Balaji Telefilms Q1 consolidated net loss widens to Rs 42.2 cr due to ALTBalaji

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MUMBAI: Balaji Telefilms’ consolidated net loss for the period ending 30th June has widened to Rs 42.2 crore from Rs 27.1 crore in the same quarter of the previous fiscal.

The company’s digital business ALTBalaji posted a net loss of Rs 39.2 crore during the quarter. The standalone TV + movie production business saw a net profit of Rs 2.5 crore.

The operating loss expanded to Rs 33.2 crore from Rs 28 crore. The standalone EBITDA stood at Rs 10.6 cr compared to an operating loss of Rs 0.9 cr in Q1 FY19. The Q1 FY20 includes certain marketing costs for upcoming movies without corresponding revenue.

ATLBalaji posted an operating loss of Rs 38.3 crore.

Total income from operations dropped to Rs 90.5 crore as against Rs 123.4 crore. The reduction in revenue is on account of no movie releases in the quarter. During Q1 FY19, the company had ‘Veere Di Wedding’ (Rs 51 crore of revenue).

The revenue from the TV + movie production business stood at Rs 82.9 crore compared to Rs 133.7 cr in Q1 FY19. The revenue from ALTBalaji was Rs 12.3 crore compared to Rs 5.8 crore in the previous fiscal.

Expenses narrowed to Rs 134.3 crore from Rs 155.7 crore. Cost of production was down at Rs 80.5 crore compared to Rs 115.8 crore. The total expenditure for ALTBalaji stood at Rs 52.3 crore.

The company’s gross margin for Q1 FY20 came at 32% vs 16% in Q1 FY19 as four of the current shows are running for more than one year resulting in better margin profile.

ALTBalaji has sold 25.3 million cumulative subscriptions which include direct plus partners. Currently, ALTBalaji is integrated with several distribution partners (Telco/ISP/DTH/OEM/Payment Partners).

In August, the total cumulative subscriptions sold has jumped to 27.3 million. The company said that Q2 FY20 onwards ALTBalaji to move from multi-partner free to single partner paid environment.

ALTBalaji has signed an exclusive content alliance with ZEE5 to drive Subscription Video on Demand and create 60+ originals. According to the company, the alliance helps secure revenue, move into an all paid service vs a free service and help protect the business in a challenging environment.

The total number of ‘Original Exclusive’ shows on ALTBalaji has increased to 42.

On the movie front, the current slate of four movies for the year has been pre-sold for over Rs 100 crore assuring strong profitability for the year.

Balaji Telefilms’ TV content production business continues to dominate the ratings and accounts for 18% of the Primetime ratings. Balaji Telefilms had 8 shows on air during the quarter and 5 of these shows were slot leaders.

Commenting on the Q1 performance, Balaji Telefilms MD Shobha Kapoor said, “Operationally this was a good quarter with strong performance across all business and the two deals in our movie and digital business dramatically improves our financial profile going forward and will allow us to pursue our growth ambitions.”

Kapoor also said that Balaji Telefilms Group CEO Sunil Lulla has quit the company to pursue other opportunities. “I also take this opportunity to thank Sunil Lulla our Group CEO who has decided to pursue other opportunities after a brief period with us. Sunil leaves Balaji Telefilms in a very strong position for future growth and the rest of the leadership team will continue to drive the business forward,” Kapoor stated.


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