X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Sale of library to ATL boosts Zee’s turnover, profits - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • May 9, 2000

    Sale of library to ATL boosts Zee’s turnover, profits

    Zee TV sold a part of its film and television programme library to its subsidiary ATL during the fourth quarter. The library has been valued at Rs. 26.34 bn by an international consulting firm. (However, the company has not mentioned both the name of the consulting firm and what part of the library has been sold.)

    (Rs m) FY1999 FY2000 Change
    Sales 2,262 4,759 110.4%
    Other Income 56 101 81.3%
    Expenditure 1,411 1,870 32.5%
    Operating Profit (EBDIT) 851 2,889 239.7%
    Operating Profit Margin (%) 37.6% 60.7%  
    Interest 81 84 3.5%
    Depreciation 18 25 35.3%
    Profit before Tax 807 2,881 257.1%
    Other Adjustments     #DIV/0!
    Tax 196 210 7.4%
    Profit after Tax/(Loss) 611 2,671 336.9%
    Net profit margin (%) 27.0% 56.1%  
    Earnings per share 32.75 6.5  

    This part sale contributed Rs 1.89 bn almost 40% to its annual turnover and 77% of its fourth quarter turnover. Since the costs of building this content has been written off over the years the operating profit has increased by 1.86 bn i.e. the profit from the sale of the library has contributed more than 64% of the operating profit in the current year.

    For the record, Zee’s turnover has shot up by 110% and the net profit has more than quadrupled. One fact that must be kept in mind however, that the results of last year are strictly not comparable since Zee was a content provider, not a broadcaster till last year.

    (Rs m) Revenues PAT
      FY2000 FY1999 FY2000 FY1999
    Siticable 590 460 10 10
    PATCO 260 220 50 10
    Asia Today Ltd. (ATL) 5,200 4,140 840 590
    Asia TV UK 1,090 1,060 110 100
    Zee TV USA 350 90 10 (50)
    Asia TV Africa 170 130 20 (20)
    Zee International 80 70 50 60
    Expand Feet Holdings Intl 150 90 (90) (30)
    Software Supplies Intl Ltd. 70 30 10 -
    Total 7,940 6,290 1,010 670
             
    Less        
    Start up costs written off        
    Alpha TV channels in EFHL     260  
    Digitalisation and new channels in UK and USA 90  
    Total after write off 7,940 6,290 660 670

    This is due to the fact that during the year the company took over Winterheath Ltd. (the holding company of Asia Today Ltd.), Zee Multimedia Ltd and Siticable. What has been done now is that profits have been transferred from the books of ATL to the books of Zee TV.

    The Rs 1 face value stock quotes at Rs 705, which implies an earning multiple of 108 times This is at the higher end of the earnings multiple range over the past three years. The stock has come off from its highs of Rs 1,630, which it touched in February 2000 (52–week range Rs 1630/551).

     

     

    Equitymaster requests your view! Post a comment on "Sale of library to ATL boosts Zee’s turnover, profits". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    Zee Ent: Advertising drives revenues (Quarterly Results Update - Detailed)

    Aug 1, 2016

    Zee Entertainment has announced its results for the first quarter of the financial year 2016-17 (1QFY17). The company has reported 18.5% YoY growth in sales and a 13.7% YoY growth in profit after tax.

    Zee Ent: Operating Margins Continue Expansion (Quarterly Results Update - Detailed)

    Jun 9, 2016

    Zee Entertainment has announced its results for the fourth quarter of the financial year 2015-16 (4QFY16). The company has reported 14% YoY growth in sales and a 13% YoY growth in profit after tax.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working(Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Think Twice Before You Keep Money In A Savings Bank Account(Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    ZEE ENTERTAINMENT SHARE PRICE


    Aug 24, 2017 12:46 PM

    TRACK ZEE ENTERTAINMENT

    • Track your investment in ZEE ENTERTAINMENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MORE ON ZEE ENTERTAINMENT

    ZEE ENTERTAINMENT 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE ZEE ENTERTAINMENT WITH

    MARKET STATS