ITV

Category: GECs

  • Hungama TV launches talent hunt for kids; ropes in John Abraham as brand ambassador

    Hungama TV launches talent hunt for kids; ropes in John Abraham as brand ambassador

    MUMBAI: After Sony and Zee, it’s now the turn of kids’ channel Hungama TV to go the reality way. The 18-months old channel, which has grown to become the number two kids’ channel in the country recently, has roped in Bollywood youth icon John Abraham as the brand ambassador for two years.

    Additionally, John will also be endorsing the ‘John Aur Kaun?’ talent hunt, which will give two kids (one boy and one girl) an opportunity to star opposite him in one of UTV’s forthcoming movie.

    The winners, apart from getting an opportunity to star opposite the hunk, will also get a cash prize of Rs 500,000 each and a three year contract with UTV to manage their career.

    The applications will open in the third week of May. The channel will shortlist 1000 candidates each in five cities – Mumbai, Delhi, Kolkata, Ahmedabad and Hyderabad – where auditions will be held in June and July.

    Kids’ between the age of 7 – 14 can apply and the selection criteria for the talent hunt will be based on acting and dancing skills. Finally, 40 kids (eight from each city) will be selected. These finalists will be brought to Mumbai, where they will go through a comprehensive training process during which the judges will be narrowing down the participants to four. The final two will be chosen via popular voting (SMS) and IVR (interactive voice response) exercise. Ernst & Young have been roped in as the auditors for the selection process.

    The entire hunt – from the city level auditions to the grand finale – will be televised as a reality show on Hungama TV and will be aired in October. The show will be in the form of 13 one hour episodes and will air three times a week on the channel.

    Hungama TV has roped in Oral B as the presenting sponsor for the ‘John Aur Kaun?’ talent hunt. Bournvita, Maggi and Sunfeast Dream Biscuits will be the co-presenting sponsors, whereas Dermi Cool, Waffy, Tata Salt and Add Gel Achiever are the associate sponsors for the event. Mitashi Edutainment is the prize sponsor.

    The channel has also partnered with Radio City (official radio partner), the Times Group (print and online partner), Planet M and Star News (national news channel partner). A nationwide 360 degree marketing and promotions campaign will hit the print, television, outdoor, radio and internet media in the third week of May.

    An elated Hungama TV COO Zarina Mehta said, “Indian kids have tremendous potential and Hungama TV wants to offer them a platform to showcase their talent. Kids today have the drive and inclination to learn and succeed and this is evident across all sections of the society. In keeping with this philosophy of constant innovation and distinctive content, Hungama TV is proud to bring to viewers ‘John Aur Kaun?’ – a first ever in the kids category.”

    “We are also really excited to have John Abraham on board as the brand ambassador for the channel. John’s sunny personality and easy going nature, couple with his drop-dead looks and undeniable talent, have made him a role model for kids across the country,” she added.

    The channel zeroed in on John as its brand ambassador after an extensive research with kids last year, wherein the dimpled-boy won over his other colleagues in popularity.

    Abraham said, “It feels great to be associated with Hungama TV. I am looking forward to spending time and interacting with kids. ‘John Aur Kaun?’ will give talented kids across the country an opportunity to shine and I am very glad to be involved in this effort.” a

  • ‘Rang De Basanti’ drives UTV Q4 revenues

    ‘Rang De Basanti’ drives UTV Q4 revenues

    MUMBAI: It is the Aamir Khan superhit Rang De Basanti (RDB) that has propped up UTV Software Communications’ revenues for the last quarter of the fiscal ended 31 March 2006. The company’s consolidated turnover was up 67 per cent at Rs 858 million.

    We have seen good growth in revenues. Our tent-pole production RDB was released to packed audiences and is rated as one of biggest blockbusters of all times. RDB continues its successful run and we see value in its future exploitation,” said UTV CEO Ronnie Screwvala .

    UTV, however, has reported a 21 per cent fall in consolidated net profit at Rs 66 million for the quarter. “Our operating margins were under pressure. We made heavy investments into animation including training and tests for our large order book. Airtime sales business added ten hours a week during the quarter but since they were all start-up shows it takes four to five months to turn a long-term profitability. We took a very large hit and which we believe is a one-off and without that our margins would have been substantially better than the year before,” said Screwvala.

