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Tag: Subhash Chandra

  • Siti Cable gets Rs 140.25 crore investment from promoters

    Siti Cable gets Rs 140.25 crore investment from promoters

    MUMBAI: After getting a shot of Rs 102.75 crore last week, multi system operator (MSO) Siti Cable has now finally received the third and last tranche that its promoters had intended to release.  In an announcement to the Bombay Stock Exchange (BSE), the MSO has said that it has received Rs 140.25 crore today. Within a span of a week, Rs 243 crore has been invested in all.

     

    The release on the BSE reads: “As per the terms of 16,20,00,000 warrants issued by the company on 19 March 2013 on preferential basis, the allotment committee of the board of directors has upon receipt of balance of  75 per cent consideration aggregating to Rs 140,25,00,000 approved further allotment of 9,35,00,000 equity shares upon conversion of such remaining warrants at an issue price of Rs 20 per share to the allottees: Essel Media Ventures and Essel International.”

     

    It was in March 2013 that the company got the nod for getting Rs 324 crore, out of which Rs 81 crore flowed in that month itself. Even though, the promoters had time till September 2014 to flush out the rest, the decision to invest it all was taken recently. Following which, the next two tranches have been released for the MSO.

     

    With this, the total promoter shareholding has risen to 72.82 per cent.

     

    Not only this, the MSO also claims to have reached a subscriber base of 40 lakh digital customers as on 31 March 2014. “Encouraged by the significant improvement in the performance in FY 13-14 and to support the aggressive growth plan to grow the subscriber base to 1 crore  in FY 14-15, the promoters have invested additional Rs 243 crore in the business,” the MSO said in a release sent today.

     

    The funds will be utilised primarily for business expansion and to partially reduce debt.

     

    Essel Group and Zee chairman Subhash Chandra through a statement said, “The Indian television distribution industry is on the cusp of high growth value phase as it marches towards the digitisation of balance phases of cable television in the country. With the change in leadership last year, Siti Cable has driven higher revenue and profitability through relentless focus on operational excellence despite uncertain environment. Our sustained investment in this sector will further accelerate the growth momentum and will serve the digital cable TV viewing needs of many more million Indians on Siti Cable Network.”

     

    Commenting on this development, Siti Cable CEO VD Wadhwa said, “For the wider digitisation roll out, the company needs to invest in upgrading its digital infrastructure further and enter into newer strategic markets. We plan to seed over six million set-top-boxes in phase III and IV markets through organic and in organic growth. We believe that we are well poised to benefit from the ongoing digitisation implementation and ready to penetrate the market at a faster rate.”

     

    Package wise billing and collection has already been initiated in the phase I. The company estimates that by beginning of the next quarter, package wise billing and collection will be in line. The MSO claims to have made significant progress on subscriber wise billing and collections in its phase-II markets as well. “The company is far ahead of other operators in terms of subscriber wise billing and collection,” said a statement released by the company.

  • Siti Cable promoters pump in Rs 102.75 crore

    Siti Cable promoters pump in Rs 102.75 crore

    MUMBAI: India’s leading multi system operator (MSO) Siti Cable today announced to the Bombay Stock Exchange (BSE) that it had received an injection of Rs 102.75 crore from its promoters. This is the second tranche after the Rs 81 crore its promoters had pumped in March 2013.

     

    The announcement to the BSE states that “as per the terms of the 16.2 crore warrants issued on 19 March 2013 on preferential basis the allotment committee of the board of directors has upon receipt of the balance of 75 per cent consideration aggregating to Rs 102.75 crore approved allotment of 6.85 crore equity shares upon conversion of equal number of warrants at an issue price of Rs 20 per share to the allottees – Essel Media Ventures and Essel International.”

     

    Sources within Siti Cable point out that the promoters led by Zee and Essel group chairman Subhash Chandra is extremely bullish on the MSO’s prospects post completion of cable TV digitisation  nationally.

     

    The company’s CFO Sanjay Goyal confirms to indiantelevision.com that “the company had received clearances in March 2013 to bring in Rs 324 crore from the promoters in four tranches. As part of that Rs 81 crore flowed in that month itself. Though the promoter group had until September 2014 to bring in the rest, they plan on infusing the remainder of the money before 31 March 2014 to speed up the digitisation push.”

