MUMBAI: Despite a bleak global economic scenario, almost flat net revenues, the Tapaas Chakravarti led Hyderabad based DQ Entertainment (International) Ltd, (DQE) showed a 13 per cent growth in profits for FY-2013. DQE returned a net profit for FY-2013 at Rs 37.30 crore as compared to Rs 33 crore in the last fiscal year due to lower production costs and lower tax outgo.

DQE announced its FY-2013 results with a slight improvement in top line revenue at Rs 229.4 crore in FY-2013 as against Rs 227.19 crore in FY-2012.

In his chairman?s statement to the bourses, Chakravati said, "EBIDTA margins to revenue increased to 49 per cent in 2013 from 44 per cent in 2012 due to the well planned and structured cost reduction and production efficiencies across the organisation."

The company also posted a steep rise in its consolidated Q4-2013 net profit at Rs 23.3 crore as against Rs 7.85 crore in the corresponding quarter of 2012. As a matter of fact, profits during Q4-2013 contributed a huge chunk to the company?s annual profits.

DQE is a global player in the creation, production, distribution, licensing and marketing of various forms of entertainment. The company is a major player in the country in animation production capacity for television, feature films, home video, online game art, visual effects, mobile and next generation console games.

Let us look at the Q4-2013 financials as against Q4-2012

Revenues in Q4-2013 moved up by 22 per cent to Rs 88.54 crore as against Rs 72.51 crore in Q4-2012. Expenses for Q4-2013 were slightly higher at Rs 59.26 crore in Q4-2013 when compared to Rs 58.59 crore in Q4-2012. Production expenses in Q4-2013 saw a steep fall at Rs 6.53 crore vs Rs 19 crore in the corresponding quarter last year.

As mentioned above the net profit in Q4-2013 rose substantially to Rs 23.3 crore as against 7.85 crore in Q4-2012, up by 196.8 per cent.

Let us look at the Q4-2013 financial trend as against Q3-2013

Surpassing all the three previous quarters, total revenue in Q4-2013 shot up to Rs 88.54 crore, a 94 per cent rise as against Rs 45.6 crore in the immediate preceding quarter (Q3-2013).

Expenses also surged to Rs 59.25 crore in Q4-2013 as against Rs 30.22 crore during Q3-2013. Production costs at Rs 6.5 crore in Q4-2013 rose by over Rs 2.5 crore, while depreciation/amortisation more than doubled to Rs 24.15 crore in Q4-2013 as against Rs 10.29 crore in Q3-2013. Employee expenses also chipped in Rs 20.37 crore in Q4-2013.

Net profit at Rs 23.29 crore in Q4-2013 as against Rs 8.91 crore in Q3-2013 resulted in higher Earnings per share (EPS) to Rs 2.94 over the quarter as against Rs 1.12 during Q3-2013.

Let us look at the consolidated FY-2013 results as against FY-2012

Even though the global economic scenario in the financial year 2013 continued weak, DQE generated strong top line revenue at Rs 229.40 crore, the revenue during FY-2012 was Rs 227.19 crore.

Expenses at Rs 168.82 crore in FY-2013 were almost similar to Rs 169.64 crore in FY-2012. Production expenses were lower at Rs 17.86 crore in FY-2013 as against Rs 24.34 crore in FY 2012. Tax expenses also dropped for the year FY-2013 to Rs 3.99 crore from Rs 9.96 crore in FY-2012.

As mentioned earlier, net profit for FY-2013 was 13 per cent higher at Rs 37.30 crore as compared to Rs 33 crore in FY-2012.

Outlook

During FY-2013, DQE says that it repaid term loans to the extent of Rs 14.6 crore and invested Rs 113-6 crore for development of its intellectual properties and co-production investment, the majority of which went towards pre-production of ?The Jungle Book? feature film.

DQE?s home grown IP Peter Pan has just been released in the worldwide market and it says that it has signed pre-sale contracts with various broadcasters worldwide.

"The production pipeline for the year ahead is strong with productions of The Jungle Book Second Season, New Adventures of Peter Pan Second Season, Lassie & Friends, 5 & It 3D TV series, Wind in the Willows, Lanfeust First Season, NFL Rush Zone Second Season, The Rising Star and other productions including the Jungle Book Feature Film. These will also give a major boost to our licensing & distribution revenues and the Company is confident of achieving its targeted growth in the years to come," assured Chakravarti.

MUMBAI: It was champagne popping time on the French Riviera at MipTV earlier this month for India?s leading animation studio DQ Entertainment. The company announced that it had struck several deals and notched up healthy business in the Palais des Festivals in Cannes where MipTV is held.

Among the deals that DQ Entertainment (which is also into gaming, entertainment production and distribution) signed include:

• A strategic partnership with Rollman Entertainment, US for the co-production, distribution, licensing and merchandising of animated and live action TV series, feature films and new media content targeted for the global marketplace. The two companies are targeting five television series by 2016 with budgets totaling approximately $35m and a slate of animated features.
• A co-production agreement with ZDF Enterprises, for a new HD TV series to be called The Jungle Book Safari. The 26x12 minute series will include live action documentary footage together with animated sequences from The Jungle Book.
• Its licensing deals are expected to notch up $2 million in revenues over the next three years, the company says.
   

The first one is for Italy with with De Agostini, which has acquired the broadcast, video, licensing and merchandising rights for Italy for the first season (26x22 episodes) of The New Adventures of Peter Pan, an HD CGI animated TV series. The show is to be broadcast on Sky Italia and RAI Television.

Then DQ Entertainment concluded an agreement with Nick for the broadcast of three of animated TV series - The Jungle Book (2 seasons), Galactik Football and Suraj - The Rising Star for the Indian market.

Israel is another country where DQ Entertainment is leaving its footprint with leading independent TV content provider Noga Communications acquiring the broadcast rights of The Jungle Book Season 2 and The Jungle Book TV special, Robin Hood and 5 & IT.

For the Thai market, Thailand?s Work Point has acquired free TV and home video rights of The Jungle Book TV series, and Season 2 of The Jungle Book Safari. Finally, DQ Entertainment has given the free TV rights of Season 1 of The Jungle Book to RTM (Escalada), Malaysia.

MUMBAI: DQ Entertainment?s consolidated net profit for the fiscal second quarter slipped 53 per cent to Rs 141.84 million from Rs 217.25 million in the same quarter year ago on foreign exchange loss of Rs 79.8 million.

The company, which had registered a gain of Rs 27.2 million for the corresponding quarter in the previous year, said the foreign exchange loss of Rs 79.8 million includes an unrealised loss of Rs 74.2 million.

"These losses have arisen on restatement of the foreign currency balances of receivables and payables at the exchange rate as on the closing date. This unrealised loss will be reversed in subsequent quarters," DQE said.

For the six months period ended 30 September, the impact on account of foreign exchange loss is Rs 5.63 million.

The liquidity squeeze in the global markets has also impacted the company resulting in delays in recoveries of receivables, it said. The company has made significant efforts to reduce the receivables position and is confident of reducing the overall receivables position by the end of the financial year.

DQE posted revenue of Rs 643 million during the quarter compared to Rs 629 million in the year ago period representing a change of 2.17 per cent. The company?s expenditure jumped 12.61 per cent to Rs 427.81 million from Rs 373.25 million.

The company?s revenue from animation saw a 4 per cent dip to Rs 420.93 million from Rs 437.40 million in the same quarter of the preceding fiscal. Revenue from distribution increased 14 per cent to Rs 222.48 million from 192.36 million.

As of now only one home-grown IP, The Jungle Book TV Series Season 1 has been launched on a global scale and the story of its success is evident from the increasing revenue numbers achieved from licensing & distribution. With productions of other own IPs namely Peter Pan, Lassie and Robin Hood in process; the company is confident of achieving its targeted growth in the years to come.

The company said it has invested significantly over the last three years in the distribution business and as of 30 September, the net investments in the distribution business stands at approximately Rs 4.25 billion.

The company expects FY13 to be the year of peak investments in the distribution business. With most of the properties expected to be delivered over the next 18-24 months, it expects this business to deliver significant net cash flows from FY14 onwards.

