Zee TV - Contracting for a Breakout!

arun · #11 27th July 2004, 12:12 PM

ZEE TV moves up yet again to touch 148.00

This is GOOD analysis and a great forum!!

Keep it UP, Traderji

menonmgk · #12 28th July 2004, 06:26 AM

ZEE has crossed Resistance of 135 comfortably and is advancing for next res. of 153 watch as target is 170.bst wishes

mojac · #13 29th July 2004, 10:53 PM

Dear Tanewbie,
Could u pls suggest me some more scrips for delivery with targets,
thanks...

TATrader · #14 30th July 2004, 07:55 AM

Zee Telefilms Ltd Q1 revenues up 10.8%

Zee Telefilms Limited today reported first quarter consolidated revenues of Rs 3207 million, a 10.8 per cent growth over the corresponding period in the previous fiscal.

The consolidated operating profit has increased by 17.1 per cent to Rs 1055 million over the same period last year. The growth was driven by higher pay revenues, and a healthy recovery in advertising revenues from the corresponding quarter last year.

Zee Telefilms CMD Subhash Chandra said, "Zee finished the first quarter with a good performance, highlighted by 17.6 per cent growth in net profit. Our results were lead by strong performance in both subscription and advertising. The advertising revenues grew well despite the India-Pakistan cricket, which lasted right through April, dragging some advertising spends into the sports genre."

Operating profit growth was supported by efficient cost control measures. Profit before tax for the first quarter of the fiscal 2005 was Rs 1046 million, an increase of 24.4 per cent as compared to the corresponding quarter last year, while net profit at Rs 733 million was higher by 17.6 per cent. These numbers are after consolidating the financials of ETC Networks Limited and Padmalaya Telefilms Limited for the first quarter of FY2005.

The board of directors in its meeting held today, has taken on record the unaudited consolidated financial results of Zee Telefilms Limited and its subsidiaries for the quarter ended 30 June 2004, and recommended payment of dividend of Re 1 per share of Re 1 each for the year ended 31 March 2004.

As part of expansion plans, the company has said that there are some new channels for the Indian market are in the pipeline. This includes augmenting presence in the regional market under the Alpha brand (a Telugu channel has been talked about for a launch later this year). Plans are also afoot for launching a business new channel in the Hindi language (already soft-launched on the DTH platform).

The company also said that ASC Enterprises Ltd, also controlled by Chandra, will commence its full DTH services during the second quarter.

Commenting on the financials, Chandra further said, "We have maintained momentum in our subscription revenues with continued double-digit growth, buoyed by 23.0 per cent growth in domestic pay revenues."

He added, "We are also excited about our new investments supporting the DTH business. During the second quarter, benefit would begin from the launch of full service package on Dish TV, India's first DTH network, which has already grown to 130,000 subscribers. Our strong assets combined with exciting growth opportunities puts us in a good position to create long term shareholder value."

REVENUE STREAMS: Zee's revenues are generated primarily from advertising sales and subscription revenues. Other sales and services include revenues from film production and distribution, syndication and education sales. Zee's advertising revenues increased by 8.7 per cent as compared to the corresponding quarter last fiscal. This was the result of a visible recovery in advertising revenue market and strong advertising growth at Zee News due to the general elections which contributed to this performance and helped offset the opposing effects of advertising spend on cricket during April, the company said.

Overall subscription revenues, registered an increase of 12 per cent over the first quarter of the corresponding period last fiscal. Domestic pay revenues also continued on a growth path with 23.0 per cent increase over the corresponding period last year, despite a price freeze imposed on pay channels by sector regulator.

Other sales and services, which include the performance of Padmalaya Telefilms Limited, recorded an increase of 14.6 per cent.

EXPENDITURE: Zee's main expenses include transmission and programming cost, employee cost and administrative and selling cost. Overall, the primary reason for the 5.2 per cent increase in programming and transmission cost is due to higher programming cost compared to the corresponding period last year.

Personnel cost were higher than corresponding period last year. Other costs, including marketing and administrative costs have grown 10.9 per cent because of higher promotional and marketing costs during the quarter, the company said. As a result, total expenses were up 8 per cent.

Operating profit has grown by 17.1 per cent to Rs 1055 million, while operating profit margin was at 32.9 per cent, as compared to 31.2 per cent achieved during the corresponding quarter last year.

