13 Aug 2015 14:51
13 August 2015
DQ Entertainment plc
("DQE" or the "Group")
Indian subsidiary financial results for the first quarter ended 30 June 2015
DQE Entertainment (International) Limited ("DQE India" or "the Company"), the Bombay Stock Exchange and National Stock Exchange of India listed, production and distribution company, which is 75 per cent owned by DQE, has announced its unaudited financial results for the first quarter ended 30 June 2015, prepared under Indian GAAP.
Standalone financial highlights for the first quarter ended 30 June 2015 (excluding DQ Entertainment (Ireland) Limited):
o Income from operations: INR 291.82 mn (Q1 2014: INR 142.34 mn)
o EBITDA: INR 84.30 mn (Q1 2014: INR (14.14 mn))
o Profit/ (Loss) before tax**: INR 52.58 mn (Q1 2014: INR (132.98) mn))
o Profit/ (Loss) after tax*: INR 36.80 mn (Q1 2014: INR (111.42) mn))
* Profit before tax and profit after tax includes the exceptional item by way of notional foreign exchange gain of approximately INR 59.49 mn for the quarter ended 30 June 2015 (Q1 2014: INR 1.47 mn)
As previously reported, as a result of the seasonality of our business, the first and third quarters of the Company's financial year are generally lower than the second and fourth quarters.
The first quarter performance of the Company has been satisfactory and is indicative of the positive progress made in our key business areas. We continue to focus on our primary business areas of Animation production for television combined with Licensing and Distribution, whilst growing our business from Visual Effects and Digital Distribution. We are consciously attempting to consolidate our revenue potential by executing a mix of work-for-hire contracts, combined with co-production business opportunities and our own proprietary projects.
We are at an advanced stage of finalising new contracts with well-known studios from the United States and France, which, if completed, should secure our production pipeline for the next 24-36 months in the TV segment. These alliances should not only help to fortify the financial position of the Company in the coming months, but also enhance its teams' skill-sets and technology through the sharing of knowledge with these potential partners to augment our production pipeline.
We are particularly enthused by our proprietary TV series 'The Jungle Book' being extended into a third season, in association with ZDF Enterprises and ZDF TV, Germany and Canal Plus, France. This is a tremendous validation of the series' production and entertainment values and demonstrates that it is growing into a potentially multiple-franchise brand for the Company.
The second season of the The Jungle Book debuted in the United States on Sunday, July 11th 2015, as a result of a three year license agreement with Discovery Family channel. We believe that the airing of this series in the US will spur and help us unlock the licensing potential of the property through the appointment of high calibre licensing agents to represent our interests in this region.
The operational highlights in the first quarter of 2015 were:
A. Production
Projects in production
Peter Pan season 2 - 26 x 22' CGI TV series with ZDF-Germany, De Agostini-Italy, Method Animation-France and France TV.
Miles From Tomorrow land - 22 X 22' CGI for Disney Junior, USA.
Popples - 52 x 11' CGI for Saban Group, USA.
Ladybug - 4 x 11' CGI with Zag Toons, USA.
Sheriff Callie Wild West - 52 x 11' CGI for Disney Junior, USA.
7 Dwarfs and Me - 52 x 11' live action and CGI with ZDF-Germany, FTV-France, RAI COM-Italy and Method Animation-France.
Shabiyate Season 10 - 15 x 13' CGI TV series with Fanar Productions, UAE.
Hive Season 2 - TV series with Lupus Films, UK.
Chimpoo & Simpoo - 26 x 22' 2D TV series with ZeeQ Network, India.
Eshafan - 15 x 13' 2D series with Fanar Productions, UAE.
5 & IT - 52 x 11' CGI TV Series with Disney-Germany, Method Animation- France
Projects in pipeline
Jungle Book Season 3 - CGI TV Series with Story Board Animation and ZDF-Germany.
PegHeads - 52 x 11' CGI with Story Animation LLC, USA.
Pio the Chick - 52 x 7' 2D TV series with RAI COM-Italy and Gruppo Alcuni-Italy.
Robin Hood season 2 - 52 x 11' - CGI TV series with Method Animation and Pink Feather Productions UAE
B. Licensing & distribution:
Within this quarter, the licensing division has concluded distribution and licensing deals for the titles The Jungle Book, The new adventures of Peter Pan and Robin Hood across various categories of products.
