Television

Zee Telefilms Ltd Q1 revenues up 10.8%

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/01/12/Untitled-1_31.jpg?itok=lEMivDcx

NEW DELHI: Zee Telefilms Limited today reported first quarter consolidated revenues of Rs 3207 million, a 10.8 per cent growth over the corresponding period in the previous fiscal.

 

The consolidated operating profit has increased by 17.1 per cent to Rs 1055 million over the same period last year. The growth was driven by higher pay revenues, and a healthy recovery in advertising revenues from the corresponding quarter last year.



Zee Telefilms CMD Subhash Chandra said, "Zee finished the first quarter with a good performance, highlighted by 17.6 per cent growth in net profit. Our results were lead by strong performance in both subscription and advertising. The advertising revenues grew well despite the India-Pakistan cricket, which lasted right through April, dragging some advertising spends into the sports genre."



Operating profit growth was supported by efficient cost control measures. Profit before tax for the first quarter of the fiscal 2005 was Rs 1046 million, an increase of 24.4 per cent as compared to the corresponding quarter last year, while net profit at Rs 733 million was higher by 17.6 per cent. These numbers are after consolidating the financials of ETC Networks Limited and Padmalaya Telefilms Limited for the first quarter of FY2005.



The board of directors in its meeting held today, has taken on record the unaudited consolidated financial results of Zee Telefilms Limited and its subsidiaries for the quarter ended 30 June 2004, and recommended payment of dividend of Re 1 per share of Re 1 each for the year ended 31 March 2004.



As part of expansion plans, the company has said that there are some new channels for the Indian market are in the pipeline. This includes augmenting presence in the regional market under the Alpha brand (a Telugu channel has been talked about for a launch later this year). Plans are also afoot for launching a business new channel in the Hindi language (already soft-launched on the DTH platform).



The company also said that ASC Enterprises Ltd, also controlled by Chandra, will commence its full DTH services during the second quarter.



Commenting on the financials, Chandra further said, "We have maintained momentum in our subscription revenues with continued double-digit growth, buoyed by 23.0 per cent growth in domestic pay revenues."



He added, "We are also excited about our new investments supporting the DTH business. During the second quarter, benefit would begin from the launch of full service package on Dish TV, India's first DTH network, which has already grown to 130,000 subscribers. Our strong assets combined with exciting growth opportunities puts us in a good position to create long term shareholder value."



REVENUE STREAMS: Zee's revenues are generated primarily from advertising sales and subscription revenues. Other sales and services include revenues from film production and distribution, syndication and education sales. Zee's advertising revenues increased by 8.7 per cent as compared to the corresponding quarter last fiscal. This was the result of a visible recovery in advertising revenue market and strong advertising growth at Zee News due to the general elections which contributed to this performance and helped offset the 

opposing effects of advertising spend on cricket during April, the company said.



Overall subscription revenues, registered an increase of 12 per cent over the first quarter of the corresponding period last fiscal. Domestic pay revenues also continued on a growth path with 23.0 per cent increase over the corresponding period last year, despite a price freeze imposed on pay channels by sector regulator.



Other sales and services, which include the performance of Padmalaya Telefilms Limited, recorded an increase of 14.6 per cent.



EXPENDITURE: Zee's main expenses include transmission and programming cost, employee cost and administrative and selling cost. Overall, the primary reason for the 5.2 per cent increase in programming and transmission cost is due to higher programming cost compared to the corresponding period last year.



Personnel cost were higher than corresponding period last year. Other costs, including marketing and administrative costs have grown 10.9 per cent because of higher promotional and marketing costs during the quarter, the company said. As a result, total expenses were up 8 per cent.



Operating profit has grown by 17.1 per cent to Rs 1055 million, while operating profit margin was at 32.9 per cent, as compared to 31.2 per cent achieved during the corresponding quarter last year.



During the last two quarters, Zee has repaid Rs 3.5 billion from its gross debt and has raised $100 million from Foreign Currency Convertible Bonds (FCCB) at YTM of 3.5 per cent. As the company is making fresh investments in the distribution business, surplus cash reserves have come down resulting in a drop in interest income by 16.9 per cent to Rs 159 million.



Profit before tax has grown by 24.4 per cent to Rs 1046 million. With shifting of Zee TV and Zee Cinema channels to India, the income of these channels are being recorded under Zee Telefilms Limited and are subject to the marginal tax rate. As a result, effective tax rate has gone up during the quarter to 30 per cent.



