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Tag: Zeel

  • Edelweiss, Elara Capital stay bullish on ZEEL; raise target price

    Edelweiss, Elara Capital stay bullish on ZEEL; raise target price

    MUMBAI: Despite a decline in advertising revenue, EBITDA, brokerage firms Edelweiss and Elara Capital are bullish on the target price of Zee Entertainment Enterprises Ltd (ZEEL). The analysts also expect ZEEL to maintain its momentum in subscription revenue growth.

    Edelweiss expects ZEEL to be a key beneficiary of the NTO regime given its strong pan-India viewership, comprehensive bouquet offerings, and entry in new markets. The firm maintains the target PE of 20x and roll forward to June 2021 to arrive at a target price of Rs 424.

    “We expect ZEEL to maintain momentum in subscription revenue growth; however, its secular growth is hinged on the resumption of the advertising momentum, particularly by FMCG and auto players. In our view, though promoters have sought a resolution on share pledging, watch out for the outcome of the ongoing audits. We maintain the target PE of 20x and roll forward to June 2021 to arrive at a TP of Rs 424. The stock is trading at ~14x/12x FY21E/22E EPS. Maintain ‘BUY/SP’,” says Edelweiss in a research report.

    “ZEEL trades at a fair valuation of 15x FY21E P/E and 14x FY22E P/E, which factor in concerns on ad revenues from macroeconomic headwinds and limit scope for potential downside. ZEEL also had an overhang due to strategic partner uncertainty, which negatively affected valuation for over a year; however, post the 22 November announcement that the promoter stake has reduced to 4.9 per cent to resolve group firm debt,” Elara Capital comments.

    It has raised its target P/E by 25 per cent to 17.5x (from 14.0x) forward P/E. It reiterates Accumulate and raise its December 2020E TP to Rs 350 from Rs 310. It predicts ZEEL will continue to trade at a small premium to SUNTV, given better ad growth prospects and scale-up in digital (ZEE5).

    However, it has mentioned that concerns persist on the ad growth front, as the FMCG vertical has yet to show signs of improvement in ad spend while macroeconomic headwinds persist with economic slowdown. Further, implementation to NTO 2.0 also would impact ad spend on the negative, given the transition period.

    It also says that the positive impact of new channel launches for the ad segment is likely to be offset by the negative impact of a decline in international ad spend as ZEEL plans to move away from traditional TV in overseas markets. It also pared off its ad growth estimates to 8 per cent in FY21, given the scope of outperformance has converged for the network, as ad spend remains weak for the GEC genre and some select regional genres seem to have peaked for strong double-digit growth.  However, there may be some respite for ad growth if Zee Anmol becomes a pay channel post NTO 2.0.

    After subscription growth of 23 per cent YoY thanks to NTO1.0, Elara Capital expects this segment to remain flat in FY21, due to NTO 2.0. It also adds that in an adverse scenario, scope exists for low single-digit decline. EBITDA margins remain under pressure, with content investment on the digital side and launch of five new regional channels in Q4FY20, which remain an overhang. Hence, it expects margin to fall below 30 per cent in FY21E.

  • ZEEL’s consolidated revenue stands at Rs 2048.7 crore in Q3 FY20

    ZEEL’s consolidated revenue stands at Rs 2048.7 crore in Q3 FY20

    MUMBAI: Zee Entertainment Enterprises Ltd (ZEEL) and its subsidiaries for the quarter ended 31 December 2019 on Tuesday. For the third quarter of FY20, ZEEL reported consolidated revenue of Rs.20,48.7 crore. EBITDA was Rs.5,65.8 crore with an EBITDA margin of27.6 per cent.

    During the third quarter, ZEEL's consolidated advertising revenue declined by 15.8 per cent YoY to Rs. 12,30.8 crore. Domestic advertising revenues declined by 15.7 per cent YoY to Rs. 11,57 crore. Domestic advertising revenue was impacted by the continued slow-down in key consumer sectors.

    “As the volume growth for most consumer companies did not see any uptick during the quarter, they cut advertising spends to protect their margins. While the festive month of October saw a pick-up in advertising spends, the growth slumped post that. The growth was also impacted due to a higher base and the effect of conversion of two channels from FTA to pay in March. We believe that the worst phase is behind us and the growth should revert to normal trajectory from next fiscal,” ZEEL stated in a press statement.

    ZEEL's consolidated subscription revenue grew by 15.4 per cent to Rs. 7,13.7 crore during the quarter. Domestic subscription revenue grew by 21.7 per cent Yo Y while the International subscription revenue declined by 17.4 per cent Yo Y.

