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=0KVEA-W-

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/2017/01/19/miss%20%281%29_1.jpg?itok=x_7NkjRo
Miss Universe 2016 to air on Zee Café live from Philippines

After the success of stunning events such as Miss World 2016 Live and Victoria’s Secret Fashion Show, Zee Café, the ultimate English GEC brings to its viewers yet another -global event, Miss Universe Live this January, 2017.

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/naagin%20%281%29.jpg?itok=dmJsHL_0
Colors leads the BARC week 2 Hindi GEC (U+R) market

Naagin’s magic continued to make Colors the number one channel in Hindi GEC (U+R) even as Star Plus led the genre in the Urban Hindi GEC market. In Rural Hindi GEC market, Rishtey topped the chart again this week, according to the Broadcast Audience Research Council (BARC) all India data of week 2...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/NP%20Singh.jpg?itok=n3sTgiT5
Sony Pictures-Ten Sports deal cleared by CCI

MUMBAI: The Competition Commission of India (CCI) yesterday tweeted its approval to the proposed acquisition of the sports broadcasting business of Ten Sports by Sony Pictures Networks India. Acquisitions beyond a threshold need approval from CCI, which keeps a check on business practices across...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/zindgi%20%281%29_0.jpg?itok=D5hGcSQt
Zee signs four TV-series deal with Eccho Rights

Zee Entertainment Enterprises Ltd. (ZEEL) has signed a deal for four blockbuster television series with the international content distributor, Eccho Rights.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/shantanu%20%281%29.jpg?itok=amxTjuly
Shantanu Gangane leaves Times for Vuclip; will report to Vishal Maheshwari

Times Network’s Shantanu Gangane has resigned as the head of marketing and joined Vuclip as the CMO India. Gangane served his last day on 13 January in Times Network where he was heading the marketing of Times Now, ET Now and Zoom.

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/WION%20%281%29.jpg?itok=RBo0kW2A
Zee Media's WION opts for Dalet unified news solution

Computing and creative technologies aid workflow, storage and infrastructure solutions for all aspects of the media and content creation industry. IT solutions providers help with latest computing, networking, media hardware and software to provide the best output.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/zee%20%281%29.jpg?itok=TkZwl1B7
Zee TV launches its first fiction show of 2017

Zee TV’s first fiction offering of 2017 - ‘Woh … Apna Sa’ is a unique concept that questions prevalent mindsets, pre-conceived notions and the over-generalizations that surround the institution of marriage, love and the eternal quest of finding one’s true soulmate.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/17/Bomanbridge.jpg?itok=-F0FYgM0
CNN, EBS & Discovery buy factual programmes from Bomanbridge

MUMBAI: Bomanbridge Media, a Singapore-based content distribution and production agency , has announced sale of several significant factual programmes in the Asian region, including deals with Discovery Asia, EBS South Korea, and CNN Southeast Asia.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/17/GRB%20Entertainment-800x800.jpg?itok=Ts-XG-1q
Discovery acquires 'Untold Stories' & 'Cleveland Hustles' from GRB

MUMBAI: GRB Entertainment has announced sale to Discovery of their Latin America and US Hispanic channels. Both picked up several seasons of long-running GRB-produced medical show Untold Stories of the E.R. and Discovery Latin America acquired the new LeBron James series, Cleveland Hustles. Untold...

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories