ITV

Tag: Subhash Chandra

  • Q2-2016: Ad & subscription revenue growth drives Zee net up 9%; income up 24%

    Q2-2016: Ad & subscription revenue growth drives Zee net up 9%; income up 24%

    BENGALURU: Riding on the back of higher advertising and subscription based revenues in the quarter ended 30 September, 2015 (Q2-2016), the Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited’s (Zeel) net income was up nine per cent at Rs 247.40 crore (17.9 per cent margin) than the Rs 229 (20 per cent margin) in Q2-2015. This was also 1.5 per cent more than Rs 243.76 crore (18.2 per cent of consolidated total revenue or TR) in the immediate trailing quarter.

     

    The company’s total revenue in Q2-2016 increased 23.9 per cent to Rs 1384.90 crore from Rs 1117.82 crore in Q2-2015 and was 3.4 per cent more than the Rs 1339.86 crore in Q1-2016.

     

    Advertising revenues saw a 34.7 per cent hike in Q2-2016 to Rs 843.31 crore (60.9 per cent of TR) as compared to the Rs 625.94 crore (56 per cent of TR) and was 8.1 per cent more than the Rs 779.93 crore (58.2 per cent of TR) in Q1-2016.

     

    Subscription revenue in the current quarter also increased 12.9 per cent to Rs 479.14 crore (34.6 per cent of TR) from Rs 424.45 crore (38 per cent of TR) in the corresponding year ago quarter and rose 3.6 per cent as compared to the Rs 462.53 crore (34.5 per cent of TR) in the immediate trailing quarter.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Zeel’s total revenue during the half year ended 30 September, 2015 (HY-2016) increased 25.4 per cent to Rs 2724.76 crore from Rs 2172.88 crore in HY-2015.

     

    Advertising revenue increased 30.1 per cent to Rs 1623.24 crore (59.6 per cent of TR) in HY-2016 from Rs 1248.04 crore (57.4 per cent of TR) in the corresponding year ago period. 

     

    Subscription revenue in HY-2016 at Rs 941.67 crore (34.6 per cent of TR) increased 12.6 per cent from Rs 836.58 crore (38.5 per cent of TR) in HY-2015.

     

    PAT for the current half year increased to Rs 491.16 crore (18 per cent margin) from Rs 438.12 crore (20.2 per cent margin) in HY-2015.

     

     

    Other results reported by Zeel for Q2-2016 and HY-2016:

     

    Total Expense (TE) in Q2-2016 at Rs 1050.05 crore (75.8 per cent of TR) increased 29.5 per cent as compared to the Rs 810.75 (72.5 per cent of TR) in Q2-2015 and was 0.4 per cent more than the Rs 1045.47 crore (78 per cent of TR) in Q1-2016.

     

    Zeel’s operating cost increased 28.3 per cent to 603.62 crore (43.6 per cent of TR) as compared to the Rs 470.30 crore (42.1 per cent of TR) in the corresponding year ago quarter, but was 1.2 per cent lower than the Rs 610.76 crore (45.6 per cent of TR) in Q1-2016.

     

    Other expense in Q2-2016 fell 18.3 per cent to Rs 179.05 crore (12.9 per cent of TR) as compared to the Rs 219.11 crore (19.6 per cent of TR) and was 2.3 per cent lower than the Rs 183.24 crore (13.7 per cent of TR) in Q1-2016.

     

    Employee Benefit Expense increased 17.4 per cent to Rs 126.70 crore (9.1 per cent of TR) than the Rs 107.96 crore (9.7 per cent of TR) in Q2-2015, but was 8.2 per cent lower than the Rs 138.01 crore (10.3 per cent of TR) in Q1-2016.

     

    Advertisement and Publicity expense in the current quarter was 64.6 per cent more at Rs 120.90 crore (8.7 per cent of TR) in Q2-2016 as compared to the Rs 73.45 crore (6.6 per cent of TR) and was 25.1 per cent more than the Rs 96.65 crore (7.2 per cent of TR) in Q1-2016.

     

     

    Company speak

     

    Chandra said, “Zee has seen an impressive performance during the second quarter. The improvement in advertisement industry and improved performance of our network has helped us grow ahead of the market. We continue to see the positive results of our investments. We will endeavour to continue on this track going forward and pursue new opportunities that will yield long term growth. Our effort is to entertain audience across the world.”

     

    Zeel managing director and CEO Punit Goenka added, “We are quite pleased with our quarterly performance and it continues to remain on track. We have grown as a network on the back of superior programming on our new and existing products. The improvement in the overall advertisement market has further aided our strong growth. The domestic subscription market has also seen steady growth.”

     

    “Zee is the leading content player in the Indian TV industry offering maximum hours of content for audiences both home and abroad. Going forward, our endeavor would be to further enhance our offerings and be ahead of the market in delivering innovative and high quality entertainment to our viewers across consumption platforms. We believe that in this fast evolving media and  entertainment space delivering excellent content will remain key for monetising revenues, from both advertising and subscription standpoint,” said Goenka.