    During the quarter, the television network had an all-India viewership share of 18.2 per cent. While its regional portfolio increased its viewership share, share in the Hindi speaking markets declined.

    Zee TV maintained its weekday prime time leadership, but lost weekend prime time share and was the number 3 channel in the pay Hindi GEC segment during the quarter.

    The network’s regional portfolio had mixed performance during the quarter. Moreover, its maintained leadership position in the Marathi, Bangia and Kannada markets, with Zee Kannada further strengthening its leadership position, widening the gap over the nearest competitor.

    Viewership shares in Marathi and. BangIa markets declined during the quarter ehile Zee Tamil improved its viewership share, Zee Telugu witnessed a marginal decline. Zee Keralam, continued to gain share in the Malayalam market establishing itself as a strong contender for the number two position. Zee Sarthak regained leadership in the Odiya market towards the end of the quarter.

    During the quarter, ZEEL's International business revenue was Rs. 1,66.5 crore. The advertising and subscription revenues declined by 18.6 per cent YoY and 17.4 per cent YoY, respectively. 

  • ZEE5 records peak DAU base of 11.4 mn in December 2019

    ZEE5 records peak DAU base of 11.4 mn in December 2019

    MUMBAI: ZEEL's (Zee Entertainment Enterprises Ltd) digital venture ZEE5 has recorded a peak DAU (Daily Active Users) base of 11.4 million in December 2019. Along with more users flocking towards the platform, the engagement has also gone up to 140 mintues watch time every month during the third quarter. The media conglomerate has revealed the statistics in its third-quarter result. 

    During the quarter, ZEE5 ramped up its quantity of content, updated user interface and widened the distribution. The platform launched 26 original shows and movies, of which 14 were in regional languages. Moreover, a refreshed ZEE5 Progressive Web App (PW A) was released in December to enable a seamless user experience on mobile web.  The launch led to improvement in user engagement metrics across all parameters.

    Content slate for the quarter:

    After the success of the first season, the second season of Rangbaaz was premiered in December. The show was an instant success, garnering the highest video views and viewers on the day of launch for any show. Digital premieres of movies like Jabariya Jodi, Judgemental Hai Kya, Dream Girl, Saandh ki Aankh brought new users to the platform. In the regional space, Kaale Dhande in Marathi, God of Dharmapuri in Telugu and Karoline Kamakshi in Tamil were critically acclaimed and received positive reviews from users.

    Partnerships forged in the quarter:

    During the quarter, ZEE5's partnership with Tata Sky Binge and IRCTC went live, accelerating subscription growth. ZEE5 is the only OTT platform integrated with IRCTC. To leverage the rapidly growing penetration of smart TVs in India, ZEE5 has inked deals with leading smart TV brands for placement of hotkey on their remotes.

    International expansion:

    ZEE5's international expansion is seeing initial signs of success in the APAC and MENA regions which has close affinity to Indian content. A mix of high-decibel marketing campaigns along with partnerships with local telecom operators in key target markets like Bangladesh, Sri Lanka, UAE, among others is helping increase the platform's reach.

    “We also continue to invest in original content for ZEE5, to create a rich content library that will make it a really compelling offering for consumers,” ZEEL MD and CEO Punit Goenka said.

  • Reliance Big Synergy’s 2 fiction series to air on Zee Punjabi from 13 Jan

    Reliance Big Synergy’s 2 fiction series to air on Zee Punjabi from 13 Jan

    MUMBAI: Anil D. Ambani led Reliance Big Synergy continues to strengthen its fiction content offering with two new Punjabi language prime pime dailies slated to premiere onto-be-launched Zee Punjabi from 13 January. Zee Punjabi will air Heer Ranjha from 13 Jan -Mon-Fri at 8:30 PM and Kamli Ishq Di, Mon-Fri at 7:30 PM

    Reliance Big Synergy CEO Rajiv Bakshi said “We are in the strongest position to develop and produce the finest range of fiction and non-fiction shows for our clients in both TV and OTT industries. We are both gratified and proud of the confidence the Zee Group has bestowed to give Reliance BigSynergy two prime time fiction shows for their new channel launch –Zee Punjabi. We are committed to develop and produce differentiated content, both fiction and non-fiction, in multiple regional languages besides our biggest strength Hindi market and entertain the audience across India.” 

    ZEEL  North, West & Premium Channels  cluster head Amit Shah said, “Punjab fits perfectly inZEE's philosophy of offering authentic and culturally intrinsic content to its viewers. The shows are inspired by the rich culture and traditions of the historic land of Punjab, and the viewers will surely connect with the characters and find the stories relatable. We are glad that Reliance BigSynergy is a partner in this journey" 

    Reliance Big Synergy has in the past years entertained millions of Indians through the highest-rated and breakthrough non-fiction shows including KBC, Dus Ka Dum, India’s Got Talent, Jhalak Dikhhla Jaa and more, has now moved full strength in fiction vertical as well with its range of fiction shows in both Hindi and regional languages. 

