MxMIndia

Tag: Jawahar Goel

  • Zee group’s decision to shed up to 50% equity to turn a media-tech major sets the market aflutter

    Who will be ‘extraordinary together’ with Zee?

     

    By A Correspondent

     

    In October 2017, the Zee group unveiled its new corporate identity. Extraordinary Together was to be the new credo.

     

    While making the announcement on Zee’s new corporate brand ideology last year, Punit Goenka, MD & CEO, ZEEL had said: “Our Chairman, Dr. Subhash Chandra’s vision and pioneering efforts caused a revolution in the country 25 years ago. Over time, Zee has evolved from a television broadcaster into a media and entertainment conglomerate with businesses spanning across the spectrum, from broadcasting to music, movies, digital, live entertainment and theatre, providing an extraordinary range of entertainment to audiences around the world. Our new brand ideology – ‘Extraordinary Together’ is rooted in the philosophy that from collaboration comes strength to deliver the extraordinary. In a global company like ours with interests across diverse verticals and businesses, we believe that our ability to win lies in us being able to effectively come together and harness this strength to be extraordinary in the market.”

     

    Chairman Subhash Chandra is known to be a man in a hurry to achieve his goals. And realising that the content-led broadcast play could be a cul de sac, if not merged with technology, he and his family took this significant decision that has indeed sent the market aflutter – not just M&E and M&A but Corporate India as well.

     

    So as the world was just done with Diwali, Subhash Chandra and family along with its advisors met in Mumbai over the Diwali weekend to undertake a strategic review of its businesses in view of the changing global media landscape. The strategic review underscored the importance of technological advancements such as AI, lOT, 3D printing AR, VR and many more. It was observed that these developments will impact virtually all businesses across sectors and business practices will be driven by technological innovation.

     

    The review showed that the family needs to accelerate efforts to stay ahead of fast changing trends. The review noted that with the current 1.3 billion viewers and close to 50 million digital viewers growing at a fast pace, ZEEL is well placed to benefit from current market trends due to its strong brand & bouquet of domestic & international channels. Adding to that strength, Zee5 will further enable the company to leverage the benefits of changing video consumption trends, contributing significantly over the coming years.

     

    Speaking on where the business stands today, Jawahar Goel said, “Punit and Amit have made the right sustainable investments for the future and the business is growing ahead on all fronts in a focused and disciplined way.”

     

    A communique issued notes: “On its own, ZEEL would remain a leader in both linear and digital distribution. It has the consumer insights and knowhow to produce and deliver content for the South Asian diaspora globally. The management depth the Company has built over last two decades distributing content globally in 12 foreign languages puts the Company in a unique position. It has strong revenue streams including advertising and subscription – domestic and international. However, there is recognition that a right global strategic partner will help in transforming ZEEL further, and maximise long term value. It will transform it into a global media-tech player with a unique offering of content to the main stream audiences in 170-plus countries putting it into A KING POSITION globally. It has been decided to undertake a strategic review of Essel’s shareholding in ZEEL with a view to maximise value for the business. The proposed transaction to divest upto 50% of Essel’s holding to such a partner, is expected to address the Essel Group’s capital allocation priorities and will allow ZEEL shareholders to capture the full value of India’s largest entertainment broadcaster with an ever strengthening bouquet Essel has decided to appoint Goldman Sachs Securities (India) Ltd. as their investment banker and US and Europe-based LionTree as an international strategic advisor for this exercise. Essel expects the outcome of the strategic review to be concluded by March/April 2019. We hope that this transaction will meet the objectives of the Essel Group as well as the minority shareholders of ZEEL. India remains a priority market for Subhash Chandra and the Essel Group and the family believes that India is at the cusp of significant growth. The family will continue to invest in growth opportunities in India. Regardless of the outcome of this exercise, Essel is committed to create significant long term value in ZEEL and shall keep on contributing in every possible way going forward.”

     

    The Zee management has had a Call with analysts and Goenka has also had detailed conversations with the business media on this latest gambit. Market analysts and observers MxMIndia  spoke have all been taken by surprise by the move. “Subhash Chandra is known to be master strategist and a maverick, but the decision to shed equity in the most profitable broadcast business in the country is a surprise,” said one analyst who has been tracking the company for over a decade. “However, Chandraji has foresight. Global trends are clear indicators that a content-only play has no long-term future. It has to be a marriage between content and technology. Even internationally, that’s where the wind is blowing.”

     

    The question though the analyst we spoke with as well as others is whether the new suitor will be willing to play a junior role in Zee. “Anyone investing serious dosh will want to play a centrestage role in how the business is going to be conducted. In media, just a few seats on the Board aren’t enough.”