C. VFX division
Within this quarter, the Company's VFX division has executed some exceptional visual effects work for the Indian feature film industry. We are proud to announce that our team played an important role in creating the visual effects for the highly successful Indian film - Bahubhali. The Company's highly skilled team worked closely with the film's director S.S. Rajamouli, to bring his vision of this Indian epic to life with international quality visual effects.
During the quarter, the VFX division was also involved with the visual effects sequences within an epic feature film, Rudrama Devi by Gunasekhar, which contains a significant amount of quality computer graphics work and is slated for release soon.
The division is currently engaged on certain high-end visual effects assignments for big banner feature films directed by leading directors from the Indian "Tollywood" industry.
D. Digital division
The Company's YouTube channels Powerkids and Tiny Toonz have started to gain traction among our young digital audiences. The channels have collectively received over 13 million views in the first quarter alone, with the combined total number of minutes watched on both these channels being well over 82 million.
Both of the channels have seen steady and dedicated daily activity of over 150K views during this quarter and the numbers are expected to increase over the coming quarters as new content aimed at a wider number of regions and audiences is introduced into both these channels.
The Company intends to produce children's' content exclusively for these Digital platforms, in order to leverage its subscribers. New animated rhymes for kids have already been introduced to the Tiny Toonz channel.
For further information, please visit www.dqentertainment.com or contact:
DQ Entertainment plc Tapaas Chakravarti - Chairman and CEO Rashida Adenwala - Director Finance & Investor Relations | Tel: +91 40 235 53726 |
Allenby Capital Limited - AIM nominated adviser & broker Jeremy Porter / Alex Price / Alex Brearley |
Tel: +44 (0)20 3328 5656 |
Buchanan - Financial PR Mark Edwards/Robbie Ceiriog-Hughes |
Tel: +44 (0)20 7466 5000 |
Below is an extract from the unaudited financial results of DQE India for the first quarter ended 30 June 2015. The full unaudited results are available from the DQE India section of the BSE website (www.bseindia.com) and NSE website (www.nseindia.com), as well as on the Company's website (www.dqentertainment.com).
DQ ENTERTAINMENT (INTERNATIONAL) LIMITED | |||||||||
| |||||||||
Un-Audited Standalone Financial Results for the quarter and year ended 30 June 2015 | |||||||||
(Rs in million) | |||||||||
Sl.No | Particulars | For Quarter ended 30 June 2015 | For Quarter ended 31 March 2015 | For Quarter ended 30 June 2014 | For Year ended 31 March 2015 | ||||
(Un-Audited) | (Un-Audited) | (Un-audited) | (Audited) | ||||||
1 | Net Income from Operations | 291.82 | 731.59 | 142.34 | 1,815.65 | ||||
2 | Expenditure |
|
|
|
| ||||
a | Production Expenses | 17.95 | 92.37 | 8.24 | 116.84 | ||||
b | Employee Expenses | 132.15 | 135.07 | 165.55 | 633.71 | ||||
c | Other Expenses | 64.36 | 39.45 | 33.93 | 140.71 | ||||
d | Depreciation, Amortisation and Impairment | 56.10 | 178.35 | 64.76 | 366.63 | ||||
e | Expenses transferred to Capital Account | - | - | (41.72) | - | ||||
| Total Expenses [2a to 2e] | 270.56 | 445.24 | 230.76 | 1,257.89 | ||||
3 | Profit / (Loss) from Operations before Other Income, Interest and Finance expense and Exceptional Items [ 1 -2 ] | 21.26 | 286.35 | (88.42) | 557.76 | ||||
4 | Other Income | 6.94 | 6.22 | 9.52 | 29.61 | ||||
5 | Profit / (Loss) before Interest and Finance expense and Exceptional Items [ 3+ 4 ] | 28.20 | 292.57 | (78.90) | 587.37 | ||||
6 | Interest and Finance Expenses | 35.11 | 49.57 | 55.55 | 207.34 | ||||
7 | (Loss)/Profit after Interest and Finance expense but before Exceptional Items [ 5 - 6 ] | (6.91) | 243.00 | (134.45) | 380.03 | ||||
8 | Exceptional items* | 59.49 | (132.34) | 1.47 | (23.99) | ||||
9 | Profit / (Loss) from Ordinary Activities before tax [ 7 - 8 ] | 52.58 | 110.66 | (132.98) | 356.04 | ||||
10 | Less: Tax expense | 15.78 | 45.09 | (21.56) | 66.05 | ||||
