ITV

Tag: Advertising revenues

  • Sun TV Q3 revenue excluding IPL up 27.76% to Rs 975.16 crore

    Sun TV Q3 revenue excluding IPL up 27.76% to Rs 975.16 crore

    Mumbai: Sun TV Network has posted its results for the third quarter of FY 2022. The media company’s revenue for the quarter, excluding the IPL, has increased by 27.76 per cent year-on-year to Rs 975.16 crore. Its overall revenues were at Rs 1033.10 crore and saw a growth of 6.25 per cent versus the same period year-on-year (31 December 2020).

    The EBIDTA for the quarter grew by 20.18 per cent at Rs 721.87 crore and profit before taxes grew marginally by 2.90 per cent over the corresponding quarter ended 31 December 2020.

    The profit after taxes (excluding the IPL) stood at Rs 437.89 crore up by 14.44 per cent YoY and the overall profit after taxes grew by 3.52 per cent to Rs 457.39 crores as against the corresponding quarter year-on-year.

    The total comprehensive income for the quarter was up by 3.52 per cent at Rs 457.20 crore YoY. The earnings per share for the current quarter grew by 3.52 per cent at Rs 11.61 as against Rs 11.21 for the corresponding quarter ended 31 December 2020.

    Sun TV’s board of directors has declared an interim dividend of Rs 2.50 per share (50 per cent) on a face value of Rs five per share.

    During the current quarter, Sun Pictures had released the blockbuster film “Annaatthe” starring superstar Rajinikanth.

  • TRAI ad cap: Why news channels want concessions?

    TRAI ad cap: Why news channels want concessions?

    MUMBAI: News channels have been rather miffed with TRAI’s ruling that advertising air time should be restricted to just 12 minutes per hour. And they have been seeking some succor from government. Two weeks ago they got a lifeline when the Telecom Disputes Settlement Appellate Tribunal (TDSAT) allowed them to appeal against the TRAI mandate.

     

    And apparently, if sources are to be believed that appeal was filed with the TDSAT today, the hearing for which will be on 19 September.

     

    “In a democracy you have the legal right to approach the court against injustice and that is what we are doing,” says one of the broadcasters who wished to remain unnamed.

     

    Certain issues that news providers are grappling with are high carriage fees, falling advertising revenues, an unfavourable economy and low subscription rates. These have already nearly crippled the broadcast news industry with all of them being forced to cut back ad time per hour to 20 minutes from 1 July.

     

    Those in the know say the News Broadcasters Association (NBA) perspective is that other genres can cope with the ad restriction better because their shows are pre-produced. News-based and news-oriented shows which are live are unpredictable.

     

    “In news, generally there are discussions. What will we do if a discussion ends a minute early or a minute late?” asks the news broadcasting executive. “Sometimes, news channels cover incidents without even a break. In such cases, it puts a lot of strain on news channels as they either violate the rule or fall short of fulfilling it. Also in the case of natural disasters where death has occurred we find it difficult to carry advertising. And this could continue for days. What about the loss of air time then?”

     

    Lowering of advertising air time will work better in a digitised cable TV universe, is the news broadcasters view, as substantial subscription revenues will kick in (most news channels run as free to air services now) and carriage fees will drop to almost zilch. But that is in the future, they say, as digitisation has still some way to go nationally and has happened in only a limited number of cities.

     

    “We had asked TDSAT to phase it out in such a way that it comes into effect at the same time that digitisation takes place in the country,” says another broadcaster.

     

    Sources indicate that TRAI is unlikely to relent on allowing any increases in air time as chairman Rahul Khullar is pretty clear that quality of services is something which is the regulator’s responsibility. But they add that one area where he may give concessions is when round the clock news reportage is forced upon news channels by natural or manmade disasters or events.

     

    “We believe there has been an informal agreement with the TRAI agreeing to the news broadcasters’ demands that if they don’t consume the air time within the day because of live coverage they will be allowed to consume it in the next 24 hours,” says a source.”Now that has to be written into law.”

     

    It’s over to the two Ts – TDSAT and TRAI – now.

  • Zeel’s Q1-2014 PAT up by 42.6 per cent (y-o-y)

    Zeel’s Q1-2014 PAT up by 42.6 per cent (y-o-y)

    BENGALURU: Content and broadcast player Zee Entertainment Enterprises Limited (Zeel) unaudited results for Q1-2014 reported a growth of 42.6 per cent ( y-o-y) PAT, with a PAT margin of 23 per cent at Rs 223.9 crore as compared to the Rs 157 crore during the corresponding quarter of FY-2013. Consolidated operating revenues were up 15.5 per cent (y-o-y) at Rs 973.3 crore during Q1-2014 from the Rs 843 crore reported for Q1-2013.

    Let’s take a look at Zeel’s Q1-2014 performance

    Advertising revenues for Q1-2014 were higher at Rs 530.1 crore, recording an 18.5 per cent growth over Q1-2013’s Rs 447.2 crore.

    Zeel’s subscription revenues for Q1-2014 were also up by 16.5 per cent at Rs 421.1 crore as compared to the Rs 361.1 crore during corresponding period last year. Zeel’s domestic subscription revenues stood at Rs 316.8 crore (up 26.5 per cent as compared to Q1-2013); while its international subscription revenues were Rs 107.3 crore for Q1-2014 (down 5.6 per cent y-o-y as against Q1-2013.

    Other sales and services revenues were down 39.7 per cent for Q1-2014 at Rs 19.1 crore as compared to Rs 31.7 crore during Q1-2013.

    Zeel’s operating costs increased 9.6 per cent to Rs 410.8 crore for Q1-2014 from Rs 375.7 crore in Q1-2013. Its employee costs increased 7.7 per cent to Rs 95.6 crore from Rs 88.6 crore during Q1-2013. Selling and other expenses saw a 20.7 per cent jump to Rs 175.4 crore during Q1-2014 from Rs 145.3 crore reported in Q1-2013.

    Zeel offered and allotted 55,48,400 equity shares at a price of Rs 119.90 per share upon exercise of ESOP by its employees during Q1-2014. During the AGM held in July 2013, Zeel shareholders passed a special resolution approving enhancement of FII limits in the company beyond the current limit of 49 per cent to the maximum sectorial limit allowed under FDI applicable regulations.

    Zeel chairman Subhash Chandra said, “The economy during the quarter has continued to face challenges due sharp depreciation in rupee against major currencies leading to elevated current account deficit, balance of payment, inflation and adverse fiscal deficit. In spite of this lackluster growth television media industry has posted a comparatively robust growth on back of sustained advertisement spends by the consumer goods sector.”

    “Our performance during the quarter reflects the investments that Zee is making to grow its business and market share. This has been accompanied by a strong improvement in operating performance of the company during the quarter. In a highly competitive space, Zee continues to build its media assets and in the process continues to create value for the shareholders. We have a strong balance sheet and I am confident that we would take advantage of the growth opportunities ahead of us,” added Chandra.

    Zeel managing director and CEO Punit Goenka said, “The subscription revenue during the quarter has shown robust increase and with digitization rollout, will improve medium term. Sports performance for the quarter has been good, but due to heavy sports calendar and rupee depreciation, the business is expected to be in losses for some time.”

    “The phased implementation of Trai regulation with respect to advertising inventory based on clock-hour has started and in expected to be fully in place by the end of second quarter, DAS in phase I and II also moved a step further with MSOs’ making substantial progress in capturing consumer data and taking first steps towards implementing packaging”, added Goenka.

    “While competitive intensity remains high in the Indian television industry, we continue to make efforts towards further enhancing our market share. Our content focused approach combined with better monetization of subscription revenues, will contribute to company delivering steady return in the years ahead”, added Goenka further.