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Tag: FY 2020

  • Lower ad revenue and exceptional items pull down Zeel bottom-line for Q4, FY 2020

    Lower ad revenue and exceptional items pull down Zeel bottom-line for Q4, FY 2020

    BENGALURU: Subhash Chandra’s Zee Entertainment Enterprises Ltd (Zeel) reported 2.5 percent growth in consolidated operating revenue for the year ended 31 March 2020 (FY 2020, year under review) as compared to the previous year (FY 2019). For the quarter ended 31 March 2020 (Q4 2020, quarter under review) Zeel consolidated operating revenue declined 4.8 percent as compared to the corresponding year ago quarter Q4 2019. EBITDA (operating profit) and PAT (Profit after tax) for the year under review declined 66.5 percent and 36.2 percent respectively as compared to FY 2019. Consolidated PAT for FY 2020 was Rs 524.59 crore and for FY 2019 it was Rs 1,567.34 crore. Consolidated operating EBITDA for FY 2020 was Rs 1,634.57 crore ((20.1 percent of operating revenue) and for FY 2019 it was Rs 2,563.94 crore (32.3 percent of operating revenue).

    The company reported operating loss (negative consolidated operating EBITDA) of Rs 283.86 crore and consolidated loss after tax of Rs 765.82 crore for Q4 2020. Poor macroeconomic environment, conversion of two FTA channels into pay in March 2019, and market share loss in certain markets drove the decline in ad revenues said the company in its FY 2020 and Q4 2020 earnings release. The lockdown in March 2020 further impacted revenues, it added.

    Bottomline numbers for the year and quarter under review were also lower on account of 47.7 percent higher operating costs in Q4 2020 and 24.5 percent higher in FY 2020. (Operating costs include programming costs). The company said in the earnings release that underlying cost increase led by higher movie amortisation, new channels and investments in its OTT platform ZEES. The reported operating cost included one-time accelerated amortisation of higher inventory of Rs. 259.80 crore.

    Further, Zeel’s administration costs included Include a one-time provision of Rs. 343.30 crore for balances related to ad, subscription and other assets where recovery has become doubtful on account of COVID-19 led uncertainty. Also for FY 2020, exceptional items included goodwill write off of Rs. 113.70 crore pertaining to digital publishing business and provision of Rs. 170.60 crore relating to Inter Corporate Deposits (ICD). Another factor that impacted Zeel’s bottom-line for FY 2020 was  Rs. 383.50 crore loss in overseas investments in accordance with IND-AS 113 to, reflect the movement in fair value of these investments as on 31 March 2020.  

    However, these factors were partly offset by 41 percent growth in domestic business in Q4 2020, driven by the implementation of Telecom Regulatory Authority of India’s (TRAI) new tariff order (NTO) and growth in ZEE5's subscription revenues revealed Zeel. Domestic subscription revenues grew by 33 percent in FY 2020 as compared to FY 2020 driven by improved monetization of viewership post NTO implementation and ramp-up of ZEE5's subscriber base.

    Zeel’s ad revenue in Q4 2020 declined 14.7 percent to Rs 1,038.94 crore from Rs 1,217.49 crore in Q4 2019. Ad revenue for FY 2020 fell 7.1 percent to Rs 4,681.13 crore from Rs 5,036.66 crore in FY 2019. Subscription revenue in Q4 2020 increased 31.2 percent to Rs 741.36 crore from Rs 564.27 crore in Q4 2019. Subscription revenue in FY 2020 grew 25 percent to Rs 2,887.29 crore from Rs Rs 2,310.54 crore in FY 2019.

    Let us look at the numbers reported by Zeel

    Consolidated operating revenues for FY 2020, FY 2019, Q4 2020 and Q4 2019 were Rs 8,129.86 crore, Rs 7,933.90 crore, 1,951.08 crore and Rs 2,019.27 crore respectively. Consolidated total incomes (Operating revenue plus other income) for the same periods were Rs 8,413.50 crore, 8,185.35 crore, Rs 2,076.06 crore and Rs 1,991.76 crore respectively.

    Consolidated total expenses in Q4 2020 increased 66.5 percent to Rs 2,677.77 crore from Rs 1,612.60 crore in Q4 2019. Consolidated total expenses in FY 2020 increased 25.1 percent to Rs 7,109.70 crore from Rs 5,731.48 crore in FY 2019. Operating cost in Q4 2020 at Rs 1,304.62 crore was 53.9 percent more that the Rs 883.32 crore in the corresponding year ago quarter. Employee benefits expense (EBE) in Q4 2020 declined 22.7 percent to Rs 160.39 crore from Rs 201.46 crore in Q4 2019. EBE in FY 2020 increased 7.7 percent to Rs 780.51 crore from Rs 724.94 crore.