    Even for the fiscal ended 31 March 2006, UTV’s 18 per cent growth in revenues to Rs 2.14 billion was primarily driven by the film segment. It contributed 63 per cent of the company’s revenues.

    Net profit, however, was down by 43 per cent at Rs 93 million. The company faced significant pressure on margins primarily driven by the following factors:
    a. Two films — Deewane Hue Pagal & Shaadi No.1 in distribution business during the third quarter of the fiscal did not fair well at the box office, booking net loss of more than Rs 70 million
    b. UTV moved from a variable cost model to the fixed one and ramped up its facilities to a 250-seater. Initial ramp up costs written off during the quarter was over Rs l5 million.

    Regarding UTV’s performance for the fiscal ended 31 2006, Screwvala said, “Overall, the year has registered growth of 18 per cent. Hungama has really exceeded our own expectations especially when taking on two large media companies in the world as competitors. Going forward, we have one of the most interesting movie line ups under production and have an interesting package of new TV shows on Sun Network that will show profitability in the quarter to come. We also have an interesting animation order book with all the training costs behind us. Last but not the least for Hungama we have just signed John Abraham as brand ambassador, who is a star among kids between 4-14 and his following will add great value to this asset of UTV.”

    The company has consolidated the financials of UTV-US, UTV-UK, UTV-Mauritius and UESL.

    UTV is exploring strategic investors into the company. “We are in talks with strategic investors to jointly exploit growing opportunity in the entire media space and we believe that the partner will drive substantial future growth with synergies to our business model. Another positive development is in the kids broadcasting space, with Hungama TV emerging as clear no. 2 player in a seven-channel kid’s space. As part of our strategy to achieve leadership position in the kids space and expand our overall kids agenda in South India, we also announced our MoU with Astro, a Malaysian Broadcaster for a 26.01 per cent stake in United Home Entertainment Ltd. for $ 7 million.”

    At the end of 31 March 2006, net debt of the company stood at Rs 949 million. Debt was primarily used to meet working capital requirement for films and capital expenditure for animation and post-production businesses. Total capital employed in the operations is Rs 2.35 billion as of the end of 31 March.

    Television Segment
    Television segment primarily consists of all products and services offered for the small screen businesses. This segment constitutes TV content production, airtime sales, animation, ad films and dubbing businesses. During the last quarter, UTV produced over 72 hours of programming across genres, dubbed over 205 hours of content and sold over 100,000 seconds of airtime.

    For the year ended 31 March 2006, television segment has contributed 34 per cent to the company’s consolidated revenues. Due to a significant ramp up in airtime sales operations, the margins remained under pressure. The new slots added during the last two quarters would take about four -five months to mature.

    Introduction of new programmes in content production and matured slots in airtime sales is expected to translate into better margins during the next fiscal.

    TV Content: UTV experienced a churn in its production slate of TV content mainly driven by its key programmes like Bombay Talking (Zee cafe) and Metier going off-air during the quarter under review. But this was coupled with opening up new avenues in content on SET – Kabhi To Nazar Milao, a new daily soap, which is expected to go on-air on 6 May. A new comedy show Arranged Marriage is expected to go on air on Star One during the next quarter. Also on the anvil are four more shows – Sohni Mahiwai and Chamatkar on DD, and a show each on Discovery and Travel and Living.

    In addition to this, one of the most popular bi-weekly show from UTV stable, Shanno Ki Shaadi is expected to be aired tri-weekly from the next quarter. All new additions on various channels are expected to translate into more than 15 hours of content per week as an average for the fiscal 2007.

    Air Time Sales: During the year under review, number of hours marketed by UTV on South Indian channels have grown by more than 100 per cent as compared to the previous year. During the quarter, the company managed an average of over 22 hours per week across various South Indian channels. The company expanded its operations to Kannada language in addition to its presence in Tamil, Telugu and Malayalam markets in South India. Margins witnessed pressure due to sudden ramp-up of operations during last two quarters.

