Tag: Subhash Chandra

  • “More than skill and knowledge, Zee focuses on talent of an individual”: Rajendra Mehta

    “More than skill and knowledge, Zee focuses on talent of an individual”: Rajendra Mehta

    The performance of a company depends largely on how happy its employees are. And this precisely is the reason why one of India’s top most General Entertainment Channel (GEC) Zee Entertainment, has been able to climb the ladder of success at the quickest pace. The Network tests how happy its employees are… It conducts an annual Employee Survey, which measures employee opinions and perceptions, based on the level of trust between management and the employees. Called the Trust Index, Zee has seen an increase in it from a mere 65 per cent in the previous year to 74 per cent this year. The Network is now also listed as ‘The Best Company to work for in the Indian M&E (Media & Entertainment) Industry’ (as per a study conducted by Great Places To Work).

     

    Zee engages with its employees globally through its ‘Samvad’ philosophy, which ensures prosperity both at a micro and macro level and of the individual and the Company.

     

    The one connect between the employees and management is Zee & Essel Group Human Resource Head Rajendra Mehta. With a rich experience of over 17 years, Mehta has worked with various companies representing diverse sectors, ranging from engineering, lighting, mining, retail, commodity trading and media, giving him profound insight into implementing human resource plans.   

     

    In a t?te-?-t?te with Indiantelevision.com’s Seema Singh, Mehta talks about the reason behind the increase in the Trust Index, why one should join Zee, the best employee policies and much more…

     

    Excerpts:

     

     

    What according to you has helped Zee become the ‘Best Company to work for in the Indian M&E Industry’?

     

    Building an environment, which is a great working place, to my mind is a journey. And I believe that we are trying to build upon different pillars of strength, which help the company become a great place to work. Zee is one organisation which gives you an opportunity to do what you enjoy doing. It has all the ingredients of entrepreneurship, has the cheek of innovative culture and provides the opportunity to experiment with ideas. Hence, as a professional, if I have ten ideas, I will have people who support them and do not act as roadblocks.

     

    Even the shareholders are very open to new ideas as they want to experiment with them. The biggest advantage with promoter shareholders is that they don’t want a stagnant status quo and the need to keep evolving is the biggest strength of this workplace.

     

     

    How does the Trust Index work?

     

    In 2012, we came up with a long-term mission objective exercise. It was called the ‘2015 Commitment’. So, we worked on it in 2012 and at that point of time, we were assessing the strengths and weaknesses of the organisation and in our kind of industry, it is the people who make or break it. And therefore, we decided to work around a people-oriented strategy because they are critical to the success of our business. Then, we identified the fact that if we want to know exactly where we are, the only way to find out is to test our Trust Index based on some recognised framework.

     

    We chose the ‘Great Place to Work’ format because it actually does peer comparison; thus, comparing us with others in the media industry and also the top 50 organisations in India. In the first year of our Trust Index, we were at about 63, which is a low from a media perspective. We have worked hard on this since then and now, the scores have jumped to 74 and we are on par with the top media companies.

     

    The plan is to surge ahead and feature amongst the top 50 companies, which include the FMCGs and telecom companies. We want to be right on top because the entry and exit of people doesn’t only happen from the media sector. So, we should be as interesting an organisation for people from other domains to join as well.

     

    We are doing a lot of promos on the social media to vigorously promote Zee as a brand and as a result, there is a decent following that we have created. We have embarked upon a fulfilling journey.

     

     

    What is the strength of the workforce in Zee? What measures have you adopted to retain employees?

     

    Zee Entertainment has about 2,600 employees globally. Our presence is in 169 countries with full-fledged offices in Johannesburg, South Africa; New York, USA; Singapore, Dubai, UAE; China, Mauritius among others.

     

    Zee has one of the least attrition rates. The environment is conducive to people freely experimenting with ideas. We also ensure that the issues that employees face are resolved immediately so that it doesn’t keep them from working efficiently.

     

     

    Do you think enough people are looking to enter the media industry? What kind of promotional activities does Zee use to inform people about the industry and the company?

     

    I think people don’t have much awareness about the media and entertainment (M&E) industry. That’s why we do a number of campus sessions, activities online as well as engage on social media to create visibility about Zee. We are trying to attract people from other domains as well. I feel people don’t really understand the subsets of media.

     

    The domain is far more forward-thinking than meets the eye and is looking good and glamorous to boot. We therefore, try to talk about the positives as this domain has tremendous growth potential and is here to stay.

     

    What we also do is create case studies about Zee, which is then studied across premier institutions in India and abroad. We take campus sessions, where we talk about media, because more often than not, we are on the lookout for fresh blood, who we can then groom and they later become long-term assets to the company.

     

     

    How often do you hire? What do you look for in a person while hiring?

     

    It is an ongoing process. Say our attrition is 10 per cent, then there is still a churn of 200 people and hence, we need those many employees. On top of that, business is growing, new segments are getting added as well as new channels are coming in place; digital is taking shape and so we keep adding on people in these departments. There is a significant hiring spree. We hire about 50 – 55 people from good reputed B Schools every year and fortunately, we find people who end up being long-term resources for us. Generally, the professional lifespan of a management trainee extends over 10 years here. This implies good retention.

     

    More than skill and knowledge, we focus on the talent of an individual. We spend maximum time in identifying the talent suitable for a respective post.

     

     

    How different are your HR policies in comparison to other organisations?

     

    My belief is that Zee is far more forward looking in terms of its HR practices. I can safely say that from an HR person’s perspective, we are far ahead of others.

     

     

    What are the incentives and perks given to employees? Do they help to retain people in the organisation?

     

    I think the people-oriented practices that we have such as learning skills and development, capability building and so on. We want to build our learning skills as an organisation. Talent acquisition is focused upon while hiring personnel on the basis of strengths. We have a ‘Samvad’ philosophy, which we follow in this regard.

     

    For Performance Management System, I think we have the best tools. We believe in nine-blocker Performance Management System, and we have turned our organisational structure in such a way that it would be doing far more justice to people and their performances post this method.

