Speaking at the 19th AGM in Mumbai, Subhash Chandra, chairman said that Zee Telefilms is expecting dip in revenues and profit during the current fiscal year due to a slowdown in ad sales. The company’s progress on finding a foreign investor for its subsidiary SitiCable, has also slowed down.
“We were close to getting a partner last year. But there is a downturn in the US and Europe and the likely strategic partner’s value slumped by 7-8 per cent,” said Subhash Chandra.
The pay and syndication revenues this year would witness an increase but with the base being low, it will not be a major contributor to the company’s total income.
According to Subhash Chandra, the promotes will clear the total liabilities of Rs 220 crore to the company in the next month.
Zee is still to receive Rs 100 crore from Buddha Films. The company has asked Buddha Films t clear the dues this year with a 15 per cent interest. Buddha Films, which was a sibsidiary of ZTL, has been taken over by the ZTL promoters ad their associates.
The ZTL board has agreed to put in Rs 130 crore as capital expenditure this year. This amount will be raised through debt and internal accruals. An additional Rs 20 crore will be spent on the content side.