    Reliance Big Synergy VP Content Simmi Karna said, “We are super excited to launch two exciting prime time fiction shows for Zee Punjabi. Heer Ranjha is an iconic love story that will leave the audience enthralled. KamliIshq Di is another enchanting story and with its patriotic backdrop it will have an immediate connect with Punjab’s audience.”

  • SonyLIV ropes in Manish Aggarwal as digital business growth and monetization head

    SonyLIV ropes in Manish Aggarwal as digital business growth and monetization head

    MUMBAI: As the digital business of Sony Pictures Networks (SPN)witness’s expansion in the leadership team, SonyLIV on boards Manish Aggarwal to strengthen the squad. Manish as Head – Growth and Monetization, Digital Business, will be responsible for strategizing the subscription business (Both India and International) of SonyLIV. He will also be responsible tomaximize revenue through, syndication, licensing and partnership for the platform.

    Aggarwal comes with over 19 years of experience traversing leadership roles in verticals like content acquisition, partnerships, advertising revenue maximisation, consumer insights generation and innovations in digital. Prior to joining Sony Pictures Networks, Manish worked with Zee Entertainment Enterprises Pvt. Ltd as Principal Cluster Head-Advertising Sales. He has also worked with Le Ecosystem Technology India Pvt. Ltd, Myntra Designs Pvt. Ltd and Procter & Gamble to name the few.

  • Vibha Chopra on 2020 roadmap for Zee Studios’ film biz

    Vibha Chopra on 2020 roadmap for Zee Studios’ film biz

    MUMBAI: In 2019, Zee Studios’ film distribution business has grown by 30-40 per cent and film syndication business has seen a growth of 10 to 15 per cent. Last year, Zee Studios entered new markets like Hong Kong and Japan with the release of Dream Girl and Manikarnika. In 2020 it plans to enter new areas in Africa, Asia Pacific, Korea and Taiwan and focus on regional content as well. In an interaction with Indiantelevision.com, Zee Entertainment Enterprises Ltd (ZEEL) head-global syndication & international film distribution Vibha Chopra unveiled her plans for 2020 in film distribution and syndication business.

    She said, “In 2020-2021 we will continue to invest in content. We always cherry pick the right type of content that we think that will relate with our audience in the overseas territory. Along with that even regional content is coming up and finding up the audience. At one point it was just Bollywood and the regional content didn’t make it really big, but this year we have seen Malayalam, Tamil and Punjabi films. They also broke records in their own space.”

    “In addition to that we are also speaking to many other territories like Philippines and Thailand, to acquire those movies for the key market where we are very strong in.”

    With 4800 movie titles and 260 thousand hours of Indian content in its library, Studios witnesses huge demand from APAC region because socio-economic and cultural similarities resonate.

    2019 has seen a lot of films which were not anticipated to be  big films but they did great business. “This was a very interesting year. We saw films that were very heavily content driven. Previous year it was dominated by either content driven films or masala films. This year had an appetite for both. As we saw a mix of good content films and masala films doing very good business. I think overall it's been an interesting year that way and obviously for Zee Studios it's a great year on a movie frontier,” said Chopra.

    She further adds, “We have done obviously well in the traditional territory and we are able to grow that. Year on year traditional territories are accepting Indian content more and more. In addition to that there are other non-traditional territories that are seeing the resonance of our content that we have been able to release our films in Japan, Hong Kong and China. We had the largest number of releases in China this year with Mom, Beyond The Clouds and Gold.”

    Chopra also expressed her views on NTO. She said, “It is an interesting time and its a dual opportunity as a challenge. Opportunity because more people sample your content which they will find relevant for their market."

    “I think OTT enables content  to reach far and beyond certain territories. Of course then the challenge becomes that one is so widely available on OTT then players do not give relevance on traditional platforms. The consumption of traditional platform is going down too. So that poses a bit of a challenge for everyone. For any content syndication. That's a challenge because once upon a time television used to be a big platform but now with OTT it's a shared space right now,” she comments.

    Chopra also highlighted her journey with Zee Studios, “I started film distribution and we built everything from scratch. It was a different kind of experience setting up Zee Studios International and seeing where it has reached. This syndication was a different experience. It was seen as an acquired child and all in difficult times where syndicated content in difficult to hold because of the influx of various OTT platforms and how content is reaching the audience,” she informed.

