ITV

Tag: PEPL

  • Zee Telefilms company secretary Vikas Gupta quits

    Zee Telefilms company secretary Vikas Gupta quits

    MUMBAI: Zee Telefilms Ltd company secretary and ETC Music business head Vikas Gupta has resigned.

    He will be ending his seven-year tenure at Zee Telefilms when he leaves to join a new company in January. “I will continue to be in Zee Telefilms till the end of this month,” Gupta said.

    He, however, did not disclose the company he was joining. “I will be the company secretary and head legal and corporate affairs in the new place,” he added.

    Besides being the company secretary of Zee Telefilms, Gupta took up various additional responsibilities. He was made ETC Music business head last year while continuing as finance director of ETC Networks since Zee Telefilms acquired the company in 2002.

    A few months back, Gupta was also asked to supervise the financial functioning of Essel Group.

    One of Gupta’s important assignments was to reach a settlement with the promoters of Padmalaya companies, whom Zee had accused of misappropriation of shares. Zee had taken a 64 per cent stake in Padmalaya Enterprises Pvt Ltd (PEPL) which formed the holding company and held 50.3 per cent controlling stake in listed company Padmalaya Telefilms Ltd (PTL). 

    Zee later accused Padmalaya founder-promoter GA Seshagiri Rao, along with his relatives, of pledging PEPL’s shares in PTL to raise loans without the knowledge of the board. Zee exited from Padmalaya after being given land in Padmalaya Studios.

  • Zee Telefilms net profit down 17% in Q4- 05

    Zee Telefilms net profit down 17% in Q4- 05

    MUMBAI: Zee Telefilms’ net profit has fallen by 16.9 per cent to Rs 370.40 million for the quarter ended 31 March, 2005, as compared to Rs 445.90 million a year ago.

    Total income, however, has increased 2.78 per cent to Rs 1951 million, from Rs 1898.20 million during this period.

    Essel Group chief executive officer of corporate strategy and finance Rajiv Garg explains the quarter’s performance: “Other income was lower while depreciation was higher in the quarter. But overall we have grown.”

    Net profit for the fiscal ended 31 March 2005 surged 40 per cent to Rs 1606.40 million, as compared to Rs 1150.20 million a year ago. Total Income has increased to Rs 7497.40 million, up from Rs 6024.90 million.

    Zee’s consolidated net profit for the quarter ended 31 March 2005 increased marginally by 2 per cent to Rs 926.90 million, as compared to Rs 908.50 million a year ago. Zee has provided Rs 47 million as losses on account of a settlement with Padmalaya Enterprises Private Ltd. (PEPL). “We provided for loss of Rs 47 million on account of difference between fair market value of land and the book value of the investments in PEPL,” Zee says in a release.

    Total income actually fell to Rs 4001.70 million, as compared to Rs 4104.90 million during the period. “This is because the consolidated results do not include Padmalya this time,” says Garg.

    The Group’s net profit for the financial year stood at Rs 3174.80 million, as compared to Rs 2730.80 million during this period. Total Income rose marginally to Rs 14490 million, up from Rs 14360.60 million.

    The consolidated results include the financials of ETC Networks Limited (ETC) for the fourth quarter of FY2005. The financials of Padmalaya are not consolidated since Zee has divested its stake in the company.

    Advertisement revenue was Rs 6678.7 million for the fiscal ended 31 March 2005, up 5 per cent from Rs 6355.2 million a year ago. Subscription revenue was Rs 6502.9 million, as compared to Rs 6025.6 million. Domestic subscription revenue, including DTH, was Rs 723 million for the fourth quarter ended March 31, 2005.

    “We have around 2, 00,000 DTH subscribers. After slashing prices by half, we are adding up almost 2,500 subscribers a day. The average revenue per user (ARPU) is Rs 191,” says Garg.

    Under the new Dish TV offer, subscribers can get a new DTH connection for Rs 3,990 including the digital set-top box and one year’s subscription fees.

