Tag: ZMCL

Zee Media ad revenue up in Q3-17

BENGALURU: The Essel Group’s news network Zee Media Corporation Limited (ZMCL) reported 10.6 per cent year-over-year (y-o-y) growth in advertisement revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter Q3-16. ZMCL’s ad revenue in the current quarter was Rs 114.43 crore (84.2 percent of Total Income from Operations or TIO) as compared to Rs 103.46 crore (82 percent of TIO) in Q3-16. Quarter-over-quarter (q-o-q), ad revenue in the current quarter increased 16.5 per cent from Rs 98.24 crore (77.9 percent of TIO).

TIO in Q3-17 declined 5.9 percent y-o-y to Rs 135.93 crore from Rs 144.47 crore for the corresponding year ago quarter. Q-o-q, ZMCL’s TIO increased 7.7 percent from Rs 126.25 crore.

Revenue breakup

Advertising revenue from ZMCL’s existing channels increased 15.8 percent y-o-y in Q3-17 to Rs 89.90 crore from Rs 85.23 crore. Advertising revenue from new channels increased 9.7 percent y-o-y in Q3-17 to Rs 8.35 crore from Rs 7.61 crore

Since 1 June, 2016, the company’s flagship channel Zee News became free-to-air (FTA). Subscription revenue, which came in only from the existing channels in the current quarter declined 66.8 percent y-o-y to Rs 9.27 crore from Rs 27.89 crore.

Other revenues for existing channels declined 26.1 percent y-o-y to Rs 2.44 crore from Rs 3.30 crore.

Business Revenue breakup

Revenue from ZMCL’s Television Broadcasting Business (TV Business) declined 5.6 percent y-o-y in Q3-17 at Rs 109.96 crore as compared to Rs 116.45 crore. The TV Business reported 7.2 percent y-o-y increase in operating profit at Rs 13.07 crore in Q3-17 as compared to Rs 12.19 crore.

Revenue from ZMCL’s print business declined 13.6 percent y-o-y to Rs 26.88 crore vis-à-vis Rs 31.11 crore. The print business reported more than tenfold increase in y-o-y operating loss at Rs 15.47 crore as compared to Rs 1.41 crore..

Let us look at the other numbers reported by ZMCL

ZMCL reported a higher y-o-y loss of Rs 6.22 crore in the current quarter as compared to a loss of Rs 0.77 crore in the corresponding year ago quarter, but almost a third of the loss of Rs 18.04 crore in the immediate trailing quarter. In may be noted that ZMCL has incurred an exceptional loss of Rs 18.88 crore due to sale of land and buildings of a subsidiary in the previous quarter.

Simple EBIDTA in Q3-17 declined to less than a third (declined 70.7 percent) to Rs 6.31 crore (4.6 percent margin) from Rs 21.54 crore (14.9 percent margin) and declined 64.1 percent q-o-q from Rs 18 crore (14.3 percent margin).

The company’s total expenditure in Q3-17 increased 4 percent y-o-y to Rs 139.79 crore (102.8 percent of TIO) as compared to Rs 134.35 crore (93 percent of TIO) and was 18.3 percent higher q-o-q as compared to Rs 118.22 crore (93.7 percent of TIO).

Cost of Raw materials consumed in the current quarter increased 31.3 percent y-o-y to Rs 13.61 crore (10 percent of TIO) as compared to Rs 10.37 crore (7.2 percent of TIO) and was 31.8 percent more q-o-q than Rs 10.32 crore (8.2 percent of TIO).

Employee Benefits Expenses in the current quarter declined 16.1 percent y-o-y to Rs 31.48 crore (23.2 percent of TIO) from Rs 37.52 crore (26 percent of TIO) and was 3.4 percent higher q-o-q than the Rs 30.45 crore (24.1 percent of TIO) in the immediate trailing quarter.

ZMCL’s Marketing, Distribution and Business Promotion Expenses (Marketing expenses) in the current quarter declined 33.9 percent y-o-y to Rs 16.78 crore (12.3 percent of TIO) from Rs 25.40 crore (17.6 percent of TIO) and increased 24.2 percent q-o-q from Rs 13.52 crore (10.7 percent of TIO).