    “With that change of fact, I have always been very passionate about how to enter a newer market. I think both these portfolios did together that there are opportunities to stay. We are talking to various people on format or selling our IP or remakes or things like that. I think there are these challenges which come with the opportunity, that's a very exciting part of the business. 60-70 per cent of the market focuses on Indian audience outside India, this syndication has largely taken Indian content for non Indians. You are dealing with two very different set of audiences and how they consume your content and what do they have to say about your content. So I think it is a kind of complete experience of international market. It's been a great learning experience to understand how the content is received by Indians and non Indians at large,” she said.

  • ZEEL clarifies all its TV channels in Tamil Nadu are fully operational

    ZEEL clarifies all its TV channels in Tamil Nadu are fully operational

    MUMBAI: Recently, many consumers from the south market have complained of Zee Entertainment Enterprises Ltd (ZEEL) channels blackout on social media platforms. In thewake of the controversy, ZEEL has clarified that all of its television channels in Tamil Nadu are fully operational across leading cable and DTH operators, including Tamil Nadu Arasu Cable TV Corporation Ltd., SCV and V K Digital.

    The broadcaster also clarified that channels are also available across all leading DTH operators viz. Airtel Digital TV, Tata Sky, Dish TV, d2h, and Sun Direct and there has been no change in the consumer price (MRP) of the individual channels or channel packs whatsoever. Zee Prime Tamil SD pack is priced at Rs 10 only.

    It has also been mentioned that ZEEL has issued all the required communications to its esteemed viewers informing and urging them to approach their respective cable operators with a request to reactivate the channels, for which they have already paid Rs 10, as part of their monthly subscription.

    ZEEL had received several complaints and requests through emails and social media platforms, wherein the consumers mentioned that their cable operators have removed the ZEE Bouquet from their channel packs, without any communication or reason.

  • ZEEL to launch another regional channel – Zee Punjabi on 13 January, 2020

    ZEEL to launch another regional channel – Zee Punjabi on 13 January, 2020

    MUMBAI: Zee Entertainment Enterprises Limited (ZEEL) is all set to launch its another regional channel Zee Punjabi, the Punjabi General Entertainment Channel on the auspicious day of Lohri, 13th January, 2020. The channel has a strong content line up of fiction, non-fiction and movies with storylines familiar to the land.  

    With its unique brand promise, 'Jazba Kar Vakhon Da' – the spirit to make the Vadde Sapne come true, Zee Punjabi's full range of robust content endeavours to be the jazbaa that pole vaults people to their extraordinary dreams. The legendary singer Gurdas Mann who has been associated with the channel says, "Zee Punjabi laa raha hai Punjabiyon ki kahaani, Punjabiyo ke liye, Pehli baar Punjabi mein. I am always happy to give back to my land and I am even happier that a network like Zee is taking this initiative. I am looking forward to the launch of the channel and being associated with it!"

    Show line-up of ZEE Punjabi:

    Commenting on the much-awaited launch of its first GEC in the region, ZEEL North, West and Premium Channels Cluster Head Amit Shah said, Zee invests in understanding the pulse of Middle Class India and what drives people across different regions. We have had very successful regional channel launches across the country. With our consumer understanding and the innate ability of creating magic with our stories, we are now looking at the launch of Zee Punjabi. Despite the highest TV penetration (88%) in the country, Punjab has a significantly low Time Spent and that is a factor of not having dedicated Punjabi content that does justice to the region and the culture. 

    He further said, "Zee Punjabi is being launched by understanding the viewer's need gap; for a culture that is so powerful, Punjab definitely needs its own authentic Punjabi channel. Intensive consumer work in the market has helped us understand the potential and craft the strategy for our content and brand. We are certain the audiences will resonate with the stories and fall in love with the characters"

    Speaking of the launch, Zee Punjabi business head Rahul Rao says, "We look forward to bring shows that are inspired from the region and its culture. Punjabis have a jazba and junoon which is very unique to them and our content is a reflection of that spirit. We have a strong line up of stories with themes familiar to Punjab, characters that people will fall in love with and faces like Gurdas Mann, Jazzy B, Jaidev Kumar, Sonu Kakkar and Sara Gurpal who are respected here! With over 20 hours of original content every week and a strong line up of World TV Premieres every month, we are certain of being wholeheartedly accepted by the Punjabi audiences."

    Zee Punjabi will be available across all major cable, DTH, Freedish and digital platforms starting 13th January 2020. The channel will also be available on ZEEL's digital and mobile entertainment platform, Zee5.

