Scatmag.com

September 2019


BUSINESS NEWS


DISH TV: 32 CR Q1 LOSS

Dish TV India has reported a consolidated loss of ₹ 31.98 crore during Q-1 (April to June 2019). The company had reported a consolidated profit of ₹ 27.87 crore in Q-1 last year.

Total income was ₹ 930.93 crore, down from ₹ 1,671.36 crore. Subscription revenue was ₹ 826.1 crore (₹ 1,489.3 crore last year).

Dish TV said that due to netting off of programming cost from revenues, to better reflect the New Tariff Regime, subscription and operating revenues for Q-1 2019 are not comparable with those from 2018.

Dish TV India is currently the largest DTH service provider in India with a subscriber base of close to 40 million.


AIRTEL DTH: 526.3 CR PROFIT

Airtel DTH has posted an operating profit of ₹ 526.3 crore during Q-1. Total revenue was ₹ 738.9 crore.

The company explained that with the New Tariff Order (NTO), the service providers are responsible only for re-transmission and are not in a position to control content and pricing. Hence, gross revenue i s o n l y to the extent of net value retained i.e. customer payments received net of broadcaster's fee.

During Q-1 634,000 net subscribers were added, taking total subs to 16.02 million. Monthly churn increased to 1% (0.8% earlier). ARPU during Q-1 was ₹ 157 (₹ 229 Q-1 last year)

Airtel Digital TV offers a total of 613 channels including 80 high definition (HD) channels, seven international channels, and 3 interactive services.


ZMCL Q1 PROFIT DROPS 53%

News broadcaster - Zee Media Corporation Ltd's (ZMCL) net profit for Q-1 has dropped 52.9% to ₹ 26.07 crore compared to Q-1 last year.

However, operating profit spurted 83.6% to ₹ 65.88 crore.

Advertising revenue increased by 35.7% to ₹ 185.9 crore. Subscription revenue remained flat at ₹ 11.28 crore. Other sales and services almost halved to ₹ 3.47 crore from ₹ 6.62 crore.

ZMCL MD Ashok Venkatramani resigned with effect from 10th July.

ZMCL operates 14 news channels comprising 1 Global, 3 National and 10 Regional channels.





NDTV PROMOTERS - FDI VIOLATIONS?

The Central Bureau of Investigation (CBI) has booked promoters of news channel NDTV, Prannoy Roy, Radhika Roy, former CEO and director Vikram Chandra and some Income Tax officials on charges of conspiracy, cheating and corruption. They are being accused of allegedly violating FDI rules between 2004 and 2010.

NDTV has dismissed the allegations stating that they are "malicious" and "fabricated" so as to "silence free and fair reportage."

The CBI has alleged that NDTV colluded with IT officials to bring tainted money into the system through a web of complex transactions through FDI. This was done by floating 32 subsidiaries in various tax havens across the world such as Mauritius, Netherlands, Dubai, UK and Malaysia.

The CBI states that NDTV's London company raised $120 million from 2 companies while the Netherlands company raised $150 million from NBCUniversal, which was then a subsidiary of General Electric Inc. The money was then routed to different NDTV Group subsidiaries such as NDTV Imagine Ltd, NDTV Life Style Ltd, NDTV Emerging Market BV, NDTV Convergence Ltd and NDTV Labs Ltd.


JIO: $1 B OFFSHORE LOANS

Reliance Jio Infocomm will borrow about $1 billion to buy telecom equipment from Korean manufacturers. The loans will be guaranteed by the Korea Trade Insurance Corporation.

Reliance Industries also plans to offer a variety of financial services, to its 340 million users. A Jio Payments Bank has already been established as a joint venture with State Bank of India.



SITI Q1 SPURTS 36%

The New Tariff Order has helped Siti Networks' Q-1 subscription revenue spurt by more than 36% year on year to ₹ 293 crore.

Siti Networks chief business transformation officer Rajesh Sethi mentioned that total r e v e n u e ( e x c l u d i n g activation) also surged by 20% y-o-y to ₹ 392 crore.

More than 57% of Siti's consumers have opted for Siti's bouquets. As a result, ARPU has shot up 2x y-o-y & 1.5x over the previous quarter to ₹ 125.



EROS Q1 PROFIT SLUMPS 55%

Eros International's consolidated net profit fell sharply by 54.87% to ₹ 59.95 crore, compared to a year ago.

Total income during Q-1 was ₹ 210.29 crore compared to ₹ 223.57 crore a year-ago.

E r o s International Media is a media and entertainment firm which is into co-production, acquisition and distribution of Indian language films in multiple formats.



HATHWAY SECOND STB NCF

Hathway has announced that it will charge an NCF (Network Capacity Fee) of ₹ 153 for the second STB. This is similar to what TataSky has decided to charge.

Airtel Digital TV charges ₹ 80 as NCF for secondary connection. Dish TV and d2h, on the other hand, charge ₹ 50 as NCF for secondary connection.

I&B REJECTS NDTV CEO

The NDTV board had appointed Suparna Singh as CEO. The appointment was subject to the approval by the I&B ministry. An application for approval was made to the MIB by the company, on 12 December 2017. Suparna Singh has been acting as the interim CEO, since then.

However, no approval was received by NDTV.

As a direct consequence, Suparna Singh has resigned, with immediate effect. "Suparna Singh has informed the company that she will step down from her responsibilities as Interim CEO with immediate effect," NDTV said in a regulatory filing. n