    Commenting on the result, Zee Telefilms CMD Subhash Chandra says in an official release, “Though we had a fairly good fourth quarter, we are set for a better performance in FY2006. We have made quite a few critical changes, which would allow us to be more productive, going forward. Starting with appointment of Pradeep Guha as CEO for our content business, we have put in place a very strong management team. We are happy that our efforts to further improve the quality of content have started to show results.”

    Adds Guha, “Our effort of improving the product quality is an ongoing one and would translate into increased consumer demand. The re-branding exercise we undertook during the quarter weaves a thread of common identity between our many diverse brands and brings us closer to our younger audience.”

    Zee has reduced its gross debt by Rs 3.7 billion to Rs 1 billion during the year, excluding the FCCB issue.

  • ZTL, Padmalaya reach accord; land part of deal

    ZTL, Padmalaya reach accord; land part of deal

    MUMBAI: Zee Telefilms Ltd (ZTL) has reached a settlement with the promoters of Padmalaya companies, whom it had accused of misappropriation of shares.

    According to the agreement, ZTL will be given 21,000 sq metres of land in Padmalaya Studios located in Hyderabad. The valuation of the property is close to Rs 500 million, says a source in Zee Telefilms. Consequent to this, ZTL will completely exit from Padmalaya.

    Zee is likely to write off Rs 100 million as it had invested Rs 590 million in acquiring a majority stake in Padmalaya. ZTL had taken a 64 per cent stake in Padmalaya Enterprises Pvt LTD (PEPL). PEPL formed the holding company and held a 50.3 per cent controlling stake in Padmalaya Telefilms LTD (PTL), a listed company.

    Already 17,000 sq metres has been transferred to ZTL, says the source. Padmalaya Studios is a privately held company by the promoters of Padmalaya and has land in the prime locality of Hyderabad.

    “We are expecting the remaining 4,000 sq metres to be transferred within two months,” he adds. Zee is planning to sell the land to recover its investments in Padmalaya.

    As part of the settlement, ZTL will also get back Zee Institute of Creative Arts (ZICA) which had been transferred to Padmalaya. ZICA is a training institute specialising in animation. “We wanted to protect the interests of the animation students,” the source says.

    ZTL had earlier accused Padmalaya founder-promoter GA Seshagiri Rao, along with his relatives, of pledging PEPL’s shares in PTL to raise loans without the knowledge of the board. As a result of the misappropriation, PEPL’s holding in PTL has dropped from 50.3 per cent to about 20 per cent. Zee’s indirect interest in PTL had, as a result, fallen from 33 per cent to around 13 per cent.

  • Zee wants Rs 590 million to exit Padmalaya

    Zee wants Rs 590 million to exit Padmalaya

    MUMBAI: Zee Telefilms Ltd has asked the promoters of Padmalaya Enterprises Private Ltd (PEPL) to pay Rs 590 million to buy out their entire shares in the subsidiary company.

    This follows Zee’s decision to exit from Padmalaya following the controversial transfer of shares in the listed company Padmalaya Telefilms Ltd (PTL).

    “Zee had invested Rs 590 million in the Padmalaya deal and we want to recover that cost. This includes the open offer that we had to make at that time,” says a source in Zee Telefilms.

    Zee is in advanced stage of negotiations with Padmalaya promoters and hopes to come to an agreement next week, the source added. Zee has 64 per cent stake in PEPL and has decided to sell its entire stake in the company. PEPL held a 50.3 per cent controlling stake in PTL.

    A senior Zee official is in Hyderabad to finalise the deal with Padmalaya promoters. Zee is expected to recover Rs 590 million from sale of property by PEPL. Though the deal for purchase of Zee shares in Padmalaya was expected to be signed on Saturday, the Zee source said that it would be extended to next week.

    Zee had threatened to take legal action against the PEPL promoters for “misappropriation of substantial shares” that its subsidiary PEPL held in PTL. But Padmalaya promoters made an offer to buy out Zee’s stake in PEPL in exchange for immovable property.

    Zee had earlier accused Padmalaya founder-promoter GA Seshagiri Rao, along with his relatives, of pledging PEPL’s shares in PTL to raise loans without the knowledge of the board. As a result of the misappropriation, PEPL’s holding in PTL has dropped from 50.3 per cent to

  • Zee Telefilms Q2 net profit up 115 %

    Zee Telefilms Q2 net profit up 115 %

    MUMBAI: Zee Telefilms Ltd’s net profit rose 115.46 per cent to Rs 399.90 million for the quarter ended 30 September 2004, from Rs 185.60 million a year ago.

    Total income increased to Rs 1960.50 million, from Rs 1252.90 million in the corresponding period of the previous year.

    Zee Telefilms Ltd.’s consolidated net profit , however, fell 1.3 per cent to Rs 691 million for the quarter ended 30 September 2004, from Rs 701 million a year ago.

    The company’s consolidated revenues, however, rose 7.7 per cent at Rs 3,479 million. Operating profit increased by 1.6 per cent to Rs 1,030. ‘The growth was driven by higher pay revenues, and a recovery in advertising revenues from the corresponding quarter last year. Operating profit growth was lower due to programming and marketing costs and losses incurred on film distribution business,’ the company said in a release.

    Profit before tax was Rs 965 million, an increase of 5.3 per cent as compared to the corresponding quarter last year. The results include the financials of ETC Networks Limited (ETC) and Padmalaya Enterprises Pvt. Limited (PEPL). The financials of Padmalaya Telefilms Ltd., however, have not been consolidated.

    ‘For reasons under investigation, PEPL’s holding in Padmalaya Telefilms Limited (PTL) dropped below 50 per cent . Therefore financials of PTL have not been consolidated in the numbers presented,’ the release said. In the corresponding quarter last year, PTL had contributed Rs 261 million to revenues and Rs 33 million to operating profits.

    “Zee finished the second quarter with a good performance, highlighted by 7.7 per cent growth in revenues. Spread across both advertising-based and non-advertising businesses, this performance highlights the fundamental attributes of Zee’s assets, and our ability to seize growth opportunities,” said ZTL chairman and managing director Subhash Chandra.

    Commenting on the profitability, he said: “The reported profitability of the Company includes start-up losses on the DTH activity, mainly marketing and other expenses and also some losses incurred in film distribution business. But for these losses, our net profit would have shown a good growth, in line with trends in recent quarters. The DTH business holds great potential for the company and we hope to reap its benefits from the next financial year.”

    ‘The Company’s financial condition gained further strength, with reduction in gross debt of Rs 4.0 billion since March 2004. This move demonstrates Zee’s financial strength and flexibility,” he added.

    Revenue Streams
    Zee’s revenues are generated primarily from advertising sales and subscription revenues. Other sales and services include revenues from film production and distribution, syndication, education sales and sale of set top boxes. The following table sets forth the percentage of revenues that each type contribute to consolidated revenues for the second quarter of 2005 and 2004.

    Zee’s advertising revenues rose 5.4 per cent to Rs 1537 million for the second quarter of this Fiscal. Overall subscription revenues registered an increase of 7.9 per cent over the corresponding quarter last fiscal. Domestic pay revenues also continued to grow with 27.6 per cent increase over the corresponding period last year, checked by a price freeze imposed on pay channels, by TRAI.

    ‘The freeze has emboldened the cable operators to persist with gross under-declaration, which has reflected in a lower growth of subscription revenues,’ the company said. Other sales and services, which include the sale of set top boxes, recorded an increase of 18.6 per cent.

