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Zee Entertainment
Advertising Revenue Outlook continues to remain sedate with recent festive season
showing weaker growth trends. Company has been significantly hurt with A&P
spends cutdown by consumer players who account for c55%-60% share. Advertising
revenue growth has been -2% in 1HFY12. Excluding sports business ad growth was
5%-6% on a LTL basis during 1HFY12.
Subscription business - On domestic subscription side, company expects to benefit
from recent government mandate to rollout full digitalisation and fast growth in DTH
subs (1mn/month). JV with STAR group for subscription business provides them
with significant bargaining power against cable and DTH players for pricing.
However, the full impact on revenues would come only from next year.
Margins - ZEEL expects increased number of programming hours (32-33 hrs/week
vs. 29 now) in a weaker advertising environment to create pressure on the margins.
However, lower sports losses (Rs1Bn losses for FY12 vs. Rs2Bn for FY11) should
help contain any major decline in margins
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Zee Entertainment
Advertising Revenue Outlook continues to remain sedate with recent festive season
showing weaker growth trends. Company has been significantly hurt with A&P
spends cutdown by consumer players who account for c55%-60% share. Advertising
revenue growth has been -2% in 1HFY12. Excluding sports business ad growth was
5%-6% on a LTL basis during 1HFY12.
Subscription business - On domestic subscription side, company expects to benefit
from recent government mandate to rollout full digitalisation and fast growth in DTH
subs (1mn/month). JV with STAR group for subscription business provides them
with significant bargaining power against cable and DTH players for pricing.
However, the full impact on revenues would come only from next year.
Margins - ZEEL expects increased number of programming hours (32-33 hrs/week
vs. 29 now) in a weaker advertising environment to create pressure on the margins.
However, lower sports losses (Rs1Bn losses for FY12 vs. Rs2Bn for FY11) should
help contain any major decline in margins
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