The Zee Telefilms stock lost 24 per cent in the last fifteen days from April 24, 2002, till date from a high of Rs 189.60 to today''s closing of Rs 144.90. The scrip has been on a downslide of late following concerns over its revenues and especially the introduction of the cable TV bill, which is further expected to impact its subscription revenues.
According to analysts the fall in Zee Telefilms yesterday was mainly due to the conditional access system (CAS), which is likely to come into play soon and the introduction of the Cable TV bill yesterday, which has prompted a poor sentiment for the stock. Although, Siticable, the cable arm which is the wholly owned subsidiary of Zee Telefilms will be a major beneficiary of the conditional access system (CAS), as a broadcaster, Zee will not benefit.
According to analyst those who didn''t usually watch the Alpha channels in the Zee bouquet were compelled to pay for these channels as they came as part of the entire bouquet. Zee will now lose out on subscription revenues due to the new legislation.
Analysts say despite the passing of the bill the repercussions on Zee Telefilms'' revenue may not be as bad as made out to be. Zee Telefilms has a bouquet of totally 18 channels, three of which belongs to Turner International India apart from Nickelodeon, which is a stand alone channel.
Zee Telefilms expects to garner a large chunk of its revenues from subscription. The company clocked Rs 98 crore from its pay channels in the last quarter ended 31 March 2002.
Source: Business Standard