     

    The company’s CEO VD Wadhwa had in an interview to indiantelevision.com in January 2014 said that “Phases III and IV of digitisation has a total universe of about 90 million. Of these, we are targeting 6 to 7 million homes. At a gross level, we will require an investment of Rs 1200 crore. On a net basis, we are expecting an investment to the tune of Rs 600 crore. The funding of Phase III will be largely done through warrants’ funding of Rs 243 crore, which is likely to be invested by promoters before March 2014. Balance funding requirement will be met through internal accruals and raising of further equity, as may be required.”

     

    In September 2012, when the company had announced that it was raising Rs 324 crore via warrants to promoter firms, it was reported that after completion of the entire exercise, he total promoter shareholding will rise to 73.08 per cent from 63.43 per cent and that of the public will drop to 26.92 per cent from 36.57 per cent.

     

    Also read:

    Siti Cable gets Rs 810 mn first tranche from promoters

    WWIL to raise Rs 3.24 bn via warrants to promoter firms

  • Punit Goenka crowned ‘Entrepreneur of the year’

    Punit Goenka crowned ‘Entrepreneur of the year’

    MUMBAI: Enterprise Asia conferred the esteemed title of ‘Entrepreneur of the Year’ on Mr. Punit Goenka, MD & CEO of Zee Entertainment Enterprises Limited (ZEEL) at the Asia Pacific Entrepreneurship Awards 2014 which was held on 4th March 2014 in New Delhi. The award was presented to Mr. Goenka by former Chief Election Commissioner Dr. GV Krishnamurthy.

     

    The prestigious Asia Pacific Entrepreneurship Awards (APEA) recognises and honors business leaders who have shown outstanding performance and tenacity in developing successful businesses within the region. Mr. Goenka was bestowed this award for leading an ever-growing media conglomerate with passion and determination.

     

    On receiving the award, Mr. Goenka said, “I accept this award on behalf of the entire ZEE Family, for it is the result of their hard work and dedication. Our visionary Chairman, Mr. Subhash Chandra, pioneered the private Satellite Television Industry way back in the year 1992, and has proven the importance of foreseeing the market demands well in advance, setting higher benchmarks of entrepreneurship for all of us at ZEE. With great pride, the entire ZEE Family aspires to take his vision forward.”

     

    Mr. Goenka further commented, “During the initial days of my career at ZEE, I came across this beautiful quote on ‘Entrepreneurship’ by Peter Drucker, which said that ‘A true entrepreneur always searches for change, responds to it, and exploits it as an opportunity.’  In my opinion, it is the best definition of a true entrepreneur in today’s era. An Entrepreneur in this era, has to be all ears to these ever-rising demands of today’s consumers across the globe, and has to satisfy the consumers, by proactively presenting them, the customized offerings. This evening, I believe is a celebration of this entrepreneurial spirit, across Asia Pacific, and I am glad to be a part of it.”

  • SITI Cable reports higher revenue, EBIDTA for Q3-2014

    SITI Cable reports higher revenue, EBIDTA for Q3-2014

    BENGALURU: Essel Group company SITI Cable Network Limited (Siti Cable), the erstwhile Wire and Wireless (India) Ltd (WWIL) reported 42.1 per cent growth in Total Income to Rs 177.26 crore in Q3-2014 from Rs 124.71 crore in the third quarter of last year and was 8.8 per cent higher than Rs 162.94 crore in the previous quarter.

     

    The company reported 72.8 per cent higher earnings before interest, taxes, depreciation, and amortisation (EBIDTA) at Rs 35 crore in Q3-2014 as compared to the Rs 20.25 crore in Q3 of last year and 6.1 per cent more than the Rs 32.98 crore in the immediate trailing quarter.

     

    Siti Cable Chairman Subhash Chandra said, “The ongoing digitisation is providing new impetus for growth and value in India though we are still early in the value creation process. Digital Cable Television is a major engine of growth for SITI Cable across all geographies. Our sustained investment in this segment will further enhance customer television viewing experience”.

     

    “Our results for the quarter reflect the overall stability of our operations, and demonstrate the potential for growth. SITI Cable is EBITDA positive in this quarter as well,” added Chandra.

     

    Let us look at the other figures reported by SITI Cable for Q3-2014:

     

    Operating revenue in SITI Cable’s case is primarily generated from subscriber related income, especially from digitisation, income from bandwidth charges, ad income, STB activation charges and other operating revenues. Total Income figures have been mentioned above.

     

    Operating cost for Q4-2014 at Rs 142.26 crore was 36.2 per cent more than the Rs 104.46 crore for Q3-2013 and 9.5 per cent higher than the Rs 129.96 crore for Q2-2014.

