DQ Entertainment spurts after pact with Ciwen Kids

DQ Entertainment (International) spurted 13.36% at Rs 28 at 11:36 IST on BSE after the company and Ciwen Kids of Ciwen Media Group signed a significant content acquisition deal of multiple properties produced by DQE for distribution in Greater China.

The announcement was made during market hours today, 7 October 2014.

Meanwhile, the S&P BSE Sensex was down 157.42 points or 0.59% at 26,410.57.

On BSE, so far 1.90 lakh shares were traded in the counter as against average daily volume of 82,000 shares in the past two weeks.

The stock was volatile. The stock surged as much as 18.21% at the day's high of Rs 29.20 so far during the day. The stock lost as much as 1.21% at the day's low of Rs 24.40 so far during the day.

DQ Entertainment (International) (DQE) and Ciwen Kids of Ciwen Media Group signed a significant content acquisition deal of multiple properties produced by DQE for distribution in Greater China, which includes Mainland China, Hong Kong and Macau.

With the signing of this strategic agreement, DQE will now be able to expand its footprint into the vast and growing kids entertainment market of China. Ciwen will represent DQE properties in Greater China, for television, home video and video-on-demand (VOD) distribution for multiple popular properties, DQE said. The deal is for an initial period of 6 years and DQE will receive a minimum guarantee fee with a revenue sharing arrangement beyond that, DQE said in a statement.

Commenting on the deal, Tapaas Chakravarti, Chairman and CEO, DQE said, "This deal is definitely strategic for us and will introduce DQE's high quality, global kids' content to China, across multiple platforms. This will be the first time we will be entering this unique and hitherto untapped market. Ciwen Media Group is one of China's leading distributors of kid's animation and we are sure that we have found a great partner to represent us in China".

Ciwen Media Group is a leader in the production and distribution of TV, film and animation in China.

DQ Entertainment (International) reported a consolidated net loss of Rs 12.05 crore in Q1 June 2014 as against net profit of Rs 6.63 crore in Q1 June 2013. Net income from operations declined 32.18% at Rs 20.63 crore in Q1 June 2014 over Q1 June 2013.

DQ Entertainment (International) is a global enterntainment group specializing in animation, gaming and VFX content production, licensing and distribution.

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