Zee Telefilms’ UK operations has taken a beating, mainly due to competition from new pay channels catering to the Indian population there and the recent shift in consumer preference from DTH to cable. The company's top management has admitted that it is losing ground in the UK to rival channels.
For the quarter ended December, revenues for Zee in UK fell 27 per cent to Rs 19.74 crore as compared to Rs 27.45 crore in the previous third quarter. Earnings before interest, depreciation and tax have fallen sharply to Rs 2.23 crore in the third quarter from Rs 8.79 crore in the corresponding quarter of last year.
For the third quarter, total income for Zee Networks stood at Rs 265.48 crore compared to Rs 241.53 crore. The Zee management admitted at the meet that its subscriber base has decreased from 75,000 to 25,000 over the last six months in the UK. While the management said that it hopes to recover marketshare and in turn increase revenues in the remaining months, it did not disclose possible strategies for the turnaround.