  • Zee TV completes 23 years on Indian television; creates 1 million jobs

    Zee TV completes 23 years on Indian television; creates 1 million jobs

    MUMBAI: Twenty-three years ago to this date, one man changed the face of Indian television forever.

     

    We’re talking about none other than the czar of television in India – Dr Subhash Chandra, who began beaming Zee TV on 2 October, 1992 as the first Hindi language cable channel in India.

     

    Over the last 23 years, Zee Entertainment Enterprises’ Hindi general entertainment channel (GEC) Zee TV has expanded its reach to more than 169 countries and has viewership of over 956 million across the world. What’s more, with the advent of Zee TV, the industry has created one million jobs, according to Dr Chandra.

     

    On 23 anniversary of Zee TV, Dr Chandra took to Twitter to say:

     

     

    Following his father’s tweet-steps, ZEEL MD and CEO Puneet Goenka also tweeted:

     

     

    Since launch, the channel has aired hundreds of fictional show, which while providing entertainment have also raised multiple social issues of the country. Some of its impactful dramas have been series like Agle Janam Mohe Bitiya Hi Kijo, Apki Antra, Ghar Ki Lakshmi Betiyaan and Afsar Betiya amongst many others.

     

    A pioneer in many aspects, Zee TV was the first to introduce India’s first musical reality show called Antakshari, which ran successfully for over ten years. Hosted by Anuu Kapoor, the show was viewers’ staple diet across age groups.

     

    Zee also went on to launch Zee Khana Khazana, the first 24 hours food channel in India. Aap Ki Adalat hosted by renowned journalist Rajat Sharma, was among the most loved show of 90s that the channel has ever produced.

     

    In the fiction space, the channel gave a landmark show like Tara – the first show on contemporary urban women by Vinta Nanda that ran for about five years on the channel. Some of the other shows that have managed to make a mark areAastitvaa Ek Prem Kahani as well as the endearing and inimitable Hum Paanch.

     

    In 1995, the channel launched first singing reality show Sa Re Ga Ma Pa, which has given some of the finest singers to the industry. After producing the first singing reality show, the channel came up with first India’s largest dance reality showDance India Dance in 2009, which is currently running in its fifth season.

     

    On the occasion of its 23rd anniversary, Zee TV is also running a contest on social media. On Twitter, the channel is running a #Zeeturns23 contest, where several questions related to Zee are posed and people are asked to tweet their answers.

     

    As was earlier reported by Indiantelevision.com, the latest offering from Zee TV is the new reality show called I Can Do That. The show is an adaptation of an international series by the same name and will be hosted by Farhan Akhtar.

     

    Additionally, Zee TV is also planning to launch the second season of India’s Best Dramebaaz in the coming months. On the fiction front, the channel is readying a new series called Kaala Teeka. However, the launch date of the show has not yet been revealed.

  • Vikas Gupta to join &TV as head of fiction programming

    Vikas Gupta to join &TV as head of fiction programming

    MUMBAI: Lost Boy Productions’ Vikas Gupta is all set to join media mogul Subhash Chandra’s new general entertainment channel (GEC) &TV as head of fiction programming.

     

    Gupta will join the channel from 1 September, 2015 and will be reporting to &TV business head Rajesh Iyer. He will be stepping into the shoes of Doris Dey who currently holds the position. 

     

    Confirming the news to indiantelevision.com, Gupta said, “Challenge is what drives me and &TV is an extremely exciting space to be in. I am looking forward to work with Rajesh and team and hope it will be a memorable and successful adventure like all the other assignments I have been a part of.”

     

    Gupta started his career as a trainee with Balaji Telefilms and moved on to DJ’s Creative Unit as an associate creative head. He went back to Balaji Telefilms as an associate creative director and was associated with shows like Kis Desh Main Hai Meraa Dil and Kitni Mohabbat Hai. He also worked as MTV India programming head from February 2014 to December 2014.

     

    Interestingly, the TV fraternity also recognises him as the youngest creative director of the industry. He entered the industry at a young age of 19. After getting enough experience, he turned to production and started his own banner – Lost Boy Productions – almost four years ago. Over the last three years, the production house has come up with shows like Channel [V]’s Gumrah and The Serial (co-produced with Balaji Telefilms); as well as Bindass’ Yeh Hai Aashiqui.

  • ZMCL forays into English news broadcasting; names Rohit Gandhi as editor-in-chief

    ZMCL forays into English news broadcasting; names Rohit Gandhi as editor-in-chief

    MUMBAI: Zee Media Corporation Limited (ZMCL) has announced its foray into the English news broadcasting space with the appointment of Rohit Gandhi as editor-in-chief of English news broadcast and related content, effective 17 August.

    It may be recalled that Indiantelevision.com was the first to report about the network’s plan to get into English news broadcasting. In an earlier conversation, Essel Group chairman Dr Subhash Chandra had said, “I have been harbouring this thought of starting a global news network in English for the global audience but with an India point of view.”