During the last two quarters, Zee has repaid Rs 3.5 billion from its gross debt and has raised $100 million from Foreign Currency Convertible Bonds (FCCB) at YTM of 3.5 per cent. As the company is making fresh investments in the distribution business, surplus cash reserves have come down resulting in a drop in interest income by 16.9 per cent to Rs 159 million.

Profit before tax has grown by 24.4 per cent to Rs 1046 million. With shifting of Zee TV and Zee Cinema channels to India, the income of these channels are being recorded under Zee Telefilms Limited and are subject to the marginal tax rate. As a result, effective tax rate has gone up during the quarter to 30 per cent.

Meanwhile, the company had obtained shareholders' approval to adjust investments amounting to Rs 19,207 million against securities premium account in the EGM held on 25 March, 2004. During the quarter, the company received approval from the Mumbai high court for the same.

Accordingly, this has been given effect in the accounts as on 31 March 2004. The first phase of international restructuring aimed at consolidating non-Indian operations into a single subsidiary has been completed. This measure would rationalise taxation on the international subsidiaries.

HIGHLIGHTS:
* Consolidated operating profit increased 17.1 per cent to Rs 1055 million during Q1 2004
* Advertisement revenue at Rs 1318 million up by 8.7 per cent
* Subscription revenue at Rs 1599 million up by 12 per cent
* Domestic subscription revenue at Rs 630 million signified an increase of 23 per cent
* Capital restructuring for greater efficiencies
* FCCB of $100 million at YTM of 3.5 per cent raised
* Dividend of Re 1 per share of Re 1 each for the year ended 31 March 2004.

Traderji · #15 18th August 2004, 01:06 PM

Zee TV - Latest Update & Trading Signal

Check out my latest update and trading signal on ZEE TV.

See attached chart.

Mohan · #16 19th August 2004, 11:30 AM

Excellent call on Zee again, Traderji.

I have been following your comments very closely and you are one of the rare traders/analysts that actually makes sense.

Is it because you are a professional trader?? Just curious.

Incidently I just checked the price and its currently trading at 145.50

Mohan · #17 30th August 2004, 08:10 AM

I would like to thank and congratulate Traderji for this excellent forum and trading tips.

I have followed your recent trading call on ZEE TV, bought the stock at 140.00 and sold it at 150.00.

THANKS AGAIN

TATrader · #18 6th September 2004, 08:08 AM

Zee TV bags cricket telecast rights, ESPN-STAR upset

Quote:

Zee TV Sunday bagged the telecast rights for all cricket matches to be played in India during the next four years, even as ESPN-STAR Sports accused the Indian cricket board of bowling a "doosra".

The board's decision was "a clear case of denial of natural justice", ESPN-STAR managing director Rik Dovey said in a statement.

Board of Control for Cricket in India (BCCI) chief Jagmohan Dalmiya announced here that Zee TV had bagged the telecast rights for Rs.14.25 billion ($308 million).

It was not immediately clear whether ESPN-STAR Sports would go through with its earlier threat of challenging the offer in court.

"ESPN-STAR Sports will review its position," Dovey said.

Dalmiya said a formal contract would be singed after Zee deposited Rs.925 million "in two or tree days", along with a bank guarantee for the rest of the money.

"Only after that will we issue the letter of intent," Dalmiya told reporters after a two-day meeting of the board here.

Zee has also offered Rs.940 million to promote domestic cricket in India. It also proposes to launch a sports channel in two years' time.

Dovey denounced BCCI's decision and alleged that it had changed the entire bidding process in violation of its own rules.

"On Saturday, the BCCI had asked us to provide clarifications on our original bid. The BCCI Tender Committee had also confirmed they were very impressed by ESPN-STAR Sports' credentials and track record," Dovey said.

"But when we met the committee Sunday, we were informed that they had changed their position and that the telecast rights had been offered to Zee, which was given an opportunity to increase its bid.

"Zee was given the rights subject to its meeting certain conditions, but not all the conditions were disclosed to ESPN-STAR Sports," Dovey added.

andy · #19 6th September 2004, 12:46 PM

The action never ends in ZEE!!!

Traderji, you made a good second call in your post dated 18th August ( http://www.traderji.com/stocks-shares/99-zee-tv-contracting-breakout-2.html#post779 )

GREAT CALL!!!

BUY on Traderji's recomm. SELL on NEWS!!!

Traderji · #20 21st October 2004, 11:46 AM

Zee seems to be again forming a contracting triangle pattern!

Which way will it break out this time? UP or DOWN!

See attached chart and post your comments here!

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