11 | Profit / (Loss) from Ordinary Activities after tax [ 9 - 10 ] | 36.80 | 65.57 | (111.42) | 289.99 | ||||
12 | Extraordinary Item | - | - | - | - | ||||
13 | Profit / (Loss) for the period [11-12] | 36.80 | 65.57 | (111.42) | 289.99 | ||||
14 | Paid-up equity share capital [Face value Rs.10 per share] | 792.83 | 792.83 | 792.83 | 792.83 | ||||
15 | Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year | - | - | - | 3,689.60 | ||||
16 | Earnings Per Share [Face value Rs.10 per share] (not annualised/ in Rs.) |
|
|
|
| ||||
| a) Basic | 0.46 | 0.83 | (1.41) | 3.66 | ||||
| b) Diluted | 0.46 | 0.83 | (1.41) | 3.66 | ||||
|
|
|
|
|
| ||||
17 | Public Shareholding |
|
|
|
| ||||
| a) Number of Shares | 19,820,782 | 19,820,782 | 19,820,782 | 19,820,782 | ||||
| b) Percentage of shareholding | 25% | 25% | 25% | 25% | ||||
| c) Shares held by custodians against depository receipts | - | - | - | - | ||||
|
|
|
|
|
| ||||
18 | Promoters and Promoter group Shareholding |
|
|
|
| ||||
| a) Pledged / Encumbered - No. of Shares | 59,461,972 | 59,461,972 | 17,838,000 | 59,461,972 | ||||
| Percentage of shares (as a % of the total share holding of promoter and promoter group) | 100% | 100.00% | 30.00% | 100.00% | ||||
| Percentage of shareholding (as a % of the total share capital of the company) | 75% | 75.00% | 22.50% | 75.00% | ||||
| b) Non encumbered - No. of Shares | 246 | 246 | 41,624,218 | 246 | ||||
| Percentage of shares (as a % of the total share holding of promoter and promoter group) | 0% | 0.00% | 70% | 0.00% | ||||
| Percentage of shares (as a % of the total share capital of the company) | 0% | 0.00% | 52.50% | 0.00% | ||||
| c) Shares held by custodians against depository receipts | - | - | - | - | ||||
Standalone Segment Revenue and Results |
| ||||||||
(Rs in million) |
| ||||||||
Particulars | For Quarter ended 30 June 2015 | For Quarter ended 31 March 2015 | For Quarter ended 30 June 2014 | For Year ended 31 March 2015 |
| ||||
| (Un-Audited) | (Un-Audited) | (Un-audited) | (Audited) |
| ||||
Segment Revenue |
|
|
|
|
| ||||
Animation | 279.70 | 714.09 | 98.07 | 1,725.84 |
| ||||
Distribution | 12.12 | 17.50 | 44.27 | 89.81 |
| ||||
Net Income from Operations | 291.82 | 731.59 | 142.34 | 1,815.65 |
| ||||
|
|
|
|
|
| ||||
Segment Results -Profit/(loss) |
|
|
|
|
| ||||
Animation | 80.73 | 565.17 | 1.38 | 1,104.58 |
| ||||
Distribution | (36.30) | (144.97) | (5.47) | (232.47) |
| ||||
Unallocated | 43.26 | (259.97) | (73.34) | (308.73) |
| ||||
Segment Results before Interest and Finance Expense and Tax Expenses | 87.69 | 160.23 | (77.43) | 563.38 |
| ||||
Interest and Finance Expense | (35.11) | (49.57) | (55.55) | (207.34) |
| ||||
Profit / (Loss) before tax | 52.58 | 110.66 | (132.98) | 356.04 |
| ||||
Tax expense | 15.78 | 45.09 | (21.56) | 66.05 |
| ||||
Profit / (Loss) for the period | 36.80 | 65.57 | (111.42) | 289.99 |
| ||||
|
|
|
|
|
| ||||
Capital Employed |
|
|
|
|
| ||||
Animation | 3,046.32 | 3,385.58 | 2,506.57 | 3,385.58 |
| ||||
Distribution | 1,188.32 | 898.29 | 1,806.13 | 898.29 |
| ||||
Unallocated | 284.59 | 198.56 | (231.64) | 198.56 |
| ||||
Total | 4,519.23 | 4,482.43 | 4,081.06 | 4,482.43 |
| ||||
Notes:
1) The un-audited financial results for the quarter and period ended June 30, 2015 have been taken on record by the Board of Directors at its meeting held on 13 August 2015. The "Un-audited Financial Results" have been subjected to the limited review by statutory auditors of the company. | ||||
2) Pursuant to Clause 41 of the Listing Agreement, the Company opted to publish Standalone Results only as decided by the Board of Directors for the financial year 2015-16, in its Board Meeting. Investor can also view the Financial results (Standalone and Consolidated) on the Company's Website "www.dqentertainment.com" as well as the website of BSE (www.bseindia.com) and NSE (www.nseindia.com). | ||||
3) *Exceptional items are notional foreign exchange gain / (loss) arisen on foreign exchange fluctuation calculated on translation of monetary items as per Accounting Standard -11 | ||||
4) Corresponding year and quarter end figures have been regrouped / reclassified wherever necessary | ||||
5) Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended June 30, 2015.