Operational costs in Q3-17 increased 1.3 percent y-o-y to Rs 22.86 crore (16.8 percent of TIO) from Rs 22.57 crore (17.9 percent of TIO) and declined 2.9 percent q-o-q from Rs 23.55 crore (18.7 percent of TIO).

Other expense in Q3-17 increased 65.6 percent y-o-y to Rs 44.88 crore (33 percent of TIO) from Rs 27.11 crore (18.8 percent of TIO) and increased 48.1 percent q-o-q from Rs 30.31 crore (24 percent of TIO).

Finance costs in the current quarter increased 19.1 percent y-o-y to Rs 12.36 crore (9.1 percent of TIO) from Rs 10.37 crore (7.2 percent of TIO) and was almost flat (declined by 0.1 percent) q-o-q from Rs 12.37 crore (9.8 percent of TIO).

Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

February 6, 2017
Big FM, India Today deals: Zee Media seeks shareholder nod for loans

BENGALURU: Zee Media Corporation Limited (ZMCL) has sought public shareholder approval for special resolutions by postal ballot /e-voting process for authorizing the board to borrow moneys in excess of the paid-up share capital and free reserves of the company up to Rs. 3,000 crore.

The funds will be utilised to acquire by way of subscription, purchase or otherwise the securities of, Today Merchandise Pvt Ltd (TMPL), Today Retail Network Pvt Ltd (TRNPL), Vrushvik Entertainment Pvt Ltd (VEPL) and Azalia Media Services Pvt Ltd (ASMPL), the current and/or future subsidiary(ies) and/or associate(s) of the company, subject to the condition that the aggregate of principal amount of such loan and/or value of such investment and/or principal amount secured by such guarantee/security shall not exceed an amount of Rs. 3,000 crores at any point in time.

VEPL and ASMPL are the two companies to which Reliance ADA will transfer its radio and television business to. Both – ZMCL and Reliance ADA have the option to acquire the balance 51 stakes in VEPL and ASMPL. Both TRNPL and TMPL are loss making companies of the India Today group’s Living Media India Limited (LMIL) that have been developing infrastructure for TV shopping and eCommerce businesses to compliment its TV shopping business.

As mentioned earlier, the ZMCL board had earlier approved acquisition of 49 per cent stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL), part of Anil Ambani-led Reliance ADA group. This will give Zee access to 45 running FM radio channels, apart from 14 other licences. The two Essel group companies – ZMCL and Zee Entertainment Enterprises Limited (ZEEL) were to pick up stakes in Reliance ADA’s FM radio business and two television channels respectively. Business Standard had valued the radio business 49 percent stake transaction at Rs 1,592 crore.

Earlier, in February this year, the ZMCL board had approved in-principle, acquisition of 80 per cent equity stake by the company in both TMPL and TRNL.

Among other resolutions, ZMCL has also asked its public investors to vote for resolutions that allow it to borrow money from its promoter entity Arm Infra & Utilities Pvt Ltd to the extent of Rs 500 crore.

The voting period will commence on and from 23 December 2016 at 9.00 a.m. and end on 21 January 2017 at 5.00 p.m. Shareholders can opt for only one mode of voting i.e. either by postal ballot or e-voting. In case any shareholder casts the vote(s) through both the modes, voting done by e-voting shall prevail and votes cast through postal ballot will be treated as invalid.

December 23, 2016
Big FM, India Today deals: Zee Media seeks shareholder nod for loans

BENGALURU: Zee Media Corporation Limited (ZMCL) has sought public shareholder approval for special resolutions by postal ballot /e-voting process for authorizing the board to borrow moneys in excess of the paid-up share capital and free reserves of the company up to Rs. 3,000 crore.

The funds will be utilised to acquire by way of subscription, purchase or otherwise the securities of, Today Merchandise Pvt Ltd (TMPL), Today Retail Network Pvt Ltd (TRNPL), Vrushvik Entertainment Pvt Ltd (VEPL) and Azalia Media Services Pvt Ltd (ASMPL), the current and/or future subsidiary(ies) and/or associate(s) of the company, subject to the condition that the aggregate of principal amount of such loan and/or value of such investment and/or principal amount secured by such guarantee/security shall not exceed an amount of Rs. 3,000 crores at any point in time.

