ITV

Tag: Sahara Group

  • Sahara asset attracts Rs 150 crore bids; SC turns into auction room

    Sahara asset attracts Rs 150 crore bids; SC turns into auction room

    MUMBAI: Sahara Group’s press and television business have taken a hit. Not just this, the group’s 45 acre property in Gorakhpur, Uttar Pradesh, has been entangled in a courtroom bidding war, with the Supreme Court turning into an auction room.

     

    Samriddhi Developers and Gorakhpur Real Estate Developers are the two companies that are vying for the property.

     

    While Samriddhi Developers had initially put an offer of Rs 64 crore, the amount rose to Rs 150 crore by the end of the bidding.

     

    According to an Economic Times report, the group needs to raise Rs 1,800 crore by way of cash as part of a Rs 5,000-crore payment it needs to make to free chairman Subrata Roy on bail. Aside from this, the Supreme Court has also asked for a Rs 5,000-crore bank guarantee in a case involving refunds to investors. 

     

    What is notable is that while Samriddhi and Sahara had signed an initial memorandum of understanding (MOU) for the sale of the plot at Rs 64 crore, the scenario changed after Gorakhpur Real Estate Developers made an offer of Rs 110 crore for the plot.

     

    Samriddhi Developers, senior advocate Paras Kuhad took instructions from one of the partners present in the court, and jacked the bid to Rs 125 crore. Later, the rival took it up to Rs 140 crore, adding another Rs 5 crore, before finally settling at Rs 150 crore.

     

    The bench has now asked both parties to show their bonafides by depositing 25 per cent of the amount by 31 July in the Sebi-Sahara account. The rest needs to be arranged in three equal installments by 31 October. If either of them fail to meet the deadline, the amount deposited will be forfeited.  

     

    The money generated from the sale of the Gorakhpur property will be added to the amount already deposited by the Sahara Group in the Sebi-Sahara account and go towards securing Roy’s release. 

     

    Complying with the July order, Gorakhpur Real Estate Developers has already deposited Rs 11 crore with the Supreme Court Registry to establish its bonafides. Samriddhi too has placed a letter and a cheque from its bankers to show its bonafides.

     

    The bench has now posted the matter for hearing on 3 August. 

  • Sahara One TV segment reports Rs 3.41 cr operating profit in Q3-2014

    Sahara One TV segment reports Rs 3.41 cr operating profit in Q3-2014

    BENGALURU: Sahara One Media and Entertainment Limited (Sahara One) Television segment reported an operating profit of Rs 3.41 crore in Q3-2014, which was 3.49 per cent more than the Rs 3.30 crore in Q3-2013, but (53.17) lower than the Rs 7.29 crore in the immediate trailing quarter. Over the nine month period ended 31 December 2013, the Television segment reported a (29.95) per cent drop in operating profit to Rs 8.17 crore in the corresponding period of last year. 

     

    Sahara One’s Television segment reported operating revenue of Rs 21.29 crore in Q3-2014 which was (54.02) per cent lower than the Rs 46.30 crore in Q3-2013 and (9.27) per cent less than the Rs 23.46 crore in Q2-2014. Television segment reported YTD operating revenue of Rs 73.02 crore which was (33.5) per cent less than the Rs 109.79 crore in the corresponding nine month period of last fiscal. The segment had operating revenue of Rs 135.05 crore in FY 2013. 

     

    Overall the company reported a loss of Rs (3.37) crore in Q3-2014, with unallocated segment eating away Rs (3.30) crore and its motion picture segment Rs (0.02) crore from the operating profit generated by Sahara One’s Television segment.  

     

    Let us look at the other Q3-2014 figures reported by Sahara One 

     

    Sahara One reported a (-55.20) per cent drop in operating revenue in Q3-2014 to Rs 20.41 crore from Rs 45.57 crore in the corresponding quarter of last year and a (9.69) per cent drop in operating revenue as compared to the Rs 24.76 crore in Q2-2014. Over the nine month period ended 31 December, 2013, Sahara One’s operating revenue fell (34.65) per cent to Rs 70.44 crore from Rs 107.78 crore reported in the corresponding period of last year. In FY 2013, the company reported operating income of Rs 132.28 crore. 

