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Tag: Essel Group

  • ZEE Entertainment stake stale’s first tranche worth 8.7% completed by Essel Group

    ZEE Entertainment stake stale’s first tranche worth 8.7% completed by Essel Group

    MUMBAI: Multi-faceted business conglomerate Essel Group on Tuesday announced the successful completion of the first tranche of ZEE Entertainment Enterprises Limited's (ZEEL) stake sale to Invesco Oppenheimer Developing Markets Fund.

    On 31 July 2019, the group had entered into an agreement to sell up to 11 per cent promoter stake in ZEEL to the fund.

    The Subhash Chandra-led Group has now completed the sale of 8.7 per cent stake in ZEEL as part of the first tranche. 

    Essel is confident of  completing the balance sale of 2.3 per cent stake over the next few days.

    The company is working towards the timely completion of operational formalities in order to conclude the entire transaction at the earliest.

    This development reaffirms the media and entertainment giant’s positive progress on its overall asset divestment approach undertaken, to generate adequate liquidity for the repayment process. 

    The group is also working actively on further divestments including its non-media assets and remains confident to complete the same.

  • Ad revenue growth drives Zee Media numbers up in Q1 FY20

    Ad revenue growth drives Zee Media numbers up in Q1 FY20

    BENGALURU: The Essel group’s Zee Media Corporation Ltd (ZMCL) reported 29.7 per cent growth in consolidated operating revenue for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) at Rs 200.66 crore as compared to Rs 154.69 crore for the corresponding year ago quarter Q1 2019 (y-o-y). Growth in numbers was led by 35.7 per cent y-o-y growth in advertising revenue in Q1 2020 at Rs 185.90 crore as compared to Rs 136.97 crore in Q1 2019. Subscription revenue for Q1 2020 increased 1.6 per cent y-o-y to Rs 11.28 crore from Rs 11.10 crore. Other sales and services declined 47.5 per cent y-o-y to Rs 3.47 crore during the period under review from Rs 6.62 crore.

    However, the company’s consolidated profit after tax (PAT) for Q1 2020 declined 52.9 per cent to Rs 26.07 crore from Rs 55.38 crore in Q1 2019. It must be noted that ZMCL had sold off its entire equity stake in Ez-Mall Online to a related party effective 30 June 2018 and the company has arranged for impairment as per Ind-AS-109 for its investments in Diligent Media Corporation Ltd. For further details please refer to the company’s financial statements. Consolidated operating EBITDA for the quarter under review increased 83.6 per cent y-o-y in Q1 2020 to Rs 65.88 crore from Rs 35.88 crore.

    Let us look at the other numbers reported by the company

    Consolidated total expenditure for Q1 2020 increased 13.4 per cent y-o-y to Rs 134.78 crore from Rs 130.45 crore. Operating costs increased 41.7 per cent y-o-y in Q 2020 to Rs 36.12 crore from Rs 25.49 crore. Employee Benefits Expense in Q1 2020 increased 21.8 per cent y-o-y to Rs 42.40 crore from Rs 34.81 crore. Marketing, distribution and business promotion expenses in Q1 2020 increased 7 per cent y-o-y in Q1 2020 to Rs 22.23 crore from Rs 20.77 crore. Other expenses during the quarter under review declined 9.8 per cent y-o-y to Rs 34.03 crore from Rs 37.74 crore.

  • ZEEL likely to sell 20% to Sony Corp

    ZEEL likely to sell 20% to Sony Corp

    MUMBAI: Japanese multinational conglomerate Sony Corp is in advanced talks with Subhash Chandra-promoted Zee Entertainment Enterprises Ltd (ZEEL) to buy a stake in the firm. As the company has been struggling to raise funds to pay huge debt, Chandra is looking to sell 20-25 per cent stake.

    According to a report by Mint, the entire amount raised through the stake sale would be used to repay promoter debt worth Rs 13,000 crore. The report also added that the talks have reached the valuation stage wherein Subhash Chandra wants to sell the stake at a premium of about 30 per cent. But the total stake that promoter Subhash Chandra wants to retain in Zee may be a concern for the deal.

