,218 | - |
|
| Percentage of shares (as a % of the total share holding of promoter and promoter group) | 100% | 100% | - |
|
| Percentage of shares (as a % of the total share capital of the company) | 75% | 75% | - |
Notes:
1) The details of funds raised through Initial Public Offering (IPO) and utilisation of said funds are as follows:
| (Rs in millions) | ||
| Particulars | Amount | |
| Funds received through IPO |
| 1,539.59 |
| Utilisation of funds |
|
|
| Investment in co-production agreements, focusing on IP content creation | 196.79 |
|
| Investment in Subsidiary (DQ Entertainment (Ireland) Limited) | 87.46 |
|
| Issue expenses | 29.34 | 313.59 |
| Total funds utilised up to 31 March 2010 |
| 313.59 |
|
|
|
|
| Investments |
| 850.00 |
| Fixed Deposits |
| 326.00 |
| Bank balance |
| 50.00 |
| Balance as on 31 Mach 2010 |
| 1,226.00 |
2) As on 31 March 2010 unutilized funds have been temporarily invested in short term liquid scheme of mutual funds and short term fixed deposits with schedule banks
3) Share issue expenses relating to the IPO of the Company of Rs. 82.59 million (relating to quarter ended 31 March 2010) and Rs. 95.45 million (relating to the year ended 31 March 2010) has been expensed to the profit and loss account and included under Other Expenditure as per the accounting policies of the Company.
4) Employee cost of quarter ended 31 March 2010 includes an amount of Rs.19.25 million relating to earlier period.
5) investor's complaints received during the quarter were 12 which were fully resolved. No complaints are pending as on 31 March 2010
6) The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 29 April 2010 and 30 April 2010.
7) The Company made an IPO of 16,048,011 equity shares of Rs.10/- each. Out of 16,048,011 equity shares, 172,960 equity shares were allotted to employees at a premium of Rs.63 per share and 15,875,051 equity shares to others at a premium of Rs.70 per share. The Company made a pre-IPO placement of 3,772,771 equity shares of Rs.10/- each at a premium of Rs.58.11 per equity share. The aggregate share premium received in IPO and pre-IPO is Rs. 1,341.38 million. On 29 March 2010, the equity shares of the Company were listed on the Bombay Stock Exchange. Figures for the corresponding quarter of the previous year have not been given since such figures were not compiled.
8) Figures for the previous year have been regrouped and reclassified to conform to the classification of the current period, wherever necessary.
Outlook
The business continues to perform within the Board's expectation and has shown remarkable resilience over the last 12 months. We remain focused on capitalising on our leading market position and maximising global commercial opportunities. Our strong order book visibility, coupled with the expected growth of the global and Indian media and entertainment market, leave us confident that 2010 will be another year of continued progress.
| DQ Entertainment plc Tapaas Chakravarti - Chairman and CEO Niranjan Prasad - VP Finance and Corporate Affairs
| Tel: +91 40 235 53726 |
| Seymour Pierce Ltd Nandita Sahgal / David Foreman
| Tel: +44 (0)207 107 8000 |
| Buchanan Communications Mark Edwards / Jeremy Garcia / George Prassas | Tel: +44 (0)20 7466 5000 |
Notes to editors:
International co-productions:
·; The Little Prince: 52 x 26 minute 3D animated series with a global budget production of €18 million, in co- production with Method Animation, French Television major - France 3 , LLPTV-France, Sony BMG, Luxembourg and WDR - Germany. Originally written in 1943, the Little Prince is based on the world famous books of Antoine De Saint-Exupery which sold more than 80 million copies worldwide, and is now being animated at DQE.
·; Iron Man: 26 x 26 minute 3D animated series in co production with Method Animation, France and Marvel Animation at a Global Budget of €8.2 million. Broadcasters include Nicktoons-UK and France Televisions.
·; Little Nick: "Little Nick" or "Le Petit Nicolas" is a 52 x 13 minute 3D animated series in co production with Method Animation and M6 Studio, France, ZDF-Germany and Disney with a global budget of € 8.7 million. Since this was first published in 1959, this iconic French cartoon has sold over 10 million copies in 30 countries.
·; Casper's Scare School: D animated 52x11' action packed TV series world-wide, produced by DQE at a global budget of $9.3 million in co production with Moonscoop, Classic Media , TF1-France, Harvey Entertainment, Nickelodeon, Cartoon Network and YTV. It is also now gearing up for a second season of productionTara Duncan: 26 x 22 minute 2D animated series, based on the best selling books by Sophie Audouin-Mamikonian. Published in more than 10 countries, is a co-production with Moonscoop, France, M6 Studios-France with a global budget of € 6.4 million.
·; Galactik Football: The third series of this 3D animated series in co-production with Gaumont Alphanim, one of the leading animation and film producers in France and partnering with Disney XD Europe, is being produced at an estimated production budget of € 6.9 million. Following two successful seasons of the same show, the third series will premier worldwide in June 2010 to coincide with the next FIFA Worldcup.
·; Lassie and friends: 26 x 22 minute 3D animated series, based on the iconic canine who even has her own star on the Hollywood walk of Fame and has acted alongside Hollywood legends such as Elizabeth Taylor, Peter O'Toole in so many live action films. Lassie made her small-screen debut in an Emmy award winning TV series in 1954 and will be now seen in a 3D animated avatar being coproduced by DQE with Classic media and ZDF Enterprises, Germany. Classic Media the original rights owners of the property are also original rights owners of Casper the friendly ghost and will hold rights for North America while rest of the world will be handled by DQE.
