Profitability of products (services) of the largest Russian film industry companies

ranking 08/02/2018

Information agency Credinform offers a ranking of the largest Russian film industry companies (companies, producing, selling and distributing movies, videos and television programs). The companies with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2015 and 2016). Then (Table 1) they were ranked by product profitability ratio. The analysis is based on data of the Information and Analytical system Globas.

Product profitability ratio is calculated as the relation of sales revenue to expenses from ordinary activity. Profitability in general indicates the economic efficiency of production. The analysis of product profitability allows to conclude about the expediency of release of products or services. There are no normative values for indicators of this group, because they vary strongly depending on the industry.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For film industry companies the practical value of product profitability ratio was from 5,62% in 2016

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

Table 1. Net profit, revenue, product profitability ratio, solvency index Globas of the largest Russian film industry companies (TOP‑10)
Name, INN, region Revenue, mln RUB Net profit, mln RUB Product profitability ratio, % Solvency index Globas
2015 2016 2015 2016 2015 2016
1 2 3 4 5 6 7 8
SINEMASET LLC
INN 7814142737 St. Petersburg
1 563,2 1 655,4 134,0 83,9 8,49 12,76 214 Strong
Walt Disney Studios Sony Pictures Releasing LLC
INN 7710658679 Moscow
4 879,6 6 598,8 177,0 278,0 6,19 7,26 165 Superior
SOLYARIS PROMO PRODAKSHN LLC
INN 7701380000 Moscow
4 748,1 9 577,9 33,8 21,8 20,58 6,84 276 Medium
CENTRAL PARTNERSHIP SALES HOUSE LLC
INN 7704632802 Moscow
4 162,0 5 185,6 -1 280,4 468,1 -2,57 6,09 265 Medium
PROKATNAYA KOMPANIYA FORMULA KINO LLC
INN 7704742724 Moscow
2 566,5 2 377,0 110,9 36,5 9,37 5,79 291 Medium
RAIZING STAR MEDIA LLC
INN 7704243411 Moscow
2 393,4 2 664,8 68,1 23,4 3,93 2,90 550 Insufficient
KINOKOMPANIYA KARO PREMYER LLC
INN 7704232681 Moscow
2 562,9 2 889,6 66,0 64,9 2,35 2,74 176 High
KINOMAX JSC
INN 7705995118 Moscow
3 145,1 3 708,6 -126,0 32,1 2,17 2,49 236 Strong
CINEMA PARK NJSC
INN 7705353706 Moscow
4 921,5 5 106,7 80,1 -166,0 1,94 2,47 550 Insufficient
COMEDY CLUB PRODUCTION LLC
INN 7725593209 Moscow
2 677,8 3 106,5 0,4 18,0 1,51 1,78 266 Medium
Total by TOP-10 companies 33 620,1 42 870,7 -736,1 860,8      
Average value by TOP-10 companies 3 362,0 4 287,1 -73,6 86,1 5,40 5,11  
Industry average value 40,5 41,1 -1,1 0,4 1,95 2,67  

The average indicator of the product profitability ratio of TOP-10 companies is below the practical value and above the industry average one. Four from TOP-10 enterprises increased revenue and net profit indicators in 2016 in comparison with the previous period. Other companies decreased revenue or profit indicators (are marked with red filling in columns 3 and 5 in Table 1).

Picture 1. Product profitability ratio and revenue of the largest Russian film industry companies (TOP-10) Picture 1. Product profitability ratio and revenue of the largest Russian film industry companies (TOP-10)

As a whole, over the past 10 years the industry average values of the product profitability ratio were below the practical value of 2016, with a downward trend (Picture 2).

Picture 2. Change in the average industry values of the product profitability ratio of the largest Russian film industry companies in 2007 – 2016 Picture 2. Change in the average industry values of the product profitability ratio of the largest Russian film industry companies in 2007 – 2016

Eight TOP-10 companies got Superior/High or Strong/Medium solvency index Globas, that testifies to their ability to repay their debt obligations timely and fully.

RAIZING STAR MEDIA LLC and CINEMA PARK NJSC got Insufficient solvency index Globas, in connection with the information on their participation as defendants in arbitration cases and the detection of negative signs of unreliable organizations.