Television

Zee Telefilms net down 8 % in Q2

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2014/08/21/zeetv_1.jpg?itok=eMQlysgE

Zee Telefilms Ltd today announced its second quarter results (ended September 30, 2001). It comes as no great surprise that even though the income from sales and services has gone up by 15 per cent from Rs 910 million in Q2 FY2000 to Rs 1046 million and other income has gone up from Rs 139 million to Rs 185 million, net profit has taken a hit.

The reason attributed to the downturn is the increase in the cost of programming from Rs 396 million to Rs 502 million (up 27 per cent) in the same period. When contacted Rajesh Jain, president, corporate finance & strategy, Zee Telefilms, had this to say: "The cost of programming includes the production cost of (Zee's superhit blockbuster movie) Gadar as well as new programming that went into the relaunch of Zee TV. So the cumulative cost was higher."

Staff costs also went up from Rs 50 million to Rs 93 million and interest costs from Rs 57 million in Q1 FY 2000 to Rs 144 million. When asked how far the Ketan Parekh factor worked towards increasing the interest burden, Jain admitted it was a factor but added that the major cost increase was because of capital costs incurred for purchasing set top boxes and other equipment for the company's DTO project. The amount was between Rs 700 to Rs 800 million, Jain said.

The Zee Network's consolidated results also are not too attractive. Even though the total income has gone up by 17 per cent to Rs 2667 million from Rs 2274 million in the last corresponding quarter, it is largely because of the healthy growth in subscription revenues (Zee TV went pay in June). Revenues went up 52 per cent from Rs 536 million to Rs 814 million along with an increase in sales and services (up by 46 per cent from Rs 200 million to Rs 292 million). "There has been close to an 180 per cent increase in domestic subscription revenues which form the major chunk of the total subscriptions," says Jain.

Ad revenues are the most worrisome part of the results though. There has been virtually no increase over last year which as far as market sentiment went was thought to be Zee's "Annus Horribilis". "Considering the shape the market is in post 11 September, that we could manage to maintain the same level is not so bad," Jain counters. "We are cautiously optimistic about the future," Jain said when queried as to what were the forecasts for the next quarter.

On the expenses front the increases are at a rather disproportionate 21 per cent (considering that total revenue increases stood at 17 per cent). Add to this the increased interest burden of 52 per cent from Rs 134 million to Rs 208 million worked to further erode profits. The end result was that profit after tax went down by 2 per cent from Rs 543 million to Rs 532 million.

For the cumulative period of six months, Zee Network has registered a revenue growth of 15 per cent from Rs 4,512 million to Rs 5,208 million.

In today's trading on the Bombay Stock Exchange, the Zee Telefilms scrip was steady with lower volumes of 200,000 shares against the huge trading usually witnessed on the eve of any Zee results announcement. Whether this indicates the lack of attractiveness in the stock is the question. The share opened at Rs 86 and moved between a narrow band of Rs 84 and Rs 88.45 and closed at Rs 85. It should be noted that the market was also dull today. The BSE's Sensitive index was down by 14 points at the end of the day's trading.

The rather unspectacular revamping campaign which blew up a declared Rs 150 million, the hold on a search for a strategic partner, as well as the monies still to be received from other group companies have really taken a toll on the Zee price. It remains to be seen when the long awaited upswing in the company's fortunes takes place

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/26/TNA.jpg?itok=rhthsXVE
Sony & Impact to produce maiden wrestling show in Mumbai

MUMBAI: Sony Pictures Networks India (SPN) and IMPACT Wrestling will, for the first time in professional wrestling history, produce the North American-based wrestling promotion show in the bustling city of Mumbai. Episodes of the highly engaging sport which are usually shot in the Northern...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/26/IIFA.jpg?itok=spnmoMXV
IIFA announces technical winners, ADHM & Pink lead

MUMBAI: The International Indian Film Academy announced the list of winners in the Technical categories of India’s most prominent awards celebration that honors the very best of Indian Cinema with the highest level of achievement seen through the glamorous IIFA statuette. Set to be held at the...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/26/Shubhas-02-Story.jpg?itok=qjtiOE8S
Print business demerger: Zee Media awaits National Company Law Tribunal approval

MUMBAI: Essel group company Zee Media Corp had got shareholder approval earlier this year to demerge its print media business which includes its newspaper DNA into Diligent Media Corp Ltd (DMCL) and merge two other firms - Mediavest India Pvt Ltd and Pri-Media Services Pvt into - DMCL. The...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/26/Arnab-Goswami.jpg?itok=9issj7zi
India Today gives its POV on Republic TV writ petition

MUMBAI: TV Today which runs a clutch of channels, including the English language news channel India Today, announced that it has withdrawn its petition in the Delhi high court against the Arnab Goswami-led Republic TV.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/26/MK_Anand-Times_Now.jpg?itok=I2IKHtJC
Sad that man of such stature stole Times IPs: BCCL

MUMBAI: The Delhi High Court has issued a notice to former Times Now editor Arnab Goswami (Republic TV founder and editor) for breach of employment contract and the misuse of intellectual property of Times Now. Times Now MD and CEO MK Anand said that the management had discovered the thefts only...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/26/Namit%20Malhotra.jpg?itok=kCFdO9_c
Prime Focus turns around

BENGALURU: Prime Focus Limited (PFL) has reported robust financial performance, including consolidated profit after tax (PAT) for the period ended 31 March 2017 (quarter – Q4-17 and current quarter, current fiscal; year FY-17 and current year) as compared to the corresponding year ago periods – Q4-...

Television TV Shows Animation
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/republic.jpg?itok=o0PjOXHF
HC rejects TV Today plea against publishing Republic TV's ratings

The high court on Thursday evening rejected TV Today's plea against Republic TV, channel sources told indiantelevision.com.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/Guest-Coloum-Story.jpg?itok=a9rnMijr
GUEST COLUMN: Is The Current News Dumbing Us Down?

“Sonu Nigam Quits Twitter!!”flashed on my TV screen today morning. We obviously thought this was worthy of coverage at a national level, because the ‘breaking news’ kept playing in loop for a considerable period of time. 

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/05/25/Republic-02-Story.jpg?itok=O83ztOyx
Republic TV continues to lead English News genre in week after debut

Republic TV claims to have cornered a viewership of 49 per cent for week 20 of 2017 (Saturday 13 May 2017 to Friday 19 May 2017) on its channel.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories