16th Feb 2015 09:48
LONDON (Alliance News) - DQ Entertainment PLC on Monday said its DQ Entertainment International Ltd subsidiary has signed a deal with iStorySM Animation Studios to produce the Peg Heads animated series and separately said its international business came under pressure on its revenue due to working capital constraints in the final quarter of 2014.
DQ did not provide any financial details on the Peg Heads deal. It owns a 75% stake in the DQ Entertainment International business.
"We are extremely proud to announce our relationship with iStory Animation. There is something really special about this property and DQE and iStory wish to build a global brand after the proposed launch of this series in 2016," said Tapaas Chakravarti, chief executive officer of DQ.
In addition, DQ reported the results of the DQ Entertainment International arm, which is based in India, with its pretax profit rising but revenue falling in the nine months to December.
Pretax profit for the unit rose to INR101.6 million in the nine months, nearly double the INR56.4 million posted a year earlier, boosted by a foreign exchange gain.
But revenue for the unit was down to INR457.1 million from INR508.5 million owing to a big fall in production revenue, down to INR226.1 million from INR378.8 million last year.
The production revenue was dragged lower after the company said the working capital difficulties it faced in the final quarter of 2014, caused by problems in recovering payments, resulted in some productions having to be delayed.
DQ shares were down 1.8% to 4.295 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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