     

    Sahara One’s Total income for Q3-2014 at Rs 22.77 crore was (52.02) per cent lower than the Rs 47.46 crore in Q3-2013 and (8.05) per cent lower than the Rs 24.76 crore in Q2-2014. Sahara One’s YTD Total income fell by (32.8) per cent to Rs 47.46 crore from Rs 116.41 crore in the corresponding nine month period of last year. Its Total income for FY 2013 was Rs 142.58 crore. 

     

    Expense in Q3-2014 at Rs 22.67 crore dropped (49.82) per cent from Rs 45.19 crore in Q3-2013 and was 19.41 per cent more than the Rs 18.99 crore in Q2-2014. Sahara One’s YTD Expense at Rs 75.22 crore was (28.69) per cent lower than the Rs 105.49 crore during the corresponding nine month period of last year. 

     

    The major expense head in the case of Sahara One is Purchase of Content. Sahara One’s Content purchase expense for Q3-2014 was down (28.06) per cent to Rs 29.06 crore from Rs 40.40 crore y-o-y and was 39.76 per cent more than the Rs 17.51 crore in Q2-2014. Over the nine month period ended 31 December, 2013, Sahara One paid Rs 68.29 crore towards Content acquisition, which was (27.15) per cent lower than the Rs 93.74 crore in the corresponding period of last year. In FY 2013, Sahara One paid Rs 120.27 crore towards this expense head.

     

    Increase in Inventory by Rs 11.68 crore in Q3-2014 resulted in lower Total expense to that extent. In Q3-2013, Inventory had dropped by Rs 0.65 crore, which resulted in an increase in Total expense in to that extent during that quarter. In Q2-2014, the company reported Inventory Increase of Rs 3.64 crore. Over a nine month period of the current fiscal, Inventory increased by Rs 8.56 crore as compared to the increase of Rs 0.47 crore during the corresponding period of last year. During FY 2013, Sahara One reported Inventory increase of Rs 4.77 crore. 

     

    As mentioned above, the company reported a loss of Rs (3.37) crore in Q3-2014, as compared to a PAT of Rs 1.45 crore in Q3-2013 and a PAT of Rs 4.10 crore in the immediate preceding quarter. Over the nine month period of the current fiscal, the company reported a (72.41) per cent drop in PAT to Rs 1.92 crore from Rs 7.03 crore reported during the corresponding period of last year. The company reported PAT of Rs 5.29 crore in FY 2013.

     

    Click here for the financials

  • Sahara’s Filmy to be managed by the Entertainment Hub?

    Sahara’s Filmy to be managed by the Entertainment Hub?

    MUMBAI: It began with a bang around eight years ago but for some time now, the movie channel Filmy from the Sahara One Media and Entertainment bouquet, has been whimpering and struggling to even be seen.  The management of the Sahara group has been preoccupied with larger problems related to the Securities Exchange Board of India (Sebi). 

     

    And it is looking at strategically exiting from directly managing its media business. The first indication of this is the deal, which sources say, it has struck with Mumbai-based TV production company The Entertainment Hub. Under the arrangement, the latter reportedly will be managing Filmy on a contractual basis. The Entertainment Hub, which is part of the Snip Entertainment Group, will reportedly be responsible for Filmy’s content scheduling, distribution and also for revenue generation. The deal also envisages the spoils being shared with the Sahara group.  

     

    Titles such as No Entry, Guru, Khosla Ka Ghosla, Umrao Jaan, Dor, Gangster, Khamoshh, Fareb, Jo Bole So Nihaal and few other feature films have had their TV premieres on Filmy. The movie channel has also showcased films such as Ghajini, Singh Is King, Jaane Tu Ya Jaane Na.., Golmaal Returns, Bhoothnath, Sarkar Raj etc.

     

    Despite Big films, the channel has not managed to get much traction in TV homes, as the Sahara Group has cut off all supplies of distribution and marketing money, thus ensuring that its reach and branch recall has hit rock bottom. “Amongst movie channels, it probably ranks even below the last channel,” says a media observer. 

     

    Hence, the Entertainment Hub which is a supplier of TV shows such as Haunted Nights and Piya Ka Ghar Pyaara Lage on Sahara One has its work cut out for it, thanks to the competitive TV distribution environment that is prevalent today. Sister company Snip Entertainment has interests in content syndication, TV production and music licensing. 

     

    Apparently, the Sahara group is in conversation with a large media group to manage even Sahara One. An announcement is likely to be made in March sometime, if sources are to be believed. 

