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  • 1. COMPANY OVERVIEWOCTOBER 2011
  • 2. DISCLAIMERSome of the statements made in this presentation are forward-looking statements and arebased on the current beliefs, assumptions, expectations, estimates, objectives and projectionsof the directors and management of Zee Entertainment Enterprises Limited (ZEE) about itsbusiness and the industry and markets in which it operates.These forward-looking statements include, without limitation, statements relating to revenuesand earnings.The words “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project” and similarexpressions are also intended to identify forward looking statements.These statements are not guarantees of future performance and are subject to risks,uncertainties and other factors, some of which are beyond the control of the Company and aredifficult to predict. Consequently, actual results could differ materially from those expressed orforecast in the forward-looking statements as a result of, among other factors, changes ineconomic and market conditions, changes in the regulatory environment and other businessand operational risks. ZEEL does not undertake to update these forward-looking statements toreflect events or circumstances that may arise after publication. 2
  • 3. ZEE ENTERTAINMENT Hindi Entertainment Music & Lifestyle Sports Channels English Regional Entertainment Entertainment Largest Indian TV Network in the World 3
  • 4. Leading Hindi Entertainment Network
  • 5. Leading Sports Network
  • 6. Leading Regional Entertainment Network
  • 7. English Entertainment
  • 8. Indian Music & Lifestyle Network
  • 9. OUR GROWTH JOURNEY • Flagship channel - Zee TV launched 1992 • IPO of Zee Telefilms Limited • Zee TV goes global 1995 • Zee Network launched in UK • Another major international foray 1998 • Zee Network launched in USA • Zee buys out News Corp‘s 50% stake in its television 1999 broadcasting business 9
  • 10. OUR GROWTH JOURNEY • Distribution partnership with Turner, a Time Warner 2002 subsidiary • Demerger of Zee into four separate listed companies 2007 • Zee acquires 50% stake in Ten Sports • Zee acquires the regional entertainment networks 2010 • Zee acquires another 45% stake in Ten Sports • Zee, Star, Turner & Den form a distribution alliance – 2011 MediaPro Enterprise India. 10
  • 11. INDIAN MEDIA SECTOR Television Industry Revenues (Rs bn) Media Spend as a % of GDP 15% 16% 1.1% 15% 14% 0.9% 12% 0.8% 0.8% 0.8% 223 194 7% 158 0.4% 140 122 169 103 118 71 82 88 61 2006 2007 2008 2009 2010 2011P India UK US China Japan World Sub revenues Ad revenues Television growth rate (%)Source: FICCI-KPMG Report 2011 Source: Worldwide Media and Marketing Forecasts, Group M, 2009 • M&E industry size estimated at Rs 653 bn in 2010 • Television sector estimated at Rs 297 bn, constituting 45% of the industry • Television recorded growth of 16% in 2010 ahead of industry growth of 11% 11
  • 12. INDIAN TV HHS AT A GLANCE Growth Digital Digital +31 % 20 Mn 26 Mn C&S HHlds C&S HHlds 103 Mn 116 Mn +12 % TV Owning TV Owning Households Households +6 % 134 Mn 141 Mn Total Households Total Households 223 Mn 231 Mn +3 % 2010 2011Source: TAM Media ResearchAll India Household figures in million 12