    Expenditure
    Zee’s programming and transmission cost went down 2.4 per cent compared to the corresponding period last year. Total expenses were up 10.5 per cent. Operating profit has grown by 1.6 per cent to Rs 1,030 million, while operating profit margin was at 29.6 per cent, as compared to 31.4 per cent achieved during the corresponding quarter last year.

    Due to capital restructuring, finance cost fell 60.1 per cent to Rs 77 million for the second quarter of this Fiscal, down from Rs 192 million a year ago. During FY2005, Zee has repaid Rs 4.0 billion from its gross debt. Overall, profit before tax has grown by 5.3 per cent to Rs 965 million.

    Business Restructuring
    The first phase of international restructuring aimed at consolidating non-Indian operations into a single subsidiary has been completed. During the quarter, a separate transmission beam was commenced for Hong Kong, Singapore, Indonesia, Thailand, Philippines and Japan providing a customised prime time viewing experience to subscribers and a new revenue stream for Zee.

    On the film production front, Zee has gone slow. The plan is running behind schedule by six months, since the company wanted to mitigate risks from the business model before expanding into film production.

  • Zee Q1 net up 31 % even as scrip slides

    MUMBAI: The numbers for Zee are in. Net profit and net revenue for the quarter have travelled north by about 31 per cent and 16 per cent respectively.
    ZTL’s net revenue for the quarter ended 30 June 2003 has gone up by 16.27 per cent to Rs 2.893 billion while the net profit is up by 30.69 per cent to Rs 623 million vis-?-vis the corresponding quarter of the previous fiscal. During the corresponding quarter last year, net profit stood at Rs 476.7 million, while net sales stood at Rs 2.488 billion.


    Sequentially, the net sales of the company decreased by 21.5 per cent and the net profit by about 24 per cent as compared to Q4 of last fiscal. During the last quarter of 2003, net profit stood at Rs 820 million, while net sales stood at Rs 3.685 billion.
    Revenue breakup
    Zee’s subscription revenues are up 40.53 per cent at Rs 1,427.7 million, while advertisement revenues are down 13.35 per cent at Rs 1,2112.1 million, compared to Rs 1,399 million during the corresponding quarter last year.
    A company statement clarifies that the dip in advertising revenues is because of “softness in local advertising markets in the early part of the quarter due to the Cricket World Cup hangover” as also because of “initial problems in establishing a new rate card, which has now been well accepted in the market.” It further says that higher pay revenues from domestic and international markets drove the growth of 18.8 per cent in operating profits to Rs 901 million over the same period last year.


    Meanwhile on a standalone basis, ZTL’s total revenue has decreased from Rs 1,086.3 million in the June quarter of 2002 to Rs 1,085.9 million in the quarter ended 30 June 2003. Net profit figures for the quarter ended 30 June 2003 stand at Rs 170.7 million, vis-?-vis Rs 166 million for the quarter ended 30 June 2002, a marginal 2.83 per cent increase.
    Zee slides on BSE
    However, on the Bombay Stock Exchange (BSE) today, Zee slipped 2.75 per cent to Rs 115.10 on profit booking by investors as the company’s Q1 results fell below analysts’ expectations. The Zee counter recorded a substantial volume of over 1.35 million shares today. Analysts believe the slide was because of net sales slipping below expectations and also because of the counter unwinding in the derivatives segment.
    For the current quarter, it would be pertinent to note that the Q1 numbers include financials of Padmalaya Enterprises Private Limited (PEPL), the holding company of Padmalaya Telefilms Limited (PTL), and financials of ETC Networks Limited (ETC) which have been consolidated with Zee. Since neither of these companies was consolidated during the corresponding quarter last year, previous period figures cannot be compared directly.
    Also, other sales and services include revenues from PTL. Further, the effect of restructuring Econnect and Zee Interactive Learning Systems does not appear in the current financials as it is pending before the high court.
    The Company will be amalgamating three of its wholly owned subsidiaries Patco, Kaveri Entertainment Limited and Elzee Television Limited with retrospective effect from 1 April 2001. Hence the effect of amalgamation has been now given in the financials of the quarter ending 31 March 2003.
    Content and Broadcast


    Out of the total revenue of Rs 3,044.1 million for the June quarter, the content and broadcast segment accounts for Rs 2.56 billion, which is a rise from Rs 2,186.4 million in the previous year’s corresponding quarter.
    ZTL’s pay bouquet comprises 15 channels including 11 channels of Zee, two channels of Turner (CNN, Cartoon Network), CNBC and Reality TV Channel. Later this year, uplinking of Zee TV and Zee Cinema is scheduled to move from Singapore to India. The company also plans to launch the Direct to Home (DTH) services in the coming months. 
    During the quarter, Zee TV showcased some blockbuster titles in its Thursday Premiere initiative. The list of movies included Chura Liya Hai Tumne, Chhal, Escape from Taliban, Ek Choti Si Love Story, Wah Tera Kya Kehna and Jaani Dushman.
    Trendz, the new fashion channel from the Zee stable was also launched during the June quarter while Nickelodeon moved out from 1 May 2003.
    Zee claims to have snared the number two slot among the female target audience. It is giving the credit for this to its strategy of offering differentiated fare to its viewers as also to a series of synchronized marketing and programming campaigns, which it says helped it to attract new audience.
    After taking CNBC into its distribution fold w.e.f. 1 April 2003, Zee has plans for repositioning Zee Music as a young and vibrant interactive music channel by August 2003. State-of-the-art packaging, quality VJs, slick promotions and high quality programming are being peddled as the USP of this launch.

  • Padmalaya Telefilms shares dip to 52-week low

    MUMBAI: Touching a year after Zee Telefilms acquired a strategic stake in Padmalaya Telefilms Limited (PTL) through the acquisition of a substantial stake in PTL’s holding company, Padmalaya Enterprises private Limited (PETL), the shares of PTL slumped to their 52-week low on both the premier stock exchanges of the country.
    On the Bombay Stock Exchange (BSE), the scrip ended the day at Rs 45.45, down 18.40 per cent, on brisk volumes of almost 354,508 shares. The earlier 52-week low was Rs 56.6. On the National Stock Exchange (NSE), the scrip closed the day at Rs 45.75, down 18.81 per cent with volumes of 139,424.
    However, what is noteworthy is the fact that Zee Telefilms was one of the few media scrips which actually rose to Rs 73.25 (up 0.27 per cent) on the BSE; Rs 73 (up 0.07 per cent) on the NSE.
    Padmalaya Telefilms posted a net profit of Rs 40.2 million for the quarter ended 31 December 2002 (down 39 per cent) compared to a net profit of Rs 66.1 million in the quarter ended 31 December 2001. Total income also decreased from Rs 274.0 million in the December 2001 quarter to Rs 202.3 million in the quarter ended 31 December 2002.
    In a strategic move, Zee Telefilms announced in March 2002 that it planned to acquire a significant stake in Padmalaya Telefilms, one of India’s leading entertainment houses with significant presence in film production and distribution, television software production and animation software.
    As per the MOU executed between Zee and the promoters of PTL, Zee would acquire majority stake in Padmalaya Enterprises Private Ltd. (PEPL) which is a holding company of PTL. Since this move triggered a change in management control of PTL, PEPL with Zee acting in concert, made an open offer in accordance with SEBI guidelines. Both companies sought the requisite regulatory approvals.
    At that time, Zee Telefilms CMD Subhash Chandra said “With this acquisition, Zee continues to consolidate its position as India’s largest vertically integrated media and entertainment company. Zee’s acquisition of PTL creates an entertainment powerhouse with unmatchable strengths in animation software, Film production-distribution and television content.”
    At that time, Zee was already a large, established player in the movie, music and animation business. Zee owns ZICA, one of India’s best animation production units with over 100 animators with top end skills for cell animation. ZICA is currently focused on the production of Bhagmati, India’s first full-length animation movie.
    The key benefits of this strategic move for Zee Telefilms at that point of time were:
    * Creation of a unified animation studio with capability to deliver high-end animation products for international markets.
    * To capitalise on PTL’s extensive experience of over 30 years in movie production and distribution.
    * PTL’s huge library of hit-films with over 300 films complimented Zee’s strong library of more than 3,000 movie titles.
    * To utilise the well-established production facilities for in-house movie projects. 
    * To leverage PTL’s direct control over 60 theatres in South India and its wide distribution network in South India.
    * To add over 1,500 hours of television software in Telugu, Tamil and Kannada to the existing Zee library (Zee has two satellite channels Bharathi (Tamil) and Kaveri (Kannada) and one cable channel in Telugu serving the Southern market). 
    Benefits to PTL
    * Zee’s existing international operations, with offices in the US, Canada, UK, Dubai, Singapore, Hong Kong and South Africa would help PTL gain direct access to buyers overseas for its animation products.
    * Leveraging joint marketing, promotion and product development opportunities in the movie business with Zee.
    * Common apparatus for negotiations with the music and movie industry.
    * Zee would provide its global platform to PTL for its television software library and animation property by airing on its international channels.

