Tag: Zeel

  • ZEEL reconstitutes its board even as chairman Subhash Chandra resigns

    ZEEL reconstitutes its board even as chairman Subhash Chandra resigns

    MUMBAI : The board of ZEE Entertainment Enterprises Ltd (Zeel) , during the meeting held today, completed the process of reconstitution of the board and appointed three new independent directors in lieu of two independent and one nominee Director of Essel Group, namely Niharika Vora, Sunil Sharma and Subodh Kumar, respectively. The newly appointed independent director include: former bureaucrat (once finance secretary) and public sector professional R Gopalan, retired IPS professional Surendra Singh, and art entrepreneur Aparajita Jain.

    The founder of ZEE and the pioneer of India's private satellite television industry, Subhash Chandra, during the meeting, expressed his intent to step aside as chairman, which he founded way back in 1992. The board accepted his resignation with regret and applauded his vision for the Company and the industry at large.

    While Chandra stepped aside from the chair, he also expressed the desire to step aside as a board member. However, the entire board requested him to not only continue as a board member but also to be the 'mentor' to the executive management and its MD & CEO.

    The 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. The reconstituted board consists of six independent directors and two members from the Essel Group.

    Besides, M Lakshminarayanan has resigned as Chief Compliance Officer and Company Secretary. In his place, Ashish Agarwal has been appointed as the Company Secretary of Zee with effect from 26 November.

    Ashish , a Commerce Graduate and LLB from MDS University, Ajmer, is a Compliance professional with rich experience of over 20 years, including five years with Essel Group.

  • Zeel promoter stake sale gets confidence vote from SBICap and Edelweiss

    Zeel promoter stake sale gets confidence vote from SBICap and Edelweiss

    MUMBAI: There’s a sense of relief at Zee Entertainment Enterprises Ltd (Zeel). Chairman Subhash Chandra, and managing director & CEO Punit Goenka said they would go the whole hog to repay their obligations. Even if it meant dropping the promoter holding in the group to never-before-imagined levels. On the morning of 20 November, Chandra, Goenka and their team of hardworking financial men and number crunchers did exactly that. 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.

    While news items pegged  the the sale proceeds Rs 4,343.18 crore, those in the know believe the figure is higher at Rs 4,560 crore. The money raised would help the Essel group pay back a majority of its debt. Following this, the promoter group still owes Rs 2,400 crore to its debtors.

    Two brokerage and investment advisory firms –  SBI Cap Securities and Edelweiss – expressed their confidence and continue to be bullish on the Zeel stock, in research reports sent out to investor clients. They have revised their target price estimate to Rs 400 and Rs 443 respectively. The Zeel share was trading at around Rs 340-350 level at the last closing.

    The SBI Cap Securities report says:  “We believe Zee remains well poised to continue with its market share gains. We expect the ad revenue growth to remain tepid in FY20 estimate, but pick up in FY21 estimate  (+13  per cent YoY), and subscription revenues to maintain their strong growth trajectory in FY20e (+27 per cent  YoY) and FY21e (+14 per cent YoY). We raise our (discounted cash flow) DCF based TP (target price)  to Rs 400 (from Rs 333 as we roll forward to FY21 estimates  and build for marginal improvement in working capital with better focus and execution.”

    “While FY20 suffered a slump in advertising, FY21 is likely to be better owing to the anticipated GDP revival and benefits from corporate tax cut. Given that a significant portion of the pledging has been now resolved, we are raising the target price earning multiple to 20x (from 18x), which yields a revised target price of Rs 443 (INR399 earlier). The stock is trading at 15x/13.5x on FY20/21E earning per share,” the Edelweiss report expounded.  

    Both did not give much weightage to the concerns around the promoter’s holding in ZEEL due to the sharp fall in shareholding. After this deal, the Essel group promoters will hold just 5 per cent stake in the company as against 42 per cent in December 2018 with Punit Goenka continuing to act in his current role as MD and CEO at ZEEL.

    Earlier, 96 per cent of the promoters’ stake was pledged in Zeel and the group had Rs 7000 crore worth of shares pledged. The brokerage firm Edelwieiss said the stake sale would remove the overhang related to promoter pledge—down from 96 per cent to 20 per cent (1.1 per cent of company stake).

