12 Feb 2016 15:54
Immediate release 12 February 2016
DQ Entertainment plc
("DQE" or the "Group")
Indian subsidiary financial results for the third quarter ended 31st December 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, announces its unaudited financial results for the third quarter ended 31 December 2015, prepared under Indian GAAP.
Financial highlights for DQE India for the nine month period ended 31 December 2015:: (excluding DQ Entertainment (Ireland) Limited and the Group):
· Income from operations: INR 1187.75mn (2014: INR 1084.06 mn)
· EBITDA: INR 543.57 mn (2014: INR 483.09 mn)
· Profit (Loss) before tax*: INR 413.07 mn (2014: INR 245.38 mn)
· Profit (Loss) after tax*: INR 314.52 mn (2014: INR 224.42 mn)
* Profit before tax and Profit after tax includes the exceptional item by way of notional foreign exchange gain of approximately INR 161.87 mn for the period ended 31 December 2015 (2014: INR 108.34 mn)
The Company's operations have shown positive results, due to improvements in delivery of projects as well as the commencement of the production of several new projects. During the nine month period the Company generated total revenue of INR 1187.75 mn, which is in line with management's expectations.
In the current quarter, our focus will be on further improving operational efficiencies and expanding human resources to meet the demand of production in the coming months.
The Company has continued its efforts in respect of the collection of receivables from customers, which the Directors believe are bringing in positive results, with remittances having been received from almost all relevant parties. We are confident that these actions will enable us to report an improved debtors status by the end of the financial year.
Industry Trends
Animation is no longer only about TV series or theatricals. It isn't only about big budget Hollywood movies or network dependent expensive TV productions. The demand for animated content is growing across a range of media channels, from apps to advertising, websites to music videos and beyond.
The distinction between live action and animation is also narrowing all the time, as shown in most of the biggest hits such as The Revenant, Star Wars: The Force Awakens or Jurassic World, which contained a significant amount of animated/motion captured characters.
Whether for our proprietary productions or co-productions with other global producers, we are guided by these industry trends in our choice of properties and strategies surrounding them. We are focussing our efforts on cross platform monetisation of our properties while also using unique production technologies that integrate live action footage with animation.
Business Update
Our proprietary production 'The New Adventures of Peter Pan' season II is nearing completion and final episodes are in post-production. The series will be aired on several broadcast networks and has been acquired by ZDF Germany, De Agostini Italy, Al Jazeera Middle East, ATV Turkey, Telequebec Canada, Media Corp Singapore and SKY Italia amongst others. Apart from traditional linear broadcast channels, discussions are taking place with several non-linear SVOD platforms and channels.
DQE's iconic brand, The Jungle Book spin off, which combines documentary live action footage with storytelling and voice over by animated characters, has been well received by several broadcast networks. In its unique format, it lends itself in the 'edutainment' category which sets it apart from routine kids content. This unique series will soon air on a leading global SVOD platform.
Another notable spin off 'The Jungle Book the Christmas movie' is also complete. The length of the movie is suitable for TV features, DVD release and online SVOD. It has already been picked up by some of the biggest public broadcasters such as Discovery Latin America and TF1 France. Due to the perennial nature of the Christmas theme, this property is expected to see renewed interest on a season by season basis.
Other productions such as The Hive - Season 2 from Lupus Films, Popples from Saban Brands USA, Sheriff Callie's Wild West from Wild Canary for Disney Junior, USA and Seven and Me, a hybrid show combining high quality CGI with live action footage are nearing completion. DQE's intellectual property '5& IT' is being produced in a 52x11 minute format and is being extremely well received globally, with Disney Germany being the lead broadcaster and co-producer.
Our flagship property, The Jungle Book, is in its third season with co-production and creative partners ZDF Germany and Canal+ France, as well as Ellipsanime France, who will undertake the pre- and post-production on the series.
DQE's VFX division was involved in elements of this year's highly acclaimed films, SS Rajamouli's 'Bahubali' and Gunasekhar's 'Rudrama Devi'. DQE also produced high end visual effects sequences for Akkineni Akhil's debut film directed by V.V.Vinayak.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, while several other discussions are underway for VFX work in domestic and regional feature films.
The Company's digital platforms continue to perform satisfactorily and will soon see third party properties being hosted on 'Power Kids' and 'Tiny Toonz' channels.
Our focus on improving operational efficiencies and the consolidation of artistic and technical skill sets continues, with productivity improvements being recognized across all processes of production.
"The Jungle Book - Mowgli's Adventure" - 3D Feature Film
The Company has entered into an executive producer agreement with Amasia Entertainment LLC, USA. Amasia is an independent motion picture entertainment company of reputable track record and is represented by industry veterans Michael Helfant and Bradley Gallo. They will assist the Company with seeking to secure a prints and advertising credit facility, a distribution deal with a US Distributor, international distribution deals and arrange for the financing, as well as select and negotiate celebrity casts of the main characters of the feature. Amasia will also advise on marketing and promotion and support strategic production relationships of the film. Pre-sales discussions are on in various international territories which will contribute to the closure of the production budget.
A prints and advertising credit facility term sheet has been signed with Panda Media Fund and a domestic US distribution deal is close to being finalised with a leading US distributor. Release of the film is expected in late 2017/first quarter of 2018. International distribution is being discussed with EOne, Rai cinema and others who have indicated an interest in the distribution.
For further information, please visit www.dqentertainment.com or contact:
DQ Entertainment plc
Tapaas Chakravarti - Chairman and CEO Tel: +91 40 235 53726
Rashida Adenwala - Director Finance & Investor Relations
Allenby Capital Limited ‐ AIM nominated adviser & broker
Jeremy Porter / 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 third quarter ended December 31, 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 nine months ended 31 December 2015
(Rs in million) | |||||||
Sl.No | Particulars | 3 months ended 31/12/2015 | Preceding 3 months ended 30/09/2015 | Corresponding 3 months ended 31/12/2014 | Year to date figures for the current period ended 31/12/2015 | Year to date figures for the previous period ended 31/12/2014 | Previous year ended 31/03/2015 |
(Un-audited) | (Un-audited) | (Un-audited) | (Un-Audited) | (Un-Audited) | (Audited) | ||
1 | Net Income from Operations | 493.89 | 402.04 | 414.27 | 1,187.75 | 1,084.06 | 1,815.65 |
2 | Expenditure | ||||||
a | Production Expenses | 18.69 | 32.02 | 8.49 | 68.66 | 24.47 | 116.84 |
b | Employee Expenses | 138.75 | 142.07 | 180.51 | 412.97 | 498.64 | 633.71 |
c | Other Expenses | 71.02 | 48.50 | 37.15 | 183.88 | 101.25 | 140.71 |
d | Depreciation, Amortisation and Impairment | 60.02 | 64.23 | 57.12 | 180.35 | 188.28 | 366.63 |
e | Expenses transferred to Capital Account | - | - | - | - | - | |
Total Expenses [2a to 2e)] | 288.48 | 286.82 | 283.27 | 845.86 | 812.64 | 1,257.89 | |
3 | Profit / (Loss) from Operations before Other Income, Interest and Finance expense and Exceptional Items [ 1 -2 ] | 205.41 | 115.22 | 131.00 | 341.89 | 271.42 | 557.76 |
4 | Other Income | 8.83 | 5.56 | 6.83 | 21.33 | 23.39 | 29.61 |
5 | Profit / (Loss) before Interest and Finance expense and Exceptional Items [ 3+ 4 ] | 214.24 | 120.78 | 137.83 | 363.22 | 294.81 | 587.37 |
6 | Interest and Finance Expenses | 38.51 | 38.40 | 46.91 | 112.02 | 157.77 | 207.34 |
7 | Profit/(Loss) after Interest and Finance expense but before Exceptional Items [ 5 - 6 ] | 175.73 | 82.38 | 90.92 | 251.20 | 137.04 | 380.03 |
8 | Exceptional items* | (18.80) | 121.18 | 91.06 | 161.87 | 108.34 | (23.99) |
9 | Profit / (Loss) from Ordinary Activities before tax [ 7 - 8 ] | 156.93 | 203.56 | 181.98 | 413.07 | 245.38 | 356.04 |
10 | Less: Tax expense | 38.24 | 44.53 | 59.20 | 98.55 | 20.96 | 66.05 |