    Animation: UTV is investing a total of Rs 85 million in animation facilities, which is expected to be fully operational during the first quarter of fiscal 2007. These investments will enable the company to execute present outsourcing order book over a period of next 24 months and venture into creation of its products for domestic and international markets, the company said in a release.

    During the quarter under review, it has added an output deal of over $3 million to its order book from Mike Young. This will be a combination of co-production and outsourcing deal. Due to ramp up in operations to 250 seats in animation business and fixed overheads on training and manpower resulted in lower profitability in the segment by over Rs l5 million.

    Film Segment
    Film segment comprises all products and services resulting in the big screen exploitation and directly related activities. Hence, it comprises all film production and distribution related activities in India and abroad. During the year, this segment has contributed 63 per cent of the company’s revenues and has grown by about 70 per cent as compared to the previous year.

    “The quarter for films started on a very strong footing with RDB storming the theatres on 26 January. The movie has grossed record-breaking numbers at the box office, which is reflected in the growth in the film segment revenues. Film distribution revenues have also added to the top line with the release of successful movies – Bluffmaster and Taxi 9-2-11. Bluffmaster, which was released in the latter part of December 05, has been accounted for in this quarter,” the company said.

    During the year, UTV produced / distributed over nine films and all of them but two proved successful for the company. Two films namely Shaadi No. 1 and Deewane Hue Pagal did not fair well at the box office, thus translating into a net loss during the third quarter.
    “UTV remains cautious in film acquisition strategy and will continue to develop its own IPR in the long run for better efficiencies,” the release said.

    During the quarter under review, UTV Home Entertainment released Bluffmaster, Rang De Basanti and Taxi 9-2-11 in the overseas markets through its DVD label. In line with the Company’s strategy, UTV has tied up with Madhur Bhandarkar (two films), Vishal Bhardwaj (two films), Annez Bazmi (two films), Prakash Jha (two films), Milan Luthria and is in talks with others as well.

    Allied Content Services
    This business segment comprises of post-production activities, which contributed 3 per cent of UTV’s consolidated revenues. The planned expansion of facilities in special effects and digital Intermediary is expected to be operational during May 2006.

    Hungama TV
    The capital employed in United Home Entertainment Ltd is Rs 840 million, which is used to fund Hungama TV’s /operations. UTV has made investments of Rs 680 million into the channel so far.

    With an overall view to expand kids space and establish leadership position not only in India but Asia, Astro, a Malaysian TV content and distribution major, entered an agreement with UHEL to invest $7 million for a 26.01 per cent stake in the company. Promoter’s holding post Astro equity infusion is expected to dilute accordingly.

    Business outlook
    UTV is working towards strengthening its film slate for the next two years. “The company is using marketing and distribution learning from RDB to de-risked and high return model. Led by Namesake, International co-production remains to be an integral part of film business. The company is working towards finalizing a significant co-production deal, which will establish itself a truly global player in filmmaking business in India. Film business in South India looks to be an attractive opportunity for the company. It will shortly announce its foray into regional film space and associations with key talent in those markets,” the release said.

    As part of the strategy to move up the value chain in the animation business, UTV is currently working on 14 DVD home video titles in addition to the TV series order book to be executed over next 24 months.

  • Sony’s operating income rises by 68 per cent

    Sony’s operating income rises by 68 per cent

    MUMBAI: Japanese media and electronics major Sony has announced its financial results for the year ended 31 March, 2006.

    Net income fell 24.5 per cent to $1.06 billion, while revenues were up 4.4 percent to $63.9 billion and operating income jumped by 68 per cent to $1.64 billion.

    Investment gains and the good performance of flat television sets were responsible for the good operating income results. But, start-up costs for the PlayStation 3 will affect the game division and push it deep into the red.

    At the gaming division, revenues were up 31.4 percent to $8.2 billion, but operating income fell by 80 per cent to $75 million

    At Sony Pictures Entertainment, revenues were up just 1.7 per cent to $6.4 billion, while operating income dropped 57.1 per cent to $234 million. The company attributed the slump to lower worldwide theatrical and home entertainment revenues on feature films, which partially offset an increase in television product revenues.