VEPL and ASMPL are the two companies to which Reliance ADA will transfer its radio and television business to. Both – ZMCL and Reliance ADA have the option to acquire the balance 51 stakes in VEPL and ASMPL. Both TRNPL and TMPL are loss making companies of the India Today group’s Living Media India Limited (LMIL) that have been developing infrastructure for TV shopping and eCommerce businesses to compliment its TV shopping business.

As mentioned earlier, the ZMCL board had earlier approved acquisition of 49 per cent stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL), part of Anil Ambani-led Reliance ADA group. This will give Zee access to 45 running FM radio channels, apart from 14 other licences. The two Essel group companies – ZMCL and Zee Entertainment Enterprises Limited (ZEEL) were to pick up stakes in Reliance ADA’s FM radio business and two television channels respectively. Business Standard had valued the radio business 49 percent stake transaction at Rs 1,592 crore.

Earlier, in February this year, the ZMCL board had approved in-principle, acquisition of 80 per cent equity stake by the company in both TMPL and TRNL.

Among other resolutions, ZMCL has also asked its public investors to vote for resolutions that allow it to borrow money from its promoter entity Arm Infra & Utilities Pvt Ltd to the extent of Rs 500 crore.

The voting period will commence on and from 23 December 2016 at 9.00 a.m. and end on 21 January 2017 at 5.00 p.m. Shareholders can opt for only one mode of voting i.e. either by postal ballot or e-voting. In case any shareholder casts the vote(s) through both the modes, voting done by e-voting shall prevail and votes cast through postal ballot will be treated as invalid.

December 23, 2016
Zee Media appoints Sumit Kapoor as CFO

MUMBAI: Zee Media Corporation Limited (ZMCL) has informed the BSE and the National Stock Exchange of India that Sumit Kapoor has been appointed as the chief financial officer (CFO) of the company with effect from 16 December, 2016. Kapoor has replaced Dinesh Garg, ZMCL company secretary Pushpal Sanghavi informed the exchanges.

Kapoor, a commerce with MBA from IIT Roorkee (with specialisation in finnnce & marketing) has also completed one-year Certificate Programme in Management and Leadership from Harvard Business School, Boston.

Kapoor is a senior professional with experience of over 15 years in business strategy and planning, investment proposals (national/international) and investors relations with various corporate houses including Monnet Group, E&Y, CB Richard Ellis and Delloitle.

His last assignment was with Monnet Group, Delhi, as a senior resource – strategic finance/business strategy & head – investors relations.

December 16, 2016
Zee Media appoints Sumit Kapoor as CFO

MUMBAI: Zee Media Corporation Limited (ZMCL) has informed the BSE and the National Stock Exchange of India that Sumit Kapoor has been appointed as the chief financial officer (CFO) of the company with effect from 16 December, 2016. Kapoor has replaced Dinesh Garg, ZMCL company secretary Pushpal Sanghavi informed the exchanges.

Kapoor, a commerce with MBA from IIT Roorkee (with specialisation in finnnce & marketing) has also completed one-year Certificate Programme in Management and Leadership from Harvard Business School, Boston.

Kapoor is a senior professional with experience of over 15 years in business strategy and planning, investment proposals (national/international) and investors relations with various corporate houses including Monnet Group, E&Y, CB Richard Ellis and Delloitle.

His last assignment was with Monnet Group, Delhi, as a senior resource – strategic finance/business strategy & head – investors relations.

December 16, 2016
Zee Media’s 49% stake in 92.7 BIG FM gets it 59 radio channels

NEW DELHI: Zee Media Corporation Limited (ZMCL)’s Board of Directors today approved acquisition of 49 per cent stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL), part of Anil Ambani-led Reliance ADA group. This will give Zee access to 45 running FM radio channels, apart from 14 other licences.

As per the agreement with ZMCL, which controls Zee group’s news-related businesses, RBNL shall be transferring the 45 operational and 14 new licenses into two special purpose vehicles (SPVs), respectively, along with the assets and liabilities. Zee shall acquire 49 per cent stake in each of these two SPVs named Vrushvik Entertainment Private Limited (VEPL) and Azalia Media Services Private Limited (AMSPL).