    Analysts at Edelweiss further added:  “Despite multiple setbacks over the last 12 months such as group-level issues, new regulatory framework (NTO), liquidity crunch, and ad slowdown, ZEE sustained a strong business performance. In face of a sluggish advertising environment, the business managed to deliver better advertising growth than peers such as SunTV Network. We expect the advertising revenue growth to pick up in FY21 on the back of the anticipated GDP revival, increased product launches and strong market share position attained by ZEE’s channels portfolio.”

    SBI CAP Securities’ report says:  “We acknowledge that the existing promoter group has established a robust template of profitability and market share gains by establishing Zee as one of the most valuable franchises in the Indian media market. The management’s focus is expected to get clearer from hereon and reflect in better on the ground execution, in our view.”

    According to SBICAP Securities, divestments in other media or infra assets would gain more importance now in resolving promoters’ remaining debt issues. It has a deadline of April 2020 by which it has to clear its reaminder Rs 2,400 crore in debt.

    In November last year, Zeel had revealed the decision of its promoters to sell up to 50 per cent of their equity in the company to a strategic partner.

    Earlier in August, ZEEL reached an agreement with US-based Invesco-Oppenheimer Developing Markets Fund for 11 per cent (around Rs 400 per share) of the promoter stake for Rs 4,224 crore. At that time, ZEEL MD and CEO Punit Goenka did not rule out selling more stake in the company.

  • Essel Group to sell 16.5% stake in ZEEL to repay loan obligations

    Essel Group to sell 16.5% stake in ZEEL to repay loan obligations

    MUMBAI: Debt-ridden Essel Group  is planning to sell a 16.5 per cent stake in its flagship property  Zee Entertainment Enterprises Ltd (ZEEL) to financial investors to clear off its massive debt. After this transaction, Essel Group’s overall holdings in ZEEL will be five per cent, as mentioned in a statement to the Bombay Stock Exchange.

    “The group seeks to sell up to 16.5 per cent stake in ZEEL to financial investors, in order to repay loan obligations to certain lenders of the group for whose benefit such shares are currently encumbered (and who have consented to such share sale by the Group). Out of the aforesaid the group seeks to sell 2.3 per cent stake in ZEEL to OFI Global China Fund, LLC and or its affiliates,” the company stated in a statement.

    “This development reaffirms the group's positive progress on its overall asset divestment approach, undertaken to generate adequate liquidity for the repayment process. The group is alsoworking actively on further divestments including its medial non-media assets and remains confident to complete the same,” it added.

    Earlier in August, ZEEL reached an agreement with US-based Invesco-Oppenheimer Developing Markets Fund for 11 per cent (around Rs 400 per share) of the promoter stake for Rs 4,224 crore. At that time, ZEEL MD and CEO Punit Goenka did not rule out selling more stake in the company.

    In November last year, Subhas Chandra-led Zeel had revealed the decision of its promoters to sell up to 50 per cent of their equity in the company to a strategic partner. 

  • OFI Global China Fund to buy further 2.3 per cent stake in ZEEL

    OFI Global China Fund to buy further 2.3 per cent stake in ZEEL

    MUMBAI: Essel group is planning to sell 16.5 per cent stake in its flagship property Zee Entertainment Enterprises Limited (ZEEL) to financial investors, of which 2.3 per cent will be sold to OFI Global China Fund — which already holds 8.7 per cent stake in the media company.

     “The Group seeks to sell up to -16.5 per cent stake in ZEEL to financial investors, in order to repay loan obligations to certain lenders of the group for whose benefit such shares are currently encumbered (and who have consented to such share sale by the Group). Out of the aforesaid the Group seeks to sell-2.3 per cent stake in ZEEL to OFI Global China Fund, LLC and or its affiliates,” the company stated in a statement. OFI Global China Fund is a subsidiary of Invesco Oppenheimer Developing Markets Fund.

    “This development reaffirms the Group's positive progress on its overall asset divestment approach, undertaken to generate adequate liquidity for the repayment process. The Group is also working actively on further divestments including its medial non-media assets and remains confident to complete the same,” it added.

    Earlier in August, ZEEL reached an agreement with US-based Invesco-Oppenheimer Developing Markets Fund for 11 per cent (around Rs 400 per share) of the promoter stake for Rs 4,224 crore. At that time, ZEEL MD and CEO Punit Goenka did not rule out selling more stake in the company.

