Anil Ambani-promoted Reliance Big Ent’s FY18 net loss widens to Rs 606.2 cr

Anil Ambani-promoted Reliance Big Entertainment Pvt. Ltd. (RBEPL) has widened its FY18 net loss to Rs 606.2 crore compared to Rs 553.8 crore in FY17. The profit before interest lease depreciation and tax (PBILDT) has jumped to Rs 28.89 crore from Rs 12.76 crore.

The company’s total operating income jumped to Rs 265.9 crore as against Rs 114.28 crore due to contribution from the film production division Reliance Entertainment.

On a standalone level, during FY18, the film production division Reliance Entertainment contributed highest at 68% to the overall revenue pie of RBEPL.

RBEPL’s credit rating was recently revised to Care BB stable from Care BBB- stable by rating agency Care Ratings.

The rating has been revised despite RBEPL’s persistent losses and deterioration of debt protection parameters. Additionally credit quality of promoter’ group entities has worsened considerably in the last one year. Nevertheless, to date, Anil Dhirubhai Ambani Group (ADAG) has provided financial support to RBEPL.

Additionally credit quality of promoter’ group entities have worsened considerably in the last one year.

Care noted that the rating takes into account RBEPL’s presence in the Indian film industry in the form of joint venture with major production houses such as Rohit Shetty, Friday FilmWorks, its large distribution network in India and presence in related businesses for monetisation of content on various media platforms.

After suffering losses in the “studio model” wherein the entire risk of Box office was taken by Reliance Big Entertainment, the company in FY16 changed the model and is currently engaged in the creation and distribution of content across film, television, digital and gaming platforms.

As on 31 March 2018, investment in/ICDs lent/advances lent to its subsidiaries/associates/related parties decreased marginally to Rs. 3351 crore v/s Rs 3360 crore as 31 March 2017.

The rating agency also stated that RBEPL assumes strategic importance to the ADAG group as film entertainment is one of the key segments in the media and entertainment businesses.

Furthermore, the group derives synergies from its integrated business model with a presence at various levels of film entertainment business which enable it to manage cost as well as monetize various rights within the group using different platforms.

Incorporated in 2006, RBEPL is one of the media and entertainment companies of the R-ADAG, which has interests in telecommunications, energy, financial services, infrastructure and media and entertainment. In media and entertainment industry, the R-ADAG has a presence in various verticals through following main companies such as Reliance Mediaworks, Reliance Broadcast Networks Ltd. etc. and their subsidiaries/joint ventures (JVs).