    Advertisement and publicity expenses (ad expenses) in Q4 2020 were 4.6 percent lower at Rs 184.12 crore as compared to Rs 193.01 crore in Q4 2019. Ad expenses in FY 2020 at Rs 695.60 crore were almost flat (declined 0.5 percent) as compared to Rs 699.27 crore in FY 2019. Other expenses in Q4 2020 more than tripled (up 238.3 percent) to Rs 585.81 crore as compared to Rs 173.17 crore in Q4 2019. Other expenses in FY 2020 increased 36.9 percent to Rs 1,190.49 crore from Rs 869.96 crore in FY 2020.

  • Siti Networks reports improved numbers for FY 2020

    Siti Networks reports improved numbers for FY 2020

    BENGALURU: The Essel group’s MSO major Siti Networks Limited reported 5.3 percent higher consolidated simple EBIDTA for the year ended 31 March 2020 (FY 2020, year or period under review) as compared to the previous year FY 2019. The company reported a 12.2 percent increase in operating revenue for the period under review as compared to the previous year. All numbers mentioned in this report are consolidated unless stated otherwise.

    The company has managed to reduce its major expenses, but for Pay Channel, Carriage Sharing & Related Costs (pay channel costs) in FY 2020 which increased 29 percent as compared to the previous year. Overall expenses increased 7.7 percent on account of these pay channel costs. In a note to the financial statements, Siti has explained that its operating revenue includes broadcaster share of subscription revenue, hence it has shown the broadcasters share in its pay channel costs as an expense.

    In its earnings release, Siti says that Subscription Revenue for Q4 2020 grew 25.3 percent y-o-y to Rs. 2,842 million. For FY 2020, Subscription Revenue surged 21.3 percent to Rs.11,567 million.

    The consolidated operating revenue figures reported by Siti are Rs 1,618.59 crore and Rs 1,442.13 crore for FY 2020 and FY 2019 respectively, hence a growth of 12.2 percent as mentioned above. Simple EBIDTA as calculated by the author for FY 2020 was Rs 340.64 crore (21 percent of operating revenue) and for FY 2019 it was Rs 323.61 crore (22.4 percent of operating revenue). Loss for the year under review reduced to Rs 188 crore from Rs 264 crore in the previous year.

    For Q4 2020, Siti’s consolidated operating revenue was Rs 27.8 percent higher y-o-y at Rs 408.29 crore as compared to Rs 415.06 crore in Q4 2019. Simple EBIDTA for Q4 2020 as calculated by the author increased 22.1 percent to Rs 81.58 crore (20 percent of operating revenue) from Rs 66.78 crore (20.9 percent of operating revenue). Loss for the quarter was lower at Rs 70.30 crore as compared to a loss of Rs 123.93 for Q4 2019.

    CEO of Siti CEO Anil Malhotra mentioned: “SITI Networks continued its consistent growth focus while maintaining a strict control on operational efficiencies during FY 2020. Our subscription revenue for Q4 2020 grew by 25.3 percent y-o-y, while our total revenue grew by approximately 23 percent y-o-y. Even for FY 2020, our total revenue jumped by 15.3 percent to Rs. 16,354 million. Our constant mantra of improving operational efficiencies while improving monetization helped us to deliver strong operating EBITDA at INR 3,538 million, in FY 2020, a surge of 1.2 times. Our response to COVID-19 pandemic has been widely appreciated. Our teams and partners have left no stone unturned to ensure that our customers get the best services."

    Let us look at the other numbers reported by Siti

    Total expense in FY 2020 increased 7.7 percent to Rs 1,781,33 crore from Rs 1,654,21 crore in the previous year. Amongst the major expense heads, Pay Channel, Carriage Share & Related Costs increased 29 percent in FY 2020 to Rs 843.96 crore from Rs 654.14 crore in FY 2019. Finance costs in FY 2020 declined 7.6 percent to Rs 157.68 crore from Rs 170.72 crore in FY 2019. Employee benefits expense in FY 2020 declined 8 percent to Rs 74.78 crore from Rs 81.32 crore in the previous year. Other expenses in FY 2020 declined 5.6 percent to Rs 357.70 crore from Rs 378.79 crore in FY 2019.