  • ‘We don’t need to change anything drastically. All we have to do is perfect our existing properties’ : Shailesh Kapoor – Filmy business head

    ‘We don’t need to change anything drastically. All we have to do is perfect our existing properties’ : Shailesh Kapoor – Filmy business head

    Filmy, the one and a half year old Hindi movie channel from the Sahara Group, has experimented with a varied mix of movies and shows to make a mark against established channels like Zee Cinema, Max and Star Gold. From spoofs to chat shows, Filmy is now set to foray into the reality genre with Bathroom Singer. To extend the Filmy brand even further, the channel has taken the acquisition route to bring the ‘Rajnikanth’ fever onto the channel.

     

    Shailesh Kapoor who was recently promoted to the position of business head, speaks to Indiantelevision.com’s Richa Dubey in an exclusive chat revealing the channel’s growth chart and its plans for the future.

     

    Excerpts:

    After the initial impact, is Filmy’s growth slowing down?
    The channel has done pretty well since we launched in February 2006. Our foundation has been built in a short span of time and the perception of our brand has become strong with our constant growth. We have been noticed by viewers as well advertisers and have been taken seriously. I think most of the channels which were launched in last three to four years have not been able to do that.
    But haven’t your GRPs dropped sharply?
    Though we had a slump in the period between April-June, our GRPs for the last three weeks have seen a rise. Tam expanded its coverage areas in January and older, popular channels have gained.

    Is there pressure to modify your strategy?
    We don’t need to change anything drastically. All we have to do is perfect our existing properties. We have already started taking a few giant steps like acquiring bigger films and latest hits. In fact, the acquisition of a few more big films are in pipeline. We also have old films which means there is more variety in our library.

     

    Additionally, we have also acquired hits from the Southern region including a few Raknikanth starrer films. We have planned a special Rajnikanth Festival in August.

    You also have shown Ganga. Are we going to see more Bhojpuri films?
    Our key focus is not Bhojpuri films. But being a movie channel we did find it right to explore the Bhojpuri segment because of its popularity. But we are not restricted to it.

     

    Secondly, Kaun Banega Champu was taken off the channel for a seasonal break and there was nothing big at the time as we were planning our present and future shows. In this context, this gave us good visibility as Ganga was a good success.

     

    If a film as big as Ganga comes, then we will acquire it. In fact post September we are planning to introduce a fortnightly slot for Bhojpuri films. But we are essentially a Bollywood channel and even in acquiring Bhojpuri films we have to be careful.

    Will this help in improving your channel share?
    Last week we had a relative share of 11. But most of our bigger properties are unfolding now. We have a slew of new films which will be telecast. We will have one premiere every month. And this, in turn, will help our distribution.

    Has Filmy sorted out its distribution problems?
    Our distribution has increased in the small towns and now it has gone up 70 to 75 per cent across SEC B and C. We are being viewed in a lot more towns where we were not previously available. So our relative share should rise further in the next few months. And we are going to promote our properties in a bigger way.

    How are you planning to push your upcoming properties?
    Previously all our activities were channel specific. As we were new, we promoted the channel as a whole. But now we are established enough to promote individual properties. Each of our properties have a specific audience base and keeping that in mind, we promote our properties. We use research, whether it be for movies or shows.

     

    Our marketing efforts also depend on the property we are promoting. Guru was promoted at face value. All we did was highlight the fact that it is one of the biggest films of the year and the Aishwarya-Abhishek duo are in the movie.

    Isn’t it more difficult when you are promoting a show like say Bathroom Singer which you are launching on 26 August?
    We have planned promotional activities across the various stages and have, in fact, kicked off the campaign as auditions are currently going on. The launch campaign of the show will start in August. Anything that is ordinary will obviously not be noticed. So our promotions will be completely fresh. However, they will all be property centric. Compared to other movie channels we have the advantage of airing shows. These are a lot easier to promote than films.
    ‘In the first year, the key parameter was how the property worked for the Filmy brand. But from Bathroom Singer onwards, ratings will be the parameter‘

    With channels already cluttered by music talent hunt shows, why bring in the concept of Bathroom Singer?
    The tone and treatment of Bathroom Singer has a different angle. As the name suggests, it is completely Filmy and not glamorous. Though it is coupled with a lot of emotions and drama, it is not stressful like other music talent hunt shows. One thing that worked for us is that it has no age barriers and it has opened up the flood gates to participation.

     

    In the first round of auditions, we received five times the crowd we expected. There was even an 80-year-old man who was selected for the second round. We got to see amazing talent from people who could sing in reverse, in multiple languages and in various voices. All this is possible because we are not looking for a trained voice. It is like a packaged deal. The originality of the content will come from its treatment. We have our fingers crossed and wish to get good results.

    How do you slot programmes on the channel?
    We showcase three movies a day and rest of our programming consists of shows like Meri Bhains ko anda kyun Mara, Rokky’s 99, Aaj ke Filmy Khabar. Bathroom Singer has been positioned as a weekly on Sunday primetime. We have also introduced a Sunday 10 am to 2 pm slot for kids where we are airing animated TV series like The Jungle Book. Based on the responses, we will show more properties that are unexposed in the Indian market. Our focus, though, is on Sunday primetime which is important for us.

    Can you identify the properties that have stood out for the channel and which were the underperformers?
    In the first year, the key parameter was based on how the property worked for the Filmy brand. But from Bathroom Singer onwards, ratings will be the parameter.

     

    As for shows that have done well for us, Kaun Banega Champu got us ratings. Lallan has been a successful character. Though Rokky was not popular initially, we gave it the right platform and this was supported by good creative content.

     

    There were some things that didn’t work for us. Our short film festival didn’t do well because it was very niche. Lal Gulab and Ruchi Reporter also did not go down well, so we discontinued it.

    What about Filmy Stock Exchange?
    Filmy stock exchange is an online property and was very successful. TV viewers are not familiar with it, so we are still evaluating whether to get it on TV or not. We might get somebody from the internet business to partner with us for this.

    Have advertisers been difficult to get with low GRPs?
    Advertisers come for three reasons. First they come for TRPs, secondly for good properties and thirdly for the brand image that the channel carries. Tam data reveals that our audience profile is different and advertisers targeting them will come to us. We have been doing well in metros. Although Filmy has a mass appeal as a Hindi movie channel, it has the attitude of being a youth channel. The youth are our loyal viewers.
    How would you evaluate the last year in terms of return on investments?
    Our revenues have been increasing month after month. We have kept our costs under control. We, in fact, have reached a break even status and and hope to do even better in the second year.
  • Sahara to transfer broadcasting operations to listed firm

    Sahara to transfer broadcasting operations to listed firm

    MUMBAI: Sahara Group will be transferring the broadcast operations of its entertainment channels to the listed company, Sahara One Media & Entertainment.

    This is part of the commitment made to C Sivasankaran and BCCL (Times Group holding company Bennet Coleman & Co Ltd) when they acquired stakes in Sahara One Media & Entertainment last year, a source familiar with the deal says. While Sivasankaran’s Aircel Televentures (later renamed Siva Ventures) picked up 14.98 per cent for Rs 1.2 billion, BCCL acquired close to 6 per cent stake in the company.
    The broadcast operations are currently under Sahara India TV Network, a division of Sahara India Commercial Corporation Ltd. “The plan is for the listed company to also have the broadcast operations under it,” says the source.

    The transfer will mean that Sahara One Media & Entertainment will be able to capture the advertising revenues from the two existing channels, Sahara One and Filmy. The company currently earns from the programming it licenses to Sahara India TV Network and from its motion pictures business.

    “Sahara One will be able to capture the full part of the value chain. The entire infrastructure will be under one company,” says the source.

    The cost of running the channels including transponders and carriage fee will, thus, come under Sahara One Media & Entertainment. But there would be no transfer of the assets and liabilities of Sahara India TV Network. “The idea is to start with a clean slate and then build the broadcasting value,” says the source. “Under the current system, Sahara One does not run any commercial risk in the TV business as it produces content and passes it on to the channel on a cost-plus-commission basis,” he adds.

    Sahara’s news channel business also has a separate broadcasting arm and is under Sahara India TV Network (2). Sahara runs six news channels – in the national, regional and city-centric space.

    Meanwhile, the Sahara One Media & Entertainment board has approved raising of resources up to $ 20 million through foreign currency convertible bonds (FCCBs).

    “This will be used to meet the company’s working capital and content acquisition requirements,” says the source. Earlier, Sahara One had planned to come up with a provision to raise up to $50 million as it was at that stage in talks to acquire an equity in Ten Sports. Later Zee Group bought a 50 per cent stake in the sports channel for $57 million.