Scatmag.com

June 2017


BUSINESS NEWS


GTPL-HATHWAY IPO

SEBI has approved G T P L - Hathway's I P O , expected in June, for around ₹ 300 crore. Of this, ₹ 229.67 crore will be for repayment of debt.

2 years ago, Ortel Communications was the last MSO to list on the bourses.

The promoters hold 98.95% stake in the company of which 50% is held by Hathway Cable & Datacom, 29.11% by Gujarat DigiCom, 14.62% by Aniruddhasinh Jadeja, 5.21% by Kanaksinh Rana and 1.05% by Amit Shah.

In Gujarat, GTPL Hathway has 67% market share, with 3.7 million of the state's 5.6 million cable homes.

It is also the second-largest MSO in Kolkata and Howrah, with 24% market share i.e. 0.7 million of 3.0 million cable TV households.

The MSO accounted for 14% share of the total cable carriage and placement fee market in India in FY 2016.

GTPL Hathway delivers digital cable TV to 169 towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh.

It has approximately 5.41 million active digital cable subscribers & 217,823 broadband subscribers (30 Sept 2016) with approximately 1 million homes passed.

In FY16, GTPL Hathway posted a net profit of ₹ 69 crore on a revenue of ₹ 844.55 crore.


POOR RESULTS BY DISHTV

Dish TV has fared b a d l y . A n n u a l revenue did not rise, but fell 1% to ₹ 3014.39 Crore.

Annual net profit fell 84% to of ₹ 109.28 crore, down 84% from a year ago.

Q-4 consolidated revenue fell to ₹ 709 crore, down 11.4% from last year.

Employee expenses rose 20%.

The net loss for Q-4 was ₹ 28.3 crore v/s net profit of ₹ 483 crore in the same quarter last year.


ZEE BUYS MOVIE RIGHTS FROM EROS

E r o s International plc, has signed a TV content syndication deal with Zee for a slate of its forthcoming releases this year.

The movies include 'Sarkar 3', 'Munna Michael' and 'Shubh Mangal Savdhaan'.

Said Eros International Media managing director Sunil Lulla, "Bollywood films are critical to the television programming mix and we attempt to tailor packages to suit audiences on each network to maximise potential for both entities from the television broadcast."




ZEEL OK TO BUY RBNL

Last year ZEEL announced its intent to acquire the entire television business of the Anil Ambani run Reliance Broadcast Network Ltd (RBNL) including 2 operational channels and four TV licences. Anil Ambani's Reliance group also agreed to sell a 49% stake in its radio business to Zee group entities, marking the latter's entry into private FM radio.

That deal has now won the OK from ZEEL shareholders, on 9 May. The company received 800,317,632 votes in favour and 1,400 votes against the resolution.


RAJ NAYAK APPOINTED COO VIACOM18

Viacom18 Media Pvt. Ltd, which o p e r a t e s C o l o r s , MTV and C o m e d y C e n t r a l channels in India, has elevated Raj Nayak as C h i e f Operating Officer. He was CEO of Hindi GEC channels Colors and Rishtey.

Anuj Poddar, business head of Colors Marathi and Colors Gujarati, will now head all rural business.

All its regional channels (Colors Kannada, Colors Super, Colors Marathi, Colors Bangla, Colors Odia, Colors Gujarati and the soon to be launched Colors Tamil) will come under Ravish Kumar, head, regional entertainment.

Ferzad Palia, head who heads MTV, MTV Beats, Vh1 and English GEC Colors Infinity & Comedy Central will also oversee Brand Studio and MTV Music Project.

Both Poddar and Palia will report to Nayak. "With this move, Viacom18 has consolidated its national brands aimed at youth and adult audiences under the leadership of Raj," the company said in a statement.

Viacom18 also operates 3 kids' channels, a film studio & VoD platform VOOT.



ZEE ANNUAL RESULTS

Zee Entertainment Enterprises Ltd, Subhash Chandra's flagship company has declared its annual results.

Advertising revenue in FY17 was ₹ 3,673 Crores, a 9.2% growth.

Subscription revenue grew 10% to ₹ 2,263 Crores, of which domestic subscription revenue grew by 11.2% to ₹ 1,823 Crore. International subscription revenue grew only 3% to ₹ 440 Crore.

ZEEL sold its loss making Zee Sports to Sony Pictures to book a one time income of ₹ 1,223 Crore.


STAR: 325 CR DEMONET LOSS

Star India claims it lost $50 million in 2 quarters, due to demonetisation.

It claims a loss of $30 M in Q-2 and $ 20M in Q-3 in ad revenues, due to demonetisation, and the resultant slowdown in demand due to shortage of currency.


ORTEL PROFIT IN Q4

After reporting a ₹ 2.8 Crore loss in Q-3, Ortel Communications has swung back with a ₹ 0.8 Crore profit in Q-4.

Revenue from operations fell 9.9% to ₹ 46.1 crore. Total expenditure decreased 10.2% to ₹ 35.9 Crore. Programming cost increased 16% to ₹ 10.7 crore. The pay channel cost per customer increased to ₹ 47.67 from ₹ 41.81.

Cable TV revenue fell 9.2% to ₹ 36.3 crore compared to the preceding quarter due to a drop in carriage revenue by 33.6% to ₹ 5 crore.

Cable subscription revenue fell 3.6% to ₹ 28.9 crore. Broadband revenue declined 17.9% to ₹ 7.1 crore.

Internet subscription fee fell 17.4% to ₹ 7 crore.

Its total cable TV universe comprised 750,471 subscribers while the broadband subscriber base was 73,087.

Cable TV ARPU was down to ₹ 147 from ₹ 150, while broadband ARPU was down to ₹ 375 from ₹ 394.


NSTPL TO PAY SONY 60L

T h e TDSAT has directed HITS operator Noida S o f t w a r e Technology Park Ltd (NSTPL) to pay ₹ 60 Lakhs in 4 instalments to Sony Pictures Networks India (SPNI).

Earlier, 4 cheques from NSTPL to Sony of ₹ 15 Lakhs each were dishonoured due to insufficient funds.

Sony claims that NSTPL owe it ₹ 2.42 crore as subscription dues. NSTPL has disputed this claim and the maintainability of this petition on some technical grounds.

Considering this situation, the tribunal observed that the petition has to be decided after trial on the relevant issues and after recoding evidence. For that purpose, it granted time to the parties to appear before the deputy registrar of the tribunal on 6 July for further action. n