EBITDA reaches ~20%, PAT positive quarter

Mumbai, August12, 2016: Prime Focus Limited (PFL), the global leader in media and entertainment industry services,declared its financial results for the quarter ending June 30, 2016yesterday.The strategicinitiatives undertaken by the company over the last two years are reaping benefits of progressive integration. Revenueshave doubled frompre-merger levelswith consolidated revenue for Q1FY17 at Rs 5,262mn, EBITDA up 19% YoY and Profit After Tax before exceptional (PAT) of Rs 43mn which turned positive on a consolidated basis after ten quarters. All three business i.e. Creative Services, Tech/Tech enabled services and Indian FMS delivered strong performance with continued momentum on revenue growth and margin expansion. 

Key financial highlights

Quarterending June’16 (Consolidated)

• PAT before exceptional items at Rs 43 mn as compared to Rs (545) mn for the quarter ended June ‘15
• Highest ever quarterly revenue ofRs5,262mn, up 2.1x of the pre-merger levels of Rs 2,513mn (quarter ending March ‘14)
• Creative and Tech/Tech Enabled servicescontributed 77% &16% of total segmental revenues, respectively
• EBITDAat Rs 1,024 mnup 24% QoQand 19% YoY, EBITDA Margin at19.5% touches medium-term target of 20%,compared to 16.6% in the quarter ending June-15. Driven by continuedmargin expansionacross segments - Creative Services (16%), PFT (26%) and India FMS (46%)
• PBT before exceptional items at Rs98mn vs(Rs250 mn)in quarter ending June ‘15
• PAT after exceptional gain at Rs 1,062 mn; profit on sale of stake in Digital Domain of Rs 1,019 mn

Key operational highlights for the quarter

Prime Focus World (PFW)

• PFW continues to lead technological transformations in the global Media and Entertainment world
  • In addition to DNeg being the lead VFX partner, PFW and Bad Robot delivered Immersive, Multi-Screencontent experience for ‘Star Trek Beyond for Barco Escape projection system’
• Key projects delivered during the quarter include movies like Jason Bourne, The Legend of Tarzan, Star Trek Beyond, Warcraft, etc.
• Robust Order book of over $200mn with movies like Dunkirk, The Mummy, Wonder Woman, Fast 8, Inferno, Geostorm, Fantastic Beasts and Where to Find Them, Justice League: Part 1amongst others

Prime Focus Technologies (PFT)

• PFT partners with STAR for Rio Olympics 2016- to provide live and VOD coverage
• Extends services to existing clients like Hotstar, Tata Sky, Asianet, etc. and renewedcontracts of Dax’s key accounts
• Brand Services continues to make strides with new clientadditions like Soch, Sulekha, Amazon, Myntra, LG, and Cholayil, etc.
• Signed multiple new orders withorder book of around$200mn
• Honored with two Awards at CMO Asia Awards for Market Excellence

Commenting on the results, Mr. Namit Malhotra,Founder, Executive Chairman and GlobalCEO, Prime Focus Ltd said:

Prime Focus is today positioned stronger than ever. Our bold initiatives over the past two years are delivering results ahead of plan in India and across the World. The integration of DNeg& Gener8 in our creative services division has shaped up well with robust orderbook from bundled services, increased revenue visibility, deeper client engagements and leaner operations that is driving revenues and margin expansion. We continue to challenge the boundaries of creativity with delivering content on a promising new format – Barco Escape.Our technology services witnessed increased traction from existing clients with many renewals, resulting in robust orderbook. We are proud to be partnering STAR for Rio Olympics coverage. The division sustained margins of over 25% as well as increased share from international markets. The India FMS division also sustained high margins over 45%, a testimony to our position as a leading quality player in the price-competitive Bollywood market.  With bulk of the Integration behind us, we look forward to an extremely promising year.

About Prime Focus Limited

Prime Focus Limited (PFL), the world’s largest integrated media services powerhouse employs over 7,000 professionals in 14 cities across 4 continents and 7 time zones. We provide end-to-end creative services (visual effects, stereo 3D conversion and animation), technology products & services (Media ERP Suite and Cloud-enabled media services), production services (equipment rental) and post production services (Digital Intermediate and picture post) to Studios, Broadcast and Advertising industries.

Prime Focus is behind path breaking technologies like CLEAR™ (Hybrid Cloud technology enabled Media ERP Suite), Primetime Emmy® award-winning DAX Digital Dailies® and View-D™ (stereoscopic 2D to 3D conversion process). Leveraging our Global Digital Pipeline and pioneering WorldSourcing® delivery model we partner content creators at every stage of the process ensuring creative enablement, work flow efficiencies and cost optimization.

In mid-2014 Prime Focus Technologies acquired DAX, a leading provider of cloud-based production workflow and media asset management applications; Prime Focus World merged with Double Negative, one of the world’s foremost providers of visual effects; and Reliance MediaWorks merged their global film and media services business with Prime Focus Limited.

Listed on the BSE and NSE of India, Prime Focus has operations in Bangalore, Cape Town, Chandigarh, Delhi, Goa, Hyderabad, Johannesburg, Kolkata, London, Los Angeles, Mumbai, New York, Toronto and Vancouver.

For more details: www.primefocus.com

For any investor relations query please contact:

Alok Gupta

Prime Focus Limited

Phone: +91 8879360082

Email: alok.gupta@primefocus.com

Nisha Kakran/ Seema Shukla

Four-S Services Pvt Ltd

Phone: +91 7718811182/+91 124 4251441

Email: nisha.kakran@four-s.com

seema@four-s.com

Note: Certain statements made in the document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like government actions, economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Prime Focus Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.