DQ Entertainment Q1 loss narrows on other income

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.