     

    While Goenka said in an interview with CNBC TV18, that he’s happy to exit entirely and start life anew, that’s possibly not the route that global players are looking at. “They realise that only the Subhash Chandra family can run such a lean, mean and successful enterprise. They will want them to continue to drive the business at least in the short run. While technology requires the money, content requires an acumen that Zee has in plenty,” said one more analyst, again speaking on anonymity.

     

    Extraordinary Together is indeed an appropriate credo for the state of things to come.

     

     

  • For the purpose of planning the post-merger integration, Dish TV has engaged Aon, Deloitte and PwC as consultants

    Dish TV, Videocon d2h merger gets MIB nod

    By A Correspondent

     

    Dish TV India has announced the receipt of the final approval needed in India for closing of the merger of Videocon d2h with and into Dish TV. The Ministry of Information and Broadcasting (MIB) vide its letter dated December 15, 2017 has approved the requests made by the company for completion of the transaction.

     

    Following the amalgamation, the combined entity will be renamed as Dish TV Videocon Limited. The combination will have scale similar to leading global cable and satellite players in terms of subscribers. Dish TV Videocon would serve more than 29 million subscribers in India as per its combined share on September 30, 2017, notes a communique.

     

    Expressing happiness on the development, Jawahar Goel, CMD, Dish TV India said: “It has been a long journey since the announcement of the agreement between the two companies a year back. We would like to thank the Ministry of Information and Broadcasting, the National Company Law Tribunal, the Competition Commission of India, the Securities and Exchange Board of India, the Stock Exchanges and all other stakeholders for showing their trust in us. I would also like to express our gratitude to our shareholders for standing by us through the transaction and believing in us to take the combined entity to the next level going forward.”

     

    Added Anil Dua, Group CEO, Dish TV India: “Together, Dish TV and Videocon d2h are going to write history as we embark on this journey of delighting our ‘29 million and growing’ customer base. It is an exciting way ahead as we get this opportunity to leverage the individual strengths of the two organisations. I feel reassured looking at the formidable combination of these two talented teams that are now going to be working together towards a shared vision and common goals.”

     

     

  • The DTH platform also added 829,000 new subscribers with ARPU of Rs 160

    Dish TV reports Rs 4,943 revenues in Q3

    By A Correspondent

     

    Dish TV India Limited has reported third quarter fiscal 2013 unaudited standalone operating revenues of Rs 5,578 million, recording 13.1 percent growth over the corresponding period last fiscal. EBITDA of Rs1,377 million registered 4.8 percent increase over the corresponding quarter last fiscal. EBITDA margin for the quarter stood at 24.7 percent.

     

    Highlights

    • Dish TV added 829 thousand new subscribers in the quarter ended December 31, 2012 achieving a total of 14.7 million gross and 10.5 million net subscribers at the end of the period.
    • Total standalone operating revenues for the quarter stood at Rs 5,578 million, recording a growth of 13.1 percent as compared to the corresponding period last fiscal.
    • Subscription revenues for the quarter were Rs 4,943 million, recording a growth of 16.2 percent as compared to the corresponding period last fiscal.
    • Subscriber Acquisition Cost (SAC) at Rs 2,201 compared to Rs 2,273 in the immediately preceding quarter.

     

    Subhash Chandra

    Subhash Chandra, Chairman, Dish TV India Limited, said, “The Indian media industry is witnessing a sea change as it moves towards a fully digitized environment. With the government remaining committed to the cause, stakeholders across the value chain are working overtime to make the best of the opportunity. As digitization sweeps the pay-tv households in India, platforms with evolved business systems and processes having last mile reach are likely to have an upper edge. Amongst DTH platforms, Dish TV with its technological lead and superior product line-up is one of the best placed to capitalize on the digitization mandate,” he added.

     

    Jawahar Goel, Managing Director, Dish TV, said, “While the distribution industry remained on tenterhooks preparing for digitization, the third quarter saw the much debated compulsory switch off of analog television signals take place in key metro markets. Although lack of execution in Chennai and Kolkata was a dampener, festival demand coupled with mandatory conversion in Delhi and Mumbai brought the DTH industry back to the 1 million plus monthly run-rate. DTH garnered around 35 percent share of incremental additions post the sunset date.”

     

    He added, “In line with our expectation, we witnessed significant subscriber uptake around the sunset date of 31st October. Dish TV achieved the largest share of 28 percent amongst DTH platforms in the digitization territories. ‘Dish+’, India’s first standard definition recorder, played its part in differentiating and attracting consumer interest in a crowded market.”

     

    Commenting on the third quarter performance, Mr Goel said, “A larger base did create pressure on the average revenue per user which, primarily supported by price hike in the second quarter, increased marginally to Rs 160. In the third quarter, apart from the usual additional spends typically experienced due to the festive season, additionally this year the company’s investments to capitalize on the digitization opportunity are also reflected in higher costs during the quarter. A seasonally higher marketing expense was as per budget. Content cost for the year is expected to be within the guided range of 12 percent increase over the previous fiscal.”