    In November last year, Subhas Chandra-led Zeel had revealed the decision of its promoters to sell up to 50 per cent of their equity in the company to a strategic partner.

  • ZEE and Helo App crafts in partnership

    ZEE and Helo App crafts in partnership

    MUMBAI: Delivering on its promise of meeting brand objectives by  providing solutions with exceptional incremental value to its clients through a platform agnostic approach, the Content & Partnerships vertical of Zee Entertainment Enterprises  Ltd (ZEEL) has taken brand solutions to newer avenues. By keeping the platform with the single largest reach – Television at the core along with other mediums to further amplify  the message, an integrated campaign was curated with the social media app Helo on Zee TV’s dance reality show- Dance India Dance Season 7 that secured an exceptional reach of 35 M+.

    Keeping the key purpose of providing innovative brand solutions on Television at its core, this pioneering initiative aims to offer exclusive multi-platform content programming running parallel to on-air content. The initiative will thereby enable its viewers to have an  immersive experience and generate personalized content.

    A 360-degree promotional strategy was formulated by bringing exclusive and engaging  content from Dance India Dance’s latest season to Helo’s 50 M monthly active users. The campaign secured a cumulative reach of 35 M+ for its content from Dance India Dance. The show’s social media engagement increased to 725 M+ views, increasing the follower base  by 1.3 M+ followers. 

    With 9.2 M+ interactions, Helo provided a platform for exclusive Dance India Dance  content to drive social native content and build better brand connect through 925M+ Hashtag views, 96M+ Video views, 9.2M+ interactions & 723K+ likes.

     Advertisement Revenue, ZEEL, Chief Growth Officer, Ashish Sehgal, commented “While Television remains a strong platform to  deliver value to our clients, ZEE aims to build an ecosystem wherein brands leverage multiple mediums to create content with us for audiences across platforms. Through this  partnership, we are highlighting our expertise of helping brands achieve an incremental reach with social-first native content, using our mediums for content marketing to amplify  their presence across platforms. We will continue to innovate and develop customized  platform-agnostic solutions for brands, which will achieve specific campaign objectives  focusing on organic engagement and delivering maximum reach, amplification and  community impact.”

  • ABP News Network names Mona Jain as chief revenue officer

    ABP News Network names Mona Jain as chief revenue officer

    MUMBAI: Mona Jain, a veteran media professional with nearly two decades of experience, has joined ABP News Network as the company’s chief revenue officer. She will be responsible for the organisation’s revenue efforts across ANN channels, live events and digital platforms.

    Jain comes to ANN with a proven track record of nearly 30 years in media marketing and promotions. She spent the last six years in Zee Entertainment Enterprise Ltd (ZEEL), serving as executive vice president, AD sales.

    Congratulating on her new role, ABP News Network CEO Avinash Pandey said, “We are happy to welcome Mona Jain to ANN family. Mona Jain brings a high-level of expertise and commitment to the organisation that is aligned with ABP values and vision. She is a critical addition to the leadership team and for our future plans. We look forward to her valuable contributions in the company’s progress.”

    Prior to her tenure in ZEEL, Jain was the CEO of Vivaki Exchange for almost nine years, where she was designated as India head – strategic investments. She has also worked at Cheil Communications and Mudra Communications in the past, where she was deputed as executive director and media director respectively and was responsible for setting up media for various brands. She started her career with Hindustan Thompson Associates (HTA) and holds a vast experience in the field of communications and marketing.

  • ZEEL MD & CEO Punit Goenka reappointed for five years

    ZEEL MD & CEO Punit Goenka reappointed for five years

    MUMBAI: Even as many have been harping on the debt challenges that Zee TV has been facing and questioning whether the promoter family – including CEO Punit Goenka – will continue at the helm of affairs, here’s news that at least puts paid to some of the doubting Thomases.

    Zee Entertainment Enterprises Ltd today issued a notice to the Bombay stock exchange that its board today approved in-principle to reappoint Punit Goenka as its managing director & CEO for the next five years.  His term is slated to expire on 31 December 2019.  This means that PG  – as he is known to his colleagues in the Zeel  – will continue to be the man on top come 1 January 2020.

