See over 20% growth in subscription in FY13: Zee Ent

Written By Unknown on Jumat, 02 November 2012 | 15.45

Cable digitalisation has happened in all four metro cities. In an interview to CNBC-TV18, Puneet Goenka, managing director and chief executive officer of Zee Entertainment says as of last night, all broadcasters have blacked out the analog signals.

On a sustained basis, he says, the company will still beat the industry average of 7-8 percent on the advertising front. "On subscription, I have always said that we will have over 20 percent kind of growth for the full year," he adds.

Below is the edited transcript of his interview with CNBC-TV18's Latha Venkatesh and Ekta Batra.

Q: Are you getting a feedback that analog is pretty much blacked out?

A: As of last night, all broadcasters have blacked out the analog signals. But definitely, on ground, we are getting reports that there is a certain amount of piracy that's taking place. In the next few days, the broadcasting industry and the MSOs will work together to make sure that the piracy gets curbed and things actually resolve to digitisation.

Q: Since you are one of the media companies, can you outline for us how digitisation would change things in the four metro cities in terms of consumer preferences and which sector gets benefitted?

A: It's still early days, but we do expect definitely that with digitisation happening, our declaration numbers will go up. Hence, revenue will also get impacted for the entire industry. It will benefit us also.

Q: Is there any number that you can share with us, for example, in terms of a direct addition to the bottom-line or top-line from the same?

A: It is too early to talk about just three metros. Today, we all know that the only way to make more money in this industry is if the industry comes together and works on the ARPU increases, the value add services increases for the customer. Therefore, we can get higher share of revenue from each other.

Q: Your ad revenues and subscription revenues were quite strong in the quarter gone by, Q2. Would you actually be able to maintain the same trend going forward, considering there is also a festive season?

A: It was due to the sports business because we had India-Sri Lanka series. That boosted the ad revenue significantly. So, that one will not see. But, even on a sustained basis, we will still beat the industry average of 7-8 percent on the advertising front. On subscription, I have always said that we will have over 20 percent kind of growth for the full year.

Q: You have about Rs 1,200 crore cash on the books of Zee, as of June 2012. How do you intend to use this money?

A: As of September, we have little over an Rs 1,000 crore with us. This money is being used for day to day operations or investment in content, investment in rights for whether its films or sports content. Rhe management only needs in its kitty Rs 800-1,000 crore flexible. The balance we are willing to payback to the shareholders.

Q: How are you mapping the competitive intensity across industry players, especially GEC players over the next two quarters?

A: Competition is as intense as it was in the first two quarters as well. I expect it to remain same.

Q: In terms of market share, hence revenue share, have you seen any growth or substantial growth?

A: My advertising growth, which I have beaten the industry numbers, is basis of my market share growth. So, as long as I maintain my market share and grow it, I will beat the competition growth numbers.

Q: How exactly is Media Pro panning out for you?

A: It's panning out very well. We have completed one year of operations. I am just looking forward to the digital implementation through Media Pro and what we can do to help that move faster.

Q: You are not looking at cashing out immediately?

A: If somebody made me an offer which I can't refuse then it's a different matter. But, today, I am not looking at cashing out.



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