MUMBAI: Zee Entertainment Enteprises Ltd (Zeel) expects its advertising revenue to improve this fiscal despite trends of a softening due to market share gains of its channels, including flagship channel Zee TV.

The Subhash Chandra-promoted company forecasts industry to grow at 8-10 per cent due to a weakness in overall ad spends while its own progress this fiscal would be faster. Since there is an uptick in ratings, this should get reflected in more ad revenues this year.

Zeel?s ad revenues in FY?12 degrew 6.8 per cent to Rs 15.84 billion compared to Rs 17.01 billion a year ago.

The company?s subscription revenue will continue to see strong growth, aided by Media Pro, the joint venture channel distribution company between Zee-Turner and Star Den. Zeel is looking at subscription income growth in the mid-tweens without factoring in digitisation in the four metros of Delhi, Mumbai, Kolkata and Chennai.

After the formation of Media Pro, most of the distribution deals with cable TV operators and DTH service providers will come up for renewal this year.

Domestic subscription for FY?12 was Rs 9.22 billion, up 28.4 per cent up from Rs Rs 7.18 billion a year ago.This is, however, not comparable because Q4 FY?12 numbers include an amount of Rs 506 million representing 50 per cent share of net revenues of MediaPro when consolidated under joint venture accounting. This amount of Rs 506 million considered in this quarter pertains to nine month period from July 2011 to March 2012.

Zeel is planning to launch a new Arabic language channel so that it can tap advertising revenues in that market. It already runs Zee Aflam in the Middle East.

The company has got landing rights in China. It will continue to follow a localisation of content strategy in many geographies across the world so that it can monetise ad revenues. Earlier, Zeel had a subscription revenue model in international markets.

Zee TV plans to increase its original hours of programming to 35 hours within six months, even if the ad market doesn?t improve. The content and marketing costs will, thus, continue to show an upward trend.

Zeel sees an opportunity to ramp up investments in Tamil Nadu after Sun Group has lost its stranglehold with the Jayalalithaa-government floating the state-owned Arasu Cable. The company plans to relaunch its Tamil channel, Zee Tamizh.

Zeel does not plan to launch a second Hindi movie channel, like rival Star has done. After a period of lull, the company was aggressive in movie acquisitions in FY?12. As there are not many current year new releases available for purchase, it will continue to invest in acquiring future movie projects.

MUMBAI: Subhash Chandra-promoted Zee Entertainment Enterprises Ltd (Zeel) has reportd a consolidated net profit of Rs 1.63 billion for the fourth quarter ended 31 March, down 16 per cent from Rs 1.93 billion in the corresponding quarter of previous year.

Consolidated revenues in the fourth quarter were Rs 8.69 billion, up 9 per cent from Rs 7.95 billion from year ago.

A media analyst said revenues were higher than estimated because of the positive surprise on all fronts - ad revenues, domestic subscription revenues, and higher than expected syndication & other sales revenues.

The consolidated operating profit (EBITDA) for the quarter was down 28 per cent to Rs 1.60 billion, from Rs 2.22 billion a year ago as its expenses rose 24 per cent. Zeel?s expenses during the quarter rose to Rs 7.09 billion from Rs 5.73 billion a year ago.

During the quarter, Zeel?s advertising revenues stood at Rs 4.15 billion, showing a decline of 12 per cent. The company clarified that in the fourth quarter of previous year, it had more cricket properties in sports which had resulted in higher advertising revenues. Loss from sports business was Rs 588 mn in the fourth quarter and Rs 1.48 bn for the full year.

?Advertising revenues from non-sports businesses have increased, though marginally. This is reflective of the overall weakness in advertising spends,? Zeel said.

The total subscription revenues for the quarter stood at Rs 4.02 billion, registering an increase of 30 per cent over the corresponding quarter last fiscal. Domestic subscription revenues stood at Rs 2.97
billion, while international subscription revenues were Rs 1.05 billion.

Zeel said that domestic subscription revenues are not comparable with the previous year because the fourth quarter includes an amount of Rs 506 million representing 50 per cent share of net revenues of MediaPro, when consolidated under joint venture accounting. MediaPro is a joint venture between Zee Turner and Start Den.

This amount of Rs 506 million considered in this quarter pertains to nine month period from July 2011 to March 2012. Subscription revenues for the quarter from international operations are up by 1 per cent Q-o-Q from Rs 1.04 billion in Q3 FY12 to Rs 1.05 billion in Q4 FY12.

Zeel chairman Subhash Chandra said the slowdown in GDP growth has had a greater impact on advertising spends during the year, and advertising revenue growth has seen a much sharper slowdown.

Chandra said, ?FY2013 is expected to be a landmark year for the television media industry. The industry is gearing up for a big change with deadline for implementing Digital Addressable System (DAS) in the four metros approaching on 30 June, 2012. Digitisation will bring about improvements in addressability and capacity, thereby, improving the quality of service to consumers and creating a better financial model for all players in the value chain.?

Zeel board has recommended a dividend of Rs 1.50 per share.

Zeel MD and CEO Punit Goenka said, ?We are looking forward to the implementation of digitisation which will significantly improve transparency in the pay-TV ecosystem resulting in more choice to the consumers, better quality of viewing and better economies for all players. In fiscal 2012, 10.5 million subscribers have adopted satellite based television services via DTH, taking the gross DTH subscriber base to 44.6 million strong.?

?During the quarter, we have seen significant improvement in our operating performance across all genres. The flagship channel, Zee TV, has improved its market share noticeably. We are confident that we would further enhance our market share through our planned content lineup and continue to grow our business profitability in a sustained manner.?

?In line with our strategy of growth through focused disciplined investments, we launched India?s first and only OTT (over-the-top) distribution platform, Ditto TV, with an aim to offer Live TV Channels and On Demand Video Content to consumers on multiple platforms including mobile phones, tablets, laptops, desktops and connected TVs. We have also launched some of our content offerings in high definition format. Ten Golf is Zee?s latest premium offering targeted at urban up-market audiences?, he added.

Speaking about the outlook for the business, Goenka added, ?While the competitive intensity remains high in the Indian television industry, we continue to make efforts towards further enhancing our market share. Media Pro, our joint venture for subscription revenues, has started on a good note and we are very confident of a robust performance going forward. The impending digitization will further be able to create value for the business. Also, our content focused approach, combined with better monetization of subscription revenues, will contribute to Company delivering steady return in the year ahead.?

For the full year 2011-12, Zeel?s net profit stood at Rs 5.91 billion, down 6 per cent from Rs 6.25 billion in the previous fiscal. The revenue stayed flat (up 1 per cent) to Rs 30.41 billion, as against Rs 30.08 billion in the year-ago period. Total expenses, jumped 5 per cent to Rs 23.01 billion, from Rs 21.87 billion.

Shares of Zeel ended the day unchanged at Rs 123.20 on BSE.

MUMBAI: Zee expects to obtain the landing rights in China soon, six years after applying for it.

Having already run a profitable syndication and sales business in China, the Subhash Chandra-promoted media company aims to cater to the audience in the Mandarin country with its entertainment content in the toughest media market in the world.

"We haven?t officially got the landing rights yet. It is work in progress. We expect to get the approval soon," a Zee spokesperson said.

Zee has been pursuing the landing rights in China ever since it applied in 2006.

According to a PTI report, a Ministry of External Affairs spokesperson has stated that "Zee TV has got the landing rights in China," while briefing reporters on the talks between India?s Foreign Minister S M Krishna and his Chinese counterpart Yang Jeichi.

Indiantelevision.com had earlier reported that Zee Entertainment Enterprises Ltd (Zeel), India?s leading broadcasting network overseas, was looking at a 9 per cent growth from its international business this fiscal and would see income up from advertising, syndication and other operations while subscription revenue would stay almost flat.

Zeel has paced up its localisation strategy in global markets, which keeps it far ahead of its rivals. Zee Aflam, for instance, has seen reasonable growth and reached break-even status within three years. Other localisation experiments are already on in Malaysia, Russia and, to a limited extent, in France in partnership with Canal.

MUMBAI: Zee Entertainment Enterprises Limited (Zeel) has posted a third-quarter consolidated net profit of Rs 1.38 billion, down 11.5 per cent over the year-ago period, as advertising revenue slipped and could not quite make up for the gains in subscription.

Ad revenue slid 10.1 per cent, impacted by a softening in spends and a loss in market share. "Overall, advertising revenues on non-sports business have declined, though marginally. This is reflective of the overall weakness in advertising spends combined with some market share loss," the company said.

Zeel posted a consolidated operating income of Rs 7.55 billion, down 8.5 per cent from the earlier year. The company said that as the revenue in the Q3 FY?11 included Rs 700 million as one time fees for pre-mature termination of rights for All India Football Federation (AIFF), the results were not comparable.