  • ZEEL’s Kartik Mahadev on Zee Café strategy, BBC First block, post-NTO campaigns

    ZEEL’s Kartik Mahadev on Zee Café strategy, BBC First block, post-NTO campaigns

    MUMBAI: English entertainment channels were feared to face the most challenging time in the NTO phase. ZEEL English Cluster Business Head Kartik Mahadev informs that initially there was a period of flux at ground level but increasing awareness of the MRP regime through campaigns has helped the subscription numbers to grow steadily. #WhereIsMyChannel campaign during transition period of NTO has resulted in an increase of subscription number for the Zee english cluster HD channels, with &flixHD reaching amongst the top two English movies HD channels.

    Mahadev spoke to Indiantelevision.com on strategies, campaigns, NTO impact, challenges faced by English entertainment channels and upcoming programmes on Zee Café. 

    Can you tell us about Zee Café’s TV-First strategy and how does it work?

    Our viewers have a keen eye for content that is new. They follow the latest trends and seek the same when it comes to their content consumption preferences. With Zee Café, it has been our constant endeavour to provide the newest and the best shows to our viewers. With over 70% of our content being available on TV first even before the digital platforms, our discerning audience gets to witness the most-recent shows that are making a mark across the globe. Unlike other broadcasters, this TV-First approach of Zee Café has truly enabled us to serve as disruptors in the category. Shows such as American Idol, Battlebots, Seal Team, FBI, A Million Little Things, Charmed, are success stories of this approach, which have been extremely well-received by our viewers. This season, with BBC First too, we brought six shows to India for the first time only on television screens first. This is a format that truly works well with our loyal audience.

    It has been three years since the channel launched BBC First in association with BBC Studios, how has your association been so far? How has the programming block BBC First grown over the years?

    In a category homogenised by American content, we took a differentiated approach by launching British dramas in 2017. This was widely appreciated by our viewers. In the week of its launch for both seasons, the TSV of the 10 pm time band doubled. The slot viewership in the 2018 season increased by 50%. We generated a total of 50 million impressions on digital with our respective hashtags trending in the last two seasons, along with increasing the channel reach by over 100%. Over the last two years, the block has been immensely appreciated by our viewers who consider it an evolved choice of consumption. British dramas gratified the voracious appetite of our audience and garnered a positive response across mediums. With the highest brand resonance for our viewers, BBC First has truly become the flagship property for the channel. The third season upheld this legacy and met with immense positive reception with a 5X increase in viewership as compared to four weeks before the launch for the 10 pm time slot.

    Brief us on #ShakenAndStirred campaign.

    Our viewers are evolved, motivated and have a global outlook. They are on the constant look-out for what is new and different along with meaningful engagements. With an abundance of content at their disposal now, it becomes more important than ever to communicate in a way that they feel this is for them. This year’s BBC First block provides our audience a point of deep connection with stories that are powerful and visceral through the shows which are a part of the block. Keeping this is mind, Zee Café took a differentiated approach and launched the campaign #ShakenAndStirred. Through the campaign for BBC First we wanted to bring alive the compelling drama and strong characters that leave a lasting impression on the viewer. The quintessential British phrase, shaken and stirred, emerged as the creative thought as it best describes the impact that the unpredictable British dramas would leave on our viewers.

    The idea was to bring out the uniqueness of each of these contemporary dramas, making it relevant to the Indian viewer. So, we collaborated with an authority in drama – Nawazuddin Siddiqui. Bringing in a local connect with his quintessential demeanour, an excited Nawazuddin, sharing his anticipation for British dramas that promise to leave you not just shaken but also stirred. Collaborating with Nawazuddin Siddiqui helped us build engaging and conversational communication, building a strong point of view for the brand. This truly reflects in the way the campaign was received across platforms with immense positive feedback from readers who appreciated the creative effort.

    Which mediums were used for #ShakenAndStirred campaign?

    We launched the #ShakenAndStirred campaign across on-air and digital platforms and amplified the same through media communication. The aim was to build conversations around British dramas and the unique promo featuring Nawazuddin Siddiqui enabled us to amplify the announcement. Further, as part of the launch, we also engaged with the fans through an exclusive preview clip of Brexit: The Uncivil War which was shared on Zee Café’s social handle, one hour before the on-air telecast. Together, all the activities paved the way for a high-decibel launch of the third season of BBC First.