ZMCL and Reliance Broadcast shall also have a call/put option to acquire/sell the balance 51 per cent after the lock-in provisions on the permission holder of these licenses expire. As per government regulations, at least 51 per cent shareholding needs to be held by the permission holder for a minimum period of three years from the date the radio channels were operationalized.

RBNL runs one of the largest network of FM radio channels in India, which include 45 operational licenses (issued under Phase II and migrated to Phase III) and 14 new licenses (issued under Phase III). The FM channels are broadcast under the brand 92.7 BIG FM that reaches 45 cities, 1,200 towns and over 200 million people.

The lock-in period for the 45 operational licenses shall expire on 31 March 2018, while the lock-in period for the other 14 licenses are expected to expire around March 2020.

ZMCL COO Rajiv Singh in a statement said, “We are pleased to announce this acquisition, which shall not only be complementary to our current business but accelerate its growth too. We are currently running successfully a bouquet of 11 news and current affair channels and with the addition of 59 radio licenses, we will be reaching out to a much increased audience base and will keep them engaged on different media platforms. This acquisition shall bring about the desired business diversity and will help in achieving the sound financial objectives at an accelerated pace.”

The proposed transaction, which is subject to regulatory approvals, including that from Ministry of Information & Broadcasting (MIB), is expected to close in the first half of calendar year 2017.

Commenting on the divestment of stake, Reliance Capital ED and Group CEO Sam Ghosh said, “We are happy to bring in Zee Media as our partner in the Radio business. This transaction is part of our strategy to reduce exposure in non-core businesses and work towards further reducing debt under Reliance Capital”.

Why has Zee re-entered the FM radio business (remember it bid for licences in the first round FM radio auctions years back)?

According to ZMCL, the radio assets become attractive for the following reasons; especially as the Phase III of FM radio expansion has liberal regulations compared to earlier phases:

– higher penetration leading to economies of scale
– centralized broadcasting (networking) allowed
– radio services in larger number of cities leading to increased advertisement budget allocation
– multiple frequencies in same geography resulting in content differentiation
– varied content such as news, sports, current affairs, sports, etc allowed
– license tenor increased to 15 years from 10 years

Whether the re-entry into radio business bears fruits remains to be seen and will also depend on the condition of the general economic conditions in the country that is currently unsettled a bit because of the government’s move to demonetise currency notes of Rs. 500 and Rs. 1,000 denominations.

November 23, 2016
Zee Media’s 49% stake in 92.7 BIG FM gets it 59 radio channels

NEW DELHI: Zee Media Corporation Limited (ZMCL)’s Board of Directors today approved acquisition of 49 per cent stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL), part of Anil Ambani-led Reliance ADA group. This will give Zee access to 45 running FM radio channels, apart from 14 other licences.

As per the agreement with ZMCL, which controls Zee group’s news-related businesses, RBNL shall be transferring the 45 operational and 14 new licenses into two special purpose vehicles (SPVs), respectively, along with the assets and liabilities. Zee shall acquire 49 per cent stake in each of these two SPVs named Vrushvik Entertainment Private Limited (VEPL) and Azalia Media Services Private Limited (AMSPL).

ZMCL and Reliance Broadcast shall also have a call/put option to acquire/sell the balance 51 per cent after the lock-in provisions on the permission holder of these licenses expire. As per government regulations, at least 51 per cent shareholding needs to be held by the permission holder for a minimum period of three years from the date the radio channels were operationalized.

RBNL runs one of the largest network of FM radio channels in India, which include 45 operational licenses (issued under Phase II and migrated to Phase III) and 14 new licenses (issued under Phase III). The FM channels are broadcast under the brand 92.7 BIG FM that reaches 45 cities, 1,200 towns and over 200 million people.

The lock-in period for the 45 operational licenses shall expire on 31 March 2018, while the lock-in period for the other 14 licenses are expected to expire around March 2020.

