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.
Zee: Riding on pay mode - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jun 14, 2001

    Zee: Riding on pay mode

    The media major, Zee is betting on opening up of the domestic PayTV markets, upgrading content, reducing the convergence capex and tightening costs to improve the bottomline growth. Zee’s flagship channel ‘Zee TV’ contributes 30% to consolidated revenues and 64% to consolidated profits.

    During the year, Zee Network took major initiatives in converting its entire bouquet of channels from analogue to digital mode as well as transforming most channels from free-to-air to pay mode. However, FY01 was the year of intense competition, which led to a discontinuation of its major game show. There was also a significant churn in viewership of the company's mainstream channel, as new players launched a number of channels.

    Nevertheless, the new initiatives of the company in programming with customers in focus has already led to improved viewership. The channel, ‘Zee TV’, which now has 5 out of the top 10 programmes amongst all channels. The company’s two leading channels ‘Zee TV’ and ‘Zee News’ have become pay from June 10, ’01. It will charge Rs 30 per month as cable subscription fixed for the entire Zee bouquet (15 channels in all). Zee is eyeing Rs 1 bn total subscription revenues (7% of consolidated revenues) by encrypting its popular channels and converting some of them into pay mode in FY02. The company has already completed digitization of most of its channels.

    Given the over 15 million household reach of these channels and assuming a disclosure level of 25%, Zee would easily be able to generate revenues of Rs 1 bn. The charges of the company for pay channels are in line with its competitors. Star has priced its bouquet of 7 channels at Rs 28 per month and Sony is planning to convert its flagship SET channel into pay mode shortly.

    In the current scenario of increasing competition and pressure on ratings of Zee’s programmes, pay revenues could aid the company’s bottomline growth. Apart from India, Zee is also planning to charge subscription fees for ‘Zee TV’ from viewers in the Middle East Asia, Pakistan, Bangladesh, Indonesia and South East Asian countries.

    Zee has targeted to grow its advertisement revenues in FY02 by about 30%. This will be achieved by restructuring its leading channel ‘Zee TV’ by mid August by investing large funds in content improvement. Its ‘Alpha’ channels and UK operations are also expected to break even in the current fiscal. If everything goes well, Zee’s consolidated profits are expected to grow by about 25% in the current year.

    At the current market price of Rs 127 Zee is trading at a P/E of 23 times FY02 projected earnings (consolidated) and a PEG of 1x. Zee’s future valuations depend on the success of pay channels, improving TRP ratings and inducting a strategic partner.

     

     

    Equitymaster requests your view! Post a comment on "Zee: Riding on pay mode ". 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?

    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.

    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!

    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 03:36 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 8-QTR ANALYSIS

    Detailed Quarterly Results With Charts

    COMPARE ZEE ENTERTAINMENT WITH

    MARKET STATS