     

    The company’s Selling and Distribution expense in Q3-2014 almost quadrupled (was up 3.92 times) to Rs 12.91 crore from Rs 3.29 crore in Q3-2013 and was four per cent more than the Rs 12.42 crore in the immediate preceding quarter.

     

    Its staff cost at Rs 9.91 crore for the current quarter was 23.7 per cent more than the Rs 8.01 crore in Q3-2013 and 5.5 per cent more than the Rs 9.39 crore in Q2-2014. Administrative expense for Q4-2014 at Rs 16.88 crore was down by 3.8 per cent to Rs 16.88 crore in Q3-2014 from Rs 17.55 crore in Q3-2013 and (33.65) per cent lower than the Rs 25.44 crore in Q2-2014.

     

    Depreciation in Q3-2014 was up by 61.8 per cent to Rs 22.99 crore from Rs 14.21 crore in the corresponding quarter of last year, but was (14.6) per cent lower than the Rs 26.91 crore in Q2-2014. The company paid 24.3 per cent more towards finance charges in Q3-2014 at Rs 31.22 crore than the Rs 25.11 crore in Q3-2013 and was 2.3 per cent more than the Rs 30.52 crore in Q2-2013.

     

    The company reported a loss of Rs (22.51) crore in Q3-2014, which was 20.1 per cent more than the loss of Rs 18.75 crore in Q3-2013 and three per cent more than the Rs 21.85 crore in Q2-2014.

     

    SITI Cable CEO VD Wadhwa said, “We have gained further momentum in the third quarter of fiscal 2014. Our total revenue and EBITDA grew to Rs 1773 million and Rs 350 million respectively, a healthy growth of 42 per cent and 73 per cent respectively over corresponding quarter of last fiscal. We have maintained our margins through operational efficiency improvements despite stiff challenges faced at market place on account of DAS billing. We have made the healthy progress in collection of DAS subscription revenue which is way ahead of competition.”

     

    He further added, “We are now in exciting phase of our journey as we strengthen our existing operations and expand our digital subscriber base in phase-3&4 towns. We have started digital cable services in strategic markets of Vijayawada, Hissar and Rohtak in this quarter. We have also reinvented the company website making it more interactive and user- friendly”.

     

    Click here for full report

  • Zee Entertainment enters the Indonesian market

    Zee Entertainment enters the Indonesian market

    MUMBAI: Zee Entertainment Enterprise (Zeel) seems to be making all the efforts to make its presence felt across the world. It was just a few weeks ago that we reported the launch of a Bollywood channel, Zee Bioskop in Indonesia. Now, the Network taking a step further in the region has announced the opening of its office in Jakarta and appointment of Maria Liza Ginting as Indonesia country head.

     

    While Zee Bioskop would air Bollywood blockbusters in the local language – Bahasa; another channel – Veria Living Channel launched by the Network will be one of the first wellness content channels in the region.

     

    Zeel chairman Subhash Chandra said: “Indonesia and India share a lot of similarities when it comes to culture, values and entertainment appetite, in addition to being maritime neighbours. Indonesia is economically one of the fastest growing market with huge potential for Pay TV growth. I am confident these launches will flag off a new beginning for our venture and relationship between the two countries.”

     

    Speaking at the press conference in Indonesia, Zeel business head – Asia pacific Sushruta Samanta said: “During the focused group research, we were amazed to see the massive response for our Bollywood content. Zeel holds the largest Bollywood library, which will aid Zee Bioskop in setting new records in the viewership trend. Indonesia is definitely a key market for our APAC expansion plan and opening of Indonesia office is a first step towards that direction.”

     

    “Liza brings with her a rich experience across content acquisition and distribution and has a great understanding of local audience behavior. We welcome Liza to the Zee family and I am sure that she will take the business to new heights,” Samanta further added.

     

    Ginting remarked: “I am very proud to be a part of this prestigious Group and being instrumental in bringing this much-awaited entertainment channel of international standard, specifically customised for local audience. The initial response from our distribution partners has been very positive and I am sure the channel will live up to its tagline – Bollywood Banget!!! (Truly Bollywood).”

     

    Veria Living Channel which was launched in 2007 is currently available on satellite Apstar 7, will also be available in Indonesia for distribution. Its programming will cover a wide range including health, wellness and fitness shows bringing balance to modern living like Naturally Delicious, The Sweet Truth, Workout From Within, Rock Your Yoga, Model Guru Cameron, What Would Julienna Do? and The Genesis of Healing.