    Gandhi, who reports to ZEEL MD and CEO Punit Goenka, will be heading the operations of all initiatives in this space, working closely with the business head & revenue resources.

    Goenka said, “Venturing into the English News space allows us to extend our presence in the overall news genre across geographies and even in the international arena. We want to launch a news network for global audiences with an Indian point-of-view. With Rohit on-board to spearhead this initiative, we are confident that we will be able to showcase a world-class product. We welcome Rohit to the Zee family and wish him all the very best.”

    Gandhi added, “It is a phenomenal opportunity for me to work with Zee and Punit to deliver world-class coverage to viewers at home. We want to continue on the path of providing in-depth, textured coverage across platforms to address the ever-changing needs of the global audiences.”

    ZMCL has neither revealed the name of its new English news channel nor its launch date.

    Gandhi brings with him over 23 years of experience across 40 countries and has managed the complete gamut of the news business. In his previous assignment, he was the international correspondent & communication strategist for South Asian International News. Prior to that he worked with CBC, CNN, BCTV & Global TV, Canada, and NDTV. He has also covered many war zones including Afghanistan in 2001 and Iraq in 2003.

  • Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    BENGALURU: Subhash Chandra led Essel Group’s Siti Cable Network Limited (Siti Cable) reported operating revenue (total income from operations, or TIO) of Rs 228.09 crore in the quarter ended 30 June, 2015 (Q1-2016), which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

    (2) All numbers in this report are consolidated unless stated otherwise.

     

    Both television and broadband subscription revenue registered YoY growth, broadband reported 63.6 per cent growth at Rs 9 crore in Q1-2016 as compared to the Rs 5.5 crore in the corresponding year ago quarter and was 13.9 per cent more than the Rs 7.9 crore in the immediate trailing quarter.

     

    Subscription revenue in Q1-2016 at Rs 129 crore was 9.1 per cent higher than the Rs 118.2 crore in Q1-2015, but declined 9.4 per cent as compared to the Rs 142.4 crore in Q4-2015. Activation revenue at Rs 10.9 crore in the current quarter was 25.3 per cent lower than the Rs 14.6 crore in Q1-2015 and was 48.3 per cent lower than the Rs 21.1 crore in Q4-2015. Siti Cable says that effective realisation per subscriber remained flat during the current period.

     

    Siti Cable’s cable universe increased by 200,000 digital subscribers to 107 lakh in Q1-2016 from 105 lakh in Q4-2015. Digital subscriber base increased in the current quarter to 55.8 lakh from 53.8 lakh in Q4-2015. Net broadband additions in the current quarter were 4400 – the count went up to 74,500 from 70,100 in the previous quarter (Q4-2015).

     

    Let us look at the other numbers reported by Siti Cable

     

    Siti Cable reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore in Q1-2015 and a loss of Rs 34.13 crore in Q4-2015.

     

    EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

     

    Total Expenditure in Q1-2016 increased 12 per cent to Rs 228.21 crore (100.1 per cent of TIO) as compared to the Rs 203.76 crore (97.5 per cent of TIO) in Q1-2015, but was 18.6 per cent lower than the Rs 280.49 crore (109.6 per cent of TIO) in the previous quarter.

     

    Pay channel costs in the current quarter increased 8.1 per cent to Rs 135.70 crore as compared to the Rs 125.55 crore in Q1-2015 but was 13.6 per cent lower than the Rs 156.98 crore in Q4-2015.

     

    Siti Cable’s Finance costs in Q1-2016 increased 11.6 per cent to Rs 33.90 crore as compared to the Rs 30.37 crore in Q1-2015 and were 9.2 per cent more than the Rs 31.05 crore in Q4-2015.

     

    Other expenses increased 13.9 per cent in the current quarter to Rs 43.32 crore as compared to the Rs 38.05 crore in Q1-2015 but were 40.3 per cent lower than the Rs 72.53 crore in Q4-2015.

     

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and Margin expansion by 501 bps QoQ,” said Siti Cable executive director and CEO VD Wadhwa.

     

    “We managed to grow our Broadband revenues by 13.4 per cent QoQ and are on track to expand our Broadband operations in new cities. Delays in content availability held back STB seeding, however we are well poised to expand aggressively this quarter. During the quarter we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” added Wadhwa.

  • Q1-2016: Affirmation that DTH in India has turned the corner?

    Q1-2016: Affirmation that DTH in India has turned the corner?

    BENGALURU: If numbers reported by direct-to-home (DTH) operators in Q1-2016 are anything to go by, then the segment might just have turned the corner last quarter.

     

    As may be recalled, Indiantelevision.com had reported in the last quarter that the DTH industry in India had probably reached an inflection point in FY-2015 (financial year ended 31 March, 2015, previous year), and more so during the last quarter of the previous year (Q4-2015). The financial results for the quarter ended 30 June, 2015 (Q1-2016, current quarter) seem to confirm this fact.

     

    Another endorsement of this website’s surmise is a single statement in the Sun TV Network’s earning release for the current quarter – Subscription revenues continue to grow with cable TV revenues growing by approximately 13 per cent and DTH subscription revenue growing by nine per cent over the same quarter of last year. Sun TV had approximately eight per cent market share among the private Indian DTH players as on 31 March, 2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

    This report covers only the three of the seven DTH service providers in India (as had the previous one) since the other four – Reliance Digital TV, Sun Direct (about 97 lakh subscribers as on 31 March, 2015), Tata Sky and DD Free Dish are not listed on the bourses and their financial numbers are not available, unless the principals of these companies/segments chose to reveal them. The three players – Airtel DTH, Dish TV and Videocon d2h have already been covered in our earlier report mentioned above.

     

    Despite Q1 being a relatively weak quarter seasonally, two of the three players – Airtel DTH, Dish TV and Videocon d2h have reported QoQ and YoY growth across all the important parameters that include revenue, operating profits with healthy margins, subscription numbers, average revenue per user (ARPU) for the current quarter. The third player Videocon d2h, has also shown improved numbers across all the parameters mentioned above, except in the case of operating profits – the company’s YoY and QoQ loss reduced significantly in Q1-2016.

     

    Dish TV is the largest DTH player in terms of subscriber base and probably revenue too, in India. The company posted a 55.2 per cent QoQ growth in consolidated profit after tax of Rs 54.21 crore (7.2 per cent margin) in Q1-2016 on revenue of Rs 736.68 crore. For the corresponding quarter of last year, Dish TV had reported a loss of Rs 14.97 crore on revenue of Rs 618.04 crore.

     

    As a matter of fact, Dish TV is also the first among listed DTH companies in the country in FY-2015 and Q4-2015 to report a profit after tax as opposed to the operating profits reported by a segment of the other goliaths for whom DTH services is just another small segment.

     

    Airtel DTH reported the highest YoY growth in ARPU in Q1-2016, as well as the highest ARPU among the three players in this report.

     

    Let us look at some of the numbers reported by the three players:

     

    Airtel DTH

     

    For Bharati Airtel Limited (Airtel), Digital TV services (Airtel DTH) contributes just a small fraction to its overall numbers. The DTH segment’s contribution to overall Airtel numbers is approximately four per cent to revenue and three per cent to EBIDTA, and yet it had a seven per cent share in the company’s capex investments pie to the extent of Rs 211.3 crore fresh investments in Q1-2016. Overall, cumulative investment made by Airtel into its DTH segment is Rs 5621.6 crore (about three per cent of Airtel’s overall cumulative investments).

     

    Mentioning the DTH segment in Airtel’s Q1-2016 earning release, Airtel MD and CEO, India & South Asia Gopal Vittal said, “I am pleased that our revenue growth is broad based across all business units, especially the domestic enterprise and corporate segment, which saw revenues grow by 18.1 per cent, and DTH business which had a underlying topline growth of 26.8 per cent.”

     

    Airtel DTH reported 15.8 per cent increase in YoY revenue to Rs 684.8 crore in Q1-2016 as compared to the Rs 591.5 crore in Q1-2015 and 7.9 per cent more than the Rs 634.8 crore in Q4-2015.

     

    The telecom major’s DTH segment reported a 67 per cent growth in operating profit (EBIDTA) in the current quarter at Rs 240.8 crore (46.1 per cent margin) as compared to the Rs 143.8 crore (24.3 per cent margin) in Q1-2015 and 15.9 per cent more than the Rs 207.8 crore (32.7 per cent margin) immediate trailing quarter.

     

    Airtel’s DTH segment reported 10.9 per cent YoY growth in Airtel DTH customer base for the current quarter at 104.12 lakh as compared to the 93.88 lakh in Q1-2015 and 3.4 per cent growth as compared to the 100.73 lakh in Q4-2015.

     

    As mentioned above, ARPU in Q1-2016 improved significantly to Rs 222 as compared to the Rs 214 in both Q1-2015 and Q4-2015. Monthly churn in the current quarter was higher at 0.8 per cent as compared to the 0.6 per cent in the corresponding year ago quarter, but lower than the one per cent in the immediate trailing quarter.

     

    Dish TV

     

    Dish TV has shown almost flat QoQ revenue growth in Q1-2016. The company reported 0.9 per cent higher consolidated net total Income from Operations (TIO) in the current quarter at Rs 736.68 crore as compared to the Rs 729.93 crore in the immediate trailing quarter and 19.2 per cent more than the Rs 618.04 crore in Q1-2015.

     

    As mentioned above, the company has reported 55.2 per cent higher PAT at Rs 54.21 (7.4 per cent margin) as compared to the Rs 34.94 crore (margin 4.8 per cent) in Q4-2015. The company had reported a loss of Rs 14.97 crore in Q1-2015, while it had reported a consolidated PAT of Rs 3.14 crore for FY-2015.

     

    With effect from 1 April, 2015, Dish TV says that it has started netting-off certain collection fees paid to its trade partners from its topline. This has resulted in the company’s topline getting shrunk by around four per cent, with a similar number being decreased from the middle line.