     

    We have moved away from grade to band structure, which is far more forward looking and we believe that will bring some cultural changes.  Earlier, we had 10 grades and now we have moved to five band structure. The spirit behind this is far deeper and so, it is not a simple shift from a grade to band structure, but it is with the intent of real change in attitude, in the thought processes of people and what growth means for them and the organisation. The spirit behind it is what counts the most while implementing it.

     

     

    How do you keep your employees suitably engaged?

     

    We look at not only engaging employees conducive with the environment of the organisation, but also keeping in mind his or her role. Both are critical to us and we keep assessing the happiness quotient around these two broad objectives. If there is a conflict of interest, we resolve it faster. If there is a mismatch of talent and the respective role, then we try and change the role as soon as possible. We keep changing the scenario to make this place a happier one.

     

    We have trainings which we run through a practice called ‘Zenith’, which is our capability development initiative. Last year, we trained more than 1,700 employees through this programme. Our focus is not only on skills, but also behavioural transformation areas.

     

     

    What is Samvad?

     

    It is a people-oriented philosophy and it is all about the effectiveness of leaders. Talent is the basic foundation of Samvad.

     

     

    Zee is an organisation, where it is said that people can become business heads after spending 7 – 8 years in the company. Is that so?

     

    We believe that taking up a post is not about having a wealth of experience, but it is a matter of talent that people possess. And if people have the necessary talent, we don’t hesitate in pushing them up the ladder. This also helps them gain in maturity and confidence.

     

     

    How are people motivated to experiment? Don’t they face flak for their failures? 

     

    This organisation is supportive of failures after experimenting. Even if certain ideas fail, we do not take punitive action. On the contrary, we keep pushing people to experiment with ideas, because we believe that of the 10 experiments, even if two or three are implemented well, it will give you a humongous impetus in business performance. Failure is an integral part of growth and the organisation is supportive of that.

     

     

    What are the highlights of Zee’s employment policies?

     

    You can aspire to be the business head in the quickest possible time frame. It is an entrepreneur-friendly organisation, where you can experiment with novel ideas, and this place keeps you happy. The HR here supports people in both their personal and professional aspirations. We as HR have a far more inclusive approach in the business and are not sitting at arm’s length.

     

     

    What are the policies with regard to women employees?

     

    We have a forum on the internet called the ‘Zee Connect’. People can come up and if they have any grievance or feedback they can write to the forum. We also have a formal structure of addressing various concerns of women and are very sensitive to them. Also, we have a lawyer onboard to ensure there is an impartial investigation with regard to complaints. There are senior women from the organisation in the Committee, who are free to take decisions. We have even sacked employees and have also found that at times, complaints have been malicious in nature. There is absolute impartiality.

     

     

    What are the trends in the media and entertainment (M&E) industry, which would attract fresh blood?

     

    I think digital is a changing trend, which will attract. Secondly, digitisation will create multiple space for a very niche genre, and that will give individual geeks that opportunity to do what they enjoy doing in their characteristic manner. From content consumption, that will continue to grow. It will have its own niche and people can experiment and do well in the segment.  This whole space is growing rapidly in terms of size and volume. That will give rise to opportunities of employment and being associated with this domain.

     

     

    What keeps you busy?

     

    I think complete focus on growth areas and therefore, thinking about new opportunities and how we can deploy our people. What keeps me busy is also learning and development. If we have to be focused on the future, then we will have to keep building skills. Engagement is a big domain. My foremost aspiration will be that we don’t lose productivity of a single employee, just because he is now disengaged. It is our grave concern and so we keep addressing that issue. We keep building a conducive environment, which is positive so that people feel part of this business, and this helps us to hire with ease. Creating a bigger pool of talent that aspires to be here, is the biggest challenge.

  • Punit Goenka wins ‘Person of the Year 2014’

    Punit Goenka wins ‘Person of the Year 2014’

    MUMBAI: Zee Entertainment Enterprises Limited (ZEEL) MD & CEO Punit Goenka was awarded the prestigious IMPACT Person of the Year 2014 on December 05, 2014 at a glittering function held at the ITC Grand Central, Mumbai. The Governor of Maharashtra, Chennamaneni Vidyasagar Rao felicitated Goenka with the award in the presence of Essel Group and ZEEL chairman Dr. Subhash Chandra and exchange4media chairman Group Annurag Batra.

     

    Goenka won this award for his efforts in bringing about change in television audience measurement in the country, driving profitability in the broadcast sector and steering ZEEL to a steady rise.

     

    On accepting the award, Goenka said, “It is always a pleasure to get an award which recognizes your achievements, and for making a difference to the industry. But for me, this is a special one, since it also recognizes and applauds the human side and hence titled as ‘IMPACT Person of the Year’.”

     

    Goenka further added, “I would also like to take this opportunity to thank our Chairman, Dr. Subhash Chandra, for it is his pioneering vision and guidance, which makes us stand tall today ; my wife, Shreyasi, who has been a great support to me ; and of course my entire team at ZEE.”

     

    The Governor of Maharashtra, Chennamaneni Vidyasagar Rao, in his keynote address, congratulated Goenka, saying, “Goenka has not only risen through the ranks to head ZEE but has expanded its global footprint by offering an amazing variety of content through its channels.”

     

    The nominees for the 10th edition of the IMPACT Person of the Year were Sam Balsara, Chairman and Managing Director, Madison World, Piyush Pandey, Executive Chairman and Creative Director – South Asia, Ogilvy & Mather India, Prasoon Joshi, Chairman, McCann WorldGroup APAC & CEO, Punit Goenka, MD & CEO, ZEEL, BD Park, President & CEO, Samsung S West Asia and Sachin Bansal & Binny Bansal, CEO & COO, Flipkart. The selection process for IMPACT Person of the Year 2014 was handled by IMRB International. After receiving nominations, the final voting was done by a select few from across the advertisement, media and marketing fraternity. IMPACT’s editorial team then analysed the results to arrive at IMPACT Person of the Year 2014.

     

  • Subhash Chandra knew I had a winning concept: Rajat Sharma

    Subhash Chandra knew I had a winning concept: Rajat Sharma

    In the 21 years of this show, nobody has been forced to reply, Rajat knows the art of extracting a reply through his sweet questioning. Another big quality of Rajat is that he uses his tongue sparingly in his show, but he uses his heart to the fullest. A clever mind works behind this,” is how Prime Minister Narendera Modi described the man who has been for 21 years making the icons of the country answerable.

     

    Rajat Sharma’s journey with ‘Aap ki Adalat’ began with Zee TV in 1994 and from then there has been no stopping. The talk show has seen politicians, sportspersons, celebrities and others pour out their heart as well answer some of the trickiest questions.

     

    Amidst the celebrations, indiantelevision.com’s Meghna Sharma in a freewheel chat with Sharma spoke about what keeps him ticking, his favourite interview and much more.

     

    Excerpts…

     

    21 years is a long time, what do you have to say about the journey? What keeps you ticking?

     

    It still feels that the journey has just begun; all my memories with the show are still very fresh. The type of guests we have hosted on ‘Aap Ki Adalat,’ their replies, the viewers’ response, the in-studio audiences, the ambience that makes me feel at home every time I step into the Adalat Studio, the affection showered upon me, probably the never-ending love of my viewers…all makes me feel really blessed and probably gives me the strength to keep going.

     

    When did you come up with the idea of starting ‘Aap ki Adalat’? Any glitches faced while launching the show?

     

    The idea came up in a casual conversation with Zee TV owner Subhash Chandra on a flight from Delhi to Mumbai, 21 years ago. Without much thinking I told Subhash Chandra how the interviews should be done for TV. I told him about putting politicians in the dock and making them accountable to public. After we landed I forgot about the conversation. Subhash Chandra, however, was quick to realise that I had come up with a winning concept.

     

    Your most memorable interview so far and why?

     

    Like I said, all of my interviews have been really special and still very fresh in my memory, however if you tell me to pick one, I would pick the one with the then PM candidate, Narendra Modi. The reason for my pick is not only did the show created a huge ripple in the broadcast media Industry, when almost India’s 85 per cent news audiences watched the show’s first telecast with competition reduced to negligible numbers but also because of spontaneity and ease with which Mr. Modi responded even to the trickiest questions…given the fact that he had a really bad throat after addressing six-odd election rallies during the hectic campaign spree. We weren’t expecting more than 15 minutes of shoot. We ended up shooting him for over two hours and the result was breathtaking.

     

    Whom/what do you attribute this success to? How do you still maintain the charm of the show?

     

    Talking of success, I am very sure that it wouldn’t have been the way it is now if the director of my show, who also is my wife, Ritu Dhawan wouldn’t have been around. She is the one who has been standing like a rock behind my success…taking care of everything, from my looks to the positioning of the show, she is everywhere.

     

     

    I have always believed in doing my job right and just focus on that. We have been able to create the right mix of depth, detailing and research mixed with the right amount of humour, we have ensured to keep the show relevant to the changing preferences of the audiences over the last two decades, probably that’s what you are referring to as charm.

     

    After 21 years, will we see any changes in the format?

     

    Change is inevitable, however more than planning any such change we would rather keep ourselves adaptive to what our audiences would prefer.

     

    From President to PM to celebs, everyone attended the celebrations. What do you have to say about the support?

     

    One word, I am overwhelmed. Feeling deeply humbled. While just focusing on my work, I never expected the amount of affection and respect showered upon me by all including country’s topmost icons. I am more than grateful to all and most to my viewers who have backed me all through as their advocate while I tried to amplify their voice with who mattered.

  • Star India CEO Uday Shankar is ‘Person of the Decade’

    Star India CEO Uday Shankar is ‘Person of the Decade’

    Mumbai: Uday Shankar, CEO of Star India, received a significant industry award, The Impact Person of the Decade – 2014. Maharashtra Governor Chennamaneni Vidyasagar Rao gave the prestigious award to Shankar late last evening in the presence of media visionary Subhash Chandra, Chairman of Esselworld and Zee, and Annurag Batra, Chairman of the exchange4media Group.

     

    The award recognises the one individual who has made maximum and far-reaching impact on and influenced and helped shape the media, marketing and advertising industry tremendously over the last ten years.

     

    Maharashtra Governor C Vidyasagar Rao, addressing an audience packed with leaders and professionals of Indian media, marketing and advertising, said, “Shri Uday Shankar’s journey from being a journalist to head a large media organization has been spectacular. His agenda of driving a social change through programs like Satyamev Jayate has had a huge impact. In a country where cricket is a religion, he has brought to the fore games like Hockey and Kabaddi and demonstrated how these games could also be popularized in a changing world.”

     

    Accepting the award, Shankar said, “This is overwhelming – there is nothing more special than peer recognition.  I consider myself a creation of this industry, and for this industry to recognize that I might have made some impact on the last decade fills me with a sense of both — pride and gratitude.”

     

    Introspecting on winning the Impact Person of the Decade, Shankar said, “When I was informed by Impact that I am the person of the decade, I couldn’t help but reflect on my journey and what led me here…  I can say it in one word – collaboration.  That seems to be the one thing that I have done better and better and better over the last 10 years.” However, he added that “the willingness to collaborate has always been built on a solid conviction to do the right thing – not just for Star but for the entire industry and society. The conviction to not do regressive content, the conviction to not compromise the larger interest of community.”

     

    Shankar attributed his success at Star to his excellent team. “I think my success at Star and the success of Star India are results of not just an extremely talented team that I could put together but that this team collaborates with and compliments one another extremely well… my amazing team at Star has always rallied around to die for every single ridiculous plan that I have come up with,” he said. “This recognition is yours!”

     

    James Murdoch, Co-Chief Operating Officer, 21st Century Fox, said in a recorded message, “Uday Shankar is really driven by a belief in communications, and a belief that media and storytelling can make a positive difference. We’re enormously proud of Uday for being named the Impact Person of the Decade. It’s a great honour for him — one that he richly deserves. Star has always been a great innovator, and under Uday’s leadership, it has taken that to new levels.”

     

    Superstar Aamir Khan, in a recorded message, said, “I’ve known Uday for about five years now — his razor-sharp mind, his intelligence, his courage, his boldness to take difficult decisions… He believes in the impossible, and that’s why he achieves the impossible.”

     

    Media captain Aroon Purie, Chairman, India Today Group, said of Mr Shankar in a message, “He is a good thinker; obviously a great leader… I am delighted that he is getting this award. He has made a great impact on the industry, and I am sure that his leadership in Star, and also as part of the industry, will have a great impact in the years to come.”

     

    Annurag Batra, Chairman – exchange4media Group, said, “Across the years, Mr Shankar’s contributions to the entire space have been remarkable – whether through his mission for innovative and socially responsible content that is based on great storytelling, or the investments in and support of sports genres across Kabaddi, Football and Hockey and Cricket, and his remarkable efforts in aligning industry stakeholders for issues of industry and social significance. These, with several other reasons, are why the Impact editorial team selected Mr Shankar from a solid list of respected industry professionals for having impacted the industry and society in such a positive and significant way through his vision for both Star  and the industry. He is indeed a truly deserving winner of the top honour in the space of Media, Marketing and Advertising.”

     

    Click here to read Uday Shankar’s acceptance speech

  • Q2-2105: Siti Cable reports higher income, higher subscription revenue, lower loss

    Q2-2105: Siti Cable reports higher income, higher subscription revenue, lower loss

    BENGALURU: Essel group’s Subhash Chandra led Siti Cable Network Limited (Siti Cable) reported a 4.9 per cent rise in Total Income from Operations (TIO) to Rs 212.25 crore in Q2-2015 from Rs 209.02 crore in Q1-2015 and 47.5 per cent more than the Rs 160.31 crore in Q2-2014. For HY-2015, TIO was 42.4 per cent more at Rs 428.27 crore than the Rs 300.76 crore in HY-2014.

     

    Siti Cable reported a 102.3 per cent y-o-y growth in subscription revenue to Rs 121.4 crore from Rs 60 crore and a 14.9 per cent q-o-q growth from Rs 105.7 crore in Q1-2015.

     

    Loss for Q2-2015 reduced to Rs 22.87 crore from Rs 31.67 crore in Q1-2015 and from 26.46 crore in Q2-2014. HY-2015 loss was also slightly lower at Rs 54.54 crore as compared to the Rs 55.23 crore in HY-2014.

     

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

     

    EBIDTA for Q2-2015 improved 26.2 per cent to Rs 45.8 crore (20.9 per cent of TIO) from Rs 36.3 crore (17.4 per cent of TIO) in Q1-2015 and also improved by 38.8 per cent from Rs 33 crore (20.6 per cent of TIO) in Q2-2014.

     

    Let us look at the other numbers reported by Siti Cable for Q2-2015

     

    Total expenditure (TE) for Q2-2015 at Rs 208.89 crore (95.3 per cent of TIO) was 2.5 per cent more than the Rs 203.76 crore (97.5 per cent of TIO) and 33.2 per cent more than the Rs 165.25 crore (100.04 per cent of TIO) in Q2-2014. HY-2015 TE at Rs 412.64 crore (96.4 per cent of TIO) was 40 per cent more than the Rs 294.77 crore (98 per cent of TIO) in HY-2014.

     

    Siti Cable’s carriage sharing pay channel and related costs (pay channel cost) in Q2-2015 at Rs 117.23 crore (53.5 per cent of TIO) was 6.6 per cent lower than the Rs 125.55 crore (60.1 per cent of TIO) in Q1-2015 and 81.6 per cent more than the Rs 64.56 crore (40.3 per cent of TIO) in Q2-2014. For HY-2015, pay channel cost at Rs 242.77 crore (56.7 per cent of TIO) was almost double (1.91 times) the Rs 127.26 crore (42.3 per cent of TIO) in HY-2014.

     

    Finance cost in Q2-2015 at Rs 29.58 crore (13.5 per cent of TIO) was 2.6 per cent lower than the Rs 30.37 crore (14.5 per cent of TIO) in Q1-2015 and 3.1 per cent lower than the Rs 30.52 crore (19 per cent of TIO) in Q2-2014. For HY-2015, finance cost at Rs 59.95 crore (14 per cent of TIO) was 5.8 per cent more than the Rs 56.66 crore (18.8 per cent of TIO) in HY-2014.

     

    Other expense in Q2-2015 at Rs 47.77 crore (21.8 per cent of TIO) was 21.8 per cent more than the Rs 38.05 crore (18.2 per cent of TIO) and 14.6 per cent lower than the Rs 55.93 crore (34.9 per cent of TIO) in Q2-2014. Other expense for HY-2015 at Rs 85.83 crore (20 per cent of TIO) was 10.4 per cent lower than the Rs 95.84 crore (31.9 per cent of TIO) in HY-2014.

     

    Siti Cable chairman Subhash Chandra said, “Growth in the collection of subscription revenue is the reflective of our continued emphasis on providing quality services to our consumers. We remain focused on supporting business growth by optimising our operations and continue to deepen our engagements with customers by introducing value added services.”

     

    Siti Cable executive chairman and CEO V D Wadhwa said, “Siti Cable maintained its growth trajectory in the second quarter too. We continue to focus on stabilising operations in DAS phase I and II markets and established industry best practices. The results for the quarter are reflective of these efforts. The subscriber revenue during the quarter has shown robust growth of 102 per cent”.

    Wadhwa added, “We have been working to digitize our phase 3 and 4 markets and we will keep the momentum ‘ON’ through voluntary digitization and focusing more on the monetization of existing business. We see extension in deadline as the opportunity for us to enter newer markets. In addition, we have rolled out broadband service on DOCIS 3.0 in Delhi/NCR and plan to further offer this service in more cities where we are already present. HD services with 30 plus channels have also been rolled out in all geographies.”

     

    Click here for full financial report

    Click here for full financial report

  • Dish TV reports improved results for Q2-2015

    Dish TV reports improved results for Q2-2015

    MUMBAI: Reporting earnings for the current quarter (Q2-2015), Dish TV India Limited (Dish TV) announced addition of 3,78,000 subscribers in the quarter taking net subscriber base to 1.21 crore at the end of the quarter. The company added 3,32,000 subscribers last quarter and 164,000 subscribers in the corresponding quarter last year.

     

    The subscription revenue for the quarter rose 12.2 per cent to Rs 616.8 crore y-o-y while the total operating income (Total Income from Operations – TIO) at Rs 672.3 crore was 11.9 per cent more than Rs 600.8 crore in Q2-2014 and 4.9 per cent more than Rs 640.6 crore in Q1-2015.

     

    Also reporting the half yearly result, the HY1-2015 TIO for the company at Rs 1290.8 crore was 7.2 per cent more than Rs 1203.9 crore in HY1-2014.

     

    The company announced a decline in loss for the current quarter at Rs 15.1 crore as compared to the Rs 16.05 crore in the trailing quarter but higher than the Rs 8.53 crore in the corresponding quarter last year.

     

    The total expenditure of the company for the current quarter also rose to Rs 661.9 crore, 11.1 per cent up from Rs 595.5 crore in Q2-2014 and 5.2 per cent more than Rs 628.8 in the trailing quarter.

     

    The company reported the total expenditure for HY1-2015 at Rs 1290.8 crore which was 7.2 per cent more than Rs 1203.9 crore in HY1-2014.

     

    The increase in total expenditure can be attributed to rise in Employee benefit expense (EBE), advertising expense (AE) and selling and distribution expenses (S&DE).

     

    The EBE for Q2-2015 was reported at Rs 25.16 crore, up 12.6 per cent from Rs 22.34 crore in the corresponding quarter last year and 1.6 per cent lower than the trailing quarter.

     

    AE in Q2-2015 at Rs 17.7 crore, was 39.4 per cent more than Rs 12.7 crore in Q1-2015 while the selling and distribution expenditure rose 22.1 per cent Q-o-Q.

     

    The S&DE comprises of commission and other selling and distribution expenses.

     

    The commissions for the company in Q2-2015 was reported at Rs 60.74, 12.2 per cent more than Rs 54.12 crore announced in the immediate trailing quarter and  41.3 per cent more than Rs 42.96 crore in Q2-2014.

     

    While the other selling and distribution expenses at Rs 53.8 crore jumped 42.1 per cent from Rs 37.86 in Q1-2015 and 74.9 per cent from Rs 30.76 crore in the corresponding quarter last year.

     

    ARPU for the second quarter increased to Rs 172 from Rs 170 in the previous quarter. Despite significantly higher activations, churn continued to be at a healthy 0.7 per cent per month. Festival driven, higher selling and distribution expenses resulted in the EBITDA margin being marginally lower at 24.1 per cent compared to 24.5 per cent in the previous quarter, said the press release.

     

    EBITDA for the quarter was Rs 162.3 crore, up 4.4 per cent as compared to Rs 155.4 crore in the corresponding quarter last fiscal.

    Talking about the overall industry growth, Dish TV chairman Subhash Chandra said, “The industry, led by Dish TV, recorded a healthy 38 per cent Y-o-Y growth in gross additions during the second quarter of fiscal 2015.”

     

    “Our performance during the second quarter is a reflection of our belief that a financially stable business is best placed to capitalize on any growth opportunity. While we have been growing in the right direction, growth without healthy returns to our shareholders falls below our aspirations. However, we are committed to generate them and by focusing on revenues, expenses and balance sheet quality we are building near term benefits for all our stakeholders,” he added commenting on the company’s earnings report.

     

    Adding to the same, Dish TV MD Jawahar Goel said, “Dish TV maintained its leadership position during the second quarter. Buoyed by a healthy growth in HD sales and good traction coming in from sale of the ‘Zing’ brand.”

     

    He further added, “In view of the Prime Minister’s ‘Make in India’ campaign Dish TV is re-evaluating possibilities for domestic manufacturing of set top boxes.” High Definition (HD) box sales gained Traction. It comprises of 15 per cent of the incremental additions.

     

    Despite the push back of digitization, ‘Zing’ helped propel the sales of the flagship ‘Dishtv’ brand through a wider reach and top of the mind recall. The newly introduced Sports driven packaging also found instant favor with subscribers, thus enabling Dish TV outgrow the industry growth rate, the press release added.

     

    Click here to read the unaudited financial result

     

    Click here to read the press release

  • Zee Media Q2: posts 76 per cent growth in ad revenues

    Zee Media Q2: posts 76 per cent growth in ad revenues

    MUMBAI: Zee Media Corporation (ZMCL) has reported a 57.9 per cent rise in its operating revenue (Total Income from Operations – TIO) in Q2-2015 to Rs 131.12 crore from Rs 83.02 crore in the corresponding quarter last year (Q1-2014) and a one per cent drop than the Rs 133.46 crore reported in the trailing quarter (Q1-2015).

    The Company posted a 76 per cent growth in its advertising revenue to Rs 93.14 crore (71 per cent of TIO) in Q2-2015 as compared to Rs 52.92 crore in Q2-2014 and 16 per cent rise from the Rs 80.1 crore in Q1-2015. The ad revenue from existing channels reported a 42 per cent rise at Rs 68.58 crore versus Rs 48.28 crore in the corresponding quarter last year while the ad revenue from new channels posted a 62 per cent fall at Rs 2.52 crore as compared to Rs 6.64 crore in Q2-2014.

    The subscription revenue for the company grew by 12.8 per cent to Rs 28.07 crore in the current quarter versus Rs 24.90 crore in Q2-2014. The subscription revenue from the existing channels at Rs 24.62 crore was 1.1 per cent less than the Rs 24.90 crore in Q2-2014.

