TIDMDQE
RNS Number : 2001A
DQ Entertainment PLC
17 February 2014
For immediate release 17 February 2014
DQ Entertainment plc
("DQE" or the "Group")
Indian subsidiary financial results for the third quarter and
nine months ended
31 December 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 announced its un-audited financial results
for the quarter ended 31 December 2013 prepared under Indian
GAAP.
Financial Highlights for the nine months ended 31.12.13:
-- Revenue: INR 1,378.52 mn (USD 23.03mn) (2012: INR 1,408.65 mn (USD 23.53mn))
-- EBIDTA: INR 819.29 mn (USD 13.69mn) (2012: INR 598.40 mn (USD 10mn))
-- Profit before tax: INR 355.80 mn (USD 5.94mn ) (2012: INR 178.63 mn (USD 2.98mn))
-- Profit after tax: INR 281.13 mn (USD 4.70mn) (2012: INR 140.11 mn (USD 2.34mn))
o As reported previously, due to the seasonality of our
business, revenue in the first and third quarters is generally
lower than the second and fourth quarters.
o Although the Company had completed deliveries of some of the
projects before 31 December 2013, revenues will be recognised in Q4
due to delay in receipt of approvals from clients/partners on
account of the holiday season for Christmas and New Year.
o For the nine months to 31 December 2013, EBIDTA has increased
by 37%, profit before tax has increased by 99.7% and [profit after
tax has increased by over 100%, compared to the nine months to 31
December 2012. The higher profits are on account of foreign
exchange gains and better efficiencies, where the Company has been
conscious of its costs and was able to reduce its production and
employee expenses substantially.
o The table below indicates the adjusted profit before tax after
eliminating the foreign exchange gain/loss and extraordinary items.
As per the table below, the adjusted profit before tax has
increased substantially for the third quarter as well as the nine
months ended 31 December 2013 as compared to the previous
corresponding period:
INR (millions)
----------------------------- ----------------------------------------------
Nine months ended Quarter ended
----------------------------- ---------------------- ----------------------
31 Dec-13 31 Dec-12 31 Dec-13 31 Dec-12
----------------------------- ---------- ---------- ---------- ----------
Profit before tax 355.8 178.63 56.42 103.22
----------------------------- ---------- ---------- ---------- ----------
Less foreign exchange gain 326.74 60.94 -0.95 81.43
----------------------------- ---------- ---------- ---------- ----------
Extraordinary items - - - -
----------------------------- ---------- ---------- ---------- ----------
Add provision of doubtful
debt 56.98 - - -
----------------------------- ---------- ---------- ---------- ----------
Less transferred to capital
account - 89.84 - 38.47
----------------------------- ---------- ---------- ---------- ----------
Adjusted PBT 86.04 27.85 57.37 -16.68
----------------------------- ---------- ---------- ---------- ----------
o The current order book stands at INR 4100 mn.
o The administrative costs have been impacted on account of a
provision of INR 57mn due from one of our customers, which has gone
into administration.
o The Company's focussed efforts to reduce its receivables have
resulted in the collection of an amount of INR 447 mn since October
2013.
Chairman's Statement:
There is a clear upsurge in the economy of North America,
however the economic slowdown in Europe still continues. DQE is now
making all efforts in North America to take benefit of the
increased demand for TV and movie content in animation - hybrid
presentations as well as pure live action. We are in a number of
advanced negotiations with production houses in the USA in this
regard.
With the eruption of newer delivery formats, such as the VOD
(video-on-demand) and SVOD (subscription video-on-demand)
platforms, there is an increased demand for animated children's
content as can be seen from announcements of deals made by Netflix,
Hulu, DreamWorks and several other major studios in the US. DQE,
with its track record of international high quality productions
such as Little Prince, Iron Man, Fantastic Four, Jungle Book, Peter
Pan, The Penguins of Madagascar etc., should benefit from this
renewed demand.
The industry is also witnessing an increase in demand for Visual
Effects (VFX) content for animated feature films, live Action
thrillers & action films and Sci-fi films from Hollywood,
Europe and Japan. This will enable DQE to take advantage of its
capabilities and trusted name for CGI/VFX production in USA and
Europe.