     

    Zee Bioskop, a 24/7 Bollywood channel will showcase movies across all eras starring India’s most popular. The channel will also have programming line-up with shows – Gelitik Senin, Selasa Tak Gentar, Kencan Bintang, Legendaris, Sinema Rasa Sayang, Sinema Perdana Jumat and Blockbuster Akhir Pekan. 

  • Zeel reports 10 per cent higher y-o-y PAT for Q3-2014

    Zeel reports 10 per cent higher y-o-y PAT for Q3-2014

    BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited (Zeel) reported an improvement by about 10.5 per cent in consolidated Q3-2014 PAT at Rs.213.59 crores as compared to the Rs.193.3 crores for the corresponding period last year on the back of a 26.5 per cent jump in consolidated total income from operations at Rs.1188.36 crores for Q3-2014. The company had reported consolidated total income of Rs.938,82 crores for Q3-2013.

     

    Consolidated PAT for the current quarter was however lower by 9.6 per cent than the Rs.236.27 crores the company had reported for immediate preceding quarter. Zeel had reported 8 per cent lower consolidated total income at Rs.1101.28 crores for Q2-2014 as compared to Q3-2014.

     

    Zeel has two main revenue streams – advertising sales and subscription revenues, the third revenue stream – with sales and services contributing a small fraction to the overall revenue. All the three streams saw healthy y-o-y growth for Q3-2014.

     

    Lower q-o-q consolidated Other Income, an increase in operating cost and other expenses were the chief reasons for the q-o-q consolidated PAT. Sports business revenue in Q3-2014 was Rs.191.5 crores against an expense of Rs.295.6 crores, hence wiping out Rs.104.1 crores from the profit figures reported by the company.

     

    Let us look at the other Q3-2014 results reported by Zeel

     

    Advertising revenue jumped 34 per cent to Rs 684.3 crore for Q3-2014 as compared to the Rs 509.4 crore for Q3-2013 and 17.3 per cent higher than the Rs 583.3 crore for Q2-2014.

     

    Subscription revenue for Q3-2014 at Rs 456.5 crore was 11.4 per cent higher than the Rs 409.8 crore for Q3-2013, but 0.3 per cent lower than the Rs 458.1 crore for Q2-2014. Domestic subscription revenue at Rs 332.2 crore for Q3-2014 showed an increase of 12.2 per cent over the corresponding period of last year, but was 8.3 per cent lower than the Rs 335 crore for Q2-2014. International subscription revenue at Rs 124.3 crore for Q3-2014 was 9.4 per cent higher than the corresponding period of last year and 1 per cent higher than the Rs 123.1 crore for Q2-2014.

     

    Other sales and services income at Rs 47.6 for Q3-2014 crore was more than double (2.416 times) the Rs 19.7 crore for Q3-2013, but 20.5 per cent lower than the Rs 59.9 crore for Q2-2014.

     

    Zeel’s overall expense for Q3-2014 increased y-o-y by 32.5 per cent to Rs 897.6 crore from Rs 677.7 crore in Q3-2013 and 13.5 per cent higher than the Rs 790.8 crore for Q2-2014.

     

    The company reported a sharp increase of 45.6 per cent in operating cost at Rs 609.5 crore as compared to the Rs 418.5 crore for Q3-2013 and 20.8 per cent higher than the Rs 504.1 crore for Q2-2014. The company attributes this higher operating cost to higher programming cost on account of big sporting events in the quarter.

     

    Selling and other expenses for Q3-2014 also increased by 13.3 per cent to Rs 192.3 crore from Rs.169.7 crore in Q3-2013 and 4.8 per cent higher than the Rs 187.5 crore for Q2-2014.

     

    Said Chandra, “While the overall economic environment stays challenging, Zeel continues to grow its business at a healthy pace. The network shares are on an uptrend, buoyed with the addition of new channels in the network. Our investments in sports channels continued during the quarter. We also look to expand our portfolio to take advantage of growth opportunities ahead of us.”

     

    Zeel managing director and CEO Punit Goenka said, “The two new launches &pictures and Zee Anmol have made handsome gains and added to the network strength. Operating margins were lower due to higher losses in sports business due to a heavy event calendar. Rupee depreciation earlier this year also had a negative impact on sports business performance. We are hopeful of an improved sports performance in the years ahead.”

     

    Click here for full report

  • Zee Media brings DNA under its fold

    Zee Media brings DNA under its fold

    MUMBAI: It was in early 2012 that the Subhash Chandra owned company Essel Group bought out its Joint Venture (JV) partner D B Corp’s 50 per cent stake in the English national newspaper DNA, cementing the media baron’s presence in the print media. Now, it has taken a long leap again. In a recent announcement to the Bombay Stock Exchange (BSE), Zee Media Corporation Limited (ZMCL) announced its intention to venture into the print media business with the amalgamation of Essel Publishers that brings out DNA and itself.

     

    Following a postal ballot held between 30 October and 28 November, 95.46 per cent or 652 people out of 683 shareholders were in favour of the amalgamation.

     

    “Having already built a nationwide largest television news network with its varied news channels, with an object of creating a news powerhouse in the country, Zee Media aspires to expand its product offering across multiple platforms, regions and languages,” read the document to investors on the amalgamation scheme.

     

    And it was in keeping with Zee group chairman Subhash Chandra statement in a release a while ago that the company is on a mission to consolidate its broadcast, print and internet content under one umbrella.

     

    According to ZMCL CEO Alok Agrawal, the merger process has just begun and will take a year to complete. And the net result (says the document sent out to shareholders following which they gave the fusing of the two firms the nod) will be that : “Zee Media will be in a position to leverage the combined network of resources, working in an integrated newsroom through multiple platforms as well as providing a bouquet of services to advertisers which would strengthen its market reach.”

     

    “Stories will be shared across the two mediums thus allowing English, Hindi and other regional languages to benefit from each other,” says Agrawal. With this move, ZMCL employees will be also be multi-tasking just like in other efficiently run media organisations the world over.

     

    At the same time, it means additional work as well. “Employees will get cross exposure now. Those who accept the challenge will prosper and those who don’t will falter. That’s the law of the land,” remarks Agrawal.

     

    Since 2009, the management of DNA has been handled by the Essel Group with Malcolm Mistry as the current CEO. The integrated newsroom will take some time to evolve. Initially, the focus will be on evaluating the requirement for separate offices for the two media entities, consolidating the teams wherever possible in various cities nationally, and in the process generate savings.

     

    ZMCL has its eye set firmly on expanding DNA by launching new editions in newer towns in phases. DNA is currently published from Mumbai, Pune, Ahmedabad, Jaipur, Indore and Bengaluru. Delhi would be the next target;however, Agrawal says it will take some time as Delhi is a very competitive market with The Times of India and The Hindustan Times fiercely battling each other.

     

    According to the Indian Readership Survey 2012 Q4 topline findings the circulation of DNA was 972, 000. The number may well have gone up significantly since then.

     

    Was it easy to convince shareholders about the expansion plans? “The overwhelming response we got was surely a bit of a surprise but they saw the good opportunity. As a TV channel, our reach was limited and the amalgamation makes it more holistic and well rounded,” explains Agrawal. ZMCL claims that its bouquet of six channels in the news space reach out around 130 million viewers.

     

    The deal proposed to shareholders was that for every 11 shares of Re 1 each held in Essel Publishers, 2 shares of Re 1 each from ZMCL would be issued and allotted. But no shares would be given for fractional entitlements. Post the announcement, the market value of ZMCL’s share saw a spike and at the time of filing this report it was quoting at Rs 14.04 on the BSE.

     

    The authorised share capital of Essel Publishers and ZMCL put together has been enhanced to Rs 170 crore with Rs 70 crore from Essel Publishers and Rs !00 crore from ZMCL.

     

    The amalgamation scheme became effective from 3 December and thus Essel Publishers now stands dissolved without being wound up. And all the newspaper staff have henceforth become ZMCL employees.

     

    ZMCL’s financial result for Q2 2014 showed that advertising and subscription revenues were higher than the previous quarter. Total revenue for Q2 2014 was Rs 160.7 crore with ad revenue at Rs 52.92 crore and subscription revenue at Rs 24.9 crore. PAT stood at Rs 2.8 crore while EBIDTA stood at Rs 74.8 crore.

  • Subhash Chandra bestowed with Honorary Doctorate degree

    Subhash Chandra bestowed with Honorary Doctorate degree

    MUMBAI:  Zeel (Zee Entertainment Enterprises Ltd) and Essel Group, chairman Subhash Chandra received the Honorary Doctorate of Business Administration from the University of East London (UEL) for his instinctive ability to venture in to new businesses and make them successful.

    Chandra received the Doctorate from the University of East London Chancellor Lord Gulam Noon, himself a leading NRI entrepreneur, at a ceremony for its Royal Dock Business School graduates

    The citation presented at the event noted, “at the age of 17, Subhash Chandra steered his grandfather’s business back to stability and from Essel it became Essel Group of industries.”

    Chandra was privileged to have been considered for the honour. While accepting the award, he thanked the entire senior management team at the Royal Dock Business School. “It is indeed a privilege to be recognised outside one’s country, and in the presence of such highly acclaimed and respected individuals. I thank you all for bestowing this prestigious award that I feel honoured to receive,” he said.

    The recognition that Chandra has got isn’t just good for him but will also add a feather to the crown of Zeel and the entire Essel Group. Launched in 1992, brand Zee has earned a global recognition in its reign over the media and entertainment industry for the past 20 years.

    Now, on 21 November, Chandra will deliver a keynote speech at AsPIRE, the annual event hosted by JP Morgan at Lord’s to promote Asian-Pacific global leadership. He will take the audience through his life journey from humble beginnings in India to becoming a global billionaire. He will reveal his role models and advise on implementing ideas into successful business operations.

  • Zeel Q2-2014 results exceed Q2-2013 results

    Zeel Q2-2014 results exceed Q2-2013 results

    BENGALURU:  The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited (Zeel) reported total income from operations of Rs 1,101.28 crore for Q2-2014, up 15.5 per cent as compared to the Rs 953.50 crore for the corresponding quarter of FY-2013  and  13.2 per cent higher than the Rs 973.25 crore for the preceding quarter Q1-2014. PAT for Q2-2014 at Rs 236.31 crore was 26 per cent higher than the Rs 186.7 crore for Q2-2013 and 5.5 per cent more than the Rs 223.9 crore for Q1-2014.

    Let’s take a look at Zeel’s Q2-2014 performance

    Advertising revenue for Q2-2014 at Rs 583.3 crore was 10.5 per cent higher than the Rs 528.1 crore for Q2-2013 and 10 per cent more than the Rs 530.1 crore for Q1-2014. Zeel claims that without sports, its ad revenues would have grown by more than 20 per cent in Q2-2014 as compared to Q2-2013.

    Zeel’s subscription revenue jumped 16 per cent in Q2-2014 to Rs 458.1 crore from Rs 394.95 crore in Q2-2013 and was higher by eight per cent as compared to the Rs 424.1 crore for Q1-2014.

    The company’s total expense for Q2-2014 at Rs 799.9 crore was 7.3 per cent more than the Rs 745.4 crore for Q2-2013, and 15.9 per cent more than the Rs 690.4 crore during Q1-2014. Operating cost which formed a major chunk of expense for Q2-2014 at Rs 504.1 crore was 5.2 per cent more than the Rs 479 crore for Q2-2013, and substantially higher by 22.7 per cent as compared to the Rs 410.8 crore for Q1-2014.

    Selling and other expense for Q2-2014 at Rs 187.5 crore was 24 per cent more than the Rs 169.5 crore for Q2-2014.

    Zeel chairman Subhash Chandra said, “The M&E industry growth is marginally impacted by the overall slowdown of the economy. The television sector, in particular, continues to grow on the back of better subscriber growth linked to increasing digitisation. There was an apprehension about the trends in advertising spends given the overall weakness in the economy, but the television media industry has continued to grow in double digits during the second quarter. Zeel has outpaced the industry advertising revenue growth once again.”

    Zeel managing director and CEO Punit Goenka said, “Sports performance for the quarter has been good, but due to a heavy sports calendar and rupee depreciation, the business is expected to be in losses for some time to come.”

    “Beginning next quarter, we will see a reduction in advertising inventory across the network in line with TRAI regulations. We are in the process of negotiations with advertisers and are confident that this will not have any major impact on revenue monetization. Digitisation will lead to fragmentation of audiences. At Zeel, we believe that this creates a huge opportunity to create new products for specific segments, which will allow us to monetise this opportunity, both from advertising and subscription standpoint. Therefore, we continue to innovate in terms of our format and content,” added Goenka.