ZMCL COO Rajiv Singh in a statement said, “We are pleased to announce this acquisition, which shall not only be complementary to our current business but accelerate its growth too. We are currently running successfully a bouquet of 11 news and current affair channels and with the addition of 59 radio licenses, we will be reaching out to a much increased audience base and will keep them engaged on different media platforms. This acquisition shall bring about the desired business diversity and will help in achieving the sound financial objectives at an accelerated pace.”

The proposed transaction, which is subject to regulatory approvals, including that from Ministry of Information & Broadcasting (MIB), is expected to close in the first half of calendar year 2017.

Commenting on the divestment of stake, Reliance Capital ED and Group CEO Sam Ghosh said, “We are happy to bring in Zee Media as our partner in the Radio business. This transaction is part of our strategy to reduce exposure in non-core businesses and work towards further reducing debt under Reliance Capital”.

Why has Zee re-entered the FM radio business (remember it bid for licences in the first round FM radio auctions years back)?

According to ZMCL, the radio assets become attractive for the following reasons; especially as the Phase III of FM radio expansion has liberal regulations compared to earlier phases:

– higher penetration leading to economies of scale
– centralized broadcasting (networking) allowed
– radio services in larger number of cities leading to increased advertisement budget allocation
– multiple frequencies in same geography resulting in content differentiation
– varied content such as news, sports, current affairs, sports, etc allowed
– license tenor increased to 15 years from 10 years

Whether the re-entry into radio business bears fruits remains to be seen and will also depend on the condition of the general economic conditions in the country that is currently unsettled a bit because of the government’s move to demonetise currency notes of Rs. 500 and Rs. 1,000 denominations.

November 23, 2016
With d2h merger, Essel Group will have world’s largest subs base

BENGALURU: The Essel group is one of the largest media and entertainment industry players in India. Its flagship company is Zee Entertainment Enterprises Limited (Zeel) that has a weightage of 45 per cent on the National Stock Exchange’s Nifty Media Index.

Its group company, Dish TV Limited (Dish) is also is the largest DTH player in the country in terms of number of subscribers. Along with DTH services, the group also has one of the largest cable operators or multi-system operators (MSO) in Siti Networks Limited or Siti (the erstwhile Siti Cable Network Limited). Amongst the major MSOs in India, Siti is the only one that has added 1.5 million (15 lakh) subscribers over the past few quarters, while its peers have had stagnating subscriber numbers.

On combining the number of subscribers, the two carriage industry players are already a force to reckon with – a fact that the Essel Group recognised, and will leverage. In an industry first, the two formed a content negotiating joint venture (JV) called Comnet. Both Dish and Siti are equal partners in the JV that came into existence on 1 July, 2015. As part of the JV, both companies said that they would hold joint discussions with broadcasters post which separate direct contracts between the broadcaster and distribution platform will be signed. Further, the JV’s intent is to bring together the industry on contentious taxation issues like the hike in entertainment tax in Delhi.

Let us look at what we have on the table — Siti had 12.2 million (1.22 crore) subscribers — of which 8.4 million (84 lakh) were digital as per its Q1-17 report, and Dish has reported a subscriber base of 15.1 million (1.51 crore) – totalling 27.3 million(2.73 crore). Now the merger with Videocon d2h will bring in another 12.5 million (1.25 crore) subscribers into the Essel fold for a grand total of 39.8 million (3.98 crore), hence about 2 million (20 lakh) more than the 37.8 million (3.78 crore) subscribers reported for DIRECTV.

Zeel’s channels have been regularly making it to the top five or 10 in the Broadcast Audience Research Council (BARC) ratings across various genres, be they Hindi general entertainment (GEC), regional channels, movies, English entertainment, etc. Another group company, Zee Media Corporation Limited (ZMCL), offers general news and business news across its television channels.

The fact that a number of the top rated channels are Essel group companies as well as a huge slice of the Indian television subscription market is indeed huge leverage – bear in mind that the group will probably control more than 25 percent of the carriage industry in the country. And what with the sunset date for DAS phase IV nearing with no let-up in sight from the government, subscription numbers will only grow.

With this merger, synergies of the two match perfectly. Dish is more of a value player with offerings for all markets including rural, while Videocon d2h is a premium player.

