News Broadcasting
Zee Media ad revenue up in Q3-17
BENGALURU: The Essel Group’s news network Zee Media Corporation Limited (ZMCL) reported 10.6 per cent year-over-year (y-o-y) growth in advertisement revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter Q3-16. ZMCL’s ad revenue in the current quarter was Rs 114.43 crore (84.2 percent of Total Income from Operations or TIO) as compared to Rs 103.46 crore (82 percent of TIO) in Q3-16. Quarter-over-quarter (q-o-q), ad revenue in the current quarter increased 16.5 per cent from Rs 98.24 crore (77.9 percent of TIO).
TIO in Q3-17 declined 5.9 percent y-o-y to Rs 135.93 crore from Rs 144.47 crore for the corresponding year ago quarter. Q-o-q, ZMCL’s TIO increased 7.7 percent from Rs 126.25 crore.
Revenue breakup
Advertising revenue from ZMCL’s existing channels increased 15.8 percent y-o-y in Q3-17 to Rs 89.90 crore from Rs 85.23 crore. Advertising revenue from new channels increased 9.7 percent y-o-y in Q3-17 to Rs 8.35 crore from Rs 7.61 crore
Since 1 June, 2016, the company’s flagship channel Zee News became free-to-air (FTA). Subscription revenue, which came in only from the existing channels in the current quarter declined 66.8 percent y-o-y to Rs 9.27 crore from Rs 27.89 crore.
Other revenues for existing channels declined 26.1 percent y-o-y to Rs 2.44 crore from Rs 3.30 crore.
Business Revenue breakup
Revenue from ZMCL’s Television Broadcasting Business (TV Business) declined 5.6 percent y-o-y in Q3-17 at Rs 109.96 crore as compared to Rs 116.45 crore. The TV Business reported 7.2 percent y-o-y increase in operating profit at Rs 13.07 crore in Q3-17 as compared to Rs 12.19 crore.
Revenue from ZMCL’s print business declined 13.6 percent y-o-y to Rs 26.88 crore vis-à-vis Rs 31.11 crore. The print business reported more than tenfold increase in y-o-y operating loss at Rs 15.47 crore as compared to Rs 1.41 crore..
Let us look at the other numbers reported by ZMCL
ZMCL reported a higher y-o-y loss of Rs 6.22 crore in the current quarter as compared to a loss of Rs 0.77 crore in the corresponding year ago quarter, but almost a third of the loss of Rs 18.04 crore in the immediate trailing quarter. In may be noted that ZMCL has incurred an exceptional loss of Rs 18.88 crore due to sale of land and buildings of a subsidiary in the previous quarter.
Simple EBIDTA in Q3-17 declined to less than a third (declined 70.7 percent) to Rs 6.31 crore (4.6 percent margin) from Rs 21.54 crore (14.9 percent margin) and declined 64.1 percent q-o-q from Rs 18 crore (14.3 percent margin).
The company’s total expenditure in Q3-17 increased 4 percent y-o-y to Rs 139.79 crore (102.8 percent of TIO) as compared to Rs 134.35 crore (93 percent of TIO) and was 18.3 percent higher q-o-q as compared to Rs 118.22 crore (93.7 percent of TIO).
Cost of Raw materials consumed in the current quarter increased 31.3 percent y-o-y to Rs 13.61 crore (10 percent of TIO) as compared to Rs 10.37 crore (7.2 percent of TIO) and was 31.8 percent more q-o-q than Rs 10.32 crore (8.2 percent of TIO).
Employee Benefits Expenses in the current quarter declined 16.1 percent y-o-y to Rs 31.48 crore (23.2 percent of TIO) from Rs 37.52 crore (26 percent of TIO) and was 3.4 percent higher q-o-q than the Rs 30.45 crore (24.1 percent of TIO) in the immediate trailing quarter.
ZMCL’s Marketing, Distribution and Business Promotion Expenses (Marketing expenses) in the current quarter declined 33.9 percent y-o-y to Rs 16.78 crore (12.3 percent of TIO) from Rs 25.40 crore (17.6 percent of TIO) and increased 24.2 percent q-o-q from Rs 13.52 crore (10.7 percent of TIO).
Operational costs in Q3-17 increased 1.3 percent y-o-y to Rs 22.86 crore (16.8 percent of TIO) from Rs 22.57 crore (17.9 percent of TIO) and declined 2.9 percent q-o-q from Rs 23.55 crore (18.7 percent of TIO).
Other expense in Q3-17 increased 65.6 percent y-o-y to Rs 44.88 crore (33 percent of TIO) from Rs 27.11 crore (18.8 percent of TIO) and increased 48.1 percent q-o-q from Rs 30.31 crore (24 percent of TIO).
Finance costs in the current quarter increased 19.1 percent y-o-y to Rs 12.36 crore (9.1 percent of TIO) from Rs 10.37 crore (7.2 percent of TIO) and was almost flat (declined by 0.1 percent) q-o-q from Rs 12.37 crore (9.8 percent of TIO).
Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
News Broadcasting
BBC to cut up to 2,000 jobs in biggest overhaul in 15 years
Cost pressures and leadership change drive major workforce reduction plan
LONDON: BBC has unveiled plans to cut up to 2,000 jobs, roughly 10 per cent of its global workforce, in what marks its biggest downsizing in 15 years.
The announcement was made during an all-staff meeting led by interim director-general Rhodri Talfan Davies, as the broadcaster moves to tackle mounting financial pressures and reshape its operations.
Between 1,800 and 2,000 roles are expected to be eliminated from a workforce of around 21,500. The cuts form part of a broader plan to save £500 million over the next two years, aimed at offsetting rising costs, stagnating licence fee income and weaker commercial revenues.
In a communication to staff, BBC interim director-general Rhodri Talfan Davies said, “I know this creates real uncertainty, but we wanted to be open about the challenge,” acknowledging the impact the move would have across the organisation.
The restructuring comes at a time of leadership transition. Former director-general Tim Davie stepped down earlier this month, with Matt Brittin, a former Google executive, set to take over the role on May 18, 2026.
While some cost-cutting measures are being implemented immediately, the majority of the structural changes are expected to roll out over the next few years, with full savings targeted by the 2027–2028 financial year.
The broadcaster had earlier signalled its intent to reduce its cost base by around 10 per cent over a three-year period, warning of “difficult choices” as it adapts to shifting economic realities and audience expectations.
With operating costs hovering around £6 billion annually, the BBC’s latest move underscores the scale of the financial challenge it faces, as it balances public service commitments with the need for long-term sustainability in an increasingly competitive media landscape.