     

  • Zee Telefilms shows an improved bottomline in Q1 2002

    Zee Telefilms shows an improved bottomline in Q1 2002

    Higher subscription revenues and a tight control on costs enabled Indian media major Zee Telefilms Ltd (ZTL) to notch up a better better bottomline in Q1 2002-2003 as compared to Q1 2001-2002. Net profit is up 31 per cent to Rs 476.7 million (Rs 363 million in the corresponding previous financial quarter). Things are not that rosy on the turnover front with total revenues rising a minuscule 6.5 per cent to Rs 2488 million (Rs 2335 million).

    The major contributor to the turnover rise is the 52 per cent jump in subscription revenues to Rs 1015 million (Rs 667 million). The fact that subscription collections are rising is an indicator that the company’s pay TV strategy is bearing fruit. ZTL has a joint venture with AOL Time Warner to distribute its channels in India.

    On the expenditure front, total expenses have stayed put at last year’s Rs 1730 million. The management appears to be working on getting better systems in place as administrative and other costs have gone down. The drop has gone into investments in programming and transmission, costs for which are up by only 7 per cent.

    ZTL’s financials take on a different hue when Q1 numbers are compared to that of Q4 2001-2002. Net profit as against that period is down 21.5 per cent (Rs 599.1 million in Q4 2002). Total income is also down 23.3 per cent (Rs 3.24 billion in Q4 2002).

    The market seemed to have not taken kindly to its financials as the stock dropped to Rs 117 after touching an intra-day high of Rs 122 with more than 3.3 million shares changing hand on the Bombay Stock exchange 

    During the quarter, the Company has completed all formalities for acquiring a controlling stake in ETC Networks Limited (ETC), says a company release. It adds that the transfer of ETC promoter shares in favour of Zee Telefilms is under process and hence during the first quarter, financials of ETC have not been consolidated with that of the Company.

    Additionally, Zee Telefilms, acting in concert with Padmalaya Enterprises Pvt Ltd (PEPL) has acquired, by way of preferential allotment 20,00,000 equity shares of Padmalaya Telefilms Limited (PTL) at a price of Rs. 142.2 per share. The company states that PEPL had made an open offer to acquire upto 20 per cent equity shares of PTL.

    The open offer closed on 5 June 2002 and 19,25,031 shares of PTL were tendered and accepted. It adds that payment has been made to all shareholders who have tendered their shares in the open offer. Zee has funded PEPL to enable it to acquire the above shares.

    The transfer of promoters 22,50,000 shares of PTL to PEPL is under process, it says. With this acquisition, the Company will have a 63.3 per cent equity stake in PEPL and PEPL will have 49.60 per cent stake in PTL