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Zee still has more shows in the Top100

December 23, 2008

Zee is third behind Colors in ratings but still has more shows in the Top100. Star Plus has regained the number 1 slot with 24% share of the Hindi GEC audience. While Colors continues to be number 2 at 20% share, Zee is close behind at 17% and actually has more shows in the Top100 than Colors.

Sports business is a key part of Zee’s bouquet strength; helping the company drive higher subscription revenues. Sports revenues have averaged 12.5% of Zee’s total revenues in the past 8 quarters but EBITDA contribution has been marginally negative. With the sports business strategy revolving around cricket, securing exclusive telecasting rights remains key to its performance. Recently Ten Sports has won a 5-year local and global telecast rights deal of Pakistan cricket from 2009-13 for US$140.5m (US$45m paid in 2003) compared to US$612m paid for 4 years of only local Indian cricket rights by Neo Sports.

Dish TV Rights issue opend on 12th Dec – Success of the rights issue will serve to reduce investors concern on lending to group companies. Such issues notwithstanding, distribution led revenue growth will continue to provide stability to Zee’s revenues. For FY09, Zee is expected to report an EPS of Rs 10 and grow 18% over the next 2 years.

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