    Total expense in Q4 2020 increased 16.7 percent to Rs 451.03 crore from Rs 386.39 crore in Q4 2019. Amongst the major expense heads, Pay Channel, Carriage Share & Related Costs increased 47.9 percent in Q4 2020 to Rs 212.82 crore from Rs 143.94 crore. Finance costs in Q4 2020 declined 20.5 percent to Rs 35.52 crore from Rs 44,66 crore in the corresponding year ago quarter. Employee benefits expense in Q4 2020 declined 9.4 percent to Rs 16.95 crore from Rs 18.71 crore in the corresponding quarter of the previous year. Other expenses in Q4 2020 increased 9.1 percent to Rs 96.53 crore from Rs 88.44 crore in Q4 2019.

  • Despite revenue drop ZMCL EBITDA up in FY 2020

    Despite revenue drop ZMCL EBITDA up in FY 2020

    BENGALURU: The Essel Group’s News media arm Zee Media Corporation Ltd (ZMCL) reported an eight percent decline in revenue from operations to Rs 631.75 crore for the year ended 31 March 2020 (FY 2020, year or period under review) as compared to Rs 686.92 crore reported for the previous year FY 2019. ZMCL reported a loss of Rs 1.6 crore for FY 2020 as compared to a loss of Rs 0.03 crore for the previous year.

    Due to provision for impairment loss to the extent of Rs 332.92 crore for its entire investment of non-convertible and non-cumulative redeemable preference shares in respect of its investments in Diligent Media Corporation, the company reported a negative total comprehensive income (TCI) of Rs 272.72 crore for the year under review as compared to a negative TCI of Rs 6.35 crore for the previous year.

    ZMCL’s EBITDA for FY 2020 increased 5.1 percent to Rs 182.5 crore (28.5 percent of operating revenue) as compared to Rs 173.64 crore (24.9 percent of operating revenue) for FY 2019.

    Operating revenue break up

    More than 90 percent of ZMCL revenue was advertisement or ad revenue during the year under review. Ad revenue for FY 2020 declined 5.3 percent to Rs 583.5 crore (92.4 percent of operating revenue) from Rs 616.13 crore (89.7 percent of operating revenue) in the previous year. Subscription revenue for the period under review declined 19.5 percent to Rs 38.16 crore (6 percent of operating revenue) from Rs 47.37 crore (6.9 percent of operating revenue) in the previous year. Other sales and services revenue decreased 56.9 percent in FY 2020 to Rs 10.09 crore (1.6 percent of operating revenue) from Rs 23.4 crore (3.4 percent of operating revenue) in FY 2019.

    Let us look at the other numbers reported by ZMCL

    ZMCL’s total expense in FY 2020 declined 4.3 percent to Rs 561.23 crore from Rs 586.68 crore in the previous year. Operating costs in FY 2020 declined 3.7 percent to Rs 109.52 crore from Rs 113.77 crore in FY 2019. Employee benefits expense for FY 2020 increased 4.7 percent to Rs 159.41 crore from Rs 1522.19 crore in FY 2019. Finance costs in the period under review increased 33.3 percent to Rs 24.01 crore from Rs 18.01 crore. Marketing, distribution and business promotion expenses in FY 2020 declined 35.8 percent to Rs 52.41 crore from Rs 81.61 crore in the previous year. Other expenses during the year under review declined 22.8 percent to Rs 127.91 crore from Rs 165.71 crore.

  • Sun TV operating revenue falls, subscription revenue up

    Sun TV operating revenue falls, subscription revenue up

    BENGALURU: Kalanathi Maran’s regional telecaster and FM radio broadcaster Sun Tv Network (Sun TV) reported 6.3 percent decrease in consolidated operating revenue for FY 2020 as compared to the previous year FY 2019. The company reported that subscription revenues were up 18.3 percent y-o-y at Rs 1,562.23 crore for the year ended 31 March 2020 (FY 2020, period or year under review) as compared to the previous yeara. Sun TV revealed that it had incurred a 6.3 percent decline in advertising revenue for the year under review at Rs 1,336.91 crore from Rs 1,426.67 crore in FY 2019.

    Sun TV reported 3.3 percent decline in consolidated profit after taxes or PAT to Rs 1,385.49 crore for FY 2020 as compared to Rs 1,432.37 crore for FY 2019.  Sun TV is one of the largest networks in the country that has channels across the four major South Indian languages.

    Consolidated operating revenue for the period was Rs 3,519.85 crore as compared to Rs 3,782.54 crore for FY 2019. Total income (revenue) for FY 2020 reduced 5.7 percent to Rs 3,780.50 crore as compared to Rs 4,009.65 crore in FY 2019.

