ZEE TV SHAREHOLDER MEETING: GOOD FINANCIALS
FORECAST
Zee Telefilms Ltd (ZTL) held its 16th annual
general meeting on 17 December 1998 in Mumbai. The meeting
went smoothly with a couple of shareholders taking upon
themselves to praise chairman Subhash Chandra for increasing
the value of their shareholdings. Chandra told shareholders
that the company's profit for the nine months ending December
1998 is likely to be Rs 440 million - a 36% rise over last
year's corresponding figure. He added that advertising bookings
are expected to be in the region of Rs 2,600 million as
against Rs 2,060 million in the previous nine months. Gross
income is expected to touch Rs 1,700 million as against
Rs 1,300 million.
Chandra added that the Zee TV network is planning to launch
seven regional channels between February and June 1999.
"These along with Zee India TV, Music Asia will be converted
into pay (read: subscription) TV channels in two years'
time," he said. According to Chandra, the merger proposal
between Star TV and Zee TV had not been concluded. "It would
have taken place three months ago had we not kept the minority
shareholders' interests in mind," he said. "We think the
valuation of Zee is greater than is being estimated. However,
merger or not we will continue to grow and increase shareholder
value."
He pointed out that Zee TV is doing well in the US and it
is likely that it may spread to Canada, and Latin America.
Chandra's estimate is that Zee TV has increased the number
of program hours and films in its library from 10,000 hours
and 2,000 films in 1996-97 to 12,000 hours and 2,200 films
in 1997-98 respectively. He revealed that Siticable, his
cable networking joint venture with Murdoch, has started
generating profits. He boasted that Zee TV can launch a
direct-to-home television service on its own. "We have the
necessary expertise to do so on our own. Both DTH television
and a direct to cable operator service," he said. "We do
not require any outside help."
The ZTL share, meanwhile, crossed Rs 580 (from Rs 540 earlier
in the week) in the wake of the shareholder meeting over
the weekend.
