TIDMDQE
RNS Number : 3268L
DQ Entertainment PLC
09 August 2013
For immediate release 9 August 2013
DQ Entertainment plc
("DQE" or the "Group")
Indian subsidiary financial results for the quarter ended 30
June 2013
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 today announced its un-audited financial
results for the quarter ended 30 June 2013 prepared under Indian
GAAP.
I. Financial Highlights for the quarter ended June 2013:
- Revenue: INR 304m (US$5.47m) [2012: INR.309m (US$5.56m)]
- EBIDTA: INR 206m (US$3.70m) [2012:INR 31m (US$ 0.56m)]
- Profit before tax: INR 68m (US$1.21m) [2012: INR (92)m (US1.66m)]
- Profit after tax: INR 66m (US$1.19m) [2012: INR (91)m (US$1.63m)]
(An exchange rate of USD/INR: 55.66 has been used above.)
-- With the challenging global economic situation, where many
companies have suffered, DQ Entertainment has been resilient and
generated a total revenue of Rs. 304m during the quarter ended June
2013 (2012: Rs. 309m).
-- Our EBIDTA margins have substantially increased. This is due
to a significant foreign exchange gain but also because of our well
planned and structured cost reduction and operational policies, as
well as improved production efficiencies across the
organization.
-- As previously reported, DQE's revenue and profitability has a
clear seasonal pattern, similar to that of the rest of the global
animation industry, wherein almost 60% of the annual revenue is
achieved in the third and fourth quarter of the financial year and
these results are in line with that trend. As of June 2013, the
Company had recorded a net profit of Rs. 66 m. [2012: Rs.
(91m)].
-- The global financial liquidity crisis, especially in Europe
and USA, has impacted the Company, resulting in slower recoveries
of receivables.The Company has made considerable improvement in
reducing its debtors.
II. Operational highlights:
-- Success of own Intellectual Properties (IPs):
The Company's first home-grown international brand 'The Jungle
Book', continues to gain traction in the worldwide market. The
Jungle Book brand has reach in more than 169 countries and more
than 300 categories of products have been developed through various
licensees. Jungle Book Season 1 continues to go from strength to
strength in North America with more networks like Knowledge Network
and Univision broadcasting the show. The second season of The
Jungle Book is in production and has already been pre-sold to more
than 100 countries. The brand has generated over USD26m of
contracts through various broadcast and licensee deals world-wide,
of which over USD10m has already been cash flowed to date.
As part of the new digital initiatives DQE also has developed
its own game called - "The Great Escape" based on The Jungle Book
TV series - which is available on all android based devices.
Season 1 of DQE's second iconic brand 'The New Adventures of
Peter Pan' is now being broadcast, with a very good response in
various territories. The series has already been pre-sold to over
100 territories for broadcast and has attracted more than 10
licensees representing more than 20 categories of products. The
brand has already attracted worldwide licensing and distribution
deals of over USD10m to be earned over a period of three to four
years.
Licensing and distribution revenues for other DQE IPs are
increasing and the Company is confident of achieving its targeted
growth in the years to come and improving its cash flow
position.
Tapaas Chakravarti, Chairman & CEO, made the following
statement:
"The macroeconomic environment in some markets, especially in
Europe and Canada, remains very challenging even in the Children's
Entertainment business. There is however a definitive improvement
in the US Animation and Children's Entertainment segment where
considerable effort is being paid by us to further enhance our
footprint.
Meanwhile, substantial management time and attention is also
being given to our long term markets in Europe and other areas
which face challenging conditions, in order to keep it 'business as
usual' at a time when substantial working capital distress is being
seen across the industry as a direct impact of the overall economic
environment.
Our core business fundamentals remain sound with a strong
current order book, to be executed over the next 2-3 years. We are
focusing on delivery of orders and sustainability with quality
growth by exploring new verticals of content development and
distribution, in order to accelerate growth in those areas which we
believe to have very high potential, and the response to the Jungle
Book and Peter Pan franchises supports this strategy.
Our business is global and we have had particular success in TV
and Home Video distribution, licensing, merchandising and
publishing for brands like The Jungle Book and Peter Pan, as well
as for many other properties such as Iron Man, Casper, Charlie
Chaplin, Tara Duncan and Little Prince.
We are in the process of rescheduling DQE India's working
capital facilities necessary to execute our new order pipeline and
complete production and delivery of high brand equity properties
such as The Jungle Book series II, Peter Pan series II, 5 Children
& IT series I, Lassie series I, Little Prince series III, Robin
Hood series I, besides several other productions.
Our global flagship brand "The Jungle Book" saw the world-wide
release of series I last year for television broadcast in over 169
countries, while the famous Peter Pan TV series was launched four
months ago and has already been broadcast in over 100
countries.
Jungle Book licensing has seen an upsurge globally, including a
promotional deal with Burger King for over 15,000 outlets
world-wide. Others include: NetFlix (USA), Toys R Us, Universal
Music, Amazon, Target and Walmart .
We are delighted that our shows continue to attract high ratings
on famous international networks such as TF1- France, France
Television, ZDF TV and Kika - Germany, DeA Kids - Italy, RAI Italy,
ABC Australia, ATV - Turkey, Disney channel, TVO Canada and many
others worldwide.
We have given a special focus to strengthening our balance sheet
by putting an extraordinary effort into the collection of
receivables from our clients and partners, which will further help
in improving our working capital position.
I remain cautiously optimistic that we will end the fiscal year
in a satisfactory position as planned. We are very resolute in
creating value for our shareholders and employees through long term
sustainability of the business model adopted by us and to face the
new economic challenges globally with even better results."
-- Production Update
1. Projects completed:
- NFL Rush Zone Season 2 - 24 x 22' - CGI & 2D TV Series with Nicktoons, USA
- Rising Star Season 1 - 26 x 17' - 2D HD TV Series with TMS Entertainment & Kodansha, Japan
- Keymon Ache Season 2 - 52 x 11' 2D TV series with Nickelodeon
2. Ongoing projects:
- The Jungle Book Season 2 - 52 x 11'- CGI TV series with ZDF Germany, and TF1 France
- Jungle Book Christmas Special - 42' - CGI TV Feature, ZDF Group, Disney
- Lassie & Friends - 52 x 11' 2D HD TV series with Classic Media & Super Prod, TF1, ZDF
- Robin Hood, Mischief in Sherwood- 52 x 11' - CGI TV series
with Method Animation and TF1 France, ZDF Germany, ATV Turkey, DeA
Kids Italy
- Lanfeust - 26 x 22' - CGI TV series with Gaumont Animation, France, M6 TV Channel
- Little Prince Season 3 - 26 x 22' - CGI TV series with Method
Animation, WDR Germany, France Television, RAI TV Italy
- NFL Rush Zone Season 3 - 24 x 22' - CGI & 2D TV Series
with Rollman Entertainment, USA for Nicktoons
- Iesodo - 10 x 13' - CGI TV Series with Zaya Toonz LLC, USA
- Manav - 1 x 60' - 2D TV feature for Disney
3. New projects signed/in development:
- Peter Pan Season 2 - ZDF Germany, De Agostini Italy and Method Animation, France TV
- Leo & The Pisa Gang - 52 x 11' - CGI TV Series with MPP Production and Penta TV, Germany
- Raz & Benny - 52 x 11' - CGI TV Series with Foothill Entertainment, USA
- 5 & IT - 52 x 11' - CGI TV Series with ZDF Germany
- The Wind in the Willows - 52 x 11' HD TV Series under development by DQE IP team
- Several other TV Series are in development with Rollman Entertainment Group, USA
-- Licensing & Distribution update
DQE has adopted a 360 degree monetization strategy across TV,
online, mobile, gaming, feature film, merchandising effectively, in
a global market place.
During the quarter, eight new broadcasting deals have been
signed for:
- Iron Man 2 in the UK, Canada, French speaking Africa and Malaysia
- Jungle Book Season 1 in Malaysia, USA, Puerto Rico and British Columbia and
- Peter Pan in Malaysia
In merchandising, we have signed seven new deals with Nestle,
Inkology, Play Wow, Budge Studios, Technoplast, Bendon Publishing
etc. for The Jungle Book and Peter Pan in USA, Canada, Australia,
Italy, San Marino, Vatican City etc.
For further information, please contact:
DQ Entertainment plc Tel: +91 40 235
Tapaas Chakravarti - Chairman 53726
and CEO
Rashida Adenwala - Director Finance
& Investor Relations
Allenby Capital Limited Tel: +44(0) 20
Jeremy Porter / Alex Price 3328 5656
Buchanan Tel: +44 (0)20
Mark Edwards/Clare Akhurst 7466 5000
www.buchanan.uk.com
Below is an extract from the unaudited financial results of DQE
India for the quarter ended 30 June 2013. 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 DQE's website (www.dqentertainment.com).
DQ ENTERTAINMENT (INTERNATIONAL) LIMITED
Un-Audited Consolidated Financial Results for the quarter ended
30 June 2013
(Rs in million)
--------------------------------------------------------------------------------------------------
Sl. Particulars For For Quarter For For
Quarter ended Quarter Year
No ended 31 March ended ended
30 June 2013 30 June 31 March
2013 2012 2013
---- ---------------------------------- ------------- ------------- ------------- -----------
(Un-audited) (Un-Audited) (Un-audited) (Audited)
---- ---------------------------------- ------------- ------------- ------------- -----------
1 Net Income from Operations 304.25 885.43 309.31 2,294.08
---- ---------------------------------- ------------- ------------- ------------- -----------
2 Expenditure
---- ---------------------------------- ------------- ------------- ------------- -----------
a Production Expenses 16.49 65.33 44.95 178.61
---- ---------------------------------- ------------- ------------- ------------- -----------
b Employee Expenses 202.22 203.75 238.12 875.83
---- ---------------------------------- ------------- ------------- ------------- -----------
c Other Expenses 63.43 74.57 59.10 250.24
---- ---------------------------------- ------------- ------------- ------------- -----------
Depreciation, Amortisation
d and Impairment 90.85 241.55 87.42 526.99
---- ---------------------------------- ------------- ------------- ------------- -----------
Foreign exchange (gain)
e / loss (183.96) 42.97 (59.36) (17.97)
---- ---------------------------------- ------------- ------------- ------------- -----------
Expenses transferred to
f Capital Account - (35.60) (4.59) (125.44)
---- ---------------------------------- ------------- ------------- ------------- -----------
Total Expenses [2a to 2f)] 189.03 592.57 365.64 1,688.26
---- ---------------------------------- ------------- ------------- ------------- -----------
Profit / (Loss) from Operations
before Other Income, Interest
and Finance expense and
Exceptional Items [ 1 -2
3 ] 115.22 292.86 (56.33) 605.82
---- ---------------------------------- ------------- ------------- ------------- -----------
4 Other Income 2.50 1.93 10.86 16.29
---- ---------------------------------- ------------- ------------- ------------- -----------
Profit / (Loss) before Interest
and Finance expense and
Exceptional Items [ 3+ 4
5 ] 117.72 294.79 (45.47) 622.11
---- ---------------------------------- ------------- ------------- ------------- -----------
6 Interest and Finance Expenses 50.19 60.75 46.69 209.44
---- ---------------------------------- ------------- ------------- ------------- -----------
Profit / (Loss) after Interest
and Finance expense but
before Exceptional Items.
7 [ 5 - 6 ] 67.53 234.04 (92.16) 412.67
---- ---------------------------------- ------------- ------------- ------------- -----------
8 Exceptional items - - - -
---- ---------------------------------- ------------- ------------- ------------- -----------
Profit / (Loss) from Ordinary
9 Activities before tax 67.53 234.04 (92.16) 412.67
---- ---------------------------------- ------------- ------------- ------------- -----------
Less: Tax expense (net off
10 MAT credit entitlement) 1.21 1.10 (1.28) 39.62
---- ---------------------------------- ------------- ------------- ------------- -----------
Profit / (Loss) from Ordinary
Activities after tax
11 [ 9 - 10 ] 66.32 232.94 (90.88) 373.05
---- ---------------------------------- ------------- ------------- ------------- -----------
12 Extraordinary Item - - - -
---- ---------------------------------- ------------- ------------- ------------- -----------
Profit / (Loss) for the
13 period [11-12] 66.32 232.94 (90.88) 373.05
---- ---------------------------------- ------------- ------------- ------------- -----------
Paid-up equity share capital
14 [Face value Rs.10 per share] 792.83 792.83 792.83 792.83
---- ---------------------------------- ------------- ------------- ------------- -----------
Reserves excluding Revaluation
Reserves as per balance
sheet of previous accounting
15 year - - - 3,528.32
---- ---------------------------------- ------------- ------------- ------------- -----------
16 Earnings Per Share [Face
value Rs.10 per share]
(not annualised/ in `)
a) Basic 0.84 2.94 (1.15) 4.71
---- ---------------------------------- ------------- ------------- ------------- -----------
b) Diluted 0.84 2.94 (1.15) 4.71
---- ---------------------------------- ------------- ------------- ------------- -----------
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
---- ---------------------------------- ------------- ------------- ------------- -----------
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 59,462,218 59,462,218
---- ---------------------------------- ------------- ------------- ------------- -----------
Percentage of shares (as
a % of the total share holding
of promoter and promoter
group) 100% 100% 100% 100%
---- ---------------------------------- ------------- ------------- ------------- -----------
Percentage of shares (as
a % of the total share capital
of the company) 75% 75% 75% 75%
---- ---------------------------------- ------------- ------------- ------------- -----------
c) Shares held by custodians - - - -
against depository receipts
---- ---------------------------------- ------------- ------------- ------------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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