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DQ Entertainment posts Q3 net profit of Rs 12.28 cr
MUMBAI: Hyderabad-headquartered animation, gaming, live action entertainment production and distribution company DQ Entertainment (DQE) has posted a standalone net profit of Rs 12.28 crore (Rs 122.78 million) for the quarter ended 31 December 2014.
In the year-ago period, the company had posted a net loss of Rs 14.28 crore (Rs 142.79 million).
Net income from operations for the quarter stood at Rs 41.43 crore (Rs 414.27 million), as against Rs 30.80 (308.05 million) in the year-ago period.
Its revenue from animation business was at Rs 39.82 crore (Rs 398.20 million), compared to Rs 30.11 crore (Rs 301.12 million) a year ago.
Revenue from distribution business was at Rs 1.61 crore (Rs 16.07 million), up from 0.69 crore (Rs 6.93 million) in the year-ago period.
DQE’s profit from operations (before other income, interest, finance expenses and exceptional items) during the quarter was at Rs 13.1 crore (Rs 131 million) vis-a-vis a loss of Rs 0.65 crore (Rs 6.52 million) in the year-ago period.
According to the company, its digital monetisation efforts are gathering momentum, with ‘Power Kids’ and ‘Tiny Toonz’ expanding their subscriber bases on a continual basis. “Our plans to launch content and games on other popular digital platforms such as the Google Play store, Amazon and iTunes are also underway,” it said.
‘Power Kids’ showcases animated content for children aged five and above, while ‘Tiny Toonz’ is aimed at younger children. Both channels, the company said, have started gaining traction and recently achieved over 120,000 online views on a daily basis.
DQE’s VFX team has completed several projects for locally produced live action feature films, such as ‘Manikya’, ‘Alludu srinu’, ‘Mukunda’ and several others.
“We have also confirmed new contracts with other feature film producers. DQE is now in a position to leverage its core animation and VFX strengths to contract more business in this space from North America and Europe,” it added.
“The diligent efforts by our licensing and distribution teams have fructified and several new deals have been closed in the last quarter for our intellectual properties in various territories such as Latin America, South East Asia, USA and parts of Europe,” it added.
DQ Entertainment (Mauritius) Ltd, the holding Company of DQE, also executed a fundraising by way of an issue of senior secured convertible bonds on 9 December 2014. DQE Mauritius has received the first tranche of funding from the issue of the bonds, representing $31.4 million, net of fundraising-related expenses. Of this sum, approximately $8.2 million has been used to repay other bank loans, along with interest and other financial charges.
The company also claims to be making progress with the recovery of receivables. Out of the old outstanding, DQE has recovered Rs 326.63 million in the first week of February 2015. Another Rs 360 million is expected to be recovered by 31 March 2015.
It has also received commitments from certain clients, leading the board of DQE India to believe that old receivables could be reduced significantly by September 2015.