ITV

Tag: TV ratings

  • Zee Entertainment Q3 net up 179 per cent at Rs 958 million

    Zee Entertainment Q3 net up 179 per cent at Rs 958 million

    MUMBAI: Having gained market share in the TV ratings game, Zee Entertainment Enterprises Ltd. (ZEEL) is seeing a surge in earnings with third-quarter consolidated revenues growing 53 per cent to touch Rs 4.18 billion.

    Net profit also saw robust growth for the fiscal third quarter ended 31 December, jumping 179 per cent to Rs 958 million.

    The consolidated operating profit stood at Rs 1.36 billion, after expensing of initial investments in new activities (Zee Sports, Arabia) amounting to Rs 232 million. These are higher by 187 per cent as compared to the year-ago period.

    The results include the financials of Taj TV Ltd (Ten Sports) with effect from 13 November, ETC, international and educational businesses of Zee.

    Zee will separately announce the results of its other demerged entities – Zee News Ltd (ZNL), Wire & Wireless India Ltd (WWIL) and Dish TV. While ZNL and WWIL are already listed, Dish TV is likely to be listed by February.

    Fuelling ZEEL’s third-quarter growth has been a 59 per cent rise in advertising revenues to Rs 2.1 billion, benefitting largely from Zee TV’s prime time ratings gain and higher average rates on most of the network channels.

    “Zee Entertainment finished the third quarter with outstanding performance, highlighted by strong advertising revenue growth of 59 per cent, extremely robust operating profit growth of 187 per cent and 179 per cent growth in net earnings. Our television broadcasting business continues to lead industry in converting rating success into strong growth in revenues and operating profits. The performance reflects our success in delivering superior content to viewers and stronger relationship with our consumers,” says Zee chairman Subhash Chandra.

    Adds Zee wholetime director Punit Goenka, “Zee TV continued to increase its viewership share from 28 per cent in 2Q FY2007 to 29 per cent during 3Q FY2007, along with growth in time spent. During the quarter, average gross ratings points (GRPs) of Zee TV grew to 250 levels, with gains coming mainly from prime time. The growth has been led by continued success of ‘ Sa Re Ga Ma Pa’ , Saat Phere’ and ‘ Kasamh Se’, while our new launches ‘ Dulhan’ and ‘Betiyan’ have helped bolster the prime time shares. Zee TV now has five programmes in top 20 and 11 programmes in top 50.”

    Zee also saw gains in the other channels. “Zee Cinema continues to be the No. 1 movie channel, and increasingly is becoming a reach channel for the advertisers. Zee Café and Zee Studio have gained shares. We will continue to reinforce our competitive advantage and deliver more value to viewers and shareholders,” says Goenka.

    Contributing to the strong third-quarter performance was a 55 per cent surge in subscription revenues at Rs 1.96 billion. This was bolstered by new revenue streams coming from direct-to-home (DTH) services and digital cable. Other sales and services was Rs 116 million.

    “We are extremely pleased to see the steady steps towards digitization of the Indian cable and satellite industry. Conditional access system (Cas) has been successfully implemented in the notified areas of Mumbai, Delhi and Kolkata. With more subscribers opting for digital services even in other parts of the country, it will give a big boost to our subscription revenues in the near future. Our investment in Ten Sports is doing well. All these have extremely positive and long term impact on our business,” says Chandra.

    Elaborating on the performance, ZEEL CEO Pradeep Guha says, “We are pleased with the strong operating results in the third quarter. We have outperformed the market locking in higher advertising rates which would continue to help us in the future. Looking ahead, we are confident that continued execution of our content strategy would result in a revenue growth faster than that of industry. Additionally, with digitization of Indian cable and satellite industry, we expect to reap a rich harvest from subscription based revenues.”

    Sports business adds Rs 610 million to kitty

    The sports business revenue during the third quarter was Rs 610 million, after consolidating the results of Taj TV from 13 November 2006. EBITDA from Sports business during this quarter was Rs 133 million.

    “The main event for Ten Sports during the quarter was the Pakistan-West Indies series, which helped it garner significant revenues from the Pakistan and the Middle East beams. This was in addition to its other lead programs such as WWE, UEFA and Champions League. Ten Sports has also begun the telecast of the South Africa-Pakistan series on its Pakistan beam,” Zee says in a statement.