Our intellectual properties are gathering momentum worldwide. We
have successfully completed the delivery of 'The Jungle Book Season
2'. Based on the strong demand from the broadcasters and producers
worldwide we have "green lit" the production of the second season
of 'The New Adventures of Peter Pan'. With a substantial evolvement
of distribution technologies and delivery platforms, our licensing
and distribution team is continuously exploring avenues for 360
degree monetisation of our content library.
An update on some of our major projects and
licensing/distribution activities, and the operating highlights for
the quarter ended 31 December 2013, are set out below:
I. Production Update:
(a) Some of the Ongoing projects:
-- Peter Pan Season 2 - 26 x 22' CGI TV series with ZDF Germany,
De Agostini Italy and Method Animation and France TV
-- Jungle Book Christmas Special - 42' - CGI TV Feature with ZDF and Disney Channel
-- Robin Hood, Mischief in Sherwood - 39 x 11' - CGI TV series
with Method Animation and TF1 France, ZDF Germany, ATV Turkey, DeA
Kids Italy
-- Lassie & Friends - 13 x 22' 2D HD TV series with
Dreamworks Classic Media USA, Super Prod & TF1 France, ZDF
Germany
-- NFL Rush Zone Season 3 - 24 x 22' - CGI & 2D TV Series
with Rollman Entertainment, USA for Nicktoons
-- Little Prince Season 3 - 26 x 22' - CGI TV series with Method
Animation, WDR Germany, France Television, RAI TV Italy
-- Manav - 1 x 60' - 2D TV feature for Disney, India
-- Miles from Tomorrow: 22 x 22' - CGI TV series with Wild Canary, USA for Disney Channel USA.
-- Lancer Man Home: for Oysterblue Media Corp, USA
-- Lanfeust Quest: 8 x 22' - CGI TVseries with Gaumont Animation, France M6 TV France
-- Iesodo 2(nd) Season - 10 x 13' - CGI TV Series with Zaya Toonz LLC, USA
(b) Completed projects in Q3:
-- Jungle Book Season 2 - 52 x 11'- CGI TV series with ZDF Germany and TF1 France
-- Iesodo 1(st) Season - 10 x 13' - CGI TV Series with Zaya Toonz LLC, USA
-- Lassie & Friends - 13 x 22' a series with Dreamworks, USA
Super Prod, France, TF1 France, ZDF, Germany
-- Robin Hood, Mischief in Sherwood - 13 x 11' with TF1 France,
ZDF Germany, ATV Turkey, DIA Kids, Italy.
-- Lanfeust Quest - 18 x 22' CGI Series with Gaumont Animation & M6 TV France
(c) New projects signed/in development in Q3:
-- 7 Dwarfs & Me - 52 x 11' CGI & Live Action Hybrid Series with Method Animation, France
-- 5 & IT - 52 x 11' - CGI TV Series with ZDF Enterprises - Germany
-- NFL Rush Zone Season 4 - 24 x 22' - CGI & 2D TV Series
with Rollman Entertainment, USA for Nicktoons
-- Leo & The Pisa Gang - 52 x 11' - CGI TV Series with MPP Production and Penta TV, Germany
-- The Yonagonies - 52 x 11' CGI project with Rollman
Entertainment and Seaworld Entertainment USA.