11 | Profit / (Loss) from Ordinary Activities after tax [ 9 - 10 ] | 118.69 | 159.03 | 122.78 | 314.52 | 224.42 | 289.99 |
12 | Extraordinary Item | - | - | - | - | - | - |
13 | Profit / (Loss) for the period [11-12] | 118.69 | 159.03 | 122.78 | 314.52 | 224.42 | 289.99 |
14 | Share of profit/(loss) of associates | ||||||
15 | Minority interest | ||||||
16 | Net profit/(loss) after taxes, minority interest and share of profit/(loss) of associates | 118.69 | 159.03 | 122.78 | 314.52 | 224.42 | 289.99 |
17 | Paid-up equity share capital [Face value Rs.10 per share] | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 |
18 | Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year | - | - | - | - | - | 3,689.60 |
19(i) | Earnings Per Share (before extraordinary items) [Face value Rs.10 per share] (not annualised) | ||||||
a) Basic | 1.50 | 2.01 | 1.55 | 3.97 | 2.83 | 3.66 | |
b) Diluted | 1.50 | 2.01 | 1.55 | 3.97 | 2.83 | 3.66 | |
19(ii) | Earnings Per Share (after extraordinary items) [Face value Rs.10 per share] (not annualised) | ||||||
a) Basic | 1.50 | 2.01 | 1.55 | 3.97 | 2.83 | 3.66 | |
b) Diluted | 1.50 | 2.01 | 1.55 | 3.97 | 2.83 | 3.66 | |
Standalone Segment Revenue and Results | ||||||
(Rs in million) | ||||||
Particulars | 3 months ended 31/12/2015 | Preceding 3 months ended 30/09/2015 | Corresponding 3 months ended 31/12/2014 | Year to date figures for the current period ended 31/12/2015 | Year to date figures for the previous period ended 31/12/2014 | Previous year ended 31/03/2015 |
(Un-Audited) | (Un-audited) | (Un-audited) | (Un-Audited) | (Un-Audited) | (Audited) | |
Segment Revenue | ||||||
Animation | 468.29 | 389.98 | 398.20 | 1,137.97 | 1,011.75 | 1,725.84 |
Distribution | 25.60 | 12.06 | 16.07 | 49.78 | 72.31 | 89.81 |
Total | 493.89 | 402.04 | 414.27 | 1,187.75 | 1,084.06 | 1,815.65 |
Less: Inter Segment Revenue | - | |||||
Net Income from Operations | 493.89 | 402.04 | 414.27 | 1,187.75 | 1,084.06 | 1,815.65 |
Segment Results -Profit/(loss) | ||||||
Animation | 258.53 | 187.20 | 236.54 | 526.46 | 539.41 | 1,104.58 |
Distribution | (22.66) | (40.34) | (42.72) | (99.30) | (87.50) | (232.47) |
Unallocated | (40.43) | 95.10 | 35.07 | 97.93 | (48.76) | (308.73) |
Segment Results before Interest and Finance Expense and Tax Expenses | 195.44 | 241.96 | 228.89 | 525.09 | 403.15 | 563.38 |
Interest and Finance Expense | (38.51) | (38.40) | (46.91) | (112.02) | (157.77) | (207.34) |
Profit / (Loss) before tax | 156.93 | 203.56 | 181.98 | 413.07 | 245.38 | 356.04 |
| ||||||
Capital Employed | ||||||
Animation | 3,363.77 | 3,220.11 | 2,830.40 | 3,363.77 | 2,830.40 | 3,385.58 |
Distribution | 1,072.70 | 1,125.72 | 1,745.42 | 1,072.70 | 1,745.42 | 898.29 |
Unallocated | 360.47 | 332.45 | (158.94) | 360.47 | (158.94) | 198.56 |
Total | 4,796.94 | 4,678.28 | 4,416.88 | 4,796.94 | 4,416.88 | 4,482.43 |
Notes:
1) The un-audited standalone financial results for the quarter and nine months ended December 31, 2015 have been taken on record by the Board of Directors at its meeting held on 12 February 2016. The "Un-audited Standalone Financial Results" have been subjected to the limited review by statutory auditors of the Company.
2) Investors 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) Receivables include amounts which are due for more than a year of Rs. 2,212 Mn. The Company is following up with the customers to make early collection. There are no disputes with the customers and the balances have been confirmed by them. The customers have also expressed their willingness to settle the balances. The payments are delayed in view of the prevailing market and industry conditions in Europe and other places where the customers are located. In the opinion of the management these balances are good and are fully recoverable.
5) Corresponding quarter and half year figures have been regrouped / reclassified wherever necessary.
Un-Audited Consolidated Financial Results for the quarter and nine months ended 31 December 2015
(Rs in million) | |||||||
Sl.No | Particulars | 3 months ended 31/12/2015 | Preceding 3 months ended 30/09/2015 | Corresponding 3 months ended 31/12/2014 | Year to date figures for the current period ended 31/12/2015 | Year to date figures for the previous period ended 31/12/2015 | Previous year ended 31/03/2015 |
(Un-Audited) | (Un-Audited) | (Un-audited) | (Un-Audited) | (Un-Audited) | (Audited) | ||
1 | Net Income from Operations | 606.02 | 478.53 | 457.10 | 1,341.88 | 1,189.88 | 1,947.98 |
2 | Expenditure | ||||||
a | Production Expenses | 43.36 | 16.68 | 9.51 | 97.56 | 48.78 | 216.29 |
b | Employee Expenses | 139.65 | 142.98 | 181.47 | 415.66 | 501.26 | 637.11 |
c | Other Expenses | 89.30 | 72.56 | 59.26 | 243.89 | 165.62 | 223.22 |
d | Depreciation, Amortisation and Impairment | 82.46 | 86.59 | 75.63 | 241.25 | 231.65 | 432.24 |
e | Expenses transferred to Capital Account | (30.95) | (33.79) | (40.03) | (93.36) | (135.83) | (195.79) |
Total Expenses [2a to 2e)] | 323.82 | 285.02 | 285.84 | 905.00 | 811.48 | 1,313.07 | |
3 | Profit/(Loss) from Operations before Other Income, Interest and Finance expense and Exceptional Items [ 1 -2 ] | 282.20 | 193.51 | 171.26 | 436.88 | 378.40 | 634.91 |
4 | Other Income | 7.18 | 4.45 | 1.68 | 17.31 | 7.61 | 12.69 |
5 | Profit/(Loss) before Interest and Finance expense and Exceptional Items [ 3+ 4 ] | 289.38 | 197.96 | 172.94 | 454.19 | 386.01 | 647.60 |
6 | Interest and Finance Expenses** | 152.12 | 148.62 | 108.98 | 446.37 | 259.45 | 427.26 |
7 | Profit/(Loss) after Interest and Finance expense but before Exceptional Items [ 5 - 6 ] | 137.26 | 49.34 | 63.96 | 7.82 | 126.56 | 220.34 |
8 | Exceptional items * | (143.53) | 205.35 | 37.61 | 129.84 | (39.48) | (351.42) |
9 | (Loss) / Profit from Ordinary Activities before tax [ 7 - 8 ] | (6.27) | 254.69 | 101.57 | 137.66 | 87.08 | (131.08) |
10 | Less: Tax expense | 38.24 | 44.53 | 59.20 | 98.55 | 20.96 | 66.05 |
11 | (Loss) / Profit from Ordinary Activities after tax [ 9 - 10 ] | (44.51) | 210.16 | 42.37 | 39.11 | 66.12 | (197.13) |
12 | Extraordinary Item | - | - | - | - | - | |
13 | (Loss) / Profit for the period [11-12] | (44.51) | 210.16 | 42.37 | 39.11 | 66.12 | (197.13) |
14 | Share of profit/(loss) of associates | ||||||
15 | Minority interest | ||||||
16 | Net (loss)/profit after taxes, minority interest and share of profit/(loss) of associates | (44.51) | 210.16 | 42.37 | 39.11 | 66.12 | (197.13) |
17 | Paid-up equity share capital [Face value Rs.10 per share] | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 |
18 | Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year | - | - | - | - | - | 3,680.82 |
19 (i) | Earnings Per Share (before extraordinary items) [Face value Rs.10 per share] (not annualised) | ||||||
a) Basic | (0.56) | 2.65 | 0.53 | 0.49 | 0.83 | (2.49) | |
b) Diluted | (0.56) | 2.65 | 0.53 | 0.49 | 0.83 | (2.49) | |
19 (ii) | Earnings Per Share (after extraordinary items) [Face value Rs.10 per share] (not annualised) | ||||||
a) Basic | (0.56) | 2.65 | 0.53 | 0.49 | 0.83 | (2.49) | |
b) Diluted | (0.56) | 2.65 | 0.53 | 0.49 | 0.83 | (2.49) | |
Consolidated Segment Revenue and Results | ||||||
(Rs in million) | ||||||
Particulars | 3 months ended 31/12/2015 | Preceding 3 months ended 30/09/2015 | Corresponding 3 months ended 31/12/2014 | Year to date figures for the current period ended 31/12/2015 | Year to date figures for the previous period ended 31/12/2015 | Previous year ended 31/03/2015 |
(Un-Audited) | (Un-Audited) | (Un-audited) | (Un-Audited) | (Un-Audited) | (Audited) | |
Segment Revenue | ||||||
Animation | 495.12 | 394.05 | 226.10 | 1,128.49 | 724.74 | 1,423.41 |
Distribution | 110.90 | 84.48 | 231.00 | 213.39 | 465.14 | 524.57 |
Total | 606.02 | 478.53 | 457.10 | 1,341.88 | 1,189.88 | 1,947.98 |
Less: Inter Segment Revenue | ||||||
Net Income from Operations | 606.02 | 478.53 | 457.10 | 1,341.88 | 1,189.88 | 1,947.98 |
Segment Results -Profit/(loss) | ||||||
Animation | 260.69 | 206.59 | 199.26 | 488.09 | 363.93 | 702.70 |
Distribution | 21.06 | (15.27) | 153.70 | (59.29) | 261.96 | 136.69 |
Unallocated | (135.90) | 211.99 | (142.41) | 155.23 | (279.36) | (543.21) |
Segment Results before Interest and Finance Expense and Tax Expenses | 145.85 | 403.31 | 210.55 | 584.03 | 346.53 | 296.18 |
Interest and Finance Expense | (152.12) | (148.62) | (108.98) | (446.37) | (259.45) | (427.26) |
(Loss)/Profit before tax | (6.27) | 254.69 | 101.57 | 137.66 | 87.08 | (131.08) |
Capital Employed | ||||||
Animation | 2,538.41 | 2,376.82 | 2,785.29 | 2,538.41 | 2,785.29 | (1,213.01) |
Distribution | 6,863.10 | 6,890.23 | 6,319.40 | 6,863.10 | 6,319.40 | 5,167.58 |
Unallocated | (4,630.82) | (4,404.49) | (4,159.48) | (4,630.82) | (4,159.48) | 519.08 |
Total | 4,770.69 | 4,862.56 | 4,945.21 | 4,770.69 | 4,945.21 | 4,473.65 |
Notes.
1) Consolidated financial results include DQ Entertainment (International) Ltd. and DQ Entertainment (Ireland) Limited.
2) The un-audited consolidated financial results for the quarter and nine months ended December 31, 2015 have been taken on record by the Board of Directors at its meeting held on 12 February 2016. The "Un-audited Consolidated Financial Results" have been subjected to the limited review by statutory auditors of the Company.
3) 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
4) Investors 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)
5) Certain Standalone Information of the Company.
Particulars | 3 months ended 31/12/2015 | Preceding 3 months ended 30/09/2015 | Corresponding 3 months ended 31/12/2014 | Year to date figures for the current period ended 31/12/2015 | Year to date figures for the previous period ended 31/12/2015 | Previous year ended 31/03/2015 |
| (Un-Audited) | (Un-Audited) | (Un-audited) | (Un-Audited) | (Un-Audited) | (Audited) |
Net Income from Operations | 493.89 | 402.04 | 414.27 | 1187.75 | 1084.06 | 1,815.65 |
Profit / (Loss) before tax | 156.93 | 203.56 | 181.98 | 413.07 | 245.38 | 356.04 |
Profit / (Loss) after tax | 118.68 | 159.03 | 122.78 | 314.51 | 224.42 | 289.99 |
6) *Exceptional items are notional foreign exchange gain / (loss) arisen on foreign exchange fluctuation calculated on translation of monetary items as per Accounting Standard -11
7) *\* Total interest and finance expense includes of Rs.263.45 Mn on account of debt bond issued at DQ Entertainment (Ireland) Limited.
8) Receivables include amounts which are due for more than a year of Rs. 2,347 Mn. The Company is following up with the customers to make early collection. There are no disputes with the customers and the balances have been confirmed by them. The customers have also expressed their willingness to settle the balances. The payments are delayed in view of the prevailing market and industry conditions in Europe and other places where the customers are located. In the opinion of the management these balances are good and are fully recoverable.
9) Corresponding quarter and half year figures have been regrouped / reclassified wherever necessary
END