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: Subscription show - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 16, 2003

    Zee: Subscription show

    Zee TV has posted a 18% growth in revenues and a 29% rise in net profit for the second quarter ended September 2003. While growth numbers are not entirely comparable owing to the inclusion of Padmalaya Telefilms' numbers in 2QFY03, as expected, advertisement revenues have started to show signs of recovery.

    Zee Telefilms (Consolidated)
    (Rs m) 2QFY03 2QFY04 Change 1HFY03 1HFY04 Change
    Sales 2,746 3,231 17.7% 5,234 6,124 17.0%
    Other Income 197 164 -16.8% 359 355 -1.2%
    Expenditure 1,942 2,217 14.2% 3,672 4,209 14.6%
    Operating Profit (EBDIT) 804 1,014 26.2% 1,562 1,915 22.6%
    Operating Profit Margin (%) 29.3% 31.4%   29.8% 31.3%  
    Interest 200 192 -3.8% 382 362 -5.3%
    Depreciation 81 70 -12.9% 137 152 10.6%
    Profit before Tax 721 916 27.1% 1,402 1,757 25.3%
    Extraordinary items - - - - - -
    Tax 175 215 22.9% 380 433 13.9%
    Profit after Tax/(Loss) 546 701 28.5% 1,022 1,324 29.5%
    Net profit margin (%) 19.9% 21.7%   19.5% 21.6%  
    No. of Shares (m) 412.5 412.5   412.5 412.5  
    Diluted Earnings per share (Rs)* 5.3 6.8   5.0 6.4  
    P/E (x)         21.3  
    *(annualised)            

    Though sales, on the first look, seem to have grown by 18% in 2QFY04, it includes revenues from Padmalaya Telefilms to the tune of Rs 170 m. Excluding this inclusion, comparable revenues have increased by 12%. After remaining weak in FY03, advertisement revenues have shown a marginal growth of 2% on a YoY basis. But on a quarter on quarter basis, which would reflect the actual growth in adspend, the growth in ad revenues is around 20%. This is a very encouraging sign and is helped by various factors like advertisers returning back to Zee post the World Cup cricket fever, revision in rates by Zee and general improvement in economic activity.

    On the subscription revenues front, revenues grew by 23% led by a more than 500% jump in domestic subscription revenues. The company foresees a 40%-50% growth in subscription revenues going forward (excluding CAS). The company's international pay revenue grew by over 13% YoY during the quarter to Rs 643 m (up 4% QoQ).

    Consolidated revenue mix...
    (Rs m) 2QFY03 2QFY04 Change 1HFY03 1HFY04 Change
    Content & broadcasting 2,340 2,588 10.6% 4,526 4,894 8.1%
    PBIT margin (%) 35.6% 36.3%   34.4% 34.2%  
    Access 444 453 1.9% 799 921 15.1%
    PBIT margin (%) -4.7% -2.7%   -1.5% -0.8%  
    Education 33 35 5.7% 63 52 -18.6%
    PBIT margin (%) -268.5% 5.1%   -193.4% -3.9%  
    Film production & distribution 1 261 - 1 527 -
    PBIT margin (%) 18.2% 6.0%   18.2% 19.0%  
    Others 36 25 -31.4% 36 25 -31.4%
    PBIT margin (%) 2.2% 1.2%   2.2% 1.2%  
    Total 2,854 3,361 17.8% 5,426 6,419 18.3%
    PBIT margin (%) 23.1% 32.8%   52.1% 55.0%  

    Operating margins improved by 210 basis points to over 31% during the quarter. The company sees the growth in advertising revenues continuing. Zee reduced its debt burden by Rs 1.6 bn during the quarter. This is likely to result in a reduction in the debt servicing costs of the company going forward.

    The Conditional Access System (CAS) is expected to be a big boost to the company. However, the lacklustre implementation of the same, has not seen the company gaining significantly from it, as yet. The company has logged in a loss of Rs 65 m on its CAS operations till date.

    At the current price of Rs 137 the stock trades at 21.3x annualised 1HFY04 revenues. Though CAS has been a dampener for the company, the revival in advertising revenues, as well as the company's renewed focus on strengthening its flagship channel (Zee TV) is a positive. Also, though CAS has been stalled for the time being, the fact that it has been passed by the parliament points to the fact that it is a reality going forward.

     

     

    Equitymaster requests your view! Post a comment on "Zee: Subscription show". 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

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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 18, 2017 (Close)

    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 - BALAJI TELEFILMS COMPARISON

    Compare Company With Charts

    COMPARE ZEE ENTERTAINMENT WITH

    MARKET STATS