·; Charlie Chaplin: DQE is producing animated short films for television in a 104x6 3D/HD TV series in co-production with Method Animation, France and MK2-France, for which DQE holds audio visual rights for major territories besides co-production revenues. This series being produced at a global budget of Euro 8 million which has been raised in presales with international partners Chaplin who has a cult following worldwide made 81 films in his lifetime and received an Oscar for his lifetime contribution to movies.
·; "The Hive" - a colorful animated series for pre-school children featuring the Bee family will be produced as a 3D series of 78 episodes of 7 minutes each at a global budget of approximately 3.5 million pound sterling (INR 24 Crore) with the UK based 'The Hive Enterprises Limited', Lupus films and Monumental productions-UK. Bejuba Entertainment has come on board as a distributor for this series which is to be aired on Play House Disney Channels in 150 countries from early 2011. It will premier this autumn in the UK on GMTV's pre-school fluffy Club weekend strand.
Intellectual properties:
·; The Jungle Book: Written by Rudyard Kipling and now adapted by DQE in UK and France in high end 3D animated series of 52 x 11 minute & a semi-stereoscopic TV special after presales with major international partners for broadcasting and distribution for eg. ZDF TV & ZDF enterprises Germany, TF1 TV and TF1 Intl, France, ABC Australia TV, global home video distribution by Universal studios, co-produced with Moonscoop France at a global budget of € 9.2 million is owned by DQ Entertainment for all rights including TV, Home Entertainment., Theatricals, Publishing, Merchandising and Licensing including Gaming. Its quality and story telling has already attracted the contracts with Al Jazeera for 22 Arabic nations and Disney Multiplex of channels for over 27 nations. It is all set to debut globally on TV first by Sept/Oct 2010 . Global partners like ZDF Enterprises, Germany, TF1, France, ABC Australia, NBC Universal Studios, Moonscoop-France, Disney, Noga Communication-Israel , Aljazeera, Middle East, TVO-Canada, BBC-UK , Mediacorp-Singapore . DQE already is in negotiation to continue with the second season another 52x11 minutes series at a similar budget with similar partners.
·; The new adventures of Peter Pan: DQE acquired rights from The Great Ormond Children's Hospital-UK to produce 3D/Semi stereoscopic animated series, 26 x 22 minute, in co-production with Method Animation, France and Story Board Animation France who have entered into co-development deal with a major French broadcaster - France TV, while closure of the budget is almost done with major European and worldwide partners coming on place for this of € 9.91 million series.
·; The Mysteries and FELUDA': Telemovies, features and TV series will be produced by DQE after it has procured right for several outstanding children's detective books written by late Sri Satyajit Ray, the Oscar winner renowned writer, producer and director. To continue this cult following of Feluda, DQE's first tele-movie in high end, high definition animated avatar will debut on Disney multiplex of channels this summer.
·; Balkaand 1: The Tele-movie debuted on Cartoon Network/Pogo and after great success has gone for 2 more tele movies to be delivered to Cartoon Network/Pogo this year. These are special initiatives by DQE to also produce Indian intellectual properties for Indian audiences requested by international broadcasters.
·; Omkaar: After successful debut of Balkaand-1 the tele-movie, Cartoon Network /Pogo acquired Omkaar another tele-movie produced by DQE for Turner Asia to debut this year.
·; Raavan 1: DQE produced Animated RAAVAN the tele-movie acquired by Turner Asia for Cartoon Network and POGO and has done very well and now negotiations are on for other Indian IP productions.
TV, Home Video & merchandising:
·; Broadcasting agreement with Israel's leading independent television content producer & broadcaster, "Noga Communications Ltd"(Noga), for the broadcast of "The Jungle Book", a 52 episodes 3D-HD animated series. The Noga's multiplex of channels , "The Children Channel", " Channel 8" and "Logi Channel" have a large share of the entertainment market in Israel.
·; Deal for exclusive free-to-air TV rights with MediaCorp Pte Ltd for three of its Animation TV properties. Under the terms of this agreement, MediaCorp can broadcast Todd World Series 2, Maryoku Yummy Season I and The Jungle Book Season I on MediaCorp's okto channel in Singapore.
·; Exclusive licensing deal with Sony Pictures Home Entertainment for Home Video distribution of 8 animated properties co-produced by DQE.
·; A broadcast deal with Walt Disney Television International's - Hungama TV for broadcast of "Twisted whiskers" a CG animated TV series co-produced by DQE with American Greetings and Mike Young Productions USA, on India's favourite children's TV channel.
·; An exclusive broadcast deal with Al Jazeera Children's Channel (JCC) for the 52 x 11 minute episode animated series and the 60 minute TV Feature of 'The Jungle Book'. This agreement will allow Al Jazeera exclusive broadcasting rights across 22 Arabic countries for a term of five years.
·; A Free-to-air Television license agreement with Metropolis TV Inc for the 26x26 animated television series Iron Man with the right to broadcast in ASEAN countries. The Pay-TV rights for the ASEAN region were acquired by Turner Entertainment Network Asia ( TENA) for their leading kid's channel - Carton Network from DQE which owns the audio visual rights to the Iron Man animated series in this region.
·; Multiple deals for licensing and merchandising for 'The Jungle Book' with D'arpeje SA, Paris, School Pack, Paris for manufacturing and sale of 'back-to-school' products ( including school bags, packs and other school related items.) D'arpeje SA, paris has also been authorised to manufacture outdoor products such as tents, balls, inflatables, punching bags, gloves, garden equipment, tyres among a range of other products with Jungle Book characters and themes.
·; Ahim Fried Limited, Israel along with D&C TV limited TV Israel will manufacture and sell a variety of bedroom items for children branded with Jungle Book characters, including quilts, pillows, blankets, bed linen, towels and other items.