  • Siti Cable’s Q1-2014 losses almost quintuple Q1-2013 losses

    Siti Cable’s Q1-2014 losses almost quintuple Q1-2013 losses

    BENGALURU: Siti Cable Network Limited (Siti Cable), the erstwhile Wire and Wireless (India) Limited, reported for Q1-2014 a negative PAT of Rs 27.07 crore, almost five times (467 per cent) the negative PAT of Rs 4.77 crore the company had reported during the corresponding quarter (Q1-2013) last year.

     

    However, Siti Cable’s consolidated operating profit (EBITDA) for Q1-2014 was Rs 31.18 crore as compared to Rs 27.74 crore during corresponding quarter last fiscal, showing a 12.4 per cent growth.

     

    Siti Cable paid Rs 61.80 crore towards carriage sharing, pay channel and related costs during Q1-2014 as compared to NIL during Q1-2013 and Q4-2013. The cable service provider had paid Rs 234.345 crore towards this expense head during FY-2013.

     

    Let us look at some of the other results for Q1-2014

     

    Operating revenue in Siti Cable’s case is primarily generated from subscriber related income especially from Digitisation, income from bandwidth charges, income from advertisements, STB activation charges and other operating revenues.

     

    The company reported a 27 per cent growth in consolidated revenues to Rs 144.29 crore for Q4-2014 as compared to Rs 113.5 crore for Q1-2013. Siti Cable’s consolidated revenues for Q1-2014 were slightly lower (2.1 per cent) than the Rs 147.44 crore reported for Q4-2013.

     

    Siti Cable’s main operating expenses include cost of goods and services, employees’ cost, selling and distribution expenses and other expenditure. Its major cost item was cost of goods and services recorded as Rs 77.83 crore during the quarter representing 54 per cent of the total revenue in comparison to Rs 60.04 crore in Q1-2014, representing 53 per cent of the total revenue. Another major cost item was Foreign Exchange Fluctuation due to Rupee devaluation during the Q1-2014, which has been recorded by Rs 5.11 crore.

     

    Total operating costs for Q1-2014 at Rs 113.1 crore (78 per cent of consolidated revenues for Q1-2014) were higher by 32 per cent than the Rs 857.6 crore (76 per cent of consolidated revenues for Q1-2013) for the corresponding quarter last year, and were 6.9 per cent lower than the total operating costs of Rs 121.42 crore reported for Q4-2013.

     

    Employee benefit costs for Q1-2014 at Rs 9.11 crore, though two per cent lower than the Rs 9.29 crore reported for Q4-2013, were 17.3 per cent higher than the Rs 7.69 crore reported for the corresponding quarter last year (Q1-2013).

     

    Other expenses for Q1-2014 at Rs 39.90 crore also saw a steep reduction of 48.3 per cent as compared to the Rs 77.18 crore in Q1-2013 and were lower by 67 per cent than the Rs 121.12 crore during Q4-2013.

     

    Siti Cable paid Rs 26.13 crore towards finance cost for Q1-2014, 48 per cent more than the Rs 17.57 crore it paid in Q1-2013, but 15.4 per cent lower than the Rs 30.9 crore it paid in Q4-2013.

     

    Siti Cable chairman Subhash Chandra said, “The on-going digital revolution in Indian cable television distribution industry is set to bring in all round gains for the entire industry value chain. Digitisation will transform the way television is seen, consumed and marketed. For customers, digitisation brings an enhanced viewing experience, expanded channel pool, power to choose and pay only for the chosen channels. For MSOs like Siti Cable, the digitisation will bring digitally addressable consumer base leading to higher revenues and profitability.”

     

    Despite uncertain environment Siti Cable has done well in this quarter and has driven higher revenue through relentless focus on operational excellence. Siti Cable is EBITDA positive in this quarter as well, which clearly indicates continuing growth path”, Chandra said.

     

    Siti Cable executive director and CEO V D Wadhwa said, “Our focus area is to increase the collection of monthly subscription revenues from the ground. We made healthy progress in metros cities where we are present. We are far ahead of other operators in terms of subscriber wise billing and collection. In phase-II cities the collection are likely to improve in coming quarters. We have also collected significant numbers of Subscriber Application form (SAF) and Channel/Package selection form from Delhi & Mumbai.”

     

    Wadhwa added, “Digitisation marks the beginning of an organised and professional way of conducting business and opens up possibilities of multiplier revenues from television and numerous value added services (VAS). The encouraging growth trends make us more confident of further accelerating the growth momentum and serving the cable TV viewing needs of many more million Indians on Siti Cable Network.”