| ||||
Nature of complaints | Opening Balance | Received during the quarter | Disposed during the quarter | Closing Balance |
Investor complains | - | 1 | 1 | - |
Un-Audited Consolidated Financial Results for the year ended 30 June 2015 | |||||
(Rs in million) | |||||
Sl.No | Particulars | For Quarter ended 30 June 2015 | For Quarter ended 31 March 2015 | For Quarter ended 30 June 2014 | For Year ended 31 March 2015 |
(Un-Audited) | (Un-Audited) | (Un-audited) | (Audited) | ||
1 | Net Income from Operations | 257.33 | 758.10 | 206.37 | 1,947.98 |
2 | Expenditure |
|
|
|
|
a | Production Expenses | 37.52 | 167.51 | 21.51 | 216.29 |
b | Employee Expenses | 133.03 | 135.85 | 166.39 | 637.11 |
c | Other Expenses | 82.03 | 409.02 | 50.85 | 223.22 |
d | Depreciation, Amortisation and Impairment | 72.20 | 200.59 | 76.25 | 432.24 |
e | Expenses transferred to Capital Account | (28.62) | (59.96) | (41.72) | (195.79) |
| Total Expenses [2a to 2e] | 296.16 | 853.01 | 273.28 | 1,313.07 |
3 | (Loss) /Profit from Operations before Other Income, Interest and Finance expense and Exceptional Items [ 1 -2 ] | (38.83) | (94.91) | (66.91) | 634.91 |
4 | Other Income | 5.68 | 5.08 | 4.16 | 12.69 |
5 | (Loss) / Profit before Interest and Finance expense and Exceptional Items [ 3+ 4 ] | (33.15) | (89.83) | (62.75) | 647.60 |
6 | Interest and Finance Expenses** | 145.63 | 167.81 | 75.46 | 427.26 |
7 | (Loss) / Profit after Interest and Finance expense but before Exceptional Items [ 5 - 6 ] | (178.78) | (257.64) | (138.21) | 220.34 |
8 | Exceptional items * | 68.02 | 39.48 | (3.92) | (351.42) |
9 | (Loss) / Profit from Ordinary Activities before tax [ 7 - 8 ] | (110.76) | (218.16) | (142.13) | (131.08) |
10 | Less: Tax expense | 15.78 | 45.09 | (21.56) | 66.05 |
11 | (Loss) / Profit from Ordinary Activities after tax [ 9 - 10 ] | (126.54) | (263.25) | (120.57) | (197.13) |
12 | Extraordinary Item | - | - | - | - |
13 | (Loss) / Profit for the period [11-12] | (126.54) | (263.25) | (120.57) | (197.13) |
14 | Paid-up equity share capital [Face value Rs.10 per share] | 792.83 | 792.83 | 792.83 | 792.83 |
15 | Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year | - | - | - | 3,680.82 |
16 | Earnings Per Share [Face value Rs.10 per share] (not annualised/ in `) |
|
|
|
|
| a) Basic | (1.60) | (3.32) | (1.52) | (2.49) |
| b) Diluted | (1.60) | (3.32) | (1.52) | (2.49) |
|
|
|
|
|
|
17 | Public Shareholding |
|
|
|
|
| a) Number of Shares | 19,820,782 | 19,820,782 | 19,820,782 | 19,820,782 |
| b) Percentage of shareholding | 25% | 25% | 25% | 25% |
| c) Shares held by custodians against depository receipts | - | - | - | - |
|
|
|
|
|
|
18 | Promoters and Promoter group Shareholding |
|
|
|
|
| a) Pledged / Encumbered - No. of Shares | 59,461,972 | 59,461,972 | 17,838,000 | 59,461,972 |
| Percentage of shares (as a % of the total share holding of promoter and promoter group) | 100% | 100% | 30% | 100% |
| Percentage of shareholding (as a % of the total share capital of the company) | 75% | 75% | 22.50% | 75% |