    Essel Group holds 41.62 percent stake in ZEEL and more than half of the stake is pledged with lenders, as per latest data. Sony wanted to pick up at least 25 per cent, which would also allow it to have promoter rights, the report said.

    The deal with ZEEL will be a great boost for Sony to strengthen its foothold in India. Along with a strong television business, the firm’s OTT platform ZEE5 also gained good traction in a short span.

    Earlier too, analysts predicted that that it would command a huge premium by virtue of being the most profitable media company. However, the current crisis may not allow it to do so giving potential buyers chances for negotiation.

  • SITI Networks Operating EBITDA leaps 1.9x YoY to 930 Mn

    SITI Networks Operating EBITDA leaps 1.9x YoY to 930 Mn

    MUMBAI: SITI Networks Limited, an Essel Group company, with 55Mn+ consumers and presence across 580+ locations in India, has released its Consolidated Unaudited Financial Results for Q3FY19, continuing its consistent growth across various parameters.

    On the back of disciplined execution, SITI reported growth in its Operating EBITDA by 1.4x QoQ and 1.9x YoY. SITI Operating EBITDA Margin also expanded significantly by 975 bps YoY to 24.5 per cent in Q3FY19. This was also supported by flattish operating expenses on a YoY basis and effecting a reduction of 7 per cent QoQ.

    Subscription revenue spiked 21.4 per cent YoY to Rs. 2,571 Mn in Q3FY19, aided by the steady growth in Digital Subscription. 9M subscription revenue grew even faster at 24 per cent, and was at INR 7,268 mn.

    Blended ARPU increased substantially by 19 per cent YoY. This ARPU improvement was broad based across phases, with SITI’s ubiquitous presence in Phase 3 and 4 showing 23 per cent and 35 per cent growth respectively. SNL also ensured subscription collection efficiency of 94 per cent in Q3FY19.

    In the quarter ending December 2018, SITI ended with an Active Subscriber base at 11.55 Mn. SITI added 36,000 HD customers and currently has an active HD subscriber base of 4.24 lakhs.

    Mr. Rajesh Sethi, on implementation of Tariff Order through utilization of technology and digital mediums, explained SITIs initiatives:

    “We made extensive preparations for a considered migration to the new tariff order regime with a focus on customer choice, business associate exigency and regulatory compliance. The functionality of our Subscriber Management System was significantly enhanced to allow for seamless transition.

    SITI undertook widespread usage of digital mediums, launching a customer self-care portal & “MySiti” Android App for the end consumer to enable freedom of choice, online payment and other functionalities direct to the customer; The call center capacity was upgraded to ensure a prompt response for all customers and business associates; SITI also established multilingual call centers across the country to ensure dialectal friendly customer communication and handholding.

     SITI also launched a new Campaign – “Aap ka Manoranjan, Aap ki Marzi” on TV Screen, Web and Social Media to educate customers. SITI is providing multiple bespoke suggestive packs, a-la-carte and broadcaster bouquets to the end consumer providing wholesome entertainment to all members of the family across various geographies, in compliance with the new regulatory regime. ”

    While commenting on the results, Mr. Rajesh Sethi of SITI Networks Limited mentioned: “SITI Networks continued its strong growth trajectory and grew its 9M Subscription revenue by 24 per cent YoY. This coupled with leveraging inherent operational synergies allowed us to deliver stupendous 9M Operating EBITDA at INR2,161 mn, a growth of 118 per cent YoY. Simultaneously, a focus on prudence and lean operations expanded Operating EBITDA margins 1.9x to 20 per cent.”

  • Dish TV reiterates its optimism on future outlook as Essel Group arrives at an understanding with lenders

    Dish TV reiterates its optimism on future outlook as Essel Group arrives at an understanding with lenders

    MUMBAI: Multi-faceted business conglomerate Essel Group’s management has successfully arrived at an understanding with lenders which are having pledge on shares held by the promoters.