II. Licensing & Distribution:
(a) New broadcasting agreements in Q3:
S. No Broadcast Partner Rights Territory
------ -------------------- ----------------------- ----------------------------
1 Workpoint Jungle Book 2 & Jungle Thailand
Book Safari
------ -------------------- ----------------------- ----------------------------
2 SABC Iron Man 2 South Africa
------ -------------------- ----------------------- ----------------------------
3 Compact Collections Jungle Book 2 & Jungle Worldwide
Book TV Special
------ -------------------- ----------------------- ----------------------------
4 De Agostini Robin Hood Italy and Italian speaking
territories
------ -------------------- ----------------------- ----------------------------
5 ZDF Robin Hood Germany and German speaking
territories
------ -------------------- ----------------------- ----------------------------
(b) New merchandising agreements in Q3:
S No Name of licensee Category Territory
1 Spafax Airline Network In-flight Entertainment In-flight Entertainment
- Alrcalin Only
----- ------------------------- ------------------------ ------------------------
2 Playrific Inc Jungle Book App. Worldwide
----- ------------------------- ------------------------ ------------------------
3 Milestone Productions Costume Rentals; North America; UAE;
& Events Character Meet & Qatar; Oman; Saudi
Greets; Non Ticketed Arabia
Stage Shows less
than 45 minutes in
duration
----- ------------------------- ------------------------ ------------------------
4 Harlequinn International Back to School Australia
Group Pty Ltd
----- ------------------------- ------------------------ ------------------------
5 Jilcroft Pty Ltd Puzzles and Games Australia
(MJM Australia Imports)
----- ------------------------- ------------------------ ------------------------
Un-Audited Consolidated Financial Results for the quarter and
period ended 31 December 2013
(Rs in million)
----------------------------------------------------------------------------------------------------------------------
Sl. Particulars For Quarter For Quarter For Quarter For nine For nine For Year
ended ended ended months months ended
No 31 December 30 September 31 December ended ended 31 March
2013 2013 2012 31 December 31 December 2013
2013 2012
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
(Un-audited) (Un-audited) (Un-audited) (Un-audited) (Un-audited) (Audited)
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Net Income from
1 Operations 508.51 565.76 455.93 1,378.52 1,408.65 2,294.08
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
2 Expenditure
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
a Production Expenses 15.50 3.59 40.10 35.58 113.28 178.61
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
b Employee Expenses 186.41 197.44 214.09 586.07 672.08 875.83
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
c Other Expenses 82.60 118.29 65.07 264.32 175.67 250.24
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Depreciation,
Amortisation
d and Impairment 100.45 98.35 102.86 289.65 285.44 526.99
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Foreign exchange
(gain)
e / loss 0.95 (143.73) (81.43) (326.74) (60.94) (17.97)
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Expenses transferred
f to Capital Account - - (38.47) - (89.84) (125.44)
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Total Expenses [2a
to 2f)] 385.91 273.94 302.22 848.88 1,095.69 1,688.26
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Profit from Operations
before Other Income,
Interest and Finance
expense and
Exceptional
3 Items [ 1 -2 ] 122.60 291.82 153.71 529.64 312.96 605.82
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
4 Other Income 5.61 3.06 2.17 11.17 14.36 16.29
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Profit before Interest
and Finance expense
and Exceptional Items
5 [ 3+ 4 ] 128.21 294.88 155.88 540.81 327.32 622.11
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Interest and Finance
6 Expenses 71.79 63.03 52.66 185.01 148.69 209.44
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Profit after Interest
and Finance expense
but before Exceptional
7 Items. [ 5 - 6 ] 56.42 231.85 103.22 355.80 178.63 412.67
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
8 Exceptional items - - - - - -
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Profit from Ordinary
Activities before
9 tax 56.42 231.85 103.22 355.80 178.63 412.67
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Less: Tax expense
(net off MAT credit
10 entitlement) 68.81 4.65 14.07 74.67 38.52 39.62
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
(Loss) / Profit from
Ordinary Activities
after tax
11 [ 9 - 10 ] (12.39) 227.20 89.15 281.13 140.11 373.05
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
12 Extraordinary Item - - - - - -
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
(Loss) / Profit for
13 the period [11-12] (12.39) 227.20 89.15 281.13 140.11 373.05
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Paid-up equity share
capital [Face value
14 Rs.10 per share] 792.83 792.83 792.83 792.83 792.83 792.83
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
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 (0.15) 2.86 1.12 3.55 1.77 4.71
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
b) Diluted (0.15) 2.86 1.12 3.55 1.77 4.71
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
17 Public Shareholding
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
a) Number of Shares 19,820,782 19,820,782 19,820,782 19,820,782 19,820,782 19,820,782
