EVOKING EMOTIONS.TOUCHING LIVES.

Annual Report2018-19

Stories thatInspire

There is no individual who is not capable of doing more than he thinks he can do. However, this potential, more often than not, is not utilized due to the fear of adversities, inadequate realisation of talent, or other priorities. In the humdrum of daily life, it is difficult to take a pause, reflect and shed these inhibitions. In such situations, inspiration strengthens us to transcend limitations and awakens us to extraordinary possibilities. It helps discover latent talent, rekindle long-forgotten ambitions, and muster courage to overcome challenges. While sometimes people are able to channel their inner voice for motivation, they look for external impetus at other times.

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Stories thatConnect

In today’s world, reality is seen through one’s own prism. Like refraction of light into various colors, humans have significantly varied perspectives of personalities, events and cultures. These perspectives pervade ideas, ideals and thought processes, making people what they are. This individuality, posited against uniformity, brings a conflict between uniqueness and diversity. Family, the micro-unit of society, is today a group of individuals living under one roof but pursuing different goals, ideologies, and lifestyles. As this phenomenon expands and reaches the outer circles of the socio-cultural order, we come across disconnect and differences which end up in discontent.

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Stories thatBring Change

Individuals, societies and cultures are constantly shaped by new ideas. What seems like a norm today might have been a rebellious concept in the past. The constant churning of customs, beliefs and convictions with fresh ideas brings about a change in a subtle manner. The process of change is gradual, and even a revolution which unsettles time-tested notions in a single stroke, is a culmination of thoughts built up over years or even generations. Change is the constant driver for evolution and progress of societies and cultures. In a connected and dynamic environment, an inspired individual sets in motion the process of change which gains momentum and becomes a collective movement.

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entertainment
entertainment
entertainment

KEY PERFORMANCE INDICATORS GROWING STEADILY

Revenues

FY14-19 CAGR 12.4% ₹ Million

48837

FY15

58125

FY16

64342

FY17

66857

FY18

79339

FY19

EBITDA

FY14-19 CAGR 16.3%₹ Million

12538

FY15

15136

FY16

19269

FY17

20762

FY18

25639

FY19

PBT Before Exceptional Items

FY14-19 CAGR 13.2% ₹ Million

14040

FY15

14059

FY16

16775

FY17

21841

FY18

24563

FY19

Return on Capital Employed

FY19 (YoY) +330bps%

21.1

FY18

24.4

FY19

Networth

FY19 (YoY) 18.0%₹ Million

66904

FY17

75617

FY18

89239

FY19

Television Network Share

FY19 (YoY) +170bps %

18.0

FY18

19.7

FY19

ZEE5 – Monthly Active Users

FY19 (vs. Apr-18) 190%Million

41.3

2QFY19

56.3

3QFY19

61.5

4QFY19

Movie Business Revenue

FY19 (YoY) 80.5%₹ Million

1660

FY18

2997

FY19

Revenue Breakdown

FY19 Revenue: ₹ 79,339 million

64%

Advertising
revenues

29%

Subscription
revenues

7%

Other Sales
and Services

Distribution of Expenses

FY19 Total Expenses: ₹ 53,700 million

57%

Operating
Costs

29%

Other
Cost

14%

Employee
benifits expenses

View all

Message From

  • Subhash ChandraChairman

    Subhash-Chandra

    Dear ShareholdersMedia & Entertainment industry is going through an exciting phase. We are seeing discontinuous changes in all aspects of entertainment and for the consumer, freedom of choice, enhanced connectivity and multiple screens, have given new dimensions to overall entertainment consumption. The attention spans of the consumers have shortened, and the conventional boundaries of content creation have been breached. In this competitive environment, the need for innovation and creativity is certainly at its peak. In our journey of delivering extraordinary entertainment content across platforms, our Company has been at the forefront of driving change and setting trends for the industry and we are gearing-up for success in this evolving landscape. Our strong and consistent operating and financial performance give us room to invest in future growth opportunities.

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  • Punit GoenkaMD & CEO

    Punit Goenka

    Dear ShareholdersFY19 was another year of strong all-round performance. ZEE5 achieved phenomenal growth in a short span and our Domestic Broadcast business further strengthened its leadership position. Movies & music business scaled-up on the strong foundation it has established. International and Live businesses took steps to prepare for a new phase of growth. The operating performance translated into a strong financial result. We have delivered extraordinary growth over the last several years, but we are cognizant of the changes happening around us and the opportunities it present. We are preparing ourselves to stay on the growth path and succeed in this evolving landscape.

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  • Amit GoenkaCEO – International Broadcast Business & ZEE5 Global

    Amit Goenka

    ZEE5 was launched in a crowded OTT space. How would you rate its performance after fifteen months of launch?We have been pleasantly surprised with the overwhelming response ZEE5 has received. Reaching 61mn monthly active users within a year of launch is a great start. In the first year itself we have significantly expanded our original content offering and have become the number one producer for digital exclusive content. ZEE5 has rolled out several new features for its consumers and is also offering differentiated solutions to advertisers.

