GECs

Zeel operating profit up; board recommends 290% dividend

Published

8 years ago

May 11, 2018

BENGALURU: Subhash Chandra-led Zee Entertainment Enterprises Ltd (Zeel) reported higher operating profit (EBITDA) for the year and quarter ended 31 March 2018 (FY 2018, the year under review; Q4 2018, the quarter under review) as compared with the corresponding periods of the previous year (FY 2017, Q4 2017). Profit after tax (PAT) for the quarter and year under review was, however, lower due to higher tax and lower extraordinary/exceptional items as against the previous year. The Zeel board of directors has recommended an equity dividend of 290 per cent per share of face value of Re 1.

Zeel’s EBITDA for FY-2018 increased by 7.7 per cent to Rs 2,076.14 crore (31.1 per cent margin) from Rs 1,926.86 crore (29.9 per cent margin) in fiscal 2017. EBITDA for Q4 2018 rose by 8 per cent to Rs 506.20 crore (29.3 per cent margin) from Rs 468.70 crore (30.7 per cent margin). PAT for FY 2018 declined 33.4 per cent to Rs 1,477.75 crore from Rs 2,220.11 crore.

Zeel’s operating revenue for FY 2018 was 3.9 per cent higher at Rs 6,685.68 crore than the Rs 6,434.13 crore in FY 2017. Operating revenue for Q4 2018 grew by 12.9 per cent year-on-year (yoy) to Rs 1,725.31 crore from Rs 1,527.95 crore. Total revenue for FY 2018 increased by seven per cent to Rs 7,126.30 crore from Rs 6,658.17 crore in the previous year. Total revenue for the quarter grew by 14.6 per cent yoy to Rs 1,813.43 crore from Rs 1,582.89 crore. Revenue growth during both periods can be attributed to growth in advertising revenue partly offset by a decline in subscription revenue.

Advertising revenue in FY 2018 increased by 14.5 per cent to Rs 4,204.76 crore from Rs 3,673.50 crore in the previous year. The company said in its earnings release that on a comparable basis— excluding sports, RBNL and Indian Web Portal Pvt Ltd (IWPL)—domestic advertising revenue grew by 15.9 per cent to Rs 3,848.88 crore. International advertising revenue increased by 26.2 per cent in FY 2018 to Rs 214.3 crore. International business revenue in Q4 2018 was Rs 66.2 crore.

Subscription revenue during the year under review declined by 10.3 per cent to Rs 2,028.73 crore from Rs 2,262.91 crore in FY 2017. The company said in its release that adjusted for sale of Zeel’s sports business, subscription revenue actually grew by 11.8 per cent. The company also said that subscription revenue growth for the year was slightly impacted by the delay in phase-III monetisation due to the uncertainty regarding TRAI’s tariff order. Domestic and international subscription revenue for Q4 2018 declined by 0.7 per cent yoy and eight per cent yoy, respectively, primarily on account of the sale of the sports business. Subscription revenue in Q4 2018 decreased by two per cent yoy to Rs 546.52 crore from Rs 557.92 crore. International business subscription revenue in Q4 2018 declined to Rs 94.4 crore.

Zeel’s other sales and services include revenue from its movie production business, content syndication, music label and commission on sales. Other sales and services revenue decreased by 9.1 per cent in FY 2018 to Rs 452.19 crore from Rs 497.72 crore in the previous fiscal. For Q4 2018, other sales and services revenue increased by five per cent yoy to Rs 129.24 crore from Rs 123.09 crore in Q4 2017. Other sales and services revenue from the international business in Q4 2018 was Rs 53.7 crore.

Other income, during the year under review, soared by 96.5 per cent to Rs 440.35 crore from Rs 224.04 crore whereas, during the quarter, increased by 60.4 per cent to Rs 88.12 crore from Rs 54.94 crore.

For FY 2018, total costs increased by 2.3 per cent to Rs 4,609.50 crore. The underlying increase was higher but offset by the sale of the sports business. On a like-to-like basis, programming cost increased due to higher original content hours across the network and higher movie amortisation cost while the reported programming cost declined due to the sale of the sports business. Advertising, publicity and other expenses increased by 25.6 per cent to Rs. 1,416.4 crore on account of brand refresh, launch of ZEE5 and costs related to silver jubilee events.