For the three-month period ended 31 December, Zeel?s operating profit (Ebitda) was at Rs 2.16 billion, down marginally (3.6 per cent), over the year-ago period.

Ebitda margin for the quarter was 28.6 per cent, which has gone up from 27.2 per cent in the corresponding quarter last fiscal. Zeel said that excluding sports business, the Ebitda margin stood at a healthy 34 per cent.

Zeel chairman Subhash Chandra said, "While the world economy goes through another round of upheaval, the Indian economy continues to grow, even though at a lower pace. The slowdown brings its own set of challenges in all spheres of business activity. Advertising trend continues to be slower than expected. However, the television economy continues to grow on the back of higher subscriber growth and increasing digitisation."

Zeel?s advertising revenues for the quarter stood at Rs 3.95 billion, showing a decline of 10.1 per cent over the earlier year. Zee said that it had more cricket properties in sports which resulted in better advertising revenues.

Zeel MD and CEO Punit Goenka said, "Zee Entertainment?s wide portfolio of television channels had some gains and some losses in market shares during the quarter. We are confident that we would regain the market share losses through our planned content lineup and continue to grow our business profitability in a sustained manner. During the quarter, we have been able to maintain healthy operating margins, partly due to lower sports losses and partly due to better cost efficiency measures.

Advertising spends are flat sequentially, and the overall trends also remain subdued.

Zeel made substantial gains in subscription income. The total subscription revenue for the quarter stood at Rs 3.26 billion, registering an increase of 15.7 per cent over the corresponding quarter last fiscal. "While subscription revenues have recorded a bigger increase, the reported subscription revenues reflect a growth of only 15.7 per cent y-o-y, because of the change in accounting treatment of domestic subscription revenues, which are now being reported net of expenses," Zeel explained.

During the current quarter, domestic subscription revenue stood at Rs 2.22 billion, up 13.85 per cent over the preceding quarter.

International subscription income was at Rs 1.04 billion, up 2.7 per cent compared to the earlier year and 8.24 per cent over the trailing quarter. It obviously gained from the rupee depreciation.

Meanwhile, other sales and services include syndication sales, play out & transmission services, facility usage income among others.During the third quarter, other sales and services stood at Rs 332 million. The company had recorded revenue of Rs 1.03 billion under this head during the corresponding period last fiscal, including a non-recurring one time fees of Rs 700 million.

Overall, programming and operating cost in the quarter was Rs 3.4 billion as compared to Rs 4.15 billion in the corresponding period last fiscal, a reduction of 17.6 per cent. The major reason for the reduction is that the corresponding quarter last fiscal had more sports properties as compared to this quarter.

Employee cost increased by 6.5 per cent over the corresponding period last fiscal. Selling & other expenses in the quarter were at Rs 1.24 billion, as compared to Rs 1.17 billion in the corresponding period last fiscal. Total cost incurred by the company in third-quarter was Rs 5.39 billion, showing a reduction of 10.3 per cent over the corresponding period last fiscal.

MUMBAI: The International Academy of Television Arts and Sciences announced the winners of the 39th International Emmy Awards at a Gala event held at the New York Hilton, hosted by actor Jason Priestley.

Winners span six countries: Chile (first time) Belgium, Canada, Portugal, Sweden and The United Kingdom.

Lady Gaga surprised the audience of over 1,000 international entertainment and media executives by opening the show and presenting The International Emmy Founders Award to Nigel Lythgoe, the executive producer of ‘American Idol‘ and the co-creator and executive producer of ‘So You Think You Can Dance‘.

The International Emmy Directorate Award was presented to Subhash Chandra by actress Archie Panjabi ‘The Good Wife‘ and Citigroup Chairman Richard Parsons.

The 10 International Emmy Award Winning programmes and performances are:

Gareth Malone Goes to Glyndebourne (Arts Programming), Benidorm Bastards (Comedy), Life with Murder (Documentary), Con que Suenas (Children and Young People), Lacos de Sangre (Telenovela), Millennium (TV Movie/Mini-Series), The World‘s Strictest Parents (Non-Scripted Entertainment), Accused (Drama Series), Julie Walters (Best Performance by an Actress) and Christopher Eccleston (Best Performance by an Actor). Complete winners information follows this release.

Academy president, CEO Bruce Paisner said, "We congratulate tonight‘s winners for their outstanding achievements as they enter into Emmy history. The Academy is proud to be the preeminent global showcase for excellence in television programming and performances."