    “Zee Sports continued to grow on the Indian football opportunities; it covered the Asian Football Confederation under 20 championships in Kolkata in November and the Federation Cup in December. India is fast becoming a focus area for the world football governing body FIFA as well. Among some of the other events that Zee Sports covered was the Delhi Marathon, WTA tennis and the Italian Serie A. Zee Sports also bagged a three-year deal for the UEFA Cup,” the release adds.

    On a standalone basis, ZEEL posted a net profit of Rs 793.70 million for the quarter ended 31 December 2006 from Rs 341.60 a year earlier. Total income stood at Rs 2.46 billion as against Rs 2.4 billion during the same period.

    Condensed statement of operations

    The table below presents the condensed statement of operations for ZEEL and its subsidiaries for the third quarter of FY2007 versus FY2006, as published. The FY2006 numbers also include the cable, news and direct consumer business undertakings, which have now been demerged. Hence the numbers are not comparable.

    Comparable figures with FY06

    For better understanding of performance of ZEEL, the table below presents the proforma FY2006 numbers of ZEEL, on a comparable basis. These numbers are illustrative of the performance on a like to like basis.

    Segment-wise revenue streams

    The following table sets forth the percentage of revenues that each type contribute to consolidated revenues for the third quarter of 2007 and 2006.

    Comparable figures with FY06

    For better understanding of performance of ZEEL, the table below presents the proforma FY2006 numbers of ZEEL, on a comparable basis.

    Expenses account

    The following table sets forth the percentage of costs that each type contributes to consolidated expenses for the third quarter of 2007 and 2006.

    FY06 Expense chart

    For better understanding of performance of ZEEL, the table below presents the proforma FY2006 numbers of ZEEL, on a comparable basis. These numbers are illustrative.

    Segment-wise performance

    ZEEL is a diversified entertainment company with a multi-pillar approach to business. Its operations lie in three segments: (i) Content and broadcasting, (ii) Film Production and distribution and (iii) Education.

    The table below presents Zee’s third quarter performance for FY2007 in the key segments.

  • Sony, Star One bid to get back on narrative track

    It was in early October 2005 that we last had a close look at the Hindi entertainment space. What did we see then?

    The top programmes on Star Plus were witnessing a ratings erosion of between 10-12 per cent on an average. But the key point then was that though Star Plus‘ top shows had dropped on the TRP scale, the channel share had dropped by only 5 per cent due to the expansion of the performing time bands to the weekend — thanks to KBC 2 and its effect on the weekend line up on the channel.

     

    KBC 2‘s unexpected exit and Star Plus‘ failure to present a fitting substitute exposed the channel‘s overdependency on the property

    Add to that was the huge success sibling Star One enjoyed on the back of two talent shows Nach Baliye and The Great Indian Laughter Challenge. So, Star as a network ended the year on a super high note with Star Plus managing to hold steady its grip on Hindi entertainment and the added bonus of Star One‘s meteoric rise in the reckoning.

    Going into the month of April 2006 though, the picture is looking a whole lot different. What has been extensively reported on is Zee TV‘s overtaking of Sony Entertainment Television India’s flagship channel SET to ensconce itself firmly as the clear number two in the Hindi entertainment space.

    What not many seem to have taken note of though is the way Star Plus’ flanker channel, which Star Entertainment India CEO Sameer Nair had hoped would make a serious assault on the number two position, has plummeted hugely from a high of 15.1 channel share in the second week of December to a lowly 5.5 for the week ended 30 April (see charts).

    This brings us to a posit that has been made earlier, but with specific reference to SET — that the recipe of relying on format shows to deliver would prove difficult to sustain as a long term proposition.

    In a sense, the trajectory of both SET and Star One has been similar. While the format shows have offered them temporary spikes, the lack of strong wraparound drama content has meant that overall there has only been a downward spiral witnessed.

     

    Star Plus has finally zeroed in on the period drama Prithviraj Chauhan to fill the void created by KBC2‘s exit

    Comparing the two is not exactly warranted, though except to draw attention to the inability of the format shows to drive up the channel as a whole without solid dramas (or as Nair terms it narrative fiction) as the main menu proposition.

    Why is it incorrect to compare? The format shows worked brilliantly for Star One in the sense that if one looks at where the channel was before these shows “did the trick” it was far lower than where it is now. So basically, Star One is now in direct competition with Sahara One (which has improved on the ratings reckoner). It would appear that the only way ahead from Star One is up, which should be good news as a lot of hope and money is riding on the channel.

    For Sony, a lot depends on how the strategy that the channel is charting on the narrative fiction front takes off. The results haven‘t been too encouraging so far though with the two new prime time shows launched simultaneously on 24 April (Aisa Des Hai Mera and Thodi Khushi Thode Gham) yet to make an impact. This stands out in stark relief when compared to Zee TV‘s new prime time show Jabb Love Hua, which launched the same day and is doing far better.

     

    Channel
    Key properties
    April-May average ratings combined
    Star Plus Kyunki…, Kahaani…, Kasauti… 12.64 TVR
    Star One Laughter Challenge, Mano Ya Na.., Kya Hoga.. 2.61 TVR
    Zee TV Saath Phere, Kasamh Se 4.44 TVR
    Sony Idol final & Idol Muqabla, Fear Factor, CID 3.36 TVR
    Sahara One Cricket, Woh Rehne Wali.., Hanuman (film) 2.76 TVR
    Sab TV Caravan (film), Idol Takka Tak, Wah Wah, Lo Kal.. 0.52 TVR

     

     

    Source: TAM Peoplemeter System TG: CS 4 years + Markets: Hindi Speaking Markets
    Period: 2/4/06 to 6/5/06

     

     

    After Saath Phere and Kasamh Se, Zee‘s latest prime time property Jabb Love Hua is now ringing the alarm bells for rival channels

    If one were to look at Zee, Saath Phere at 9:30 pm delivered and that has given the channel a huge boost. The good show from Kasamh Se, coming at 9 pm, has doubled the channel‘s excitement. According to Tam, the latest prime time offering Jabb Love Hua has also achieved a strong opening. Zee also has strong properties in its afternoon soaps, Paalki and Mamta. Zee is presently strategising its moves to strengthen the afternoon band further.

    What gave Zee the momentum was of course Sa Re Ga Ma Pa Challenge 2005, which has been a solid home grown quality format property which has pretty much chugged along without too much media noise all these years. When Zee made substantial investments in Sa Re Ga Ma Pa Challenge, it got the dividends.

     

    Sony’s format overkill and the resultant viewer fatigue worked against ‘Indian Idol 2‘ in viewership charts

    While speaking of Sa Re Ga Ma Pa Challenge, the case of Sony’s Indian Idol 2 immediately comes into the frame. We remain convinced that Idol is an intrinsically a strong property. So frankly, we are surprised at the low (comparatively) ratings it delivered. About the only reason that makes sense is that Sony’s format overkill led to viewer fatigue.

    After the first edition of Indian Idol signed off on such a high note, in came Fame Gurukul, which also took the music talent route. From a viewer’s perspective, it was one into the next and before gathering breath as it were, there was Idol 2 back again.

    There was a lot of “format noise” on the rival channels as well so that also has to be factored in. Music talent hunt Sa Re Ga Ma Pa has already been discussed. Then there was the celebrity dance contest Nach Baliye and the Great Indian Laughter Challenge on Star One and of course the big daddy of them all KBC 2 on Star Plus.

     

    Will the new soaps such as Aisa Des Hai Mera and Thodi Khushi Thode Gham see Sony pulling its viewers back to the drawing room?

    How do the coming months look for Sony? Well it depends on what are the narrative fiction shows that the channel has launched as well as those in the pipeline fare. Drawing from the example of the US, NBC has slid because it has found nothing to replace cult hits like Friends, Seinfeld and Frasier while ABC’s surge has filled the “vacuum” with hits like Desperate Housewives, Lost and Grey’s Anatomy.

    Coming back to Sony, Jassi has bid its long overdue adieu and the channel has tapped the horror genre (Khauffnak) as its replacement. The show is expected to conclude by June end. What shows the channel throws up next in the time band and how Aisa Des Hai Mera and Thodi Khushi Thode Gham ultimately fare in the ratings reckoning could well determine whether the coming months see SET’s ratings curve travelling north or further south.