GECs
MPA predicts robust growth for Star, Sony, Zee
MUMBAI: Revenue growth for the Big Three of Indian broadcasting — Star India, Sony Entertainment TV India and Zee Telefilms — are likely to remain robust over the next year. These are the findings put out in a new study by research and publishing firm Media Partners Asia (MPA).
According to the Hong Kong-based company, in terms of revenue, Star India will continue to remain the key driver for News Corp’s Star Group. MPA forecasts indicate that the Star Group’s EBITDA could reach $109 million for its FY 2005 (year ending June 30 2005) period with turnover growing 16 per cent year on year to $475 million.
As far as Star India is concerned the dominant programming property for the coming year is the second and final season of Kaun Banega Crorepati, which launches 5 August on Star Plus. A few other shows are also expected to launch during the next few months with which Star hopes to extend its lead in the market.
The MPA report quotes market estimates as indicating that KBC2 could realise at least $55 million in advertising revenue over its 85-week run with profit margins running over 65 per cent. The MPA numbers tie in well to the figures thrown up in an exclusive report filed by Indiantelevision.com last month that had pegged total ad sales revenue expected to be generated solely from KBC2 at Rs 2,550 million with actual profits standing somewhere around Rs 1,700 million. (Rs 2,550 million is equivalent to $ 56.7 million at a $ 1 = Rs 45 exchange rate).
Star has also won government approval for its 20 per cent directly held DTH JV with the Tatas in India. The JV requires a total investment of $370 million, which includes the funding of STB subsidies and operating losses.
Star’s principal rivals in the market – Zee and Sony – are also expected to grow significantly. Zee’s 20 per cent-owned Dish TV (one million subscribers target by March 2006) will be facing stiff competition from the Star JV but the company expects its recent rebound in advertising and improvement in ratings to continue and boost earnings through its FY 2005 period (year ending March 2006) with turnover potentially growing by 14 per cent to $366 million and EBITDA also up 14 per cent to $115 million, a 31 per cent margin.
For the same period, turnover for Sony Entertainment Television (SET) India is expected to grow by 25 per cent year on year to $245 million (fuelled by advertising growth and solid distribution gains) while EBITDA could reach $74 million (12 per cent year on year growth), a 30 per cent margin.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