  • Zeel issues clarification regarding resignation of 3 directors

    Zeel issues clarification regarding resignation of 3 directors

    MUMBAI: Zee Entertainment Enterprises Ltd (ZEEL) announced on Monday that independent directors Neharika Vora and Sunil Sharma along with non-independent director Subodh Kumar resigned and three new independent directors – R Gopalan, Surendra Singh and Aparajita Jain have been appointed. On the request of the Bombay Stock exchange (BSE) Zeel disclosed the reasons for the resignation.

    Irregularities in CSR spending, film advances worth Rs 2,200 crore, appropriation of Zee Entertainment's fixed deposits worth Rs 200 crore by a bank have been cited as reasons for the resignation of two of the directors along with others.

    “The board of directors have noted that all of the issues raised by the resigning directors have been duly discussed, deliberated and acted upon from time to time in the previous committee/ board meetings in which the said directors were also present,” ZEEL said in a statement.

    The company said Sunil Sharma (Independent Director) in his resignation letter dated 24 November has informed that subsequent to sale of shares by the promoter group, and reconstitution of the board, he tendered his resignation. But at the same time, Subodh Kumar and Neharika Vora flagged several issues.

    Here are the reasons and Zeel’s comment on the issue.

    Film advances given in 2018-19 to the tune of Rs 2200 crores have been cited as the first reason. Zeel commented that the information has already been disclosed annual Report and clarified in various investor interactions.

    Lack of legal action by management when a scheduled bank had appropriated Rs 200 crore of the company's fixed deposits towards promoter loans has been cited as another reason. “Issues pertaining to the wrongful revocation of the bank guarantee stand resolved with the Company having being secured by the promoter companies and appropriate legal notices were sent to the bank at the relevant time,” Zeel commented on the issue.

    Another reason was alleged laxity in spending CSR funds given to a related party foundation or trust. Zeel clarified that the CSR funds have been allocated in compliance with the law and necessary certification has been obtained.

    The directors also raised the issue that the scheduled bank wrote to all directors in October 2019 that a subsidiary of Zeel had guaranteed the repayment of certain loan given to a related party.  “The company has a legal opinion to state that the Company is not liable and in any event there has been no enforcement of the 'guarantee' by the bank, other than to write letters, including to all the directors,” Zeel commented on the issue.

    “A letter received from a PMS entity holding preference shares of the company raising questions regarding build up of related party balances and advances for content acquisition”- has been cited as one of the reasons. According to Zeel, audit of the issues pertaining to related party transactions and advances is underway by auditors.

    The issue of non implementation of certain decision of the board meeting held on 17 October relating to treasury operations has also been flagged by the directors. Against this concern, Zeel said that the company is exploring options to withdraw these deposits in a phased manner without effecting the long term relationship with these banks.No action on large outstanding from DTH operator Dish TV and MSO Siti Cable for the content supplied by Zeel has been mentioned as one of the reasons for resignation. As per Zeel’s filing in the exchange, the same has been secured by a definitive plan and the situation is being strictly monitored as instructed by the board.

  • BlackRock stake in Zeel crosses 5% mark

    BlackRock stake in Zeel crosses 5% mark

    MUMBAI: Despite the debt crisis of the promoter group of Zee Entertainment Enterprises Ltd (Zeel), foreign fund investors aren’t shying away from betting their money. New York-based BlackRock has increased its stake in the Indian media conglomerate. Before 21 November, BlackRock held 4.77 per cent stake which has now crossed 5 per cent.

    Before the acquisition, BlackRock had 45,837,578 shares carrying voting rights in the company. Now, it has increased by 0.24 per cent in an on-market transaction reaching 48,191,811 shares. Post the acquisition, the total diluted share of BlackRock in Zeel stands at 960,483,235, as per a listing in the Bombay Stock Exchange (BSE).

    On the morning of 20 November, Essel Group announced its plan to sell 16.5 per cent stake in its flagship property  Zeel to financial investors to clear off its massive debt. Their offer putting on sale 16.5 per cent of the Essel group’s pledged holding in Zeel was quickly mopped up by existing and long-term investors in Zeel at a price of Rs 304 per share the very next morning.

    In another development, media maven Subhash Chandra has resigned as chairman of Zeel with immediate effect. While the board has been reconstituted, three new independent directors have been appointed in lieu of two independent and one nominee director of Essel Group, namely Niharika Vora, Sunil Sharma and Subodh Kumar, respectively.

    The company said in a statement that reconstitution of the board was to strengthen and induct independent members with varied experiences to build value and provide a strong signal to the existing and new institutional investors who have recently reposed their faith in the intrinsic value of the company, by investing Rs 4770 crore.