    How has the responses from advertisers been, on this property?

    While the block has resonated well with our loyal audience, we’ve always managed to partner with some of the most reputable brands who’ve equally appreciated our endeavour. Over the three seasons, we have had brands such as Prestige, Dominos, Hershey’s, L’Oreal, Phillips, and Vicks with most as recurring sponsors on the BBC First block.

    How do you see the growth of English Entertainment channels in Indian market, post NTO?

    The English category on television has been growing steadily over a period of time. In last three years (pre-NTO), the viewership on English GEC genre has grown almost 2.5 times, while the English movie genre has witnessed a 26% growth in viewership and 28% growth in reach, as per BARC India data. Any big change is ought to have teething problems and NTO was no different, as it initially brought a period of flux at ground-level with consumers and distributors being confused about the regime. Largely, channel packs were being picked more on the basis of DPO suggestions. Six months on, we have observed that with increasing awareness of the MRP regime, the subscription numbers are steadily growing.

    What was the impact of NTO on Zee Café?

    One of our recent consumer research studies has reinstated that ‘TV Content is playing a strong role in bringing families together.’ For a lot of urban English consumers, TV is the Go To destination for discovery and effortless viewing. Our studies have suggested that consumers today look for curated content. They don’t want to invest time in trying to decide what best meets their interests. That’s where Zee Café as a channel comes into play. Through the channel's offerings we consistently ensure that all our programming blocks are curated based on audience tastes whether it be a block like BBC First or even Hollywood On Café. For instance, our viewers increasingly look for the latest shows and with our programming block ‘Along With The US’ they get to witness the newest international series that are trending globally and watch it live on Zee Café, before anywhere else. So, the takeaway from this is that the best curators today shall win the game. As per BARC, July 19, AB households, Indian Urban; Zee Café has the highest reach in the category and we are certain that, with growing awareness of the NTO regime, the coming quarter looks promising.

    During the transition period of NTO, ZEEL had launched #WhereIsMyChannel campaign for its English Channel cluster. How well did that campaign work?

    #WhereIsMyChannel has been successful in driving salience and consideration for the English channels amongst the target audience. Within two weeks, we delivered over 25 million sharp targeted video views with strong engagement rates. The campaign has reached to about 58 million viewers on digital and 41.53 million viewers on TV, for the two ad films. In a competitive category with several brands, the campaign has delivered over 70% ad cut-throughs which is quite strong. The ad campaign is being promoted across Zee Network’s social handles and the TV channels on air. The digital video with RJ Balaji, Mallika Dua and Varun Thakur are also a success indicator for the original films which have become a reference point for other unbranded original renditions to be created.

    Overall, it has helped drive subscription for the channel where viewers are now actively involved in the decision-making process. The campaign as also resulted in increased subscription for the Zee English Cluster HD channels, with &flixHD reaching amongst the top two English Movie HD Channels. With increasing awareness of the MRP regime, the subscription numbers are steadily growing.

    What are the challenges faced by English Entertainment channels?

    One of the biggest challenges in the ecosystem undoubtedly has been the NTO. While the English audience is highly involved in their content choices, they were not used to making the purchase decision and typically, the more affluent households would buy subscription annually. Today, there is ~90% awareness about the change, however there was a need to help consumers through the decision funnel, helping them make an active and informed choice. Hence, we launched the #WhereIsMyChannel campaign encouraging consumers towards becoming more active in making a purchase decision for International entertainment on television. Post NTO, we have observed that viewers are now adding premium packs and upgrading to HD channels. This has bolstered English Entertainment as our HD channels have seen a steady growth in subscription.

    Advertisers have spent their major chunk on Sports channels and News channels in the first half of 2019. How do you see the second half of the year especially for niche channels?

    English category caters to a unique set of influential and aspirational audiences, through its high- quality content. At Zee English Cluster, over the years, we have garnered a unique loyal audience base that consistently supports our channels which truly reflects in our movie channels &flixHD and &Privé HD having ranked number 2 and 1 respectively in their category. Premium brands across automobile, telecom, BFSI and FMCG, amongst many other categories, have over the years found a great fit with this category.

