18th Aug 2014 07:34
LONDON (Alliance News) - Shares in DQ Entertainment PLC were trading 28% lower Monday as its Indian subsidiary was hit by a significant and unexpected delay in the commission of new projects in the first quarter to end-June.
The subsidiary, which is 75% owned by DQ, posted a pretax loss of INR142 million, swung from a profit of INR68 million. This was a result of revenue falling to INR206 million from INR304 million, as production revenues fell, offsetting growth in distribution.
The subsidiary said that, whilst the market remains buoyant and its has commissioned new productions in July and early August, the slowdown in the first quarter has hit its expectations for the year. It said that, with a good performance from its licensing and distribution business, it would expect to remain on track to meet its profit expectations for the year to end-March 2015.
It said that the company has now begun production of a second season of the Peter Pan television series, and a third season of the Jungle Book television series.
DQ Entertainment India said that working capital remains under pressure as collections of receivables continues to be slow, but said it was hopeful of completing financing discussions soon.
The company said that it was moving forward in some new areas of business, with its visual effects teams expanding into providing services for locally produced Live Action feature films, and gearing up to take on international projects. Additionally, its licensing and distribution teams have been closing deals for its intellectual property in various territories, it said.
Shares in DQ Entertainment were trading 28% lower at 5.65 pence shortly after the market open Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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