    The increase in television revenues is due to higher advertising and subscription sales from several of SPE’s international channels, higher sales of television library product and the extension of a licensing agreement for Wheel of Fortune.

  • Adhikari Brothers enters into deal with Sirasa TV

    Adhikari Brothers enters into deal with Sirasa TV

    MUMBAI : Sri Adhikari Brothers Television Network Ltd has entered into an agreement with Sirasa TV, Sri Lanka’s leading Channel, owned by Maharaja Group.

    The company will be providing concepts and technical expertise and produce the programmes jointly with Sirasa TV, according to Bombay Stock Exchange.

    The terrestrial television network — Sirasa’s most popular television programme in its brief history, may probably be the reputed musical reality show named Sirasa Superstar.

  • Pay TV reveunes sees growth in Canada; CRTC report

    Pay TV reveunes sees growth in Canada; CRTC report

    MUMBAI: The Canadian Radio-television and Telecommunications Commission (CRTC) has released its annual report indicating that the revenues and profits for Canada’s specialty and pay TV services have climbed steadily over the last five years.

    The reports signifies that on an average, from 2001 to 2005, revenues for these services increased by 10 per cent per year, and their earnings before interest and taxes (EBIT), by 19.4 per cent.
    EBIT for specialty, pay and pay-per view services rose even more significantly over the last year, posting an increase of 31.5 per cent. They climbed from $418.2 million in 2004 to $549.9 million in 2005. Also, revenues reached almost $2.2 billion in 2005, an increase of 6.3 per cent over the previous year, due in part to increases in the number of subscribers and reporting units.

    More specifically, in 2005, revenues from cable distribution services grew by 4.7 per cent over 2004 from $886.9 to $928.4 million. Those for direct-to-home satellite distribution services (DTH) increased by 6.2 per cent, reaching $460.7 million in 2005, compared with $433.9 million in 2004. National advertising revenues rose by 8.7%, increasing from $691.5 million to $751.3 million.

    This year, the report includes a new component: it details programming and production spendings by type of program, as provided to the CRTC by most Canadian specialty services. It shows that, for Canadian programming, services spent $162.5 million on drama, $128.4 million on news, $206 million on other information programming, $116.9 million on sports, $38.3 million on musical and variety shows and $45 million on general interest programs.
    This report was produced using the financial statements of Canadian specialty, pay and pay-per-view services. It is one of a series of reports that the CRTC publishes annually in order to inform those interested in the state of the Canadian broadcasting industry.

    The CRTC is an independent, public authority which was established to sustain and promote Canadian culture and achieve key social and economic objectives by regulating and supervising Canadian broadcasting and telecommunications in the public interest.

  • MTV, Paramount in global marketing tie up for Mission Impossible III

    MTV, Paramount in global marketing tie up for Mission Impossible III

    MUMBAI: MTV and Paramount Pictures are teaming with United International Pictures (UIP) for a global marketing partnership for the Mission: Impossible (M:i:III) film franchise in advance of the film’s release.

    Different content related to the film will roll out on MTV channels in Asia, US, Canada, Europe, Latin America and Russia.

    MTV channels across the globe will premiere two half an hour specials. The first, Making the Movie will be somewhat like a DVD feature and will have interviews with Tom Cruise and other cast members including Oscar winner Phillip Seymour Hoffman.

    The other special Diary of Tom Cruise With Sway, features the actor spending the day with the MTV presenter. Web content related to the partnership will include the M:i:III film trailer, an MTV at the Movies review of the film, banner ads and a link to the official M:i:III site.

    MTV channels will also make region specific content. MTV Italy is producing a special live TRL in Piazza del Poppolo in Rome dedicated to the film, and MTV UK is producing an M:i:III special for its new show 1 Leicester Square.

