Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Advertising Expenses
2010 20% 2005 9% 2006 17%
2009 22%
2007 15%
Advertising
Sales Promotion
Year
Marketing Expense
462 634.9 746.8 616.1 1347.1 1075.8 462
Analysis
According to the data provided by CMIE, Zee Entertainment Enterprises Limited has been a pioneer in the entertainment industry and has been making net profits for the last 5 years. It has been spending most in the Sales and promotion expenses on average basis while on the other hand nothing has been spent as Rebates & Discount Expenses while a small amount was spent on advertising. After analysing the directors report it can be inferred that the Company has incurred huge profits over past 5 years in spite of making vast expenses. In the financial year 2009-10 Zee made marketing and sales promotion expenses of 1075.8 million. At the same time it also made a huge profit of Rs. 5588.4 million. The vast sales and promotion expenses were made to maintain the brand image and to overcome the unique challenges of recession and unabated growth in number of new entrants. In addition to the Companys ability to capitalize on such upcoming opportunities as digital platform growth, by leveraging the strength of the Companys portfolio of offerings, to cater to multiple viewer groups and their evolving preferences has put the Company ahead and at the forefront of a highly competitive market. While the national channels Zee TV and Zee Cinema maintained their leadership, Zee regional channels also have been leaders and trendsetters in their respective regional markets and continued to do so through the year, registering strong growth in viewership, despite the high clutter and fragmentation due to scores of new channels. Zee further expanded its business presence internationally increasing its reach within the non-penetrated markets and growing its share within the South Asian subscription & advertising revenue pie. Zee International channels were among the top rated in markets across US, UK, Middle East, South Africa & APAC thus consistently generating viewer interest in both South Asian & mainstream audiences resulting in new advertisers & subscribers coming on board.
The Company has also made huge strides in the fast growing digital delivery space with a range of compelling and exciting offerings for viewers subscribing to DTH and Digital Cable platforms. The positive effect is being reflected in the growth in subscription revenues. In the year 2009-10 Directors recommended a Final Dividend of Rs. 2/- per equity share of Re 1/- each, for the Financial Year 2009-10. The total cash outflow on account of Dividend including the interim dividend already paid and the tax on such dividend distribution would aggregate to Rs. 2270 Million, resulting in a payout of 40% of the profits of the Company. This has further strengthened the bond of shareholders with the company.