    Especially since most of the English content available on OTT has the paywall limitation, brands who want to exclusively target English category, majorly look to associate with this content, come on TV. To reach out to our affluent viewers, they have partnered with us on impact campaigns to drive perception and recall. Moreover, during peak in sports tournaments, television itself witnesses an overall growth in viewers which in turn elevates the viewership of entertainment channels as well. This year &flix launched a campaign #FlixMovieLeague to support the spirit of the sporting events in the country. So, it goes without saying that English category will continue to serve as the best platform for advertisers to reach out to the relevant audience.

    What are the new programming launches on Zee Café?

    With the festive fervour, we are bringing two of our flagship properties on Zee Café namely – Along With The US and Hollywood On Café as part of our festive offering to viewers. Last year, in its 2018 edition, Along With The US grew the 7PM – 10PM slot viewership by 52% (as per BARC, NCCS AB 15-40-Megacities). This year, with present the latest seasons of both popular favourites like Grey’s Anatomy and Supergirl, and new shows such as Carol’s Second Act and The Unicorn we are extremely thrilled to take it a notch up. Moreover, we are truly proud of a property like Hollywood On Café that brings the scale and grandeur of Hollywood on television. As part of the block last year, shows such as The Sinner and The Night Manager witnessed an increase in slot viewership by 55% and 75% respectively. This year, with a collection of shows such as LA’s Finest and The Son we have truly raised the bar and are certain that the festive line-up with resonate well with our discerning audience.

  • ZEE5 plans more show franchises, to invest in direct-to-digital movies

    ZEE5 plans more show franchises, to invest in direct-to-digital movies

    MUMBAI: Zee Entertainment Enterprises Ltd’s (ZEEL) digital arm ZEE5 has built its library on the back of marquee properties and regional content since the time of its entry in the burgeoning over-the-top (OTT) ecosystem. After hitting the audience with a number of popular original shows and direct-to-digital movies, the platform is planning to bring more franchises like Rangbaaz. Moreover, while ZEE5 will continue to invest in buying movies, the platform is also planning to invest more in direct-to-digital movies.

    “Among the few things we have learnt, the first is that we want to bring more franchises. We are making follow-up seasons of some of the bigger shows like Rangbaaz and The Final Call,” ZEE5 India CEO Tarun Katial said in an interaction with Indiantelevision.com.

    “The other thing we have been able to do is an extension of existing TV show library. We did Subhan Allah into Ishq Ajkal, we did Jamai Raja into Jamai 2.0. There’s a lot more treasure in the ZEE library. Also, we have seen a very successful direct-to-digitals. While we will continue to invest in buying movies, this is a getaway to hedge cost and build own IPs. So, we are planning to invest more in direct-to-digital movies,” he added.

    Katial also noted that while the platform started the year with the commitment of creating one of the largest libraries of regional content in the country, ZEE5 consistently created content not only Hindi content but  also content in Tamil, Telugu, Bengali, Marathi, and even in Kannada.

    Katial also mentioned that among all the regional markets, the “film and original crazy” Telugu market has been doing amazingly well. As he shared, the Tamil market is also doing well after Telugu while Kannada has been a very surprising market, one of their fastest-growing markets in the regional sphere.

    While all three of these markets have regional packs, some of the users who first buy into the regional packs in Telugu and Kannada markets upgrade themselves into an all-access pack to consume some of the Hindi originals and Hindi movies. Hence, the regional packs have acted as a good entry point for consumers to sample ZEE5 and then eventually to upgrade into full subscription packages.

    ZEE5 also entered into an unusual content partnership with ALTBalaji in July to co-create original content which are available on both the platforms. Katial said that the partnership has doubled the content output every single month. He also added that it allows them to talk to different taste clusters and build certain amount of velocity behind moving, upgrading consumers from AVOD to SVOD.

    ZEE5 also broadened a lot of technology partners across the world this year. “It has been able to give us a strong collaborative recommendation engine, a consumer data platform that can engage with our consumers real-time and to be able to trigger consumption and as well as trigger updates and subscriptions that we can understand and communicate in their language, need and requirement,” he said.