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
b) Percentage of
shareholding 25% 25% 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 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% 100% 100%
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Percentage of shares
(as a % of the total
share capital of the
company) 75% 75% 75% 75% 75% 75%
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
c) Shares held by - - - - - -
custodians against
depository receipts
---- ----------------------- ------------- -------------- ------------- ------------- ------------- -----------
Consolidated Segment Revenue and Results
(Rs in million)
----------------------------------------------------------------------------------------------------------------------
Particulars For Quarter For Quarter For Quarter For nine For nine For Year
ended ended ended months months ended
31 December 30 September 31 December ended ended 31 March
2013 2013 2012 31 December 31 December 2013
2013 2012
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
(Un-audited) (Un-audited) (Un-audited) (Un-audited) (Un-audited) (Audited)
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Segment Revenue
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Animation 378.83 415.71 335.50 1,070.27 1,037.27 1,820.10
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Distribution 129.68 150.05 120.43 308.25 371.38 473.98
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Net Income from
Operations 508.51 565.76 455.93 1,378.52 1,408.65 2,294.08
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Segment Results
------------------------ -------------- --------------- -------------- -------------- -----------
Animation 205.60 273.18 142.51 593.39 420.85 986.91
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Distribution 64.89 94.41 75.04 140.71 214.82 120.00
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Unallocated income
/ (expense) (142.28) (72.71) (61.67) (193.29) (308.35) (484.80)
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Segment Results before
Interest and Finance
Expense and Tax
Expenses 128.21 294.88 155.88 540.81 327.32 622.11
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Interest and Finance
Expense (71.79) (63.03) (52.66) (185.01) (148.69) (209.44)
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Profit before tax 56.42 231.85 103.22 355.80 178.63 412.67
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Tax expense 68.81 4.65 14.07 74.67 38.52 39.62
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
(Loss) / Profit for
the period (12.39) 227.20 89.15 281.13 140.11 373.05
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Capital Employed
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Animation 1,958.95 1,992.46 1,325.93 1,958.95 1,325.93 1,640.45
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Distribution 7,011.43 7,434.64 4,259.02 7,011.43 4,259.02 5,473.99
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Unallocated (3,986.90) (4,408.64) (1,429.67) (3,986.90) (1,429.67) (2,793.29)
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
Total 4,983.48 5,018.46 4,155.28 4,983.48 4,155.28 4,321.15
------------------------ -------------- --------------- -------------- -------------- -------------- -----------
1) The un-audited consolidated financial results for the quarter
and period ended December 31, 2013 have been taken on record by the
Board of Directors at its meeting held on 14 February 2014. The
"Un-audited Consolidated 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 only the Consolidated Results of the Company.
Investor can view the Standalone results of the Company on the
Company's website "www.dqentertainment.com" as well as the website
of BSE (www.bseindia.com) and NSE (www.nseindia.com).
3) Certain Standalone Information of the Company.
(Rs in million)
----------------------------------------------------------------------------------------------------------------
Particulars For Quarter For Quarter For Quarter For nine For nine For Year
ended ended ended months months ended
31 December 30 September 31 December ended ended 31 March
2013 2013 2012 31 December 31 December 2013
2013 2012
------------------ -------------- --------------- -------------- -------------- -------------- -----------
(Un-audited) (Un-audited) (Un-audited) (Un-audited) (Un-audited) (Audited)
------------------ -------------- --------------- -------------- -------------- -------------- -----------
Net Income from
Operations 308.05 553.93 449.50 1,134.78 1,106.79 1,988.07
------------------ -------------- --------------- -------------- -------------- -------------- -----------
(Loss) / Profit
before tax (73.98) 253.85 124.64 259.82 (3.91) 290.10
------------------ -------------- --------------- -------------- -------------- -------------- -----------
(Loss) / Profit
after tax (142.79) 249.20 108.65 185.15 (18.68) 270.59
------------------ -------------- --------------- -------------- -------------- -------------- -----------
4) Corresponding year end figures have been regrouped / reclassified wherever necessary.
Nature of Opening Received Disposed Closing
complaints Balance during the during the Balance
quarter quarter
------------ --------- ------------ ------------ ---------
Investor - - - -
complaints
------------ --------- ------------ ------------ ---------
5) Corresponding year end figures have been regrouped / reclassified wherever necessary.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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