Zeel’s total expenditure in Q4 2018 at Rs 1,219.1 crore was higher by 15.1 per cent as againt Q4 2017. Programming cost for the quarter at Rs 689.3 crore increased by 6.7 per cent yoy. This increase was driven by higher original programming hours in regional channels, higher movie amortisation costs and content cost for ZEE5. Advertising, publicity and other expenses for the quarter grew by 44 per cent yoy to Rs 3,66 crore on account of the ZEE5 launch expense and increased marketing activities for new properties. Additionally, the expense base for Q4 2017 was lower as some marketing and promotion events were held back due to demonetisation, the release stated.

Zeel chairman Subhash Chandra said, “Looking at our performance one might not realise that the first half of the year was not as smooth, which is a testimony to the strength of our team. Being the number one TV entertainment network is a result of our strategy and the consistent hard work we have put in over the years. With the launch of ZEE5, we have taken a major leap towards our preparation for the future and we are confident that like TV business we will be in the leadership position in the digital space as well.”

Zeel CEO and managing director Punit Goenka said, “We launched our new digital platform ZEE5 with over 100,000 hours of content across 11 languages. We are happy with the initial response and are confident that the sheer depth and breadth of our content offering will enable it to become the number one digital entertainment platform in India. We have also focused on the peculiarities of Indian market and designed technological features to improve the user experience. Unlike most of the existing apps which are either focused on the English-speaking segment or the youth audience, ZEE5’s vast content catalogue is designed with an objective to cater to all sections of video viewing audience.”

Goenka added, “We are delighted with the strong operating and financial performance during the quarter. Domestic ad revenue growth of 24 per cent is driven by broad based recovery in advertising spends. With high visibility of product campaigns, improving consumer demand and GST related benefits trickling down to ad spends, we are confident of continued traction in advertising spending. The full-year domestic subscription revenue growth of 12 per cent is a tad lower than our initial expectations due to some unforeseen events. However, there is no change in our medium-term outlook for the same.”

Also Read :

Zee Media reports higher ad revenue growth in Q3 2018

Zee, Turner to work independently for subscription revenue

Up Next

Enough potential in urban India before going rural: L’Oréal Paris

Don't Miss

The Womb launches Saregama Carvaan’s first TV campaign

Click to comment

GECs

Sun TV posts steady revenue, profit dips amid rising costs

Published

1 week ago

February 7, 2026

indiantelevision.com Team

CHENNAI: It appears there is still plenty of Sun to go around in the Indian broadcasting landscape, even if a few clouds have drifted across the financial horizon. Sun TV Network Limited, the Chennai-based behemoth that dominates airwaves across seven languages, has tuned into a steady frequency for the quarter ending 31 December 2025. While the numbers show a resilient revenue stream, the company’s latest broadcast reveals a few static-filled spots in its profit margins.

For the quarter in question, Sun TV’s total income climbed by approximately 3.31 per cent, reaching Rs 958.39 crores compared to Rs 927.66 crores in the same period last year. Revenue from operations also saw a healthy bump, rising 4.32 per cent to Rs 827.87 crores.

The real star of the show, however, was domestic subscription revenue, which surged by 8.86 per cent to Rs 472.99 crores. This growth highlights the enduring appetite for Sun’s diverse content, which spans everything from daily soaps in Tamil and Telugu to its burgeoning OTT platform, Sun NXT.

Despite the revenue growth, the picture quality of the profits was slightly blurred by rising costs. Eitda for the quarter stood at Rs 409.79 crores, a dip from the Rs 432.14 crores recorded in the corresponding 2024 quarter.

The profit after tax followed a similar downward trend, settling at Rs 316.44 crores against the previous year’s Rs 347.17 crores. Advertisers also seemed to have switched channels slightly, with advertisement revenues sliding to Rs 291.94 crores from Rs 332.17 crores.

Sun TV isn’t just playing on home turf; its sporting ambitions are becoming increasingly global. The network now owns three major cricket franchises: SunRisers Hyderabad in the IPL, SunRisers Eastern Cape in SA20, and SunRisers Leeds Limited in The Hundred (UK).

The foray into British cricket saw the company acquire a 100 per cent stake in Northern Superchargers Limited (now SunRisers Leeds) for approximately £100 million. While these franchises brought in Rs 14.61 crores this quarter, they also incurred corresponding costs of Rs 19.89 crores. Over the nine-month period, however, the cricket business is a major player, contributing Rs 487.64 crores in income.

The company’s bottom line took a minor hit from exceptional items, including a Rs 4.23 crore charge related to India’s new Labour Codes, which consolidated 29 existing labour laws. Additionally, the consolidated results reflect the amalgamation of Kal Radio Limited with Udaya FM, a move that became effective in May 2025 and required a restatement of previous figures.

To keep investors from reaching for the remote, the Board has declared an interim dividend of 50 per cent, that’s Rs 2.50 per equity share. This comes on top of earlier dividends of 100 per cent (Rs 5.00) and 75 per cent (Rs 3.75) declared in August and November 2025, respectively.

With a massive cash reserve and a dominant position in the South Indian market, Sun TV continues to shine, even if the current quarter required a bit of fine-tuning. For now, shareholders can sit back, relax, and enjoy the show.

GECs

SPNI hires Pradeep M with responsibility for standards and practices in the south

Published

2 weeks ago

February 3, 2026

indiantelevision.com Team

MUMBAI: Sony Pictures Networks India has hired Pradeep M to handle standards and practices for its southern market, bolstering its compliance bench as content rules tighten across platforms.

Pradeep, who has nearly 13 years in the entertainment media industry, takes on responsibility for content standards in a region that is both linguistically diverse and regulatorily sensitive. His brief spans television, OTT, sports and digital platforms.

He specialises in content review and compliance across shows, commercials, on-air promotions and international feeds, ensuring alignment with broadcast, OTT and advertising codes. He has also handled brand approvals and sponsorship integrations for heavily regulated categories—including online gaming, cryptocurrency, NFTs and lottery brands—offering guidance shaped by fast-evolving rules.

Before Sony, Pradeep worked at Jiostar as assistant manager for content regulation from November 2024 to January 2026. Earlier, he spent nearly seven years at Viacom18 Media, rising from senior executive to assistant manager in content regulation between 2018 and 2024. There he served as a key compliance touchpoint for the network.

His career began on the creative side. Between 2013 and 2018, he worked as executive producer on feature films and television shows, gaining hands-on exposure to production. He also had a stint as a non-fiction show director at Star TV Network in 2017. That mix of creative and regulatory experience gives him a dual lens—how content is made and how it must be managed.

As regulators, platforms and advertisers all tighten the screws, broadcasters are investing more in gatekeepers who can keep creativity within the lines. Sony’s latest hire shows where the industry is heading: in the streaming age, compliance is content’s quiet co-star.

GECs

Colors Gujarati rolls out two new shows from 2nd February

Published

2 weeks ago

February 2, 2026

indiantelevision.com Team

MUMBAI: Colors Gujarati has unveiled two new prime-time shows as part of its push to strengthen culturally rooted storytelling for regional audiences. The channel will premiere the devotional saga Gangasati–Paanbai at 7.30 pm, followed by the romantic family drama Manmelo at 9.30 pm from February 2.

Inspired by Gujarat’s spiritual and literary heritage, Gangasati–Paanbai: Shyam Dhun No Navo Adhyay draws from the timeless bhajans and poetry of saint-poetesses Gangasati and Paanbai, weaving devotion and human values into a contemporary narrative aimed at younger viewers.

In contrast, Manmelo explores love and responsibility across social divides, tracing the lives of three middle-class sisters whose relationships with three affluent brothers reshape their futures. The show delves into ambition, emotional conflict and the realities of married life, offering a layered family drama.

A Colors Gujarati spokesperson said the new launches reflect the channel’s commitment to authentic Gujarati entertainment that blends cultural values with modern storytelling.