Zee Telefilms climbs on adding sports channel to basket
Zee Telefilms advanced 3.70% to Rs 342.90, after acquiring 50% stake in Ten Sports, a Dubai-based sports channel owned by Taj TV.
As many as 15.51 lakh shares were traded in the counter on BSE.The stock witnessed a sharp rally from Rs 292.05 on 26 October to surge to Rs 337.65 by 6 November, on strong buying momentum. Here, it witnessed profit-booking and finished at Rs 330.65 on 10 November 2006.The investment is based on an enterprise value of $ 114 million (approx Rs 513 crore).
The acquisition will be completed in two parts. Zee Sports International Mauritius, a wholly-owned subsidiary of Asia Today, Mauritius, which in turn is a wholly-owned subsidiary of Zee Telefilms, will acquire 50% stake in Taj TV, Mauritius, which owns Ten Sports, from Taj TV’s shareholders.
Zee will acquire 50% stake in Taj Television India, Mumbai, a distribution arm of Ten Sports in India.
Ten Sports is the leading sports channel in India with the highest viewership amongst sports channels. Ten Sports has rights to leading cricket properties like Pakistan Cricket Board, Sri Lanka Cricket Board and the West Indies Cricket Board. These rights, combined with the BCCI neutral venue rights that Zee Sports has, creates the single largest repertoire of cricket programming.
Zee Sports also has the rights to Indian football, Davis Cup, WTA, Italian Series A. Both sports channels will be able to leverage these properties for maximum benefit.
Ten Sports, which is headquartered in Dubai Media City, also operates separate beams in the Middle East, Pakistan, Sri Lanka, Bangladesh and Hong Kong. Combined with the Indian presence of Zee Sports, the combination is truly pan-Asian in the sports broadcasting arena.
Following this move, the Taj TV financial statements will be consolidated in Zee's books. Taj TV’s average annual revenues for the next three financial years will stand at approx $ 50 million, whilst the average EBITDA for the next three financial years will be approx $ 14 million.
Over the past few months, Zee has been focussing on growing its flagship Hindi entertainment channel, Zee TV, by launching new soaps as well as musical and comedy shows.
Zee Telefilms reported 51% fall in net profit to Rs 10.99 crore for Q2 September 2006, compared to Rs 22.42 crore in Q2 September 2005. Net sales rose 52% to Rs 287.42 crore (Rs 189.03 crore).
As many as 15.51 lakh shares were traded in the counter on BSE.The stock witnessed a sharp rally from Rs 292.05 on 26 October to surge to Rs 337.65 by 6 November, on strong buying momentum. Here, it witnessed profit-booking and finished at Rs 330.65 on 10 November 2006.The investment is based on an enterprise value of $ 114 million (approx Rs 513 crore).
The acquisition will be completed in two parts. Zee Sports International Mauritius, a wholly-owned subsidiary of Asia Today, Mauritius, which in turn is a wholly-owned subsidiary of Zee Telefilms, will acquire 50% stake in Taj TV, Mauritius, which owns Ten Sports, from Taj TV’s shareholders.
Zee will acquire 50% stake in Taj Television India, Mumbai, a distribution arm of Ten Sports in India.
Ten Sports is the leading sports channel in India with the highest viewership amongst sports channels. Ten Sports has rights to leading cricket properties like Pakistan Cricket Board, Sri Lanka Cricket Board and the West Indies Cricket Board. These rights, combined with the BCCI neutral venue rights that Zee Sports has, creates the single largest repertoire of cricket programming.
Zee Sports also has the rights to Indian football, Davis Cup, WTA, Italian Series A. Both sports channels will be able to leverage these properties for maximum benefit.
Ten Sports, which is headquartered in Dubai Media City, also operates separate beams in the Middle East, Pakistan, Sri Lanka, Bangladesh and Hong Kong. Combined with the Indian presence of Zee Sports, the combination is truly pan-Asian in the sports broadcasting arena.
Following this move, the Taj TV financial statements will be consolidated in Zee's books. Taj TV’s average annual revenues for the next three financial years will stand at approx $ 50 million, whilst the average EBITDA for the next three financial years will be approx $ 14 million.
Over the past few months, Zee has been focussing on growing its flagship Hindi entertainment channel, Zee TV, by launching new soaps as well as musical and comedy shows.
Zee Telefilms reported 51% fall in net profit to Rs 10.99 crore for Q2 September 2006, compared to Rs 22.42 crore in Q2 September 2005. Net sales rose 52% to Rs 287.42 crore (Rs 189.03 crore).
posted by SY at 5:13 PM
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