     

    Further, Dish TV transferred its non-core business (including set-top boxes, dish antenna and related services) to its wholly owned subsidiary Dish Infra Services Private Limited (formerly known as Xingmedia Distribution Private Limited) on 1 April, 2015 on a going concern basis.

     

    The company reported addition of 3,90,000 net subscribers in Q1-2016, taking its total subscriber base to 1.33 crore as on 30 June, 2015. Post consolidation, Dish TV’s ARPU was Rs 173 versus Rs 172 (QoQ) in Q4-2015. The company reported consolidated subscription revenues at Rs 628.88 crore, up 20.6 per cent YoY.

     

    Dish TV chairman Subhash Chandra said, “Dish TV has been actively contributing to the ‘Digital India’ movement by digitizing analog TV homes in DAS phase 3 and 4 markets and remains optimistic about its prospects to acquire a substantial share in these markets.”

     

    Dish TV managing director Jawahar Goel added, “Our first quarter results are in line with the success of our regional and high definition (HD) strategy. Our regional offering, ‘Zing’, would soon be launched in Kerala and would carry the largest cache of vernacular channels offered in that market. ‘Zing’ cemented Dish TV’s supremacy in the DAS Phase 3 and 4 markets with custom-made content, hardware and service packages for the regional audience. High definition continues to be a value driver and a key differentiator for us compared to other DTH offerings in India. Dish TV’s industry leading bandwidth capacity supports 42 HD channels, the largest on offer by any distribution platform so far.”

     

    Further, Dish TV recently formed a content negotiating joint venture (JV) called Comnet with its group company and multi system operator (MSO) Siti Cable Network Limited. Both Dish TV and Siti Cable are equal partners in the JV that came into existence on 1 July, 2015. As part of the JV, both companies will hold joint discussions with broadcasters post, which separate direct contracts between the broadcaster and distribution platform will be signed. The JV also tends to bring together the industry on contentious taxation issues like the recent arbitrary hike in entertainment tax in Delhi.

     

    Videocon d2h

     

    For Videocon d2h, the addition of 6.1 lakh gross subscribers and 4.6 lakh net subscribers in Q1-2016 coupled with higher ARPU for Q1-2016, resulted in a YoY 32.1 per cent growth in subscription revenue and 23.3 per cent growth in revenue from operations (TIO) in Q1-2016. On a QoQ basis, subscription revenue increased 3.7 per cent, while TIO increased six per cent. The company also reported a marked fall in finance costs and consequently the company’s loss in the current quarter more than halved to Rs 24.4 crore as compared to the Rs 55.8 crore in Q1-2015 and was less than a third of the Rs 75.7 crore in Q4-015.

     

    TIO in Q1-2016 at Rs 662.83 crore was 23.3 per cent more than the Rs 537.65 crore in Q1-2015 and 6 per cent more than the Rs 625.27 crore in Q4-2015.

     

    Videocon achieved strong subscription revenue growth of 32.1 per cent to Rs 599.61 crore (90.5 per cent of TIO) in Q1-2016 as compared to the Rs 453.77 crore (84.4 per cent of TIO) in Q1-2015 and growth of 3.7 per cent as compared to the Rs 578.33 crore (92.5 per cent of TIO) in the immediate trailing quarter Q4-2015.

     

    Average revenue per user (ARPU) in Q1-2016 at Rs 205.30 was 9.7 per cent more than the Rs 187.14 in the corresponding year ago quarter and was 1.5 per cent more than the Rs 202.17 in Q4-2015. (Conversion rate from 1 dollar = 62.59 Indian rupee for all the three quarters).

     

    The company considers advertisement revenue as an important contributor to its numbers, and is beginning to see an encouraging response from multiple advertisers. Videocon d2h recently set up an advertising team to sell ad inventory on its own proprietary channels and added three proprietary channels – d2h nursery rhymes; d2h Cinema HD; and another music channel. The company has also launched three Active services, namely, Active Kids, Active Games and Active Learning in this quarter, which the company says are beginning to get traction from its customer.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are pleased to declare a strong set of results for the quarter ended 30 June, 2015 and are on track to achieve the guidance provided for fiscal 2016. With a strong subscriber growth outlook, DTH sector gaining market share over cable and an improving ARPU scenario; we believe we are just at the beginning of a multi-year strong growth opportunity.”

     

    Conclusion

     

    The three players considered in this report had an approximate combined market share of 67 per cent in among the private players India at the end of the previous year, or more than two-thirds. It is still early days as yet to really conclude that the DTH sector in India has turned the corner based on good results for only two consecutive quarters reported by three companies that represent about two thirds of the sector. Of course, the amount of representation goes up to 75 per cent of the private players, if one were to consider the Sun TV market share of eight per cent. However, looking at the intensity and the moves of these players, it is quite likely that the sector should continue showing improved positive results, and may have turned the corner in Q4-2015.