    The media corporation posted a Rs 12.8 crore loss in the current quarter as compared to Rs 14.57 crore loss in Q1-2015 and a profit of Rs 4.27 crore in the corresponding quarter last year (Q2-2014).

    Zee Media posts revenue from two segments: print and television.

    For television business, the company reported total revenue of Rs 98.56 crore, 51 per cent less than the Rs 202.43 crore in Q2-2014 and 5 per cent less than Rs 103.87 crore in Q1-2015.

    While for the print business, it posted total revenue of Rs 32.59 crore for Q2-2015 which was 47.5 per cent below the Rs 62.18 crore reported in Q2-2014 and 10 per cent more than Rs 29.59 crore, the total revenue in Q1-2015.

    The total expenditure for the company in Q2-2015 rose 65.5 per cent at Rs 125 crore from Rs 75.54 crore. The total expenditure for the television segment was reported at Rs 88.05 crore, while for the print segment it was at Rs 36.95 crore in Q2-2015. The total expense for the existing channels is 11.2 per cent at Rs 75.41 crore in Q2-2015 from Rs 67.84 crore in Q2-2014 while for the new channels; the expenditure has been reported at Rs 12.65 crore in Q2-2015, 64.2 per cent higher than the Rs 7.7 crore in Q2-2014.

    The cost of goods and operations for the current quarter increased 70.6 per cent at Rs 29.02 crore (23.2 per cent of TIO) versus Rs 17.01 crore (22.5 per cent of TIO) in Q2-2014.

    The employee cost for the quarter was reported at Rs 41.67 crore (33.3 per cent of TIO), 68.97 per cent more than the Rs 24.66 crore (32.6 per cent of TIO) in Q2-2014.

    The company posted its other expenses at Rs 54.31 crore (43.5 per cent of TIO) which was 69.34 per cent per cent more than the Rs 33.87 crore (44.9 per cent of TIO) in Q2-2014.

    The EBITDA for the company fell 18.2 per cent at Rs 6.12 crore in Q2-2015 versus Rs 7.48 crore in Q2-2014. The EBITDA for the existing channels have been reported at Rs 20.62 crore. For the new channels EBITDA is at a loss of Rs 10.13 crore in the current quarter versus a loss of Rs 3.06 crore in Q2-2014. The EBITDA for the existing channels is up by 95.6 per cent as compared to Rs 10.54 crore in Q2-2014.

    Speaking about the earnings for the current quarter, ZMCL non-executive chairman Subhash Chandra said, “Even as GDP growth in the second quarter is likely to be lower than that in the first quarter of this financial year, domestic industry is likely to witness improved margins which help in developing the investment climate in the country. With India emerging as the only country in the BRICS block to pick up a growth momentum, foreign investors are expected to inject the much needed funds into the system. The honorable Prime Minister’s recent visit to Japan and the US are also likely to augment the same. The mood of public as well as business confidence has improved in general. Providing further buoyancy to the economy is the new hope on the horizon that inflation may finally start softening on the back of steady fall in international crude oil prices and easing of food inflation in the second quarter. A vibrant economy, helped by government’s policy push, will benefit the media and entertainment industry in the mid to long run.”

    The company reached 146.7 million viewers across India and continues to be the largest news network riding on the strength of its two national, eight regional news channels, DNA newspaper and its digital platforms – zeenews.com, dnaindia.com, Facebook, YouTube and Twitter, the press release stated.

     

      Click here for Financial Statement

     

  • Q2-2015: ZEEL reports 7 per cent growth in ad revenue

    Q2-2015: ZEEL reports 7 per cent growth in ad revenue

    BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited (ZEEL) reported a 7.3 per cent hike in advertising revenue in Q2-2015 at Rs 625.94 crore versus the Rs 583.30 crore in the corresponding quarter of last year and a negligible 0.6 per cent more than the Rs 622.10 crore in Q1-2015. The company’s ad revenue in HY-2015 reported at Rs 1248.04 crore is 12.1 per cent more than the Rs 1133.37 crore in HY-2015.

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

    According to the company, due to mandatory accounting changes necessitated by change in content aggregator regulation by TRAI, the current quarter’s subscription and TIO figures can’t be compared with the figures of last year.  

    ZEEL’s subscription figures stood at Rs 424.45 crore in Q2-2015 with domestic subscriptions of Rs.337.3 crore and international subscription figure at Rs 87.2 crore. Subscription figures for Q1-2015 was Rs 412.13 crore while Rs 458.12 crore for Q1-2014. HY-2015 subscription revenue has been reported at Rs 836.58 crore versus Rs 882.19 crore in HY-2014.

    The company reported PAT at Rs 227 crore (20.3 per cent of Total Operating Revenue or TIO) in Q2-2015 which is 7.8 per cent more than the Rs 210.57 crore (19.4 per cent of TIO) in Q1-2015 crore and 3.9 per cent less than the Rs 236.31 (21.5 per cent of TIO) crore in Q2-2014. HY-2015 PAT at Rs 460.18 crore (21.2 per cent of TIO) was 5.3 per cent more than the Rs 437.04 crore (21.2 per cent of TIO) in HY-2014.

    Let us look at the other Q2-2015 and HY-2014 reported by ZEEL

    The company reported other sales and services income (other income) of Rs 67.43 crore in Q2-2015, which is 3.24 times the Rs  20.83 crore in Q1-2015 and 12.7 per cent more than the Rs 59.86 crore in Q2-2014. Other income announced by the company for HY-2015 at Rs 88.26 crore was 11.8 per cent more than the Rs 78.97 crore in HY-2014.
    ZEEL’s TIO in Q2-2015 is at Rs 1117.82 crore versus Rs 1085.70 crore in Q1-2015 and Rs 1101.28 crore in Q2-2014. In HY-2015, the company reported Rs 2172.88 crore TIO and Rs 2074.53 crore for HY-2014.

