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May 2018


BUSINESS NEWS


STAR LOOSES 1200 CR IN IPL 2018

Despite its high ad rates and multiple channel distribution, Star India has sold ads on its TV channels for an estimated ₹ 1,800 Crores.

According to media buyers, Hotstar, the video streaming platform owned by Star India, is expected to earn the broadcasting network between ₹ 150 and ₹ 200 crore.

That amount to approximately ₹ 2,000 Crores for IPL-2018.

Star has bid ₹ 16,347.5 Crores for the 5 year IPL rights. This requires Star to rake in ₹ 3,269.5 Crores every year, just to break even.

Hence, for IPL-2018, Star has lost ₹ 1,270 Crores approximately.

Media pundits project that Star will make up the loss over the remaining 4 IPL years.

Star has managed a 30% increase over Sony's IPL-2017 earnings. Even if its IPL-2019 earnings are up to a further 30% from this year, Star will not break even in 2019.


ATRIA IPO PLANNED

Broadband service provider Atria Convergence Technologies Ltd plans an Initial Public Offering (IPO), for ₹ 800 crore. The price band for the shares has not yet been decided. The face value of the shares is ₹ 10 each.

Argan Mauritius (57.05% stake) and TA FCI Investors (37.71% stake), the biggest shareholders in Atria, intend to off-load 60.18 and 39.78 lakh shares respectively.

Atria CEO Bala Malladi, COO Saurabh Mukherjee, former CFO Hosabettu Bhat, and chief people's officer Shefali Mohapatra also plan to sell part of their holdings.

For the 6 months ended 30 September 2017, Atria's revenue was ₹ 684.1 crore, with 91.38% from broadband and 5.21% from Cable TV.

ATRIA

1.28 M Wired B'Band Customers ₹ 625 Crore

0.71 M Cable TV Customers Only ₹ 35.6 Cr

As on December 2017, Atria had approximately 1.28 million wired broadband customers and approximately 0.71 million cable TV customers. 0.61 million CATV subscribers were through LCOs.

The average monthly wired broadband ARPU was ₹ 813 in fiscal 2017 & churn rate was 2.04%.

As of September 2017, Atria was the third largest wired broadband internet service provider in India with a pan-India market share of 6.9%. It operated in 12 cities and towns across Tamil Nadu, Andhra Pradesh, and Telangana, Delhi, and Karnataka.


ORTEL RESTRUCTURES BOARD

Ortel Communications has restructured its board of directors. Mrs Jagi Panda, currently Managing Director (MD) and will be appointed Chairman of the board in place of N o n - Executive Chairman Baijayant Panda. Jagi Panda has also been appointed as Director on the board of Ortel Broadband, a fully owned subsidiary.

Ortel President & CEO Bibhu Prasad Rath has been appointed whole time director.

Baijayant Panda, Subhrakant Panda and Rabi Narayan Misra have resigned from the board on 29 March.

Ortel Communications has allotted 9% non-convertible, 5 year cumulative, redeemable preference shares to Indian Metals and Ferro Alloys on private placement basis for ₹ 10 crore. This raises Ortel Comm's paid up capital to ₹ 40.47 Crores.




SUN DTH TURNS PROFIT

Kalanithi & Kaveri M a r a n ' s Sun Direct D T H p l a t f o r m has increased subscriber numbers and subscription income.

During 10 months FY18, the total income of the company further grew at an annualised rate of about 12% to ₹ 1,139 crore.

Though the company started generating cash profits from FY13, it continued to incur losses till FY16. The promoters have provided financial support by infusing equity. The company had accumulated losses of ₹ 2,706.74 crore and hence a negative net worth as on 31 March 2017.

During FY17, the company reported a net profit of ₹ 44.22 crore.

Sun Direct is shifting to HEVC encoding as against MPEG-4 encoding used earlier, which will help the company broadcast a higher number of channels within the existing bandwidth.

Sun Direct currently uses 8 MeaSat-3 (91.5 deg E) transponders & 4 GSAT-15 transponders @ 93.5 deg E. Of these 4 transponders on MEASAT & 3 on GSAT, were added during FY18.

It currently offers 256 SD channels & 69 HD channels.

Kalanithi Maran and his wife Kaveri Kalanithi together hold 80% stake in Sun Direct. South Asia Entertainment Holding Ltd (SAEHL), a 100% subsidiary of Astro All Asia Networks Plc (Astro), holds 20% stake in Sun Direct. Astro is a leading DTH operator in Malaysia.


ZEEL REORGANISES 4 SUBSIDIARIES

The National Company Law Tribunal (NCLT) has approved the composite scheme of arrangement and amalgamation between ZEEL and its 4 wholly owned subsidiaries.

ZEEL says the reorganisation will consolidate the digital media business.

The details of the reorganisation are:

1. Businesses under Zee Digital Convergence Limited (ZDCL), India Webportal Private Limited (IWPL), Zee Unimedia Limited (ZUL) were to be demerged with ZEEL. DCL, IWPL, and ZUL house the digital media and entertainment, online media, and ad sales business of the company respectively.

2. Sarthak Entertainment Private Limited (SEPL) which runs Odia GEC Sarthak TV, will be amalgamated into ZEEL, consolidating ZEEL's regional GECs.



DISH TV: ₹ 3701 CR OPEN OFFER

The promoters of Dish TV have made an open offer to shareholders for acquiring 26% stake in the company for a total consideration of ₹ 3701 crore in cash @ ₹ 74 per share.

World Crest Advisors, Veena Investments & Direct Media Distribution are the 3 promoter firms that own 33.26% shares in Dish TV.

The open offer has been made after Dish TV merged with Videocon d2h on 22 March.



JAGDISH CHANDRA RESIGNS FROM ZEE MEDIA

Jagdish Chandra ' has stepped down from his position as E x e c u t i v e Director - Regional News Channels at Zee Media Corporation Ltd (ZMCL).

Prior to ZMCL, Chandra was the CEO of ETV News Network.



250 CR DEMAND FOR CWG

The ghost of the October 2010 Delhi Commonwealth Games has come back to haunt the Indian government.

UK-based satellite and broadcast firm, Sports Information Services (SIS), which was responsible for the global coverage of the Games SCAT BUSINESS through its various platforms, has written a strongly-worded letter to union sports minister Rajyavardhan Singh Rathore demanding an immediate payment of ₹ 250 crore, which is pending as part of its contract fee for telecasting the Games along with Doordarshan, the host broadcaster.

SIS was the outside broadcast arm of the British Broadcasting Corporation (BBC) and was also involved in the international coverage of the 2002 Manchester CWG.



MYBOX FOCUSES ON CATV STBS

Hero Group-controlled set top box (STB) manufacturer My Box Technologies (MBT) had a contract to supply DTH STBs to Bharti Airtel. The contract ended in November 2016. Since then, it has not been able to bag any DTH STB contract.

"In the absence of any fresh contract in the DTH segment and the company's strategy to reduce product concentration, MBT focussed on the cable set-top box (STB) and android box segments in FY18," India Ratings and Research (Ind-Ra) said in its report on the company.

During FY16-17, MBT derived more than 80% of its revenue from the DTH STBs.

Shifting its focus on the cable TV segment, CATV STB revenues have more than doubled in FY18. Still, revenue declined 73% YoY to ₹ 97.2 crore.

MyBox hopes to launch Android STBs in Q2 FY19, to diversify its product portfolio. n