    In view of the sensitive situation triggered due to the steep fall of the stock price of Zee Entertainment Enterprises Limited and Dish TV India Limited, a detailed meeting of the Essel Group Promoters with the lending entities comprising of Mutual Funds, NBFCs and Banks was conducted.

    Speaking on the development, Essel Group chairman Subhash Chandra said, “I am pleased to share that we have achieved an understanding with lenders. We have always valued their immense trust and faith shown in us and today’s positive and progressive outcome of the meeting, is a true example of the same. I am very positive, that we will continue to take such positive steps in rising up from the current challenging times, with support of all stakeholders.”

    In the meeting, the lenders further showcased their belief in the intrinsic value of Zee Entertainment and Dish TV India Limited, resulting into the following aspects:

    · There will not be any event of default declared due to the steep fall in price.

    · As a result of the above, there will be synergy and co-operation, amongst lenders leading to a unified approach.

    · Lenders drew comfort from reiteration by the promoters for a speedy resolution through a strategic sale in a time bound manner.

    Aditya Birla Sun Life AMC CEO A. Balasubramanian said, “We have always believed in the intrinsic value of Zee Entertainment and most above, the sheer value system with which its promoters function. I am very glad with the outcome of the meeting, which enabled us to arrive at a consensus in the interest of all stakeholders.”

    Dish TV India CMD Jawahar Goel said, “I would like to reiterate that the merger of Videocon D2H with Dish TV has provided immense opportunity and is a great strategic fit. The synergies derived out of the merged business will significantly strengthen the results of our business. This is despite the fact that the merger transaction has been financially stretching for the promoters.”

  • Zee Media numbers up on higher ad revenue for Q3 2019

    Zee Media numbers up on higher ad revenue for Q3 2019

    BENGALURU: The Essel group’s television news broadcasting arm Zee Media Corporation Ltd (ZMCL) reported a 123.1 per cent growth (more than double) in consolidated profit after tax (PAT) for the period ended 31 December 2018 (Q3 2019, quarter or period under review) as compared (year-on-year comparison, y-o-y) to the corresponding year ago quarter (Q3 2018, year ago quarter). PAT in Q3 2019 was Rs 27.20 crore as compared to Rs 12.19 crore in Q3 2018. ZMCL consolidated simple operating EBITDA at Rs 57.99 crore in Q3 2019 was 26 per cent more than the Rs 46.03 crore in Q3 2018.

    The company’s consolidated operating revenue increased 22.7 per cent y-o-y in Q3 2019 to Rs 194.22 crore from Rs 158.30 crore in the year ago quarter. Total income increased 23.2 per cent y-o-y in Q3 2019 to Rs 196.45 crore from Rs 159.49 crore in Q3 2018.

    In its earnings release, ZMCL reported 21.9 per cent y-o-y growth in advertising revenue for Q3 2019 at Rs 175.51 crore from Rs 143.95 crore. Subscription revenue increased 10.8 per cent y-o-y to Rs 13.01 crore in Q3 2019 from Rs 11.74 crore. Other sales and services increased by 1.18 times in Q3 2019 to Rs 5.7 crore from Rs 2.61 crore in the corresponding year ago quarter.

    Let us look at the other numbers reported by ZMCL

    ZMCL’s total expenditure in Q3 2019 increased 21.7 per cent y-o-y to Rs 155.16 crore from Rs 127.52 crore. Employee benefits expense in the quarter under review increased 18.1 per cent y-o-y to Rs 38.87 crore from Rs 32.92 crore in Q3 2018. The company’s marketing promotion and distribution expenses in Q3 2019 increased 30.9 per cent y-o-y to Rs 22.01 crore from Rs 16.81 crore in the corresponding year ago quarter.

    Operating costs in Q3 2019 increased 26.3 per cent y-o-y to Rs 29.50 crore from Rs 23.36 crore. Other expenses in Q3 2019 increased 17 per cent to Rs 45.85 crore from Rs 39.18 crore in Q3 2018.

