Bourses welcome Zee's mega-prizes strategy

MUMBAI: Zee Telefilms continued its upward rise on the Indian stock markets, edging up 0.78 per cent to Rs 103.75 on the Bombay Stock Exchange (BSE). The scrip witnessed volumes of 2,702,537 and touched a high of Rs 104.05. On the NSE, the scrip rose by 1.07 per cent and finished the day at Rs 104.05 with volumes of 4,385,079. 

Zee CMD Subhash Chandra, who is currently actively managing the affairs of the company, seems to know exactly what kind of a fare will be lapped by the stock market operators, if not the audiences. The markets seem to be gung-ho about Zee's forthcoming mix for the next quarter that includes a prize money of Rs 1.21 billion under the Mahalotto Megawin contest.

Zee, in association with E-Cool Gaming Solutions had announced its MEGA contest that would enable its viewers to win Rs 1.21 billion within three months starting 5 January 2003. Zee will be giving its audience an opportunity to win free prizes worth Rs 10 million every day and Rs 40 million on Sundays in addition to the Rs 5 million for a "Dekho Dhoom" contest.

The other triggers for increased interest in the stock seem to be linked to the impending announcement of good quarterly results; hike in subscription rates; its possible entry into the expanded list of scrips in the derivatives segment; successful revamping of the company’s flagship television channel - Zee TV - that has boosted the TRP ratings of the channel's programmes in the last quarter.

On 7 January 2002, Zee witnessed active trading on an otherwise dull trading day. The FIIs and institutional funds conducted sustained buying and more than 3.77 million shares were traded. Since 24 December, the scrip has grown 7.4 per cent from Rs 96.60.

SSKI vice president research Nirav Sheth states: "The recent initiatives such as the cross-promotions with Playwin online lotteries that have been announced by Zee seem to be having an impact on market sentiments. The strategy might probably work well to counter the threat of World Cup. However, it is not necessary that the positive rub-off might spillover to the other programmes. Post World Cup, the programming will need to be beefed up and Zee's team needs to work on the same."

Motilal Oswal Securities media analyst Subhabrata Majumder states: "The market sentiments seem to have improved due to the good results expected in the December 02 quarter. Our estimates indicate an 18.6 per cent - the highest y-o-y growth that Zee has achieved in the last seven quarters. Our estimates also indicate a 40 per cent PAT growth. Both these figures are pretty good not just in the media sector but also in the corporate sector.

The growth is not driven merely by subscription revenues but ad revenues are also expected to rise to Rs 1.92 billion as compared to Rs 1.72 billion from from DQ 2001."

"There is also an imminent announcement about the inclusion of Zee (the only media scrip) in the derivatives futures and options trading. The recent buying by institutional funds is an indication that they seem to be interested in Zee's cross-promotional strategy with Megawin online lotteries. The Mahalotto prize money of Rs 1.21 billion (Rs 10 million a week and Rs 40 million plus on Sundays) seem to have been a positive trigger," Shubham adds.

Another financial analyst said that Zee's entry into the Top 100 viewership ratings list in the last quarter augurs well for the quarterly financial results due for announcement. The mega-prizes announced for the Megawin promotional scheme is an interesting ploy, according to him.

Others, however, don't seem so optimistic. Kotak Mahindra's media analyst Sanjeev Prasad states: "Zee TV had several programmes in the Top 100 viewership ratings list. The movie strategy seems to have worked but there is a feeling that it might not be that big an idea in the long run. The fundamentals will improve only if the Zee team realise that viewers watch TV for content and not for contests. As per our analysis, Rs 100 seems to be a fair value."

A Kotak Mahindra report dated 13 December had stated that Zee would ultimately benefit from CAS as underdeclaration disappears. However, in the near term CAS may force Zee to reduce subscription fees and focus channels on subscription or advertising but not both.

The report estimated that Rs100 price was the target price for Zee and this rationale was based on DCF and free cash multiples. It had also mentioned that Zee needed a clear-cut strategy to counter the World Cup.

