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DQ Entertainment PLC (DQE)

DQ Entertainment PLC

Quarterly operations update
RNS Number : 9444X
DQ Entertainment PLC
15 February 2013
 



 

 

           

   For Immediate Release

                                               15 February 2013

DQ Entertainment plc

("DQE" or the "Group")

Indian subsidiary financial results for the nine months ended 31 December 2012

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 un-audited financial results for the nine months ended 31 December 2012 prepared under Indian GAAP.

Full details of the DQE India un-audited results are available from the DQE India section of the BSE (www.bseindia.com) and NSE (www.nseindia.com) websites.

I.          Financial Highlights for the nine months ended 31 December 2012:

 

Revenue: USD 25.91 mn (2011: USD 28.64 mn)                    

EBIDTA: USD 11.00 mn (2011: USD 11.83 mn)

PAT: USD 2.58 mn (2011: USD 4.66 mn)

 

During the quarter ended December 2011, DQE signed a four year Liicensing and Merchandising (L & M) contract. The contract was on a non-cancellable basis resulting in an upfront recognition of distribution revenue of USD 3.4 mn, in accordance with IGAAP and IFRS guidance. In the normal course, revenues generated from L & M contracts are  recognised over the license period.

 

This resulted in increased revenue of approximately USD 3 mn during the quarter ended December 2011. Excluding the above gain, revenue from operations for the quarter ended December 2012 is broadly in line with the corresponding previous quarter and as per the budget.

 

2.   As reported in previous news releases, DQE's revenue and profitability has a clear seasonal pattern, similar to that of the rest of the global animation industry, whereby approximately 60% - 70% of deliveries happen during the first three quarters of the financial year and around 30% - 40% of annual revenue being achieved in the fourth quarter.

 



A comparative analysis of this seasonality for DQE for the last three years is set out below:

 










INR Million


2009-10


2010-11


2011-12


Up to Q3

Q4

Total


Up to Q3

Q4

Total


Up to Q3

Q4

Total

Revenue

1,002

753

1,755


1,298

781

2,078


1,547

725

2,272

% to total revenue

57%

43%



62%

38%



68%

32%














PAT

136

131

267


31

247

279


252

79

330

% to total profit

51%

49%



11%

89%



76%

24%


 

 

The Company's performance is on track as per the approved budget and it expects to meet its target for the financial year ending March 2013.

 

3.   Success of own Intellectual Properties (IPs):

The success of the 3D, CGI animated TV series The Jungle Book Season 1, produced by DQE, has continued with the series being aired in 165 countries across the globe and attracting over 100 licensees worldwide in categories of publishing, gaming, digital, apparel, accessories, home furnishings, back-to-school, halloween and several more. Key licensees and promotional partners include Burger King, Wal-Mart, Hachette, Toys"R"Us and Universal Music among others.

 

With other DQE IP in production namely (TV series) for Peter Pan, 5 & IT, Lassie and Robin Hood and The Jungle Book Feature Film in process, licensing and distribution revenues are increasing and the Company is confident of achieving its targeted growth in the years to come.

 

4.   The financial liquidity squeeze in the global market has impacted the Company, resulting in delays in recoveries of receivables. The Company is making considerable efforts to reduce its debtors and is confident that by the financial year end 2013 and April 2013 its receivables position will have improved substantially.  

 

5.   Foreign exchange gain:

During the quarter ended December 2012 there was a foreign exchange gain of USD 1.50 mn as compared to a gain of USD 0.70 for the corresponding quarter in the previous year. This gain comprises USD 1.28 mn of realized gain and USD 0.22 mn of unrealized gain. The unrealized portion is mainly on account of the restatement of foreign currency balances on December 31 2012.

 

Tapaas Chakravarti, CMD & CEO, said"Investing in iconic co-productions, developing our own Intellectual Properties for television and theatricals as well as establishing the global licensing and distribution business have been conscious and strategic decisions by your Company. This has resulted in good results for extending the brand value of The Jungle Book, Peter Pan and other iconic properties with annuity of revenues. We strive to keep our business relevant by adopting fast advancing technologies for production and managing distribution of content through world markets.


We continue to expand our portfolio of properties with the successful production and distribution of classic and iconic series such as Peter Pan, Charlie Chaplin and Iron Man, and have embarked on production of Little Prince - season 3, Robin Hood, New adventures of Lassie and The Jungle Book - season 2. Development of The Jungle Book feature film is on fast track with highly acclaimed talents on board.

A humbling and inspiring validation of our work is the high ratings received by our productions such as The Jungle Book and Peter Pan on various international networks such as TF1- France, France Televisions, ZDF TV Germany, Kika Germany, Noga Israel, ABC Australia, TVO Canada and several others worldwide.

I am particularly happy to share the recent excellent ratings and audience response to our series Peter Pan, that was launched in the French Language at the end of December 2012 in France, on France 3. Each broadcast has attracted an average of 800,000 viewers, giving a market share ranging between 24.1% and 34.8% for the 4-10 year old audience segment - similar to that of the hugely popular series Garfield !

 

Our focus continues to be on creating value for our shareholders and employees through long term success and sustainability in the business model adopted by us".

 

II.        Operational highlights:

 

A.   Production Update

 

1.   Projects completed:

 

·    Charlie Chaplin - 104 x 6' CGI with Method Animation (France)

·    New Adventures of Peter Pan - 26 x 22' CGI with ZDF Group and Method Animation supported by France Television, De Agostini Group, ATV and B Channel-Indonesia, JCCTV-Middle East and Noga-Israel

 

2.   New  Projects under development:

·    Leo & the Pisa Gang  Pilot for TV series with MPP Society for Animation Media mbH / Germany

·    Dhoom Pilot with Yash Raj Films, Mumbai (India) based on popular Live Action Bollywood film 'Dhoom' Malgudi Days Pilot with Kolors & Motion Studio,(India) based on R.K.Narayana's classical book and Live action TV series

3.  Ongoing projects:

·     Mickey Mouse Club House Season 5 for Walt Disney Television Animation, USA

·     The Jungle Book Season 2: 52 x 11' 3D TV Series with ZDF Germany, Moonscoop France, TF1 France, B-Channel Indonesia, TVO Canada, BBC-UK, Disney SE Asia, ABC Australia, ATV Turkey, DeAgostini and RAI-2 Italy.

·     Rising Star: 26 x 22' 2D TV series co-production with Kodansha and TMS Entertainment, (Japan) for Colours Channel & Nickelodeon Channel

·     Lassie & Friends: 52 x 11' 2DTV series with Classic Media USA, Super Prod France, TF1 France, ZDF Germany and Noga Israel

·     Robin Hood, Mischief in Sherwood: 52 x 11 CGI TV series with Method Animation France, TF1 France, ATV Turkey, De Agostini Italy and ZDF Germany

·     Keymon Season 2: 52 x 11'2D TV series with Nickelodeon India

·     Little Prince Season 3: 26 x 11' CGI TV Series with Method Animation, France and France TV

·     NFL Season 2 : 24 x 22' 2D TV series for Nicktoons, (USA)

·     Lanfeust:26 x 22' 3D TV series with Alphanim and M6 France

 

B.   Licensing & Distribution:

 

DQE is now uniquely positioned as an integrated entertainment production and distribution company, focused on 360 degree monetization across all platforms.

 

                 Broadcasting deals signed during the period:

 

Sr. No

Name of the broadcaster

Project Name

Territories

1

Tiga

Chaplin ,Peter Pan

Thailand

2

Global Perkasa

Robin Hood ,Tara Duncan, Galactic Football

Indonesia

3

JCCTV

Lassie, Charlie Chaplin & Peter Pan

Arabic Nations

4

Cheers Media

Charlie Chaplin

Vietnam

5

EBS

Peter Pan

Korea

6

Workpoint Entertainment

Robin Hood, Charlie Chaplin, Iron Man 2, Lassie, Peter Pan

Thailand

7

Media Corp

Peter Pan, Lassie

Singapore

8

Rai TV

Peter Pan

Italy

9

Sky TV

Peter Pan

Italy

10

ABC

Peter Pan, Casper 2

Australia

 

             Merchandising deals signed during the period:

 

S. No

Licensee

Category

Territories

1

Magic Jump Inc

Inflatable Bouncy Houses

USA & Canada

2

Cardinal Industries Inc

Board Games , Lenticular Puzzles , wood Puzzles

USA & Canada

3

Treasures LLC

Plush In sizes 7" to 11" with or without sound

North America

4

Dragon I Toys

Battery Operated Animatronics

USA & Canada, Australia, New Zealand, South Africa

5

Dynamic Displays

Helium or Cold air Balloons

North America

6

CraftStone

Plush toys, fabric sublimation printed story books, mini blankets & other plush accessories

Europe & Asia

7

Leap Frog

Leap Frog Electronic Devices

World -Wide

 

C.   Feature Film Update:

 

The 85 Minute Feature Film 'The Jungle Book' is in development as a 3D Stereoscopic production with Writer - Billy Frolick, whose credits include, Madagascar, Chicken Little, Open Season, Brother Bear, etc. Well known Directors Jun Falkenstein and Kevin Johnson are onboard along with other key talent. Currently negotiations with various co-production partners are on track for closing the production budget and to finalize the global distributors. DQE is targeting an early 2015 theatrical release for The Jungle Book.



 

D.   New Digital initiatives:

 

DQE has signed a non-exclusive agreement with Budge Studios, Canada for the Jungle Book Mobile App on IOS & Android Platforms for worldwide digital market. The apps are expected to be available in the exponentially growing mobile digital market very soon.

 

In-house development of games for mobile - Android and IOS based on DQ IP's is underway and will be a new business vertical for monetizing its iconic global IPs like Jungle Book, Peter Pan , 5 & IT , Lassie etc. 

 

E.   Awards & Recognition:

 

DQ Entertainment received special honours at ORBIT LIVE - INDUSTRY HONOURS 2013, in recognition of showcasing Indian Animation and VFX on the Global animation arena.

 

For further information, please contact:

 

 DQ Entertainment plc

 Tapaas Chakravarti - Chairman and CEO

 Rashida Adenwala - Director Finance & Investor Relations

 

  Tel: +91 40 235 53726

Seymour Pierce

Guy Peters / David Foreman (Corporate Finance)

Paul Jewell / David Banks (Corporate Broking)

 

Tel: +44 (0)207 107 8000

Buchanan

Mark Edwards/Clare Akhurst  

Tel: +44 (0)20 7466 5000

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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