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: Hyderabad-based animation and entertainment content production and distribution company DQ Entertainment (DQE) has joined hands with Germany-based programming distributor, licensor and producer ZDF Enterprises to co-produce a new high definition series ?The Jungle Book Safari?.

The first season is a combination of animation and live action which will have the famous animated characters from The Jungle Book TV Series, Mowgli - the man cub, Baloo - the bear and all his friends, who will host the episodes to introduce various species of live action animals to kids and families in an enjoyable ?edutainment? format.

DQE Group CEO Tapaas Chakravarti said, "This is a unique and creative format combining animation and live action. I am sure it will be great success with the children viewing it, providing them education and entertainment both rolled into one! We hope to continue our association with ZDFE by producing similar exceptional content for global audiences."

Aimed at children in the age group of 6-10 years, the series will feature short fun facts and surprising information on the animal world bringing in educational and entertainment value to this unique show. Live action documentary footage of the animals in short, non-fiction parts will be combined with animated sequences from the Jungle Book.

ZDFE.junior VP Arne Lohmann said, "This new series will entertain and educate at the same time. Even adults will learn new things about wild life and will love to watch that programme with their kids. It will be as much fun as the animated series. We are happy to coproduce again with DQ Entertainment."

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: Hyderabad-based entertainment production and distribution company DQ Entertainment International (DQE) has signed an exclusive licensing deal with Australian Broadcasting Corporation (ABC) for the broadcasting of two animated 3D TV series, Iron Man season 2 and Casper season 2.

The agreement will allow ABC Australia exclusive broadcasting rights across Australia for both series. Two seasons of Iron Man Armored Adventures have been co-produced by DQE, Marvel Animation and Method Animation, while Casper?s Scare School was co-produced by DQE and Moonscoop, France, along with Classic Media USA.

The Australian Broadcasting Corporation (ABC) is Australia?s national public broadcaster that provides television, radio and online services throughout metropolitan and regional Australia, as well as overseas through the Australia Network and Radio Australia.

DQE Group Chairman & CEO Tapaas Chakravarti said, ?We are very proud to renew our fruitful collaboration with ABC Australia once again for second season of Iron Man and second season of Casper?s Scare School. ABC is the perfect partner for showcasing these high quality iconic properties.?

ABC TV Childrens Head of Programming and Acquisitions Barbara Uecker said, ?Our audience thoroughly enjoyed series one of both Iron Man and Casper and will be thrilled to have the second series of these shows back on air in 2013."

MUMBAI: DQ Entertainment (DQE) said it has signed production, distribution and licensing agreements that would generate $6 million of revenue for the Hyderabad-based animation company at the recently concluded Mipcom, the world?s leading entertainment content market.

According to DQE, the revenues will be generated over the next two years from the eight agreements which includes two production agreements and five licensing, distribution, and co-production agreements.

DQE Chairman and CEO Tapaas Chakravarti commented, "Mipcom 2012, the hugely popular TV content market, has once again proven to be very successful for DQE. We have concluded several new agreements and also generated leads for new business in the future. We are delighted with the support of our long standing partners Method Animation France, ATV Turkey and JCCTV Middle East for their continued support of our properties."

Production agreements:

1. "Raz & Benny" with Foothill - Europe DQE and Foothill Europe have agreed to develop, co-produce and distribute the animated buddy comedy, Raz & Benny with a global production budget of approximately $7 million. The agreement also covers the exploitation of the ancillary rights such as merchandising.

2. "Little Prince" season 3 with Method Animation - France DQE and Method Animation, France will co-produce the third season of the highly successful animated 3D TV series "The Little Prince" with a budget of approximately $9.1 million.

Licensing, distribution and co-production agreements:

1. Global TV, Indonesia acquired multiple properties from DQE for free TV broadcast in Indonesia. The properties include Galactick Football, The New Adventures of Lassie & Friends, Robin Hood-Mischief in Sherwood, Tara Duncan and Feluda TV series and its 60 minute TV feature.

2. JCCTV, Al Jazeera?s kids channel acquired the broadcast rights of 4 properties from DQE. JCCTV will soon start broadcasting The New Adventures of Lassie & Friends, 5 & IT, The New Adventures of Peter Pan and Charlie Chaplin across 22 Arabic nations.

3. Workpoint Entertainment Public Company, Thailand has signed a broadcast agreement for Thailand for the following DQE properties: The New Adventures of Lassie & Friends, Robin Hood-Mischief in Sherwood, Iron Man Season 2, The New Adventures of Peter Pan and Charlie Chaplin.

4. Cheers Media has acquired the Home Video distribution rights of Charlie Chaplin for Vietnam.

5. ATV Turkey has signed a co-production agreement for the 52 x 11? new 3D animated TV series Robin Hood-Mischief In Sherwood, being co-produced by DQE with Method Animation, France. ATV will have exclusive free TV, pay TV, VOD, pay per view, Web TV, IPTV, Home Video rights, merchandising, licensing and publishing rights for Turkey.