    The company’s Total expenditure (TE) for Q2-2015 at Rs 810.75 crore was 1.8 per cent more than the Rs 796.10 crore in Q1-2015 and 1.4 per cent more than the Rs 799.89 crore in Q2-2014. For HY-2015 TE was 5.8 per cent more at Rs 1576.21 crore as compared to the Rs 1490.31 crore in HY-2014.

    Q-o-q, the company’s operating cost went up 8.4 per cent to Rs 470.03 crore in Q2-2014 from Rs 434.02 crore. The operating cost for this quarter was 6.7 per cent lower than the Rs 504.11 crore in Q2-2014. HY-2015 operating cost is 4.5 per cent lower at Rs 873.68 crore versus Rs 914.87 crore in HY-2014.

    Employee Benefit Expense (EBE) for Q2-2015 announced at Rs 107.96 crore was 3.4 per cent less than the Rs 111.71 crore in Q1-2014 and 8.8 per cent more than the Rs 99.19 crore in Q2-2014. EBE for HY-2015 at Rs 219.67 crore was 12.8 per cent more than the Rs 194.82 crore in HY-2014.

    ZEEL chairman Subhash Chandra said, “We expect the media industry to benefit from the improvement in the overall economic environment.  TV spends are likely to improve and we expect television media industry to grow faster than the recent past.”

    Commenting on the second quarter earnings,  ZEEL managing director and CEO Punit Goenka said, “It has been a mixed quarter as far as television advertising is concerned. Even though overall economic sentiment was positive during the quarter, it translated into increased advertising spends only during the fag end of the quarter.  Our expectation is that advertising spends will continue to increase during the rest of the year. Our performance in the quarter reflects the industry wise trends.”

     “On the subscription front, the transition of distribution of channels from MediaPro to Taj Television is now complete, and we continue to grow in high single digits,” he added.

     

    Click here for Financial Statements

  • Q1-2015: Siti Cable reports 47.5 per cent y-o-y op income growth, triple subscription rev

    Q1-2015: Siti Cable reports 47.5 per cent y-o-y op income growth, triple subscription rev

    BENGALURU: Essel group’s Subhash Chandra led Siti Cable Network Limited (Siti Cable) reported a 47.5 per cent jump in consolidated Total income from operations (TIO) in Q1-2015 at Rs 209.02 crore as compared to the Rs 141.74 crore in Q1-2014, but 10.4 per cent lower than the Rs 233.34 crore in Q4-2014. Overall, total revenue for the current quarter at Rs 211 crore was 46 per cent more than the Rs 144.1 crore reported in the year ago quarter. Siti Cable reported subscription revenue at Rs 105.7 crore as compared to Rs 32.1 crore for the corresponding quarter of last fiscal and hence recorded a growth of 229 per cent. 

     

    The company’s loss was higher in Q1-2015 by 10 per cent at Rs 31.67 crore in Q1-2015 as compared to the Rs 28.77 crore in Q1-2014 and was higher by 51.8 per cent from the loss of Rs 20.86 crore reported in Q4-2014. However, the company’s operating profit (EBIDTA) in Q1-2015 at Rs 36.3 crore (17.4 per cent of TIO) was 16.3 per cent more y-o-y as compared to the Rs 31.2 crore (22 per cent of TIO) and 30.1 per cent more than the Rs 27.9 crore (12 per cent of TIO) in Q4-2014. 

     

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

     

    (2) The figures mentioned in the report are consolidated unless stated otherwise. 

     

    Siti Cable chairman Chandra said, “The performance during the quarter reflects the investment that Siti is making to grow its business and market share. This has been accompanied by a strong improvement in both top line and bottom line growth of the company during the quarter due to continued emphasis on providing quality services to our consumers and superior technological support to our business partners.” 

     

    Let us look at the other numbers for Q1-2015 reported by Siti Cable 

     

    Total expenditure in Q1-2015 was 47.8 per cent higher at Rs 203.76 crore (97.5 per cent of TIO) as compared to the Rs 137.89 crore (97.3 per cent of TIO) in Q1-2014 and 12.6 per cent lower than the Rs 233.07 crore (99.9 per cent of TIO) in Q4-2014. 

     

    The company’s carriage sharing, pay channel and related cost (pay channel cost) in Q1-2015 at Rs 125.55 crore (60.1 per cent of TIO) was more than double (2.03 times) the Rs 61.8 crore (43.60 per cent of TIO) in Q1-2014 and 1.1 per cent more than the Rs 124.16 crore (53.21 per cent of TIO) in Q4-2014. 

     

    Y-o-y the company’s finance cost was 16.2 per cent higher at Rs 30.37 crore (14.5 per cent of TIO) in Q1-2015 as compared to the Rs 26.14 (18.4 per cent of TIO) crore, while q-o-q it was 2.8 per cent lower than Rs 31.24 crore (13.4 per cent of TIO).

     

    The company’s other expense at Rs 38.05 crore (18.2 per cent of TIO) was 4.7 per cent lower than the Rs 39.19 crore in Q1-2014 and almost half (49.5 per cent less) than the Rs 75.93 crore (32.31 per cent of TIO) in Q4-2014. 

     

    Siti Cable CEO V D Wadhwa said, “We continue to focus on improvement in quality of our services to our viewers and improvement in our subscription revenues.  The results for the quarter are reflective of these efforts. The subscriber revenue during the quarter has shown robust growth of 229 per cent and with the starting of package billing in DAS II cities and likely roll out of digitization in phase III & IV, it is set to further improve in the coming quarters.” 

     

    Additional Note: (1) In view of the mandatory digital addressable system (‘DAS’) regulation announced by the Ministry of Information and Broadcasting, Government of India, digitization of cable networks has been implemented in the cities notified for Phase 1 and Phase 2 effective November 1, 2012 and April 1, 2013 respectively. Owing to the initial delays in implementation of DAS in phase 1 cities and challenges faced by all the Multi-System Operators (MSOs) during transition from analogue business to DAS, the company says that it is in the process of executing contracts with the subscribers and implementation of revenue sharing contracts entered into with the local cable operators (LCOs). 