Meanwhile, the company had obtained shareholders' approval to adjust investments amounting to Rs 19,207 million against securities premium account in the EGM held on 25 March, 2004. During the quarter, the company received approval from the Mumbai high court for the same.



Accordingly, this has been given effect in the accounts as on 31 March 2004. The first phase of international restructuring aimed at consolidating non-Indian operations into a single subsidiary has been completed. This measure would rationalise taxation on the international subsidiaries.



HIGHLIGHTS:

* Consolidated operating profit increased 17.1 per cent to Rs 1055 million during Q1 2004

* Advertisement revenue at Rs 1318 million up by 8.7 per cent

* Subscription revenue at Rs 1599 million up by 12 per cent

* Domestic subscription revenue at Rs 630 million signified an increase of 23 per cent

* Capital restructuring for greater efficiencies

* FCCB of $100 million at YTM of 3.5 per cent raised

* Dividend of Re 1 per share of Re 1 each for the year ended 31 March 2004.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/24/mn%3D%20%281%29.jpg?itok=62l960iv
MN+ to air its Oscar special property 'The Academy Club'

MUMBAI: MN+ is all geared up to air their Oscar special property The Academy Club that will leave the movie lover ecstatic with cinematic brilliance. The channel will air this property on 25 and 26 February, throughout the day.

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/24/Nexa-P1-Powerboat_1.jpg?itok=Ada8vEtF
Sony Pix & ESPN to telecast Global Powerboat Racing live from 3-5 March

MUMBAI: Nexa P1 Powerboat, Indian Grand Prix of the Seas, will be telecast live globally and promises to deliver the most comprehensive coverage in the history of powerboating. Seeding a global sport from India, the Nexa P1 Powerboat, Indian Grand Prix of the Seas, will set a global benchmark for...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/24/Alan-Shearer.jpg?itok=kJa34ytE
Star to host Premier League movement on 2 & 3 March, legend Alan Shearer to participate

MUMBAI: The Football Movement, jointly hosted by India On Track, is being held in partnership with the Premier League’s Indian broadcast partner Star Sports. The conference will bring British and Indian football organisations and businesses together to discuss ways to continue to grow the...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/24/naagin%202-800x800.jpg?itok=2sQq6fWi
Star Plus takes over Colors, Rishtey retains top position: BARC wk 7

MUMBAI: Star Plus pushed Colors to the second spot in Hindi GEC and Hindi GEC (Urban) genres in the BARC India ratings week 7 emerging on the top in these two categories. Rishtey retained its first position in the Hindi GEC (rural) category whereas Zee Anmol and Star Utsav respectively bagged the...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/24/Tarun%20Katial-800x800.jpg?itok=EAUMF-Io
RBNL all set to relaunch Big Magic

MUMBAI: Indeed, good decisions lead to great success.  Getting into the stable of one of India’s leading media conglomerates has opened up several opportunities for Reliance Broadcast Network Ltd (RBNL).   After the acquisition deal with ZEEL, RBNL is all set to relaunch its Hindi general...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/23/Aaj-tak-sabse.jpg?itok=y5SUyDvL
Aaj Tak regains number one position in Hindi News genre

MUMBAI: Zee News made way for the entry of News24 in the top five channels' list in the Hindi News Rural genre in this week's BARC India data. In the Hindi News Urban space, ABP showed up in the top five list pushing out News Nation.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/23/zee%20%281%29.jpg?itok=G2vJCfG-
Zee's 'Khwaabon Ke Darmiyaan' emerges as top-ranking TV show in UAE

Zee Middle East’s second, locally produced fiction series Khwaabon Ke Darmiyaan which follows the storyline of a UAE based real estate tycoon, has emerged as the top-ranking TV show among south Asians in the UAE for two consecutive months.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/23/Discovery%20%281%29.jpg?itok=rcV4zr8O
Star World dominates English Entertainment, Discovery regains no.1 spot

Star World dominated the English Entertainment genre followed by Zee Cafe. Players in the space witnessed a significant hike in the ratings this week.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/23/Times-Internet%20%281%29.jpg?itok=Ih3sQCAj
Times Internet appoints Rattan Chugh & Vivek Pandey in leadership roles

Looking to further consolidate its position as India's leading digital product company, Times Internet, today, announced the addition of two experienced and proven corporate leaders to their senior management team. Rattan Chugh comes in as the new chief people's officer from Standard Chartered,...

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories