ZEE Entertainment


Investor Relations

Dear Shareholders,

Financial Year 2015-16 represents a significant milestone in our Company's journey. The year gone by saw ZEEL take several steps taken in the direction of becoming an organisation that performs consistently and at the same time leads change. Therefore, we have chosen ‘Consistency and Change' as the theme for this Annual Report as it aptly reflects the performance of the financial year gone by.

ZEEL has grown steadily since inception establishing itself as a dependable brand and organisation that is efficiently managed, well-governed and forward-thinking. Our performance in FY 2015-16 is a further testimony to these practices. Our growth has been ahead of the market growth trajectory, duly reflected in the growing viewership share of our network (17.9%). We continue to see strong growth in both existing and new products.

We reported consolidated revenues at Rs. 58,515 million representing a growth of 19.8% over the previous year. Our consolidated operating profit (EBITDA) for the year stood at Rs 15,095 million registering a 20.4% growth and resulting in a margin of 25.8%. The net profit for the year stood at Rs. 10,267 million representing a margin of 17.5%. Our performance was led by a robust growth in advertising revenues (28.9%) and subscription revenues across domestic and international markets (14.7%).

In the financial year gone by, we further strengthened our viewership share in the domestic market through a right-fit content strategy. Our new Hindi GEC, &tv, built onto its successful launch and increased its popularity with the urban audience. Our regional bouquet continued its stellar performance and gained further momentum. Zee Telugu and Zee Marathi are examples of how we are using our strength in content to attain leadership in specific markets. The acquisition of Sarthak TV, the Oriya GEC, signals our confidence in identifying and acquiring successful businesses complimentary to our existing operations.

In the international market, we have successfully taken our popular domestic content in the original as well as repurposed form to focus not just on the South Asian diaspora but on a wider cross section of global audiences. I am happy to report that this strategy is working for us as we are able to take our storytelling beyond boundaries and being true to our philosophy of The World is my Family. Our popular channels in this context viz. Zee World, Zee Aflam and Zee Magic have witnessed substantial viewership growth in their respective markets.

Our consistent performance is testimony to our ability to manage our operations efficiently while being aligned to constantly evolving consumption trends. Keeping abreast with emerging trends in the environment ZEEL is reinventing itself into a global content company with presence across various consumption platforms. We have taken multiple new initiatives that signal our focus on content creation across formats and businesses. We intend to concentrate on the entire entertainment value chain of content creation from television to films to live events.

In line with this strategy, FY 2015-16 saw us make significant strides in the regional movie space. Zee Studios, emerged has clear market leader in the Marathi movies genre with a slew of blockbuster movies. We also made inroads in the Hindi movie production with renewed vigour. In less than 2 years since its launch, our music label, Zee Music Company, has emerged as a formidable player in the music publishing space with significant market share.

Furthermore, this year saw the launch of Zee Theatre, an initiative that will allow us to create unique theatre content and distribute it across multiple platforms besides live shows. Another notable initiative during the year was 'Zeal for Unity', a unique concept where the finest filmmakers from India and Pakistan came together to make films that would help bring the two nations closer. This is a classic demonstration of our thought leadership and probably the first ever initiative taken by any broadcaster in the world.

We are also creating dedicated teams for content development to ensure a more robust show pipeline. Our focus is on creating new IPs in non-fiction genres through newer formats such as game shows and cookery shows among others.

World over the entertainment industry is in a state of rapid transformation. This is visible in India as well. We are witnessing a robust growth together with the increasing importance of digital and multiple screen experiences. In fact, digital is now emerging as a mainstream medium for the millennial audiences.

Gearing up for this major change in the media and entertainment industry we established a new entity Zee Digital Convergence Limited in FY2015-16 to consolidate our digital efforts. This year witnessed the launch of OZEE our AVOD platform which is being very well received by audiences who want to watch our content at a time and place of their choice. Other initiatives in this space include digital-first content and digital-only content.

Some of the other key initiatives during the year included the formation of Zee Unimedia Limited. This entity will aggregate properties across our portfolio to leverage the network strength and ensure a right-price approach together with effective bundling of our various offerings. We believe that this will lead to significant value creation for us as well as our advertisers.

Lastly, none of this would have been possible without our hard-working and talented team which is evolving by the day. During the year we took several talent related initiatives that seek to create specialised teams within ZEEL and leverage cross-functional synergies. We will continue to invest in people in creating not just one of the world's foremost entertainment companies but also a great place to work.

I thank you for your generous support in our journey so far and I am sure that we will continue to receive it going forward.

Yours truly,
Punit Goenka
ZEE Entertainment Enterprises Ltd.