It is worth mentioing that the media and entertainment sector stocks had ended the calendar year on a high note. The market sentiments had improved due to varied reasons such as the expectations of a good financial results; and indications that Zee will be raising US$ 40 million loan via an overseas corporate body (OCB).

Towards the end of the year, the Zee counter showed hectic activity due to a report in The Hindu Business Line . The report stated that the Subhash Chandra group had finalised plans to pledge equity shares of Zee Telefilms Ltd with the Zurich-based Credit Suisse First Boston Corporation (CSFBC) for a three-year term loan of $40 million.

The report mentioned that Delgrada Ltd, a Mauritius-based OCB owned by Chandra, would pledge 50 million equity shares of Zee Telefilms, having a face value of Re 1 each, with Credit Suisse First Boston, Singapore, a wholly-owned subsidiary of the Zurich-based global banking and insurance giant.

Media stocks gain on the last day of 2002

Zee pits innovative themes,greed against cricket

Zee bouquet has better breadth - JP Morgan CAS report 

Latest Reads
Comedy Central sets pace for ultimate celebration with over 100 hours of non-stop FRIENDS ultra marathon for its 6th birthday

Birthdays and New Years are great occasions to make resolutions for participating in marathons. However, this is one marathon which calls for hanging up your running shoes and grabbing the best spot in front of the telly with a bowl of munchies to keep you going because, for the first time ever in...

Television TV Channels English Entertainment
U Sports launches India's first ever Multi-Platform Multi-Game E-Sports Championship - U Cypher with MTV

The Indian E-Sports scenario is all set for a major revamp as U Sports, one of India’s biggest sports business companies in association with India’s No. 1 Youth Brand, MTV, announces the premiere of their all new month-long championship, U Cypher with MTV. Premiering today, on 19th January, the...

Television TV Channels Sports
TV ownership increased by 14% in 2017: IRS

After a gap of four years, the Indian Readership Survey (IRS), which documents the growth of the media industry, has been released for 2017. The survey methodology was criticised in 2014 and, therefore, was halted for an upgrade. This time, the sample size has been increased by 34 per cent to 3.2...

Television TV Channels Viewership
CNN-News18 launches 'If I Were FM Challenge'

As part of its Budget programming, CNN-News18 is launching the ‘If I were FM Challenge’. The campaign will encourage viewers to contribute their suggestions for the Union Budget. The channel will run an extensive on-air campaign to promote the same.

Television TV Channels News Broadcasting
BBC World News to Broadcast 'China's Chat Girls'

Lele Tao is an internet superstar in China’s $3 billion dollar ‘live streaming’ industry. With more than a million fans she can earn thousands of dollars a day singing, dancing, flirting, or often just chatting into her webcam. Fans buy her virtual gifts which she redeems for cash. In return she...

Television TV Channels News Broadcasting
PKL season 6 and 7 dates announced

The second most watched domestic league in India, Vivo Pro Kabaddi League owned by Mashal Sports and Star India announced the dates of sixth and seventh season.

Television TV Channels Sports
Star Bharat leads Hindi GEC (U+R) in week 2 of BARC ratings

MUMBAI: Star Bharat emerged as the leader in the Hindi GEC (U+R) genre dethroning Zee Anmol according to Broadcast Audience Research Council (BARC) all India data for week 2 of 2018.

Television TV Channels Viewership
BARC week 2: Aaj Tak leads Hindi News in all three markets

MUMBAI: Republic TV continues its leading streak in the second week of the year as well in BARC All India ratings. News Nation stays in the top five chart in week 2 of 2018 in Hindi News Rural market. Aaj Tak tops the chart again in Hindi News Urban market.

Television TV Channels Viewership
Dsport acquires India rights of tri-nation tournament in SL

Discovery’s sports channel Dsport has acquired the exclusive India broadcast rights of Nidahas Trophy 2018, a tri-nation international T20 tournament involving India, Sri Lanka and Bangladesh. The transaction was facilitated by Lagardère Sports, the global marketing consultant of Sri Lanka Cricket...

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories