Zee Entertainment Enterprises Limited has reached an “in principle decision” to acquire 100% equity stake in Sarthak Entertainment, which owns and operates an Odia language General Entertainment channel Sarthak TV, for Rs 115 crore. According to the company, Sarthak TV is a profitable venture.
It’s al all cash deal, and is subject to regulatory approvals. ZEEL bouquet of regional language channels includes Zee Marathi, Zee Talkies, Zee Bangla, Zee Bangla Cinema, Zee Telugu, Zee Kannada and Zee Tamizh. In all, Zee has 33 channels in the Indian market.
Zee Entertainment Financials
The split between subscription and advertising revenues for Sarthak TV have not been shared.
ZEEL reported advertising revenues of Rs 779.9 crore for the quarter ended June 30th 2015, up 25.4% year-on-year (y-o-y) compared to Rs 622.1 crore in the same period last year. Advertising revenues represented 58% of the total revenues compared to 59% in the same quarter last fiscal.
Subscription revenues stood at Rs 462.5 crore at the end of Q1 FY16 recording a growth of 12.2% over Q1 FY15. During the quarter, domestic subscription revenues stood at Rs 368 crore while international subscription revenues stood at Rs 94.5 crore. Subscription revenues formed 35% of the total revenues.