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  • Rohit GuptaChief Finance Officer

    Rohit Gupta

    ZEE5 was launched in a crowded OTT space. How would you rate its performance after fifteen months of launch?We have been pleasantly surprised with the overwhelming response ZEE5 has received. Reaching 61mn monthly active users within a year of launch is a great start. In the first year itself we have significantly expanded our original content offering and have become the number one producer for digital exclusive content. ZEE5 has rolled out several new features for its consumers and is also offering differentiated solutions to advertisers.

    Read more

BUSINESSOVERVIEW

Since inception, ZEEL has been entertaining its viewers by showcasing stories set in varied cultural backdrops. Over the years, it has grown from one channel to a multi-faceted entertainment content company. However, at its core, it still strives with the same enthusiasm to create content that evokes a range of emotions, provokes viewers to think beyond conventions and mirrors the cultural and societal aspects, driving a gradual change. Our five businesses – Domestic Broadcast, Digital, International, Movies & Music and Live Events – are designed to cover a vast spectrum of entertainment needs of the consumers.

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STRATEGY ANDBUSINESS MODEL

  • Diversify and strengthen
    content offering

    Having established leadership in television, the company is focused on scaling-up its digital, movies & music, and live events businesses. We are significantly increasing our investments in content offerings beyond television with an objective to attract new viewers and increase engagement with the existing ones.

  • Enhanced
    consumer focus

    The emergence of direct-to-consumer businesses (digital, movies, live events) and the new tariff regulation for television that allows consumers to choose content, give us greater insights into their preferences and behaviors. We are building processes which can leverage these insights to create engaging content and improve the viewing experience.

  • Increase
    reach

    Viewers access content through multiple distribution channels and devices. With a commitment to be available on every possible platform, ZEEL is striking partnerships with content distributors, aggregators and device manufacturers, giving more viewers an opportunity to consume its content.

  • Build
    capabilities

    To succeed in an ever-evolving media landscape, the organization needs to build capabilities for the future. ZEEL is focused on upskilling its workforce, investing in data analytics, and upgrading production facilities and IT infrastructure to deliver extraordinary entertainment experience.

  • 01

    Content
    creation capabilities

    Our in-house expertise along with strong partnerships in the content creation, aggregation and distribution eco-system enable us to create and deliver engaging content at a competitive cost. This helps ZEEL to expand and strengthen its presence across media verticals.

    • We produce ~500 hours of content every week
    • We produce original content in 12 languages
    • We own the IP rights of all the content we produce
  • 02

    Synergies
    across businesses

    We realize significant synergies, in both cost and revenue, due to our presence across markets and platforms. Content created for a market or a platform travels to another with little or no efforts, increasing its economic value. Our diverse presence not only allows us to manage the content creation and acquisition costs better but also enables cross-platform marketing.

    • All 39 channels in International markets run on content produced for our Indian channels
    • Digital platform hosts content from TV, Movies, Music and Live Businesses
  • 03

    Reach

    Our businesses cover the entire spectrum of consumers’ entertainment needs across formats, geographies and platforms. This enables us to reach almost every consumer of entertainment content in India and one in ten in rest of the world. This strong reach makes us the default partner for brand building as well as the preferred partner for content creators.

    • 750mn+ individuals reached in India every month
    • Presence in over 170 countries
    • 3,000+ brands connected with their consumers through our network in India

STRATEGIC ASSETS

  • Library

    Intellectual Property rights of over 250,000 hours of content

  • Strong brand

    Built over 26 years

  • People

    Extraordinary Together

  • 01

    Advertising

    It is an important revenue stream for our domestic broadcast, international and digital businesses. Advertising revenue is primarily driven by reach and viewership of our content. Consumer staples, consumer durables, telecom, auto and e-commerce are our key advertisers.

  • 02

    Subscription

    Domestic broadcast, international and digital businesses generate subscription revenue. Our content reaches through distribution partners such as DTH and cable companies in case of our domestic and international broadcast business. In digital, subscription revenue comes directly from consumers or through our partnerships with telecom operators and other players in the digital eco-system.

  • 03

    Syndication

    This primarily relates to licensing of our content (shows, movies etc.) in the international markets or to other broadcasters in India.

  • 04

    Theatrical

    Revenue from the theatrical release of the movies produced by us.

  • 05

    Music licensing

    Revenue from the licensing of our music catalogue to music streaming platforms and from any other events/platforms where our music titles are utilized.

  • 06

    Others

    Movie distribution: Revenues earned from distribution of movies.


    Ticketing and Sponsorships: Revenues from on-ground events, live shows and theatre.

  • For audiences

    By providing engaging, inspirational and uplifting content to audience’s satisfaction.

  • For advertisers

    We offer brand building solutions for our advertisers to reach their consumers through multiple touch-points.

  • For distribution partners

    Our content is an integral part of offering of our distribution partners – cable, DTH and telecom operators.

  • For talent

    Our network provides unparalleled reach to our content partners. We are also instrumental in continuously bringing new talent to the industry.

  • For shareholders

    Through a track record of consistent financial performance and delivering significant shareholder value.

  • For our people

    By providing enriching experience at the work place, work life balance, adequate learning and growth opportunities.