    Katial also added that they noticed over a period of time that product and user journey needed to be enhanced. Hence, the platform has launched a plethora of new apps on smart TV devices with new UI, new subscription journeys enhancing its ability to onboard new users more easily. In addition to that, he noted that ZEE5 has been able to invest in data sciences this year helping them to add a fair amount of user knowledge to improve decision making, ability to create content and user experiences and more importantly to take long-term decisions on different kind of product cases.

    “The strength of market lies in two things. One is the device-ecosystem which is growing extremely well not only just on the mobile side but also on the smart-TV side. And the other is the growth of the data consumption story and video consumption is the largest part of data consumption. These are the two indicators of why Indians are going to consume more digital video and with that there will be better opportunities both on the ad-supported side as well as on the subscription side,” he commented on how the overall ecosystem has fared. 

  • Zeel reports higher op revenue, PAT for Q2 2020

    Zeel reports higher op revenue, PAT for Q2 2020

    BENGALURU: The Subhash Chandra-led Zee Entertainment Enterprises Ltd (Zeel) reported 7.6 percent and 7.4 percent y-o-y growth in total and operating revenues for the quarter ended 30 September 2019 (Q2 2020, quarter or period under review) as compared to the corresponding year ago quarter Q2 2019. Profit after tax grew 6.7 percent y-o-y, while Total comprehensive income (TCI) declined 9.5 percent y-o-y. Operating profit (EBITDA) grew 2.5 percent y-o-y in Q2 2020 as compared to Q2 2019.

    Zeel reported total revenues of Rs 2,190.13 crore and Rs 2,034.79 crore for Q2 2020 and Q1 2019 respectively. Operating revenue for the period under review was Rs 2,122.01 crore and Rs 1,975.86 crore respectively. PAT for Q2 2020 was Rs 412.09 crore, while it was Rs 386.10 crore for the corresponding year ago quarter. TCI for Q1 2020 and Q1 2019 were Rs 471.77 crore and 521.43 crore respectively. Simple operating EBITDA for the quarter under review was Rs 692.93 crore (32.65 percent margin) and for Q2 2019 it was 675.72 crore (34.20 percent margin of operating revenue.

    Growth in revenue in Q2 2020 was driven by 1.2 percent and 19 percent y-o-y growths in advertisement and subscription revenue respectively. Zeel reported ad revenue of Rs 1,224.66 crore in Q2 2020 and Rs 1,210.60 crore in Q1 2019. The company reported subscription revenue of Rs 723.50 crore in Q2 2020 and Rs 608.16 crore in Q1 2019.

    Zeel managing director and CEO Punit Goenka said through an earnings release: “I am pleased with the performance we have exhibited during the quarter. Our entertainment portfolio continues to grow from strength to strength across all formats and maintained its leading position. Our television network has emerged stronger post the implementation of tariff order on the back of a strong customer connect and brand pull of its channels. ZEE5 continued to gain traction across audience segments and markets, driven by its compelling content library and expanding of partnerships across the digital eco-system. This strong operating performance allowed us to deliver industry leading growth in both advertising and subscription despite the tough macro-economic environment. Domestic subscription growth of 27 percent has reaffirmed the value proposition our television network has built over the years. The impact of tariff order has now largely settled down and has brought increased transparency along with improved monetisation. Our domestic advertising revenue growth, though significantly lower than historical trend, is higher than the industry growth. We have witnessed an improvement in ad spends through the quarter and we believe that the onset of festive season along with measures taken by the government will help revive the consumption growth."

    Let us look at the other numbers reported by Zeel

    Total Expenditure for Q2 2020 grew 9.2 percent y-o-y to Rs 1,514.13 crore from Rs 1,386.45 crore in Q2 2019. Operating costs in Q2 2020 grew 23.4 percent y-o-y to Rs 896.25 crore from Rs 726.34 crore. Other expenses during the quarter under review declined 18.6 percent y-o-y to Rs 195.31 crore from Rs 240.03 crore. Employee benefits expense in Q2 2020 grew 25.8 percent y-o-y to Rs  212.26 crore from Rs 168.72 crore. Ad and publicity expensed in Q2 2020 declined 24.1 percent y-o-y to Rs 125.26 crore from Rs 165.05 crore finance costs in Q2 2020 more than tripled (3.3 times) y-o-y in Q2 2020 to Rs 17.97 crore from Rs 5.45 crore.