Scatmag.com

August 2017


BUSINESS NEWS


VIDEOCON OWES ₹ 43,000 CRORES

In 30 years of operations, Videocon has accumulated a debit of a whooping ₹ 43,000 Crores!

Its wireless operations have failed and ₹ 22,000-crore oil assets are yet to bring in any significant revenue, leaving the group buried under debt.

Videocon hasn't disclosed its consolidated earnings for almost 2 years. A June 2016 Care Ratings report pegged its debt at over ₹ 43,000 crore.

More than half of it is dollar- denominated, and could rise if the dollar appreciates.

Dena Bank classified Videocon as a "Non-Performing Asset" in May, when payments were not received for 90 days.

Videocon shares have plunged almost 75% since then.


ZEEL'S SUBSCRIPTION REVENUES

After selling its sports broadcasting business to Sony, Zee Entertainment Enterprises Ltd (ZEEL) will see its subscription revenue fall in the short term.

In FY17, ZEEL's sports segment posted subscription revenue of ₹ 393 crore and accounted for 17.4% of the company's total pay TV income, or 21.6% of its domestic subscriptions.

ZEEL's domestic subscription revenue grew 11.2% to ₹ 1,822.6 crore in the fiscal ended 31 March 2017.

ZEEL received ₹ 322.8 crore (up 28%) as subscription revenue from its group companies. Dish TV contributed ₹ 231.3 crore (up 26%) & Siti Networks ₹ 70.7 crore (up 4.6%).


AIRTEL: 13.3 M SUBS

Airtel DTH seems to be back on track, after a poor postdemonetisation quarter.

Airtel DTH added 499,000 net subscribers in the quarter ended 30 June 2017, more than double of its 228,000 additions in the preceding quarter. It offers 590 channels including 67 HD channels, 5 international channels and 4 interactive services.

The DTH operator now claims 13.314 Million net subscribers

Revenue grew 3.66% quarter-on-quarter (QoQ) to ₹ 897.4 crore. The year-on-year (YoY) growth was 7.23%.

However, growth has come at the cost of ARPU, which remained almost unchanged QoQ at ₹ 228. It was ₹ 233 end June 2016.




PANESAR QUITS HATHWAY

Hathway video business CEO TS Panesar, who had moved in from Star India, has resigned after spending two and a half years with the MSO.

Panesar played a big role in making the cable TV operations process-driven and launched Value-Added Services (VAS) at Hathway's cable TV operations.

Panesar's exit follows the departure in November of Hathway Cable & Datacom MD and CEO Jagdish Kumar.

A few months ago, Hathway Cable & Datacom moved out its cable TV business to a wholly owned subsidiary while retaining the broadband operations in the parent company. The move has probably lead to Panesar's exit, since he was with the Cable operations.


SPECTRANET & EXCITEL: NO SALE TO ACT

Spectranet and Excitel Broadband have denied press reports that they had held exploratory talks with Atria Convergence Technologies (ACT) Fibernet for possible acquisation by ACT.

The Spectranet rebuttal was particularly sharp, "We wish to state that our company never had any discussions with ACT Fibernet for any business. The mention of ours is detrimental to our brand image."

Excitel Broadband h o w e v e r confirmed the initial talks. Vivek Raina, CEO of Excitel Broadband said, "We are highly respectful of ACT achievement in the last 15 years, also of their recent interest to our company. We definitely do not consider selling stakes of our company. Evenmore, the two companies operate quite different business models. While ACT is focused on premium offerings, Excitel provides inclusive and affordable services, with leaner and highly scalable operation." Raina said that Excitel has reached 1.5 lakh homes in Delhi NCR in less than 2 years and serves 10,000 households Hyderabad.



PASSWORD SHARING IS PIRACY

TV streaming companies are loosing substantial subscription revenue due to rampant sharing of passwords.

In the USA, 21% of streaming viewers aged between 18 to 24 said they had accessed atleast 1 digital video service such as Netflix Inc, HBO Now or Hulu by using log-in credentials from someone outside their household at some time. 12% of adults said they did the same thing, according to a Reuters/Ipsos poll.


LIBERTY BUYS OUT HSN

John Malone's Liberty Interactive is buying out the remaining 62% in Home Shopping retailer HSNi.

"We're thrilled to welcome the HSNi team to our company," declared Mike George, QVC President and CEO. "HSNi founded the industry forty years ago and helped it grow with exciting initiatives like Shop-By-Remote and media integrations with leading content producers. By creating the leader in discoverybased shopping, we will enhance the customer experience, accelerate innovation, leverage our resources and talents to further strengthen our brands, and redeploy savings for innovation and growth. As the prominent global video commerce retailer and North America's third largest mobile and eCommerce retailer, the combined company will be well-positioned to help shape the next generation of retailing."


AT&T - TIME WARNER PLANS

Once it completes its $85.4 billion acquisition of Time Warner Inc., AT&T, plans to promote current AT&T CEO Randall Stephenson, to Group CEO, overseeing a pair of CEOs who will independently manage the company's telecommunications and media businesses.

John Stankey, who now heads DirecTV and other entertainment businesses, will lead the media division, including Time Warner.

AT&T Inc will run its wireless and DirecTV DTH separately from Time Warner. for this, DirecTV will shift to a separate unit that includes AT&T's traditional phone businesses, to be run by John Donovan.

US President Donald Trump is opposed to the proposed merger & has been critical of Time Warner's news division CNN in recent months, calling the outlet "fake news". n