    It may be noted that ZMCL has sold its entire equity stake in Ez-Mall Online Ltd to a related party at an aggregate consideration of Rs. 8.60 crore. Accordingly, Ez-Mall Online Ltd ceased to be a subsidiary of ZMCL with effect from 30 June 2018 and gain on disposal of investments of approximately Rs 41.21 crore has been recognised during the previous quarter and shown as exceptional items. Also, during the previous quarter, ZMCL completed the acquisition of balance 40 per cent equity stake in its subsidiary Zee Akaash News Pvt Ltd (ZANPL). Accordingly, ZANPL became a wholly owned subsidiary of the company with effect from 1 June 2018 and figures for the current quarter are not comparable with previous periods presented in the consolidated financial results says the company.

  • Essel Group engages Goldman Sachs to sell half its stake in Zee Entertainment

    Essel Group engages Goldman Sachs to sell half its stake in Zee Entertainment

    Mumbai: 13th November 2018, Subhash Chandra and family along with its advisors met in Mumbai over the Diwali weekend to undertake a strategic review of its businesses in view of the changing global media landscape. The strategic review underscored the importance of technological advancements such as AI, IOT, 3D printing AR, VR and many more. There is informed recognition that the world is convergent today and the lines across media, telecom, manufacturing and technology are thinner than ever. The semi-conductor business also appeared to be a promising opportunity, but due to its large capital requirement it was ruled out. It was observed that these developments will impact virtually all businesses across sectors and business practices will be driven by technological innovation. The review showed that the family needs to accelerate efforts to stay ahead of fast changing trends.

    The review noted that with the current 1.3 billion viewers and close to 50 million digital viewers growing at a fast pace, ZEEL is well placed to benefit from current market trends due to its strong brand & bouquet of domestic & international channels. Adding to that strength, ZEE5 will further enable the company to leverage the benefits of changing video consumption trends, contributing significantly over the coming years. The management of ZEEL under Punit Goenka and Amit Goenka has been well appreciated by all stakeholders and reflected in the performance of the company. Speaking on where the business stands today, Jawahar Goel said, "Punit and Amit have made the right sustainable investments for the future and the business is growing ahead on all fronts in a focused and disciplined way".

    On its own, ZEEL would remain a leader in both linear and digital distribution. It has the consumer insights and knows how to produce and deliver content for the South Asian diaspora globally. The management depth the Company has built over last two decades distributing content globally in 12 foreign languages puts the Company in a unique position. It has strong revenue streams including advertising and subscription – domestic and international. However, there is recognition that a right global strategic partner will help in transforming ZEEL further, and maximise long term value. It will transform it into a global media-tech player with a unique offering of content to the main stream audiences in 170 plus countries.

    It has been decided to undertake a strategic review of Essel's shareholding in ZEEL with a view to maximize value for the business. The proposed transaction to divest upto 50% of Essel's
    holding to such a partner, is expected to address the Essel Group's capital allocation priorities and will allow ZEEL shareholders to capture the full value of India's largest entertainment broadcaster with an ever strengthening bouquet Essel has decided to appoint Goldman Sachs Securities (India) Ltd. as their investment banker and US and European based LionTree as an international strategic advisor for this exercise. Essel expects the outcome of the strategic review to be concluded by March/April 2019. This transaction will meet the objectives of the Essel Group as well as the minority shareholders of ZEEL.

    India remains a priority market for Subhash Chandra and the Essel Group and the family believes that India is at the cusp of significant growth. The family will continue to invest in growth opportunities in India. Regardless of the outcome of this exercise, Essel is committed to create significant long term value in ZEEL and shall keep on contributing in every possible way going forward.

  • SITI Networks declares superlative growth on quarterly and y-o-y basis

    SITI Networks declares superlative growth on quarterly and y-o-y basis

    MUMBAI: SITI Networks Limited (BSE: 532795, NSE: SITINET), an Essel Group company, with 55Mn+ consumers and presence across 580+ locations in India, has released its Consolidated Financial Results for Q2FY19, ending September 30, 2018, showcasing superlative growth across all metrics, both quarterly and year-on- year.

    SITI’s Operating EBITDA grew 2.52x over second quarter of last fiscal, a 24% quarterly growth, and the highest in last 10 quarters to Rs. 682 Mn. SITI’s Operating EBITDA Margin also expanded by 2.1x to 18.2% in Q2FY19.

    Subscription revenue surged ~ 1.25x to Rs. 2,548 Mn in Q2FY19, aided by the strong growth in Digital Subscription ARPU, which leapt 19%. This ARPU growth is across DAS phases, with SITI’s strong presence in Phase 3 and 4 showing 27% and 43% growth respectively.

    On quarterly basis, SITI has demonstrated a significant growth on all the financial metrics. Operating EBITDA has jumped by 1.24x while Operating Margins expanded 150 bps over the previous quarter. Subscription Revenue registered a sharp growth of ~19% sequentially over the last quarter. With consistent focus on last mile operations, SITI achieved subscription collection efficiency of 95%.

    In the quarter ending September 2018, SITI continued its new customer acquisitions by adding 3 lakh new Digital Subscribers, with current Active Subscriber base at 11.75 Mn. SITI has launched PlayTop, its 1st Hybrid Set Top Box, in line with its “Customer First” strategy. SITI will be introducing a range of innovative converged offerings over the coming quarters.

    SITI announced its partnership with Paytm, India’s largest digital payment company to provide multiple digital payment options to its customers and attractive cashback benefits in select areas. SITI Networks’ has also made Paytm’s digital payment facility available to its 24,000+ distribution partners across the country who can make online payments through various modes on the SITI Networks website.

    Hon’ble Supreme Court has paved way for the introduction of the new tariff order. Provisions of the order are aimed to increase transparency, and create a level playing field. In preparation for successful implementation of the Tariff Order, SITI has been working on Smart Tiered Packaging and has undertaken significant technological and process enhancements while ensuring training and education for all stakeholders.

    While commenting on the results, Mr. Rajesh Sethi of SITI Networks Limited mentioned –

    “SITI Q2FY19 performance has been strong and phenomenal with all round growth across all operational metrics. 2.52x growth in Operating EBITDA and 2.1x expansion in the margins is a testament to strong operational focus of the team. SITI’s Digital Subscriber ARPU went up by 19% and Subscription Collection efficiency improved to 95% in this quarter. This ARPU leap has been broad-based across the country to ensure consistent growth in Subscription Income in the coming quarters.

    SITI has always been the leader in innovation for its customers and partners. This quarter, we launched SITI PlayTop, our 1st Hybrid Set Top Box. This has been received extremely well by our customers and partners, and we intend to roll out more such boxes over the coming quarters. Taking our Customer First commitment ahead, SITI has partnered with Paytm to bring multitude of digital payment solutions for our customers. We are working with various partners across the spectrum to bring benefits of convergence to our customers.

    New Tariff order enables customers to subscribe channels of their choice and brings pricing parity across various platforms. This is very positive move for the long term ARPU growth of the ecosystem. SITI is fully prepared to implement the Tariff Order and well aligned to drive EBITDA and Margins expansion based on our Profitable Growth Strategy.”

  • ZMCL reports more than quadruple profit for second quarter

    ZMCL reports more than quadruple profit for second quarter

    BENGALURU: The Essel group’s television news broadcasting arm Zee Media Corporation Ltd (ZMCL) reported a 355.1 per cent growth (more than four-fold) in consolidated profit after tax (PAT) for the period ended 30 September 2018 (Q2 2019, quarter or period under review) as compared (year-on-year comparison, y-o-y) to the corresponding year ago quarter (Q2 2018, year ago quarter). PAT in Q2 2019 was Rs 17.25 crore as compared to Rs 3.79 crore in Q2 2018. ZMCL reported operating EBITDA at Rs 40.5 crore in Q2 2019, which was 355.1 per cent more than the Rs 3.79 crore in Q2 2018.

    The company’s consolidated operating revenue increased 35.5 per cent y-o-y in Q2 2019 at Rs 168.66 crore as compared to Rs 124.51 crore in the year ago quarter. Total income increased 34.7 per cent y-o-y in Q2 2019 to Rs 170.66 crore from Rs 126.71 crore in Q2 2018.