  • 13. INDIA – RAPID DIGITISATION DTH Subscribers (Net, in Million No.s) 71 64 56 48 38 28 16 10 2008 2009 2010 2011P 2012P 2013P 2014P 2015P Source: FICCI-KPMG Report 2011 • DTH industry saw a growth of 75% in 2010 • Industry adding almost a million subscribers each month • Digitization ordinance passed by the Govt likely to give a further push to the digitization wave 13
  • 14. 14
  • 15. PRODUCT OFFERINGHINDI ENTERTAINMENTHINDI MOVIESREGIONAL LANGUAGE ENTERTAINMENT (R-GEC) 15
  • 16. PRODUCT OFFERINGSPORTS INTERNATIONAL ALTERNATE LIFESTYLE ENGLISH ENTERTAINMENT & MOVIES MUSIC & LIFESTYLE 16
  • 17. REVENUE PIE FY2011 Revenues: Rs 30,136 million Other Sales 6% International 14% Advertising 56% Domestic Cable 13% Domestic DTH 11% Advertising Subscription Other Sales 17
  • 18. BUSINESSPERFORMANCE
  • 19. HINDI ENTERTAINMENT CHANNELS• Zee TV is the largest Hindi entertainment channel of the world 19
  • 20. HINDI MOVIE CHANNELS Star Gold MAX 24% 28% UTV 9% Filmy 5% Zees Cinema Channels 34% Source: TAM Media Research; Period: FY11; Zee’s Cinema Channels - Zee Cinema, Zee Premier, Zee Action, Zee Classic TG: CS 4+, HSM; MAX ratings- non-cricket 20
  • 21. STRONG MOVIE LIBRARY Largest Hindi Movie Library in the World 21
  • 22. 22
  • 23. SPORTS CHANNELS – KEY PROPERTIES 23
  • 24. CRICKET, SOCCER, TENNIS & MORE• Ten Sports, Ten Action+, Ten Cricket - The leading sports network of the country• Key properties in 2011: • Cricket: India tour of West Indies, Sri Lanka vs Australia, South Africa vs Australia, Pakistan vs Sri Lanka, South Africa vs Sri Lanka • Others: WWE Wrestlemania, UEFA Champions League, US Open, ATP events, UEFA EUROPA Cup, Moto GP, European Tour Golf 24
  • 25. ENGLISH & NICHE CHANNELS• Tie-ups with leading studios across the world 25
  • 26. ZEE MARATHI - HIGHLIGHTS• Leadership position in Marathi GEC genre• Library of over 9,000 hours & rights to over 400 movie titles• Key properties: Pinjara, Kunku, Fu Bai Fu, Idea Saregamapa 2011 Average Weekly GRPs 215 149 112 65 37Zee Marathi ETV Star Pravah Zee Talkies Mi Marathi MarathiSource: TAM, Period: FY11, CS 4+, All Maharashtra 26
  • 27. ZEE BANGLA - HIGHLIGHTS • Leading GEC in West Bengal with dominant share in non-fiction programming • Library of over 9,000 hours & rights to over 600 movie titles • Key properties: Agnipariksha, Saat Paake Bandha, Rashi, Mirakkel Akkel Challenger 6 Relative share in non-fiction Aakaash Rupashi Bangla Star Jalsha Bangla 9% 4% ETV Bangla 8% Mahua 20% Bangla 2% Zee Bangla 57%Source: TAM, Period: FY11, CS 4+, All WB 27
  • 28. ZEE TELUGU - HIGHLIGHTS • Leading GEC in AP with dominant viewership share in fiction programming • Library of over 7,000 hours & rights to over 575 movie titles • Key properties: Chinna Kodalu, Muddubidda, Saregamapa Lil Champs Relative share in fictionSource: TAM, Period: FY11, CS 4+, All AP 28
  • 29. ZEE KANNADA - HIGHLIGHTS • Zee Kannada- Steadily gaining market share • Library of over 6,500 hours & rights to over 150 movie titles • Key properties: Devi, Chi Sou Savitri, Yariguntu Yarigilla Relative channel share Suvarna Kasturi 21% 8% ETV Kannada 16% Udaya Tv 41% Zee Kannada 14%Source: TAM, Period: FY11, CS 4+, All Karnataka 29
  • 30. INTERNATIONAL OPERATIONS • Presence across 5 continents through over 15 channels • Catering to both South Asian as well as non South Asian communities • Recent local language launches in Russia, South East Asia, Saudi Arabia • International subscription contributed 14% of company top line in FY2011 • Renewed focus on advertising as a source of revenues 30
