13th Feb 2012 13:08
Immediate Release | February 13, 2012 |
DQ Entertainment plc
("DQE" or the "Group")
Indian subsidiary financial results for the nine months ended 31 December 2011
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, is pleased to announce its un-audited financial results for the quarter ended 31 December 2011 prepared under Indian GAAP.
Full details of the DQE India un-audited results are available from the DQE India section of the BSE website (www.bseindia.com).
Financial highlights for the nine months ended 31 December 2011:
·; Revenue up 19% to USD 28.64 mn (2010: USD 24.03 mn)
·; EBITDA up 75% to USD 11.83 mn (2010: USD 6.75 mn)
·; Profit before tax up 85% USD 6.11 mn (2010: USD 3.30 mn)
·; Profit after tax up 115% at USD 4.66 mn (2010: USD 2.17 mn)
The Company has maintained its growth as budgeted and is confident of achieving its budgeted results for the financial year ended 31 March 2012.
The Company's first home-grown IP "The Jungle Book - Season 1" is sold in over 160 countries for TV and home video. This has generated excellent traction for merchandising sales of the Jungle Book products. Licensing and distribution revenues have increased by more than 106% to USD 7.54 mn during the nine months ended 31 December 2011 (2010: USD 3.66 mn).
Profitability has improved on account of cost efficiency measures undertaken by the Company across all units of the business.
Tapaas Chakravarti, CMD & CEO, said: "I am pleased to report that we continue our relentless focus on internal efficiencies, strengthening of relationships with key customers and partners, and build strong domain competency in specific production processes.
This quarter, besides strengthening our relationship with existing clients-partners, we added 4 new partners in our journey to create quality content for kids' and distribute our content in strategic and profitable ways.
The recently concluded production deals have been with market leaders such as Disney-USA, ZDF Group-Germany, TF1-France TV and Enne & Imira Entertainment-Spain. The licensing deals this quarter were with global majors such as Turner group- Asia, Edicart Publishing in Italy, DeaA Planeta Junior -Italy, Exim licensing- Mexico which demonstrate beyond a doubt, the power of the IP developed by the Company and the path to becoming self-reliant as a global content distributor.
Development of the 3D stereoscopic feature film, The Jungle Book, is progressing at a heightened pace with lead writing by Billy Frolick (Madagascar fame) and storyboard direction by Dan Shefelman (Ice Age fame). To join the team will be the Director, co-Director and Head of Story, to be announced very soon. Major interest has been shown by US and European distributors who are waiting for the final scripts and announcements of the main talents. 25 year veteran of animation and recently President of Marvel Animation and prior President, Fox Family/Saban Productions - Eric Rolman will be Executive Producer for this feature film.
The production pipeline remains robust with new projects starting such as 'Escape Hockey' with Spanish coproducers, incorporating an innovative 'watch and play' format, a new season of Mickey Mouse Club House with Disney-USA, while successfully concluding prestigious projects such as Iron man (second season), Casper (second season), Feluda (TV series for Disney India) and Keymon TV series (for Nickelodeon India).
The new media division is taking shape with the appointment of a Technical and Marketing head to spearhead the Company's foray into multiple formats and ancillary rights exploitation.
The Company is continuing to demonstrate resilience by virtue of its foresight to improve internal efficiencies and spot trends in the global entertainment business."
DQ Entertainment International Tapaas Chakravarti - Chairman and CEO Rashida Adenwala - Director Finance & Investor Relations
| Tel: +91 40 235 53726 |
Seymour Pierce Ltd Nandita Sahgal / David Foreman (Corporate Finance)
| Tel: +44 (0)207 107 8000 |
Buchanan Mark Edwards | Tel: +44 (0)20 7466 5000 |
DQ ENTERTAINMENT (INTERNATIONAL) LIMITED
644, Aurora Colony, Road No. 3, Banjara Hills, Hyderabad - 500034
Unaudited Consolidated Financial Results for the quarter and nine months ended 31 December 2011
( in million)
Sl.No | Particulars | For Quarter ended 31 December 2011 | For Quarter ended 30 September 2011 | For Quarter ended 31 December 2010 | For Nine months ended 31 December 2011 | For Nine months ended 31 December 2010 | For Year ended 31 March 2011 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||
1 | Net Income from Operations | 637.43 | 629.76 | 432.42 | 1,546.81 | 1,297.81 | 2,078.47 |
2 | Expenditure | ||||||
a. | Production Expenses | 12.98 | 23.65 | 43.34 | 53.24 | 119.87 | 388.89 |
b. | Employees Cost | 221.96 | 232.61 | 208.52 | 695.40 | 607.85 | 814.61 |
c. | Other Expenditure | 57.40 | 55.12 | 145.05 | 171.14 | 242.19 | 189.74 |
d. | Depreciation and Amortisation | 96.13 | 96.69 | 85.73 | 279.80 | 234.50 | 343.77 |
e | Less: Expenditure transferred to Capital Account | (1.64) | (6.99) | (2.24) | (11.58) | (36.55) | (41.45) |
Total Expenditure [2a to 2e] | 386.83 | 401.08 | 480.40 | 1,188.00 | 1,167.86 | 1,695.56 | |
3 | Profit from Operations before Other Income, Interest and Finance expense and Exceptional Items [ 1 -2 ] | 250.60 | 228.68 | (47.98) | 358.81 | 129.95 | 382.91 |
4 | Other Income | 45.53 | 36.77 | 105.57 | 103.06 | 130.20 | 84.13 |
5 | Profit before Interest and Finance expense and Exceptional Items [ 3+ 4 ] | 296.13 | 265.45 | 57.59 | 461.87 | 260.15 | 467.04 |
6 | Interest and Finance Expenses | 49.51 | 44.67 | 28.75 | 131.79 | 81.70 | 114.58 |
7 | Profit after Interest and Finance expense but before Exceptional Items. [ 5 - 6 ] | 246.62 | 220.78 | 28.84 | 330.08 | 178.45 | 352.46 |
8 | Exceptional items | - | - | - | - | - | - |
9 | Profit from Ordinary Activities before tax | 246.62 | 220.78 | 28.84 | 330.08 | 178.45 | 352.46 |
10 | Less: Tax expense / (credit) | 76.86 | 3.53 | (2.65) | 78.41 | 61.45 | 73.88 |
11 | Net Profit from Ordinary Activities after tax [ 9 - 10 ] | 169.76 | 217.25 | 31.49 | 251.67 | 117.00 | 278.58 |
12 | Extraordinary Item | - | - | - | - | ||
13 | Net Profit for the period [11-12] | 169.76 | 217.25 | 31.49 | 251.67 | 117.00 | 278.58 |
14 | Paid-up equity share capital [Face value Rs.10 per share] | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 |
15 | Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year | - | 2,754.26 | ||||
16 | Earnings Per Share [Face value Rs.10 per share](not annualised/ in Rs.) | ||||||
a) Basic | 2.14 | 2.74 | 0.40 | 3.17 | 1.48 | 3.51 | |
b) Diluted | 2.14 | 2.74 | 0.40 | 3.17 | 1.48 | 3.51 | |
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% | |
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) | - | - | - | - | - | - | |
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% |
Consolidated Segment Revenue and Results
( in million)
Particulars | For Quarter ended 31 December 2011 | For Quarter ended 30 September 2011 | For Quarter ended 31 December 2010 | For period ended 31 December 2011 | For period ended 31 December 2010 | For Year ended 31 March 2011 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
Segment Revenue | ||||||
Animation production | 436.94 | 437.40 | 389.84 | 1,139.50 | 1,100.40 | 1,852.96 |
Distribution | 200.49 | 192.36 | 42.58 | 407.31 | 197.41 | 225.51 |
Net Income from Operations | 637.43 | 629.76 | 432.42 | 1,546.81 | 1,297.81 | 2,078.47 |
Segment Results | ||||||
Animation production | 224.82 | 228.72 | 118.44 | 523.33 | 535.61 | 1,279.18 |
Distribution | 153.50 | 149.42 | 3.93 | 279.53 | 91.13 | 73.77 |
Unallocated expenses | (84.61) | (120.54) | (71.78) | (348.71) | (377.19) | (903.25) |