DQE said the pre-production of the Jungle Book feature film is in full swing with all the international talent on board. All the expenses are being capitalised resulting in increase of intangible assets by Rs 257 million.

DQE CMD & CEO Tapaas Chakravarti said, "We have made substantial progress in licensing and distribution of our intellectual properties and gone from strength to strength with conclusion of several deals with leading networks and licensees globally. The promotional deal for ?The Jungle Book? with Burger King Worldwide is a feather in the cap along with broadcast deals for our properties such as Robin Hood, Iron Man, Casper, Jungle Book and others with leading networks such as ABC Australia, De Agostini Italy, ATV Turkey.

"The company?s production pipeline is steady and we have successfully completed deliveries of several TV series such as Casper Season 2, Little Prince Season 2 and Mickey Mouse Club House Season 4. Our foray into theatrical production with 3D Jungle Book Movie has taken wings with several top rated Hollywood talents on board and we are gathering momentum to conclude distribution deals in various territories. We remain confident that the global entertainment industry has excellent long term growth prospects, while our business remains well placed for projected growth in the current year."

DQE had concluded agreements worth $6 million including two new co-production agreements and five licensing & distribution deals. The said revenue is expected to be generated over the next two years.

MUMBAI: Keymon Ache, Nickelodeon India?s local, non-mythological production that was launched in India last year, is slated to make its theatrical debut on 9 November with Keymon Ache & Nani in Space Adventure movie, a Viacom18 Motion Pictures release.

To be produced in association with DQ Entertainment International, the movie will see a four-city theatrical release across Mumbai, Pune, Delhi and Bangalore in leading multiplexes. The movie will trace the adventures of Keymon along with his buddy Rohan.

The latest announcement is in continuation of a trend wherein movies targeted at kids are being produced by kid?s broadcasters.

National Award winner Usha Uthup has lent her voice to the catchy songs in the film and the background music for the show has been composed by music director Sandesh Shandiliya.

Speaking about Keymon?s Bollywood debut, Sonic and Nickelodeon India EVP and Business Head Nina Elavia Jaipuria said, "Taking Keymon Ache?s popularity a step further, Nickelodeon is taking his entertainment quotient to the silver screen. We hope to connect with our audience and reach out to them wherever they are through multiple touch points, thus tangibilising and creating awareness for Keymon Ache. Nickelodeon will ensure kids and parents enjoy their Diwali holidays at the movies."

Keymon & Nani in Space Adventure will see Keymon with his buddy Rohan jetting off to Goa to meet his Nani, a fierce lady who knows karate and many languages.

The character design of ?Nani? is inspired from Usha Uthup herself! A relaxing trip turns into an adventurous one as Keymon, Rohan and Nani encounter some unexpected enemies. What follows is a series of extraordinary events with Keymon & Rohan having to rescue Nani and have an alien adventure of a lifetime!

Taking the brand a step further, Keymon Ache will be supported with an extensive merchandise launch, starting November 2012. The channel will launch the first ever Keymon Ache consumer products range for kids 4 years+, that will include exciting apparel, footwear, puzzles and even DVDs.

Keymon footwear is being launched in association with Wiesner Worldwide Kreations, ranged between Rs 199-Rs 1099. To create further excitement for Keymon fans, Reliance Footprints and Maya Gitanjali will run a retail-based contest called ?Star with the Super Star?. Winners of the contest get an opportunity to catch the premiere of the movie with Keymon Ache.

Adds Viacom18 Media SVP - Consumer Products & Communications Sandeep Dahiya, "Keymon Ache has been a frontrunner ever since it was launched on Nickelodeon and it?s only natural that we extend his presence beyond television. The launch of ?Keymon Ache? merchandise will further strengthen our existing product lines around ?Dora the Explorer?, ?SpongeBob SqaurePants? & ?Ninja Hattori?, which has an existing presence in over 50 categories in India."

On ground, the channel has partnered with Gelato, where a Keymon Special Black Currant flavour will be available across all Gelato outlets in Mumbai, Delhi, Bangalore and Pune. Kids can also participate in a simple contest being held at these outlets and stand a chance to win Nickelodeon merchandise, which will be handed to them by Keymon himself.

