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.)
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share
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.
Asia Today Ltd. (ATL)
Asia TV UK
Zee TV USA
Asia TV Africa
Expand Feet Holdings Intl
Software Supplies Intl Ltd.
Start up costs written off
Alpha TV channels in EFHL
Digitalisation and new channels in UK and USA
Total after write off
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).
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