Mumbai: Prime Focus Limited (PFL), the global leader in media and entertainment industry services, declared its results for the quarter ending Sep’15 on Nov 7, 2015 registering revenue growth of 26% YoY. Despite the summer being a traditionally slow quarter, all businesses witnessed strong growth along with margin expansion trending in line with long term target of 20%+ as integration & cost consolidation efforts bear fruits.
Key financial highlights
- Q1FY16 (Consolidated) ending Sep’15 – YoY performance
- Revenue for the quarter up 26% YoY at Rs. 4,486mn from Rs. 3,570mn in the quarter ending Sep’14, driven by 27% & 50% growth in Creative and Tech / Tech Enabled services businesses, respectively
- Creative services comprise 76% and Tech / Tech Enabled services 16% of total segmental revenues
- EBITDA for the period including forex at Rs. 737mn (EBITDA margin of 16.4%) compared to Rs. 144mn in the quarter ending Sep’14
- PBT for the quarter improved to Rs. (184)mn from Rs. (681)mn in the quarter ending Sep’14, exceptional expenses for the period at Rs. 123mn
Key operational highlights for the quarter
Prime Focus World (PFW)
- Key projects delivered during the quarter include movies like The Martian, Spectre, Bridge of Spies, Paranormal Activity: The Ghost Dimension and Chronicles of the Ghostly Tribe
- On-going projects include Inferno, Batman V Superman, Geostorm, The Huntsman, Pan, The Hunger Games: Mockingjay-Part 2, Alice Through the Looking Glass and Star Trek Beyond, among others
- PFW’s ‘DeepGen’ Stereo Tech recognised with AIS Lumiere™ Technology Award
- DNeg Integration is progressing steadily with materialisation of cross selling opportunities. Offering Visual Effects (VFX) and Stereo Conversion (3D Conversion) services for Movies like Batman V Superman, Alice through the Looking Glass etc.
Prime Focus Technologies (PFT)
- Won two Platinum Awards as part of the 2015 MarCom Awards competition for ‘Digital Next’ campaign
- CLEARTM provided workflow solutions to 11 of the Winners at the 2015 Emmy Awards
- Signed up multiple new customers in both India and abroad to add to its rapidly growing order book with an equally healthy target order pipeline
Commenting on the results, Mr. Namit Malhotra, Founder, Executive Chairman and Global CEO, Prime Focus Ltd said, “We are pleased to report a step up in performance during the summer quarter which is traditionally slow for the M&E Industry”.
“In the creative business, the PFW & DNeg combination is delivering good results with revenue synergies & benefits of cost consolidation setting in. We are happy to report that we are progressing well on the integration plan with revenue enhancement opportunities getting converted. Already we are seeing more bundling of our VFX & 3D services for movies like Batman V Superman, Alice through the Looking Glass, etc”.
“On the Tech/Tech Enabled services front, our continuous efforts in terms of sales force expansion & product development is paying off as we continue to add new clients in North America and EMEA Market. Cross Selling Services to DAX clients is progress well. We are seeing increased traction for our products in domestic as well as international markets. Order pipeline continue to be strong reflecting more action and augers well”.
“Our traditional Indian business continues to do well with merger assumptions playing out as expected. RMW FMS merger has completely rewritten the competitive landscape in the fast growing Indian M&E market and we are glad to be able to provide superior value added services to our film, TV and advertising clients in India”.
With all our businesses on an accelerated growth path, we are very excited about the future.