    In its earnings release ZMCL reported 34.5 per cent y-o-y growth in advertising revenue for Q 2019 at Rs 149.43 crore from Rs 111.10 crore. Subscription revenue increased 11.8 per cent y-o-y to Rs 13.1 crore in Q2 2019 from Rs 10.73 crore. Other sales and services also almost quadrupled (increased by 3.6 times) in Q2 2019 to Rs 6.11 crore from Rs 1.68 core in the corresponding year ago quarter.

    Let us look at the other numbers reported by ZMCL

    ZMCL’s total expenditure in Q2 2019 increased 31.2 per cent y-o-y to Rs 144.78 crore from Rs 110.37 crore. Employee benefits expense in the quarter under review increased 20.3 per cent y-o-y to Rs 37.36 crore from Rs 31.06 crore in Q2 2018. The company’s marketing promotion and distribution expenses in Q2 2019 increased 47.7 per cent to Rs 23.03 crore from Rs 15.59 crore in the corresponding year ago quarter.

    Operating costs in Q2 2019 increased 25.9 per cent to Rs 24.49 crore from Rs 19.45 crore. Other expenses in Q2 2019 increased 35.5 per cent to Rs 42.91 crore from Rs 31.66 crore in Q2 2018.

    It may be noted that ZMCL has sold its entire equity stake in Ez-Mall Online to a related party at an aggregate consideration of Rs 8.60 crore. Accordingly, Ez-Mall Online ceased to be a subsidiary of ZMCL with effect from 30 June 2018 and gain on disposal of investments of approximately Rs 41.21 crore has been recognised during the previous quarter and shown as exceptional items. Also, during the previous quarter, ZMCL completed acquisition of balance 40 per cent equity stake in its subsidiary Zee Akaash News Private Ltd (ZANPL). Accordingly, ZANPL became a wholly owned subsidiary of the company with effect from 1 June, 2018 and figures for the current quarter are not comparable with previous periods presented in the consolidated financial results says the company.

  • Essel’s Subhash Chandra on Zee, OTT giants & the Jio juggernaut

    Essel’s Subhash Chandra on Zee, OTT giants & the Jio juggernaut

    MUMBAI: Zee Entertainment Enterprises (Zee) has withheld challenges from international broadcasters to acquire a place as one of the top media companies in India. While several players with deep pockets are investing a high amount in content, Essel Group chairman Subhash Chandra, with 26 years of experience, says only money cannot buy the best content.

    Speaking to The Hindu, the media veteran said telecom, voice, data, and video all are merging into one single pipe. Moreover, Reliance Jio’s low pricing has made the delivery pipe cheap and affordable forcing other telecom players to do the same. This change will help content companies.

    “Even the Amazons, Googles and YouTubes of the world now call themselves media companies instead of tech companies. So, thanks to Jio, this process, which could have taken 5-10 years, has accelerated in India,” he added.

    However, he also pointed out Jio’s different nature of the business. The company tends more towards monopoly rather than being a part of the industry. This trend could catalyse the merger of content players with pipe and data, as it happened in America and Europe.

    Hailing content as the prime factor, he also said creativity comes above money. A big budget show cannot assure good ratings always. Despite expensive deals, he is sceptical of Jio’s ability to scale.

    “We have competed with all media companies. Today, NewsCorp is in India through Star. Time Warner was here, Viacom came, Sony is here, Discovery is here. So, of the top eight global media firms, five are here and we have competed with all. In 2007, a management consulting firm said India would be left with just three players and Zee is the weakest link that will either close or get sold. That didn’t happen,” he said.

    Amazon Prime and Netflix are also trying to acquire a stronger foothold in the Indian market given the high potential of the digital content business. Chandra said that Amazon being largely an e-commerce player tries to lure customers for shopping through content. Zee also shares content with the company. But as Netflix is a pure content play, it won’t share content with the streaming giant. The OTT platform’s situation is also different in the country due to its high pricing.