HONG KONG — Bulging order books and completion of series and shows for Disney, Nick Toons and Germany’s ZDF were not enough to prevent profits at Indian animation producer DQ Entertainment being all but wiped out in the first half of its financial year.
The company admitted to slow trade receivables and consequent cash flow problems, and said that it had belatedly commissioned work in July and August that would not provide income till later.
Revenue dropped from INR870 million ($14.2 million) to INR733 million ($11.9 million) in the six months to September. Profit after tax fell from INR287 million ($4.68 million) to INR39 million ($635,000).
DQ management said that they are addressing the financing problems and will bring in a co-investor. Meanwhile the company is in production on behalf of clients on shows including “Seven Dwarfs & Me,” “Lady Bug,” “Delicious Valley” and “Popples.” Its own shows now in production include “Peter Pan,” and a third season of “The Jungle Book” is in development. Commissions for the next 18 months total $63 million.