In the digital space, a customized Keymon microsite has been created to keep the Gen Y glued through games and movie videos. The channel is introducing 2 new Keymon games on the microsite keymon.in. A contest on Nickelodeon?s Facebook fanpage (facebook.com/nickindia) will give kids a chance to win movie tickets with their nani?s along with goodie bags.

After a first season of Keymon Ache, Nickelodeon launched season 2 on 29 October this year. The show had premiered in May 2011 and is India?s first local, non-mythological contemporary show.

Disney Channel India recently had premiered its first locally produced made-for-television movie Luck Luck Ki Baat. The movie was directed by Iqbal and produced by SOL Productions.

Cartoon Network had recently entered into a co-production agreement with Amar Chitra Katha Media, which is co-owned by Future Ventures and Elephant Capital, to produce ?Sons of Ram - Heroes will Rise?.

The Walt Disney Studios had in 2008 partnered Yash Raj Films to produce Roadside Romeo, a computer animated musical comedy film. The film was co-produced by Aditya Chopra and Yash Chopra of Yash Raj Films and distributed by Walt Disney Pictures.

Mumbai: DQ Entertainment (International) Ltd, a Hyderabad-based animation and distribution company, has narrowed its net loss in the first quarter ended 30 June 2012, helped by a 238 per cent rise in other income.

The company?s net loss in the first quarter was Rs 90.88 million, 32 per cent lower than the net loss of Rs 135.35 a year earlier, as its other income was higher at Rs 70.22 million against Rs 20.76 a year earlier.

Its net income from operations rose 10 per cent to Rs 309.31 million during the quarter from Rs 279.62 million a year earlier.

DQ Entertainment?s total expenses were up six per cent to Rs 425 million during the first quarter, largely on account of a 170 per cent increase in production expenses to Rs 44.95 million from Rs 16.61 million.

Explaining the cause of the loss in the first quarter every year, the company said its revenue trend has a clear seasonal pattern akin to the global animation industry. As per the revenue trends, more than 60 per cent of the deliveries happen during the second half of the year and maximum of the revenue is booked in the last four months of the financial year.

It further said the first quarter of the year is always subdued with revenue recording only about 10-20 per cent of the total annual revenue, while the expenses are booked evenly during the entire year.

DQ Entertainment CMD & CEO Tapaas Chakravarti said, ?Having established our prowess in the world of kids? entertainment globally, we now aim to capitalise on our skills and technological resources to produce high quality content for television and feature films.

DQ Entertainment has recently completed production of Keymon TV feature with Nickelodeon in India, Omkar III with Turner Group and Cartoon Network and J&J Season 3 special for Kelly Parks Studios.

The company has been commissioned to produce several other programmes including Robinhood, Mischief in Sherwood with Method Animation, TF1, ATV-Turkey, De Agostini and ZDF-Germany, Keymon Season 2 TV series with Nickelodeon India and Little Prince Season 3 with Method Animation, France.

MUMBAI: Kids channel Pogo is all set to reacquaint kids of Gen Y with the biggest comic hero of all time in an all new animated avatar in Chaplin & Co every Saturday at 9 am, starting 7 July.

Based on the hilarious escapades of Charlie Chaplin, Chaplin and Co is a co-production between Hyderabad-based DQ Entertainment and France-based Method Animation, and was developed in consultation with the Chaplin family.

Turner International India General Manager, Entertainment Networks, South Asia Monica Tata said, ?Our aim at Pogo is to strike the perfect balance between Indian and international shows that will enthrall kids and families.By launching a show based on the biggest comic icon in the world, Charlie Chaplin, we hope to entertain not only kids who never got to witness his brilliance but also adults who grew up admiring him. In addition, to remain relevant to today?s generation and broaden its appeal, the show has been made in colour and animation."

Cartoon Network Asia had in 2010 acquired the TV broadcast rights of the popular animated series for certain Asian territories including India.

The broadcasting rights relate to 104 Chaplin and Co episodes, each 6 minutes long and will be broadcast across all of Cartoon Network?s Asia Pacific markets in more than 26 countries from early 2012.