| b) Non encumbered - No. of Shares | 246 | 246 | 41,624,218 | 246 |
| Percentage of shares (as a % of the total share holding of promoter and promoter group) | 0% | 0% | 70% | 0% |
| Percentage of shares (as a % of the total share capital of the company) | 0% | 0% | 52.50% | 0% |
| c) Shares held by custodians against depository receipts | - | - | - | - |
Consolidated Segment Revenue and Results
| ||||
(Rs in million) | ||||
Particulars | For Quarter ended 30 June 2015 | For Quarter ended 31 March 2015 | For Quarter ended 30 June 2014 | For Year ended 31 March 2015 |
| (Un-Audited) | (Un-Audited) | (Un-audited) | (Audited) |
Segment Revenue |
|
|
|
|
Animation | 239.32 | 698.67 | 99.29 | 1,423.41 |
Distribution | 18.01 | 59.43 | 107.08 | 524.57 |
Net Income from Operations | 257.33 | 758.10 | 206.37 | 1,947.98 |
|
|
|
|
|
Segment Results -Profit/(loss) |
|
|
|
|
Animation | 20.81 | 338.77 | (10.68) | 702.70 |
Distribution | (65.08) | (125.27) | (11.92) | 136.69 |
Unallocated | 79.14 | (263.85) | (44.07) | (543.21) |
Segment Results before Interest and Finance Expense and Tax Expenses | 34.87 | (50.35) | (66.67) | 296.18 |
Interest and Finance Expense | (145.63) | (167.81) | (75.46) | (427.26) |
(Loss)/Profit before tax | (110.76) | (218.16) | (142.13) | (131.08) |
Tax expense | 15.78 | 45.09 | (21.56) | 66.05 |
(Loss)/Profit for the period | (126.54) | (263.25) | (120.57) | (197.13) |
|
|
|
|
|
Capital Employed |
|
|
|
|
Animation | 2,342.41 | (1,213.01) | 2,165.11 | (1,213.01) |
Distribution | 6,372.38 | 5,167.58 | 6,880.30 | 5,167.58 |
Unallocated | (4,143.99) | 519.08 | (4,190.21) | 519.08 |
Total | 4,570.80 | 4,473.65 | 4,855.20 | 4,473.65 |
Notes:
1) The un-audited consolidated financial results for the quarter ended June 30, 2015 have been taken on record by the Board of Directors at its meeting held on 13 August 2015. The "Un-audited Consolidated Financial Results" have been subjected to the limited review by statutory auditors of the company. |
2) The financial results are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated financial statements as set out in the Accounting Standard on "Consolidated Financial Statements" mandated by Section 133 of the Act Read with Rule 7 of the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013 and guidelines issued by the Securities and Exchange Board of India. |
3) *Exceptional items are notional foreign exchange gain / (loss) arisen on foreign exchange fluctuation calculated on translation of monetary items as per Accounting Standard -11 |
4) *\* Total interest and finance expense includes Rs.87.51 Mn on account of debt bond issued at DQ Entertainment (Ireland) Limited. |
5) DQ Entertainment (Ireland) Limited, which is 100% subsidiary of DQ Entertainment (International) Limited ( DQE) has directly outsourced the Production services to DQE, hence there is reduction in consolidated turnover compare to standalone turnover. |
6) Corresponding year and quarter end figures have been regrouped / reclassified wherever necessary. |
END