Segment Results before Interest and Finance Expense and Tax from each segment | 293.71 | 257.60 | 50.59 | 454.15 | 249.55 | 449.70 |
Less: Interest and Finance Expense | (47.09) | (36.82) | (21.75) | (124.07) | (71.10) | (97.24) |
Profit before tax | 246.62 | 220.78 | 28.84 | 330.08 | 178.45 | 352.46 |
Less: Tax expense / (credit) | 76.86 | 3.53 | (2.65) | 78.41 | 61.45 | 73.88 |
Net Profit for the period | 169.76 | 217.25 | 31.49 | 251.67 | 117.00 | 278.58 |
Capital Employed | ||||||
Animation production | 1,474.52 | 1,325.47 | 991.59 | 1,474.52 | 991.59 | 1,097.66 |
Distribution | 3,432.48 | 2,978.83 | 2,187.37 | 3,432.48 | 2,187.37 | 2,558.36 |
Unallocated | (1,044.87) | (642.25) | 186.09 | (1,044.87) | 186.09 | (108.93) |
Total | 3,862.13 | 3,662.05 | 3,365.05 | 3,862.13 | 3,365.05 | 3,547.09 |
1) The above unaudited consolidated financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 11 February 2012.
2) The "Unaudited Consolidated Financial Results" have been subjected to the Limited Review by the 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 Rule 3 of the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.
4) 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 & NSE (www.bseindia.com & www.nseindia.com).
5) Certain Standalone Information of the Company :
( in million)
Particulars | For Nine months ended 31 December 2011 | For Nine months ended 31 December 2010 | For Year ended 31 March 2011 |
Turnover (Net Sales) | 1,293.24 | 1,077.98 | 1,616.97 |
Profit Before Tax | 228.94 | 74.18 | 180.24 |
Profit After Tax | 162.73 | 30.65 | 132.88 |
6) The details of funds raised through Initial Public Offering (IPO) and utilisation of said funds are as follows:
( in million)
Particulars | Amount | |
Funds received through IPO
Utilisation of funds
Investment in co-production agreements, focusing on IP content creation Development of office premises and production facilities. Investment in Subsidiary (DQ Entertainment (Ireland) Limited)
General corporate purpose
Issues expenses
Total funds utilised up to 31 December 2011 Investments*
Fixed Deposits
Balance as on 31 December 2011
|
595.07
335.18
294.65
115.55
95.45 | 1,539.59
1,435.90 ________________
1,435.90
32.83
70.86
103.69 |
*As on 31 December 2011 unutilised funds have been temporarily invested in short term liquid scheme of mutual funds.
7) Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the nine months ended December 31, 2011.
Nature of complaints | Opening Balance | Additions | Disposal | Closing Balance |
Non - receipt of annual report | - | 1 | 1 | - |
Non - receipt of refund order | - | 1 | 1 | - |
8)The auditors of the Company had invited attention in their auditors report for the year ended 31 March 2011 that the company has recognised a deferred tax asset on unabsorbed depreciation as claimed in the returns for the respective years. In the assessment orders passed for the assessment years 2004 -05 and 2006 -07 unabsorbed depreciation has been determined to be Rs NIL. In this respect the Company has preferred appeals in Hon'ble High Court of Andhra Pradesh against the subject orders. In the opinion of the management the manner of adjustment of unabsorbed depreciation and carry forward of business losses by the department is not appropriate and based on professional advice the management is confident of succeeding in appeals and get the unabsorbed depreciation/ carry forward of business losses restored. On a prudent basis the company has not recognised any deferred tax asset on such unabsorbed depreciation contested before the Hon'ble High court.
9) Corresponding year and quarter end figures have been regrouped / reclassified wherever necessary
Date: 11.02.2012 For DQ Entertainment (International) Limited on behalf of the
Board of Directors
Tapaas Chakravarti
Chairman, Managing Director & Chief Executive Officer
Related Shares:
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