  • Q1-2016: Dish TV q-o-q PAT up 55%, adds 390K net subscribers

    Q1-2016: Dish TV q-o-q PAT up 55%, adds 390K net subscribers

    BENGALURU: Last fiscal and quarter (year and quarter ended 31 March, 2015, Q4-2015), the Subhash Chandra led Essel groups DTH operator Dish TV Limited (Dish TV) turned the corner with a consolidated PAT of Rs 3.14 crore and Rs 34.94 crore (margin 4.8 per cent) respectively. 

     

    Dish TV was probably the first among listed DTH companies in the country in FY-2015 and Q4-2015 to report a profit after tax as opposed to the operating profits reported by a segment of the other goliaths for whom DTH services is just another small segment.

     

    This quarter (quarter ended 30 June, 2015, Q1-2016), the company has reported 55.2 per cent higher PAT at Rs 54.21 (margin 7.4 per cent) as compared to the above mentioned PAT in Q4-2015. The company had reported a loss of Rs 14.97 crore in Q1-2015.

     

    Note:  (1)100,00,000 = 100 Lakh = 10 million = 1 crore

     

    (2) With effect from April 1, 2015, Dish TV says that it has started netting-off certain collection fees paid to its trade partners from its topline. This has resulted in the company’s topline getting shrunk by around 4 percent, with a similar number being decreased from the middle line. The values for the prior comparative periods have also been recast to reflect the same.

     

    (3) Dish TV recently transferred its non-core business (including set-top boxes, dish antenna and related services) to its wholly owned subsidiary Dish Infra Services Private Limited (formerly known as Xingmedia Distribution Private Limited) on April 1, 2015 on a going concern basis. The Company today reported its maiden consolidated quarterly numbers.

     

    The company reported addition of 3,90,000 net subscribers in Q1-2016, taking its total subscriber base to 1.33 crore as on 30 June, 2015. Post consolidation, Dish TV says that Average Revenue Per User (ARPU) was Rs 173 versus Rs 172 (q-o-q) in Q4-2015. ARPU however would have been Rs 180, as compared to Rs 179 in Q4-2015, without the effect of consolidation. The company reported consolidated subscription revenues at Rs. 628.88 crore, up 20.6 percent y-o-y.

     

    The company reported 0.9 per cent higher consolidated net total Income from Operations (TIO) in the current quarter at Rs 736.68 crore as compared to the Rs 729.93 crore in the immediate trailing quarter and was 19.2 per cent more than the Rs 618.04 crore in Q1-2015.

     

    Dish TV chairman Subhash Chandra said, “Dish TV has been actively contributing to the ‘Digital India’ movement by digitizing analog TV homes in DAS phase 3 and 4 markets and remains optimistic about its prospects to acquire a substantial share in these markets. Continuing its focus on growth with profitability, the company delivered another quarter of encouraging financial results.”

     

    Let us look at the other numbers reported by Dish TV

     

    Dish TV total expenditure in Q1-2016 at Rs 659.69 crore (89.5 per cent of TIO) was 0.7 percent lower than the Rs 664.08 crore (91 per cent of TIO) in Q4-2015 and was 8.7 per cent more than the Rs 606.80 crore (98.2 per cent of TIO) in Q1-2015.

     

    A major expense head is programming /content and other costs (content costs). In Q1-2016 content cost at Rs 212.01 crore (28.8 per cent of TIO) was 2.1 per cent more than the Rs 207.62 crore (28.4 per cent of TIO) and was 5.3 per cent more than the Rs 201.39 crore (32.6 per cent of TIO) in Q1-2015.

     

    Employee Benefit Expense (EBE) in Q1-2016 at Rs 34.67 crore (4.7 per cent of TIO) was 39.7 per cent more than the Rs 24.81 crore (3.4 per cent of TIO) an was 34.8 per cent more than the Rs 25.72 crore (4.2 per cent of TIO) in the corresponding year ago quarter.

     

    Dish TV managing director Jawahar Goel said, “Our first quarter results are in line with the success of our regional and high definition (HD) strategy. Our regional offering, Zing, would soon be launched in Kerala and would carry the largest cache of vernacular channels offered in that market. Zing cemented Dish TV’s supremacy in the DAS Phase 3 and 4 markets with custom-made content, hardware and service packages for the regional audience. High definition continues to be a value driver and a key differentiator for us compared to other DTH offerings in India. Dish TV’s industry leading bandwidth capacity supports 42 HD channels, the largest on offer by any distribution platform so far.”

     

    “Led by robust subscriber additions and an improving ARPU, subscription revenues for the quarter increased 20.6 per cent over the corresponding quarter last fiscal. EBITDA of Rs 2,368 million recorded a significant 51.3 per cent jump over the corresponding quarter. Net Profit for the quarter was Rs 54.2 crore compared to a loss of Rs 15 crore in the first quarter last fiscal. The resultant free cash flow was Rs 68.9 crore. Amid improving financial performance, churn for the quarter remained steady at 0.7 per cent per month,” added Goel.

  • Ten Sports upbeat about India tour of Zimbabwe

    Ten Sports upbeat about India tour of Zimbabwe

    MUMBAI: After all the hue and cry, the Board for Control of Cricket in India (BCCI) has finally decided to go ahead with the Zimbabwe tour, a week after reportedly calling it off.

     

    As per earlier reports, BCCI citing Team India’s fatigue and conflict with broadcaster Ten Sports had decided to cancel the Zimbabwe tour. But after rounds of negotiations between the representatives of the two boards in Barbados, the decision of going ahead with the tour was taken.

     

    Subhash Chandra owned Essel group, the parent company of Ten Sports, which is reportedly investing heavily to form an alternative cricket regulatory board and organise lucrative cricket leagues is what had irked BCCI and thus the decision to call off the series which is to be aired on Ten Sports.

     

    Speaking to Indiantelevision.com, Rajesh Sethi says, “The tour was never called off officially and we were always prepared for it. Ten Sports shares a very cordial relationship with all the five boards and pleased to have their broadcasting rights (Zimbabwe, South Africa, West Indies, Pakistan and Sri Lanka). We are upbeat about the series.”

     

    Adding some relief to the cricket fans of Zimbabwe board chairman Wilson Manase had earlier said, “While negotiations are still on with respect to Team India tour to Zimbabwe, but it seems confirmed that the tour will go ahead. Consequently Team India is expected in Zimbabwe on the 7th of next month. Team Zimbabwe must get ready and be prepared to give Team India a rousing welcome.”

     

    The tour will help Zimbabwe cricket raise some money which they are in real need of, says a cricket expert and historian on condition of anonymity. “In the battle of ego between BCCI and the broadcaster, we should not forget the third stake holder Zimbabwe cricket, which desperately needs to generate revenue. So I am thankful to BCCI that they have decided to go ahead with the tour. From cricket perspective it’s never over till the last ball is bowled and the Bangladesh tour is the proof of that. Zimbabwe cricketers will come hard to the Indians. Having said that the senior bras desperately needed a break and team sent will try their level best to leave a mark. Overall, I expect it to be a good series,” he adds.

     

    Media planning fraternity feels that the ad rate for the series will go down as big names are missing from the team. “MS Dhoni featured in the Forbes list of top 100 richest athletes and he also has a huge fan following and so does Virat Kohli. Hence their absence will make life difficult for the sales team of Ten Sports,” feels a senior media planner who closely deals with sports planning and buying.

     

    Normally for a bilateral series, a 10 second ad slot is sold at Rs 3.5 to Rs 4 lakh. But, with big guns missing from the playing 11, media buyers feel that Ten Sports will be able to fetch around Rs 2 lakh for every 10 second slot.

     

     “Ad rates are directly proportional to the viewership. Dhoni, Kohli are big names and they generate huge word of mouth which results in higher ad rates. So the fact that they are missing will certainly impact the ad rates. But, if the tour was cancelled it would have yielded nothing. Hence it’s good for all three parties involved that the tour is happening,” says a media planner.

     

    Ajinkya Rahane who was dropped after the first ODI in Bangladesh will be leading the team in Zimbabwe. The selection committee has given a career reviving opportunity to veteran wrist spinner Harbajjan Singh by selecting him in place of Ravichandran Ashwin. Singh’s performance in IPL 2015 was key to Mumbai Indian’s success and was acknowledged by numerous pundits. Now it remains to be seen if Rahane can pull off a successful tour in the land of Lions.

     

    The ODI squad for Zimbabwe tour:  Ajinkya Rahane (capt), M Vijay, Ambati Rayudu, Manoj Tiwary, Kedar Jadhav, Robin Uthappa, Manish Pandey, Harbhajan Singh, Axar Patel, Karn Sharma, Dhawal Kulkarni, Stuart Binny, Bhuvneshwar Kumar, Mohit Sharma, Sandeep Sharma.

  • Zee breaks ground in NYC with nature cure and ayurvedic wellness center

    Zee breaks ground in NYC with nature cure and ayurvedic wellness center

    MUMBAI: In the presence of key political officials and more than 200 VIPs from the local community of upstate New York, Essel Group and Zee chairman Subhash Chandra led the foundation of a first-of-its-kind Nature Cure/Ayurvedic wellness center. 

    The creators are hopeful that apart from promoting health and wellness, this initiative will also be very instrumental in creating more job opportunities and overall economic development for the community at large. 

     

    While addressing the large assembly of dignitaries, Chandra expressed his pride in spreading the energy and spirit of yoga. “We have learned the harmony and wonders of this spiritual discipline, and with June 21st being recognized internationally for one of India’s gifts, it is the perfect day to break ground on our new Center. It will bring peace, harmony, jobs and a boost to the economy of this region,” he said, adding, “It is a beautiful act of nurturing the divinity within you. I strongly believe that it is a gift to all of us, and it is essential that we work towards making it a mass movement globally. I am confident that the International Yoga Day which Narendra Modi has initiated will have a strong impact on humanity.”