    In France, MTV will air news reports from the red carpet premiere in Paris. One of the stars from the film Maggie Q will make an appearance at the MTV Asia Awards 2006 in Thailand on 6 May. In Japan, MTV will produce an episode of its weekly film show MTV Screen, as well as air news reports on the film and editorial coverage in its free consumer magazine MTV Paper. And TRL in the US will host Tom Cruise and the cast of M:i:III on 2 May.

    The Yahoo Tie up: Meanwhile, Paramount and Yahoo will provide moviegoers a wide array of special features, behind-the-scenes footage, and music and movie content. As a result of the films presence on the Yahoo! network around the world, audiences will have the chance to see exclusive video from the film’s world premiere in Rome and US premiere in New York; a Q&A with Tom Cruise and director J.J. Abrams; music from the film; and never-before-seen clips.

    Paramount senior VP interactive marketing Amy Powell says, “Tom Cruise and J.J. Abrams are bringing a fresh, high-tech look to the ‘Mission’ franchise and we wanted to deliver that to Internet users in an innovative way. As M:i:III kicks off the summer, we’ve got an outstanding lineup of behind-the-scenes and live content that rivals the very biggest interactive movie campaigns. We’re thrilled to be getting creative with Yahoo!.”

    Yahoo! Movies’ exclusive video coverage of the 3 May US premiere of M:i:III currently includes plans to offer a camera view from Tom’s perspective as he arrives at the premiere and steps down the red carpet. In addition, Yahoo! plans to offer users the chance to ask Tom questions in real time and see his answers live from the red carpet. Tom will also be announcing the winner of the People’s Premiere contest, in which one entrant will win a private screening in their hometown, attended by Cruise.

    Interviews with the star and co-writer/director will provide movie fans with DVD-style commentary on exclusive clips from the movie, and also give users a sneak peak into the “Top Ten Things You Didn’t Know About Mission: Impossible III.” Users also had the chance to use Yahoo! Answers (http://answers.yahoo.com), Yahoo!’s online Q&A community where real people ask and answer questions on any topic, to stump Tom Cruise on trivia from his many hit movies, with J.J. posing the users’ questions.

    All content will be available on Yahoo.com as well as Yahoo! Australia, Yahoo! France, Yahoo! Germany, Yahoo! Italy, Yahoo! Spain, Yahoo! Taiwan and Yahoo! UK.

  • Ford targets automobile enthusiasts with new reality TV show

    Ford targets automobile enthusiasts with new reality TV show

    MUMBAI: Ford Motor Company has announced its plans to produce a TV competition on the theme of designing a dream car. As per the concept, the reality show participants will work on developing a concept car with Ford designers.

    Ford officials have been quoted in media reports as saying that the TV show will be shopped around in the hope of landing on a major TV network.

    The company also launched a promotional video of the show. Ad agency J. Walter Thompson has designed the video.
    The automobile major is one of two principal sponsors of the Fox’s American Idol reality show.

  • Set Discovery promotes Gurjeev Singh Kapoor to SVP, sales & marketing

    Set Discovery promotes Gurjeev Singh Kapoor to SVP, sales & marketing

    MUMBAI: Set Discovery Pvt. Ltd., which distributes a bouquet channels under the brand name One Alliance, has promoted Gurjeev Singh Kapoor to the position of SVP, sales & marketing.

    In his new position, Kapoor will look after the company’s India sales and marketing operations. He will also take up the additional responsibility of international marketing.

    Based out of Mumbai, Kapoor will be reporting to Set Discovery President Anuj Gandhi.

    Set Discovery has also promoted about 17 executives in the junior and middle level management categories, across the country. “We have promoted people across the board. There are senior managers who have become AVPs and managers who have been assigned as senior managers,” informs Gandhi.

    Kapoor has earlier worked with ESPN and Zee International before joining Discovery Communications. He moved to Set Discovery in April 2002, when the joint venture between Sony Entertainment Television and Discovery Communications was formed.

    SET Discovery distributes channels including Sony Entertainment Television, Max, Discovery, Ten Sports, Discovery Travel and Living, MTV, Sab TV, AXN, NDTV India, NDTV 24×7, NDTV Profit, Nick, Animal Planet and Animax channels through the One Alliance brand.

  • Pond’s Sapno ki Rajkumari Contest

    Pond’s Sapno ki Rajkumari Contest

    Lucky winners will relish the magnificence of royalty & revel in an unmatched luxury by winning the grand prize of becoming Pond’s Sapno ki Rajkumari. Each Pond’s Sapno ki Rajkumari will experience the grandeur of a princess’s life for a day.

    A specially organised gilded carriage will carry her to a majestic palace. Royal attendants will adorn her with designer clothes and accessories. And what’s more? A Royal couple will coronate the Pond’s Sapno ki Rajkumari with an exclusively crafted diamond crown. There are also other exquisite prizes which include jewellery sets, royal diamond earrings and gold pendants.

    Buy Pond’s talc available in four exciting variants and engage in this royal pursuit. This offer is applicable with Pond’s dream flower talc, Pond’s magic talc, Pond’s sandal talc and Pond’s oil control talc. The dream run will also continue through various regional contests in your cities and towns. This activity is supported by other exciting offers available exclusively in Hindustan Lever Limited super value stores.

    About Pond’s:

    Pond’s has two product ranges, which fall in the area of advanced skin creams and talcum powders. The summer range includes attractive and trusted Talcum Powder portfolio of Pond’s Dream flower talc, Pond’s Magic and Ponds Sandal talc. Pond’s Talcum Powder has been a trusted beauty product for Indian women since 1956. Last year Pond’s launched an all-new Oil Control Range with Pond’s Oil Control Talc & Cream with Orange Peel extracts & vitamin C. The Skincare range also comprises Moisturizing Cold Cream, launched in India in the year 1947, and the all-new Ponds body Lotion with Triple Vitamins.
    Under the Pond’s umbrella we also have our Pond’s Daily Face Wash that cleans your skin gently.

    Pond’s is a leading global brand with its presence is USA, Mexico, Japan, China Thailand, Indonesia, South Africa, Spain, Colombo, Malaysia, Australia, Korea etc.

  • Zee consolidated net skids 30% at Rs 2.21 billion in FY06

    Zee consolidated net skids 30% at Rs 2.21 billion in FY06

    MUMBAI: Zee Telefilms has posted a 30 per cent fall in consolidated net profit at Rs 2.21 billion for the fiscal ended 31 March 2006, as against Rs 3.17 billion a year ago.

    Total income, however, rose to Rs 14.87 billion, up from Rs 13.3 billion.
    For the last quarter of the fiscal, the company has reported a 27.2 per cent decline in consolidated net profit to Rs 675.5 million, as compared to Rs 925.7 million in the corresponding period of the previous year.

    Total income, however, rose 10 per cent to Rs 4.1 billion, up from Rs 3.8 billion. The operating profit stood at Rs 761 million, after expensing of initial investments in new activities viz. Zee Telugu, Zee Smile, Zee Sports and others, amounting to Rs 525 million (13.2 per cent of consolidated revenues). As a result, consolidated operating profits of continuing businesses were Rs 1.28 billion. These are higher by 4.8 per cent as compared to the corresponding quarter last year. “The growth rate is subdued mainly due to investments in marketing focused on long-term buildup of mainline channels,” Zee said in an official release.
    On a standalone basis, Zee Telefilms has posted a 54.39 per cent fall in net profit to Rs 740.00 million for the year ended 31 March 2006 as compared to Rs 1.62 billion a year ago. Total Income has increased to Rs 8.84 billion, up from Rs 6.93 billion.

    For the quarter ended 31 March 2006, the company reported a net loss of Rs 132.5 million as compared to a net profit of Rs 370.40 million a year ago. Total income, though, has increased to Rs 2.66 billion, up from Rs 1.75 billion during the period.

    “The business of Zee Sports channel started on 8 June 2005. Zee Sports Ltd is re-organised in ZTL during current quarter and content gathering and space selling activity is retained in Zee Sports through an agency arrangement. Hence the standalone results of the company for current quarter and year are not comparable, said the company.

    Commenting on the results, ZTL chairman Subhash Chandra said, ““We are pleased to report the continuing uptrend in advertising revenues and the strong recovery in our market position. You are aware of the hike in advertisement rates announced by Zee Network, which we are confident would start reflecting in FY2007 revenues.”

    “The Board has also given approval for the hiving off of Zee’s direct consumer business. All DishTV operations would now be under a single corporate entity, bringing strategic clarity to this high growth business. This shall complete the restructuring agenda we had set for ourselves to create four focused, pure play, listed companies ready to exploit the vast emerging opportunities in each line of business. Subject to necessary approvals, this would result in streamlined operations in each area to build long-term shareholder value. It would also clear the ground for acquisitions and strategic or financial partners in the de-merged businesses, apart from unlocking shareholder value,” said Chandra.

    Commenting on the results, ZTL CEO Pradeep Guha said, “While general entertainment (GE) as a genre has posted a 5 per cent decline in time spent, Zee TV has increased its viewership share from 16 per cent to 22 per cent along with a significant growth in time spent. Even within prime time Zee TV is the only channel to have grown, by 21 per cent, while its main competitors have dipped between 7 per cent and 12 per cent. Zee TV now conclusively occupies the second place in the pecking order of GE channels. With an average of 180 GRPs, we are fully 30 per cent higher than the number three GE channel, which continues to be behind Zee Cinema as well.”

    “The cinema space has shown a decline except however for Zee Cinema, which has grown 7 per cent, with a channel share of 37 per cent. Recently we won the BCCI Cricket Rights for the one-day internationals to be held in non-ICC countries.This further strengthens the long term business prospects of the company,” Guha added.

    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 31 March, 2006.

    REVENUE STREAMS:
    Zee’s advertising revenues increased to Rs 1.96 billion, a 11.7 per cent growth as compared to the corresponding quarter last fiscal. “This growth in advertising revenues was a result of higher average rates on most of the network channels,” the company said.

    Overall subscription revenues at Rs 1.76 billion registered an increase of 5 per cent over the corresponding quarter last fiscal. Domestic pay revenues stood at Rs 717 million. Other sales and services grew to Rs 253 million. “From 2Q FY2006, we are recording the net income component of the trading of set top boxes as part of other income”, the company said in the release.

    EXPENDITURE:
    Overall, the cost of goods and operations went up 44.8 per cent compared to a year-ago period, mainly due to investments made in new channels like Zee Sports, Zee Smile, Zee Telugu and Zee Jagran.

    Personnel costs were 6.5 per cent higher than corresponding period last year. Other costs, particularly marketing expenses have increased by 24.4 per cent. As a result, total expenses were higher by 35 per cent.

    From FY2006, the Company has accelerated its investments in the development and expansion of its network. “This has taken two directions. One, substantial marketing and content improvement initiatives have been put through and second, a number of new channels have been launched, to fill out our content offerings,” states the company.

    “As a result, Zee is in a phase in which the initial investments have been made and expensed fully, while the corresponding revenue build-up is to be realized in the next several quarters. The immediate impact is lowering of operating profits, which we hope to recover in successive quarters through increasing revenues and progressive reduction in costs,” the company adds.

    Zee’s Q4 segment-wise revenues are indicated in the table below:

    OTHER HIGHLIGHTS

    Cable Network
    Zee is looking forward to reinvention of its cable TV business and augmenting revenues. “The cable business is poised to pursue new technology opportunities with renewed focus including ‘triple play’ offerings, digitisation of cable, broadband and other similar initiatives that form the frontiers of cable today. Firm business plans are being given shape and field launch is due to commence shortly. There is more visibility now on the path of transition in the cable business towards digitalization. The recent regulatory and legal developments look set to lead to a roadmap for digitisation initially in the metros,” the company said.

    Direct Consumer Services business
    The DTH subscriber numbers have crossed 900,000 and are growing at the rate of about 2,500 per day. “We are poised to execute market expansion strategies which would lead to a ramp up of subscription from the urban markets, based on value added services not presently available on cable,” the company said.

    At the Bombay Stock Exchange today, the Zee scrip opened at Rs 241.50 and closed at Rs 246.65, after touching a high of Rs 253 and a low of Rs 242.50.