  • 31. STRENGTHENING PAY REVENUES 50% 50%• Zee Turner is a 74:26 joint venture between ZEEL and Turner currently distributing ZEEL channels, Zee News Channels and Turner Channels• Star-Den is a 50:50 JV between Star India and DEN for distribution of Star channels, Fox channels and third party channels like NDTV Channels• Media Pro will distribute all the channels which are currently being distributed by Zee-Turner and Star Den 31
  • 32. Q2 FY2012 RESULTSJuly – September 2011
  • 33. FINANCIAL RESULTS Full Year Second quarter (Rs million) FY10 FY11 Growth FY11 FY12 GrowthOperating Revenues* 21,998 30,136 37% 7,116 7,184 1%Expenditure* 15,863 21,870 38% 5,231 5,108 -2%Operating Profit (EBITDA) 6,135 8,266 35% 1,885 2,075 10%PBT before excep items 6,739 8,725 29% 2,064 2,221 8%Add: Exceptional Items - 197 - -Less: Provision for Tax 573 2,671 366% 801 621 -22%Profit After Tax 6,166 6,251 1% 1,263 1,600 27%Less: Minority Interest (195) (118) 0.6 39.7 EBITDA margin 27.9% 27.4% 26.5% 28.9%*Note A: Operating revenues and expenditure for Q2 FY12 are not comparable to those for Q2 FY11 because of the change in accounting treatmentof domestic subscription revenues, which are now being reported net of expenses. This change has been necessitated due to the formation ofMedia Pro, a joint venture, which pays subscription revenues to ZEE net of expenses. 33
  • 34. BALANCE SHEET As on 31st March (Rs million) 2010 2011Shareholders Funds 38,300 30,948Loan Funds 1,195 17Capital Employed 39,495 30,965 • Debt free balanceNet Fixed Assets 19,587 8,464 sheetInvestments 3,203 6,964Deferred Tax Assets 133 192 • Net Cash of overCurrent Assets, Loans & Advances 24,390 23,027 Rs12,500mn asa) Inventories 4,713 5,396 on Mar 31, 2011b) Sundry Debtors 7,488 8,955c) Cash & Bank Balance 5,864 3,858 • Return on Avg.d) Loans & Advances 6,325 4,818 Capital EmployedLess: Current Liabilities & Provisions 7,840 7,801 of 25%Net Current Assets 16,550 15,226Minority Interest 22 119Capital Deployed 39,495 30,965 34
  • 35. CONSISTENT PROFITABLE GROWTH Revenues and Operating Profit (Rs in mn) Revenue CAGR: 18.7% EBIDTA CAGR: 26.7% 30,136 21,773 21,998 18,354 15,159 8,266 6,135 5,423 5,480 3,204 2007 2008 2009 2010 2011 Revenue Operating profit (EBITDA) Consistent dividend payout since 1994 35
  • 36. OUTLOOK AND STRATEGY Content Revenues Returns • Innovation & • Digitization: Big • Consolidation quality pay opportunity • Collaboration • Regional • Advertising: • Disciplined revolution Continued growth investments • Niche content • New streams: • Broadcast to Digital media, narrowcast syndication Our Strategy Enhance our leadership position in the genres we compete Continue to run our business as best in class Deploy strong cash flows to improve returns to shareholders 36
  • 37. OUTLOOK AND STRATEGY Content Revenues Returns • Innovation & • Digitization: Big • Consolidation quality pay opportunity • Collaboration • Regional • Advertising: • Disciplined revolution Continued growth investments • Niche content • New streams: • Broadcast to Digital media, narrowcast syndication Our Strategy Enhance our leadership position in the genres we compete Continue to run our business as best in class Deploy strong cash flows to improve returns to shareholdersConsistent performer since inception; Shareholder value CAGR of >30% between 1992 to 2011 37