    The company has so far invested $18 million and has committed $100 million dollar as planned for the first phase to turn the legendary Kutsher’s Country Club (Dirty Dancing fame) into a 260,000 square foot Nature Cure/Ayurvedic Wellness Center. This initiative is part of Chandra’s  total commitment to invest $250 million on the five pillars of wellness. 

  • FY-2015: Siti Cable’s revenue from cable up 31.4% at Rs 910 crore

    FY-2015: Siti Cable’s revenue from cable up 31.4% at Rs 910 crore

    BENGALURU: The Essel Group’s Subhash Chandra led Siti Cable Network Limited reported revenue of Rs 910.4 crore from its cable operations, up 31.4 per cent as compared to the Rs 693 crore in FY-2014. Cable business includes Subscription, Carriage, Activation and Advertisement revenue streams.

     

    The company reported subscription revenue of Rs 531 crore in FY-2015, which was up 56.4 per cent from Rs 339.5 crore in FY-2014. Last year Siti Cable had reported carriage revenue of Rs 227.1 crore. The company’s revenue from its broadband operations grew 53.3 per cent to Rs 26.5 crore in the current year as compared to the Rs 17.3 crore in the previous year.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

    Siti Cable’s digital subscriptions increased 34.5 per cent to 53.8 lakh digital subscribers in FY-2015 as compared to the 40 lakh digital subscribers in FY-2014. Overall, the number of subscribers, both digital and analogue remained the same at 1.05 crores in FY-2015 as well as in the previous year. The company claims a broadband subscriber base of 70100 as compared to the 54000 subscribers in Q3-2015 and 48000 in Q2-2015.

     

    Siti Cable reported a 16 per cent higher loss in FY-2015 (year ended 31 March, 2015, current year) at Rs 109.1 crore as compared to the loss of Rs 94.06 crore in FY-2014. The company also reported higher loss in Q4-2015 at Rs 34.13 crore as compared to the Rs 20.86 crore in Q4-2014 and a loss of Rs 20.44 crore in the immediate trailing quarter.

     

    EBIDTA in FY-2015 at Rs 168.4 crore grew 33.8 per cent from Rs 125.9 crore in FY-2014. EBIDTA in Q4-2015 at Rs 32.1 crore was 15.1 per cent more than the Rs 27.9 crore in Q4-2014, but declined 35.9 per cent as compared to the Rs 50.1 crore in Q3-2015.

     

    Let us look at the other numbers reported by Siti Cable:

     

    Siti Cable’s Total Expenditure (TE) in FY-2015 at Rs 901.35 crore (99.5 per cent of Total Income from Operations or TIO) was 34.9 per cent more than the Rs 668.2 crore (95.8 per cent of TIO) in FY-2014. TE in Q4-2015 at Rs 280.49 crore (109.6 per cent of TIO) was 20.3 per cent more than the Rs 233.07 crore (99.9 per cent of TIO) in Q4-2015 and 32.2 per cent more than the Rs 212.11 crore (95.7 per cent of TIO) in Q5-2015.

     

    The company’s carriage sharing, pay channel and related costs (channel cost) in FY-2015 increased 53 per cent to Rs 510.82 crore (66.4 per cent of TIO) as compared to the Rs 333.95 crore (47.9 per cent of TIO) in FY-2014. Channel cost in Q4-2015 was 26.4 per cent higher at Rs 156.98 crore (61.3 per cent of TIO) as compared to the Rs 124.16 crore (53.2 per cent of TIO) in Q4-2014 and 41.3 per cent more than the Rs 111.07 crore (50.1 per cent ot TIO) in Q3-2015.

     

    Siti Cable’s finance cost in FY-2015 increased 1.5 per cent to Rs 120.88 crore (13.3 per cent of TIO) from Rs 119.11 crore (17.1 per cent of TIO) in Q5-2015. Finance costs in Q4-2015 at Rs 31.05 crore (12.1 per cent of TIO) was 0.6 per cent lower than the Rs 31.24 crore (13.4 per cent of TIO), but 3.9 per cent higher than the Rs 29.88 crore in Q3-2105.

     

    Other expenses in FY-2015 at Rs 204.25 crore (22.6 per cent of TIO) was 0.8 per cent more than the Rs 202.64 crore (29.1 per cent of TIO) in FY-2014. Other expense in Q4-2015 at Rs 72.53 crore (28.3 per cent of TIO) was 3.8 per cent lower than the Rs 75.39 crore (32.31 per cent of TIO), but was 44.7 per cent higher than the Rs 50.11 crore (22.6 per cent of TIO) in the immediate trailing quarter.

     

    “Our focus on monetization of existing business in phase 1 & 2 cities in FY15, led to a strong subscription revenue growth of 57 per cent y-o-y and operating EBITDA margin expansion by 491bps. Siti Cable is engaged in proactive seeding and well placed to benefit from the ongoing digitization process. We are looking to expand our broadband presence on DOCSIS Technology in our endeavour to diversify our revenue stream and provide the consumer with a compelling experience,” said Siti Cable executive director and CEO V D Wadhwa.

     

    Click here to read the investor release

     

    Click here to read the audited results