     

    Accordingly, the Company has invoiced and recognized subscription revenue net of sharing of revenue with the LCOs under the new DAS regime amounting to Rs. 13,497.4 lakhs (standalone Rs.9,605.34 lakhs) for the quarter ended June 30, 2014 respectively based on certain estimates derived from market trends and ongoing discussion with the LCOs. The company says that its management is of the view that the execution/implementation of such contracts will not have a significant impact on the subscription revenue for the current period. 

     

    (2) During the quarter, the Company says that it has revised the useful lives of its fixed assets to comply with the requirements as mentioned under Schedule II of the Companies Act, 2013. Accordingly, the depreciation expense for the quarter ended June 30, 2014 is higher by Rs. 458.18 lakhs (standalone financial Rs. 406.55 lakhs). Similarly, in case of  fixed assets whose life has been completed as on March 31, 2014, the carrying value (net of residual value) of those assets accounting to Rs. 1,068.84 lakhs (amounting of  Rs. 167.44 lakhs in standalone financial) has been adjusted with the opening balances of retained earnings i.e. deficit in statement of profit and loss.

     

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  • Zeel Q1-2015 y-o-y advt revenue up 17 per cent

    Zeel Q1-2015 y-o-y advt revenue up 17 per cent

    BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises (Zeel) reported a 17.4. per cent increase in advertising revenue in Q1-2015 to Rs 622.10 crore (57.3 per cent of total operating revenue or TOR) as compared to the year ago revenue of Rs 530.07 crore (54.5 per cent of TOR) and 6.8 per cent higher than the Rs 582.36 crore (50.3 per cent of TOR) reported for the immediate trailing quarter.

     

    However, the company’s Q1-2015 PAT at Rs 210.57 crore (19.4 per cent of TOR) was 6.3 per cent lower than the Rs 224.64 crore (23.1 per cent of TOR) in Q1-2014 and 3.2 per cent lower than the Rs 217.58 crore (18.8 per cent of TOR) in Q4-2014. Despite lower operating cost in Q1-2015, the company has reported higher employee benefit expense, other expenses, depreciation, amortisation expense, higher tax payment and lower subscription and other income for the  period as compared to Q4-2014.

     

    Notes: (1) The results mentioned in this report are consolidated results of Zeel and its subsidiaries.

    (2) 100,00,000=100 Lakhs = 1 crore = 10 million

     

    Let us look at the other figures for Q1-2015 reported by Zeel

     

    Lower subscription and other revenue in Q1-2015 has resulted in a drop of 6.3 per cent q-o-q TOR from operations to Rs 1085.70 crore from Rs 1158.81 crore in Q4-2014. TOR in Q1-2015 was however 10.4 per cent more than the Rs 973.35 crore reported in Q1-2014.

     

    Zeel reported 4.5 per cent lower subscription revenue for Q1-2015 at Rs 422.77 crore (40.8 per cent of TOR) as compared to the Rs 463.54 crore (40 per cent of TOR) in Q4-2014 and 9.3 per cent more than the Rs 424.07 crore (43.6 per cent of TOR) in Q1-2014.

     

    Other Income in Q1-2015 was less than a fifth (down by 81.6 per cent) at Rs 20.83 crore as compared to the Rs 112.91 crore in Q4-2014 and 9 per cent more than the Rs 19.11 crore in Q1-2014.

     

    The company’s Total Expenditure (TE) for Q1-2015 at Rs 796.1 crore (73.3 per cent of TOR) was 8.1 per cent less than the Rs 866.15 crore (74.7 per cent of TOR) in Q4-2014 and 15.3 per cent more than the Rs 690.42 crore (70.9 per cent of TOR) in Q1-2014.

     

    Zeel’s Q1-2015 employee benefit expense at Rs 111.71 crore (10.3 per cent of TOR) was 11.9 per cent more than the Rs 99.84 crore (8.6 per cent of TOR) in Q4-2014 and 16.8 per cent more than the Rs 95.63 crore (9.8 per cent of TOR) in Q1-2014.

     

     Zeel reported Q1-2015 depreciation and amortisation expense of Rs 19.57 crore (1.8 per cent of TOR) which was 3.4 per cent more than the Rs 18.92 crore (1.6 per cent of TOR) in Q4-2014 and more than double (2.26 times) the Rs 8.66 crore (0.9 per cent of total income) in Q1-2014.

      

    The company’s other expense in Q1-2015 at Rs 230.80 crores (21.3 per cent of TOR) was 13.7 per cent more than the Rs 202.97 crore (17.5 per cent of TOR) in Q4-2014 and 31.6 per cent more than the Rs 175.37 per cent (18 per cent of TOR) in Q1-2014.

     

    Zeel’s tax expense in Q1-2015 at Rs 116.35 crore (10 per cent of TOR) was 36.5 per cent more than the Rs 85.26 crore (7.4 per cent of TOR) in Q4-2014 and 9.8 per cent lower than the Rs 128.94 crore (13.2 per cent of TOR) in Q1-2014.

     

    Zeel chairman Subhash Chandra said, “Our performance during the quarter reflects the investments that Zeel is making to grow its business and market share. In a highly competitive space, Zeel continues to build its media assets and in the process create value for shareholders.”

     

    Zeel managing director and CEO Punit Goenka said, “The network share is up as compared to the corresponding quarter last fiscal which has translated into a strong performance on the advertising front, outpacing the industry growth once again. On the subscription front, pursuant to the change in content aggregator regulation, we have discontinued the distribution of our channels through the joint venture MediaPro and the channels are now distributed by Taj Television Private Limited, a wholly owned subsidiary of Zeel.”

     

    Added Goenka, “Digitisation will lead to fragmentation of audiences as consumers will have more options. At Zeel, we believe that this provides a huge opportunity to create new products for specific segments. Advertising spends on television are expected to grow in healthy double digits over the next many years.  Rollout of BARC and change in advertising currency from CPRP to CPT is expected to give it a positive fillup. Creation and acquisition of excellent quality content remains core to our business and we continue to channelize investments to strengthen this core.”