November 15, 2016
With d2h merger, Essel Group will have world’s largest subs base

BENGALURU: The Essel group is one of the largest media and entertainment industry players in India. Its flagship company is Zee Entertainment Enterprises Limited (Zeel) that has a weightage of 45 per cent on the National Stock Exchange’s Nifty Media Index.

Its group company, Dish TV Limited (Dish) is also is the largest DTH player in the country in terms of number of subscribers. Along with DTH services, the group also has one of the largest cable operators or multi-system operators (MSO) in Siti Networks Limited or Siti (the erstwhile Siti Cable Network Limited). Amongst the major MSOs in India, Siti is the only one that has added 1.5 million (15 lakh) subscribers over the past few quarters, while its peers have had stagnating subscriber numbers.

On combining the number of subscribers, the two carriage industry players are already a force to reckon with – a fact that the Essel Group recognised, and will leverage. In an industry first, the two formed a content negotiating joint venture (JV) called Comnet. Both Dish and Siti are equal partners in the JV that came into existence on 1 July, 2015. As part of the JV, both companies said that they would hold joint discussions with broadcasters post which separate direct contracts between the broadcaster and distribution platform will be signed. Further, the JV’s intent is to bring together the industry on contentious taxation issues like the hike in entertainment tax in Delhi.

Let us look at what we have on the table — Siti had 12.2 million (1.22 crore) subscribers — of which 8.4 million (84 lakh) were digital as per its Q1-17 report, and Dish has reported a subscriber base of 15.1 million (1.51 crore) – totalling 27.3 million(2.73 crore). Now the merger with Videocon d2h will bring in another 12.5 million (1.25 crore) subscribers into the Essel fold for a grand total of 39.8 million (3.98 crore), hence about 2 million (20 lakh) more than the 37.8 million (3.78 crore) subscribers reported for DIRECTV.

Zeel’s channels have been regularly making it to the top five or 10 in the Broadcast Audience Research Council (BARC) ratings across various genres, be they Hindi general entertainment (GEC), regional channels, movies, English entertainment, etc. Another group company, Zee Media Corporation Limited (ZMCL), offers general news and business news across its television channels.

The fact that a number of the top rated channels are Essel group companies as well as a huge slice of the Indian television subscription market is indeed huge leverage – bear in mind that the group will probably control more than 25 percent of the carriage industry in the country. And what with the sunset date for DAS phase IV nearing with no let-up in sight from the government, subscription numbers will only grow.

With this merger, synergies of the two match perfectly. Dish is more of a value player with offerings for all markets including rural, while Videocon d2h is a premium player.

November 15, 2016
ZMCL to demerge print biz into DMCL, list; approves new home shopping channel

MUMBAI: The board of directors of ZMCL has inter alia approved a draft of Scheme of Arrangement and Amalgamation for demerger of print media undertaking of the company into Diligent Media Corporation Limited (DMCL), merger of Mediavest India Private Limited and Pri Media Services Private Limited into DMCL and merger of Maurya TV Private Limited with the Company. As a part of the Scheme, the equity shares of DMCL shall be listed on stock exchanges.

Newspaper Launch: The Network launched the Delhi edition of DNA on 11 October 2016.

DNA launched with a promise. “We won’t compromise on the quality and integrity of journalism. You won’t find a story where we have sold our soul to make money and sold it to you as news,” wrote the editor-in-chief of the newspaper on the front page of the first issue of the 32-page paper priced at Rs 10. He further promised that the spanking new newspaper will change the rules of the game. DNA’s Delhi debut has, interestingly, took the media fraternity, including top media buyers at advertising agencies, by surprise.

Delhi is a bigger print media market than Mumbai. Of Rs 5,100 crore invested into advertising in newspapers in Delhi and Mumbai, 60% goes into print brands in the capital. The English print market in Delhi is estimated to be at Rs 1,700 crore.

Acquisition: Subsequent to September 30, 2016, the company has acquired 49 per cent stake in Today Merchandise Private Limited and Today Retail Network Private Limited and the Board of Directors today approved in-principle launch of a Home Shopping channel by the company.

October 28, 2016