    Calculated simple consolidated EBITDA for FY 2020 at Rs 2,275.92 crore (60.2 percent of Operating Revenue) was 12.7 percent lower than the Rs 2,606.68 crore (68.9 percent of Operating Revenue) in the previous year

    Let us look at the other consolidated numbers reported by the company for FY 2020

    Consolidated Total expenditure in FY 2020 increased 6,3 percent to Rs 1,956.88 crore as compared to Rs 1,840.32 crore in the previous year.

    Consolidated Operating expense in FY 2020 increased 17.5 percent to Rs 526.71 crore from Rs 448.32 crore in the previous year. Consolidated Employee benefits expense in FY 2020 declined 2 percent y-o-y to Rs 323.22 crore as compared to Rs 329.86 crore in FY 2019. Consolidated Other expenses (OE) in the FY 2020 increased 11.2 percent to Rs 347.69 crore as compared to Rs 312.69 crore in FY 2019.

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  • TV Today board recommends final 45% dividend for FY 2020

    TV Today board recommends final 45% dividend for FY 2020

    BENGALURU: TV Today Network Limited (TVTN) reported 15.5 per cent and 6.3 per cent growth in consolidated revenue from operations (Op Rev) and consolidated profit after tax (PAT) respectively for the year ended 31 March 2020 (FY 2020, year or period under review) as compared to the previous year ago (FY 2019). Consolidated simple operating EBIDTA for the year under review increased 8.2 per cent as compared to FY 2019.

    TVTN reported consolidated Op Rev of Rs 857.22 crore and Rs 742.24 crore for FY 2020 and FY 2019 respectively. Total Income for FY 2020 increased 15.6 per cent to Rs 900.53 from Rs 778.92 crore in FY 2019. Consolidated PAT for FY 2020 was Rs 139.36 crore as compared to Rs 131.10 crore in FY 2019.  Consolidated simple operating EBIDTA for FY 2020 was Rs 215.95 crore (25.2 per cent of Op Rev) as compared to Rs 199.58 crore (26.9 per cent of Op Rev) in FY 2019.

    The board of directors of TVTN recommended a final dividend of Rs 2.25 (45 per cent) per equity share of Rs 5 each for FY 2020. The parent company of the group had earlier paid an interim dividend of Rs 20 per equity share on October 22, 2019. The total dividend for the financial year 2019-20 amounts to Rs 22.25 or 445 per cent per equity share of Rs. 5 each.

    Segment revenue

    TVTN has four segments: television broadcasting (TV); radio broadcasting (radio); others; and newspaper publishing. TV and other segments reported growth in revenue and operating results, while radio and newspaper publishing segments had decline in revenue and the company reported operating losses from these segments.

    TV segment operating revenue grew 14.4 per cent to Rs 698.96 crore in FY 2020 from Rs 611.15 crore in FY 2019. The segment’s operating result was flat in the period under review at Rs180.81 crore as compared to Rs 180.82 crore in the previous year.

    Radio segment operating revenue declined 36.2 per cent in FY 2020 to Rs 14.86 crore from Rs 23.30 crore in FY 2019. Radio operating result was a higher loss of Rs 14 crore in FY 2020 as compared to a loss of Rs 4.74 crore in FY 2019.

    Others segment had operating revenue of Rs 115.73 crore in FY 2020 which was 45.3 per cent higher than the Rs 79.63 crore in the previous year. Others segment operating result at Rs 23.03 crore in FY 2020 was more than twice (grew by 115.3 per cent) from Rs 10.69 crore in FY 2019

    Newspaper publishing business operating revenue declined 1.6 per cent to 28.87 5.74 crore in FY 2020 from Rs 29.30 crore in FY 2019. The company reported operating result of Rs 0.37 crore in FY 2020 as compared to a loss of Rs 2.53 crore in FY 2019.

    Let us look at the other numbers reported by the company for FY 2020

    TVTN reported consolidated total expenditure of Rs 682.60 crore for FY 2020 which was 18.7 per cent higher than the Rs 574.99 crore in FY 2019. Consolidated cost of materials consumed during the period under review was 23.6 per cent lower in FY 2020 at Rs 2.48 crore as compared to Rs 3.25 crore in FY 2019. Consolidated production cost in FY 2020 increased 16.1 per cent to Rs 91.96 crore from Rs 79.24 crore in the previous fiscal. Consolidated Employee Benefit Expenses in FY 2020 increased 12.7 per cent in FY 2020 to Rs 251.07 crore from Rs 222.69 crore in the previous year. Consolidated Finance costs increased by 243.7 per cent in FY 2020 to Rs 2.83 crore from Rs 0.82 crore in the previous year. Consolidated other expenses increased 24.5 per cent during the year under review to Rs 295.78 crore from Rs 237.48 crore in FY 2019.